Archived publications

Anti-money laundering utility
While the economic crisis has significantly curtailed the financial markets, money-laundering schemes have persisted. Financial institutions face a conflicting mandate: As the economy forces these companies to do more with less, they must redesign their anti-money laundering (AML) model to thwart increasingly sophisticated launderers and terrorist financiers.

Managing fair lending risk in wholesale mortgage pricing
One of the thorniest fair lending compliance issues currently confronting banks and other mortgage lending institutions is whether to monitor wholesale loans - i.e., loans originated by mortgage brokers - for potential disparities in pricing by race or national origin.

Mortgage servicing compliance
This document highlights some compliance considerations throughout the mortgage servicing process that can help institutions manage these risks and their associated regulatory exposure.

Beyond capital: What institutions that may be regulated as bank holding companies should start working on today
How can new BHCs and FHCs successfully manage this transition? This paper discusses five areas where institutions should focus.

A New Foundation: Rebuilding Financial Supervision and Regulation: Some initial observations on key areas
 Presented in the form of a white paper, the proposal describes the reasons driving each of the main objectives and sets forth a number of specific legislative and regulatory actions intended to achieve the objectives. No statutory language has been provided, but, in a number of areas, key legal concepts or provisions to be included in legislation are set forth in detail. PwC's whitepaper includes our observations on the key issues outlined in the proposal.

Hedge fund regulation: How should alternative investment firms prepare for regulatory change?
 Reform of the financial markets architecture is clearly on the horizon. What will the new regulatory environment mean for hedge funds and other alternative investment managers, and how should managers begin preparing for the inevitable changes?

Options remain open for federal insurance regulation
 There has been recurring support both in the US Congress and Treasury for an Optional Federal Charter (OFC), which would create a single federal insurance regulator as an alternative to the current state regulatory system. Barbara Law reviews the arguments for and against an OFC, provides updates on the status of the debate, and shares insight into what the future may hold.

Financial Holding Company status
A company that owns a bank is defined under federal banking law as a Bank Holding Company (BHC). In 1999, Congress amended the law governing BHCs to allow them to engage in a much broader range of activities through nonbank subsidiaries if they elected, with Fed approval, to become a Financial Holding Company (FHC). The current financial crisis is causing many large financial firms to pursue or at least consider becoming FHCs.

Doing more with less: Improving the anti-money laundering surveillance program
 Monitoring customer activity for money laundering and terrorist financing is one of the most daunting compliance challenges for financial institutions.

The role of an effective independent review of your institution's anti-money laundering (AML) program
 This presentation was given at the annual financial services conference hosted by the Institute of Internal Auditors on June 2-4, 2008 in Atlanta, GA. .

Viewpoint: The challenge of keeping models up-to-date
 American Banker, January 2008. By Richard Pace, Principal, PwC.

Model risk management: Key considerations for challenging times
 Bank Accounting & Finance, June-July 2008. By Richard R. Pace, Principal, PwC. This article discusses the challenges of model risk management and the imperative for financial services companies to build an effective model risk management program.

Navigating emerging model risks: Model validation in the current economic environment
 The recent downturn in the housing market has exposed certain weaknesses in mortgage credit risk models' ability to make accurate credit loss forecasts.

Building sustainable efficiencies: Leveraging anti-money laundering investments
 This viewpoint discusses how institutions can reframe AML by championing the effective transfer of knowledge through energized approaches to their people, processes and philosophies.

A regulatory guide for foreign banks in the United States 2007-2008
 The 2007-2008 edition of PwC's regulatory guide for foreign banks in the United States is now available. The guide is intended for foreign banks operating in the United States and highlights issues that foreign banks must navigate in doing business here to ensure they meet regulatory expectations.

Mind the gap: beware of anti-money laundering implementation gap pitfalls-what you need to know, part I
This article covers common anti-money laundering implementation gaps and their key indicators.

Anti-money laundering: Reporting to senior management and the board (9.22mb)

Regulators reinforce need to develop new products within a formal risk management framework (3.25mb)

Anti-money laundering and data quality (2.73mb)

Anti-money laundering information supply chain: Reducing the cost of compliance (583kb)

Avoiding AML/BSA enforcement actions (1.19mb)

Why is a model validation program necessary in a Sarbanes-Oxley environment? (1.49mb)

Regulation W: Bank transactions with affiliates (2.06mb)

Regulatory capital developments: US application and implementation of the Basel 2 framework: What's ahead? (844kb)