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We have been publishing articles and white papers on the issues of money laundering / terrorist funding and one of the great ever-widening holes that exists with the Basel Accord, that being the end results and decisions of Basel I, Basel II and Basel III.

What we have found, through responses from subscribers, and even some of our clients, is that they truly don’t grasp the concept of what the Basel Accord(s) are, let alone how they were designed and eventually recommended.

Let us look at a very, simple definition of what the Basel Accord is, which is nothing more than a set of agreements created and submitted by the Basel Committee on Bank Supervision (BCBS). The BCBS is responsible for the analysis and advisory recommendations addressing “operational risk”, “capital risk” and “market risk”, to be (in their eyes hopefully) adopted by the United States and all “global financial participants”.

The logic (though exceptionally idealistic) is for the BCBS committee(s) recommendations to be adopted to “safeguard” that all financial institutions and banks maintain enough liquid capital “on hand” to meet all “investment” commitments so as if there is a “true unanticipated loss(es)” that may be required to be covered.

The bottom line, is to cover all investments with the matching “available liquid capital” required.

Remember, that this was all implemented in 1988, so as to address the shortfalls, loopholes and numerous flaws of financial and investment institutions.

Also remember that bank failures and financial / investment institutions would be going through some of the most serious failures in history right from the implementation of Basel I, only to be matched by storm looming that the public would never dream could happen; however the ever-growing evidence was accumulating that such accord(s) not only would not work, but they allowed the accumulation of laundered funds easily hidden from regulatory analysts and investigators.

The laundered monies from Clearing Houses that exceeded 270 Billion ($270,000,000,000), at a minimum, of United States dollars, both liquid and invested, unaccounted, but now massing for uses that could not be dreamed of, let alone in a form that within a little more than a decade would become a nightmare of a reality.

The investments from non-profit organizations that was accumulating over 190 Billion ($190,000,000,000), at a minimum, of United States dollars, all invested, all moved into countries NOT part of the accords, as well as financial institutions that utilized branches in “non-participating” countries that were able to avoid the auditors, regulators and investigators long enough to channel funds, launder funds into something more ominous.

The intentions of the Basel accord(s) was honorable, but both idealistic and dangerously filled with omissions and oversights. It did not address “illegal activities”.

It was designed to “prevent” them from a “REACTIVE” point of view.

So were the “intentions” of Neville Chamberlain.

There was no real analysis performed with law enforcement and agencies that knew of channeling of funds was taking place in the Middle East, Africa, Eastern Europe and other countries which was for a purpose the would alter history as we know it forever.

No, there was no Homeland Security.

No, the National Security Agency did NOT have divisions and the manpower to deal with a threat that was only a concept, a theory – yet the warning signs where all around to where it was almost impossible for it to be missed.

Tuesday, September 11, 2001.

There is no way it can be described except it is an event that historically was a world-changer – A waking of an malicious act that the public, let alone the government never dreamed would happen.

From this point on (not including previous attacks on various governmental, industrial and financial holdings and facilities), terrorism found a new home in the world.


A permanent home that was “proven” could be funded by means that assured it could circumvent the most “honorable” controls and safeguards.


Yes, the Basel I, II and now III regulatory recommendations are still formulated around a flawed premise that does NOT include terrorist funding methodology, let alone organized crime. Money laundering is NOT the only way to acquire and move illegally acquired monies. It is much simpler than that.


The real threat that exists is NOT addressing the issue of the Basel accord(s) PROACTIVELY and incorporating the weakest links so as to finally address and start a truly long-but-necessary battle to contain (not stop) the illegal movement of funds shrouded by a label of financial failures.


How many of the financial “failures” have resulted in the identification of WHERE the monies went?


How many of the financial “failures” have resulted in recovery of ANY of the monies?


The questions are numerous, but in the end, it is an act of denial that regulations do NOT have a role in illegal money movement, acquisition and disposition to ANY party, organization or group – whether it be organized crime or terrorist organizations.


Weapons are not free –

 Ammunition is not free –

 The logistics for running terrorist organizations is NOT free –


With our government organizations, such as Homeland Security, and the foreign counterparts, WHY have they not been included in the analysis, or even in an “advisory capacity” where vast amounts on intelligence and information, accumulated over DECADES, could be researched and determined relevant / non-relevant to ANY accords that will deal with banking and financial institutions globally?


Reactive planning will ALWAYS fail.


We have resources to start the long road back to COMMON SENSE planning.


The question is, will be TAKE BACK the common sense planning of financial and investment regulations with PROACTIVE strategies and methodologies?


The world of fraud and threats, in the form of ever-growing terrorism, is a reality.


The solution is NOT in the direction that we have blindly accepted since 1988.

This is NOT 1988.

September 11th, 2001 was and still IS a reality.

We are now in 2015, and we have not scratched the surface of addressing the FUEL that runs crime and threats such as terrorism, and that is un-checked, un-controlled and un-monitored REVENUE.

It is time to reassess the hobbling effect of Basel and dismantle a system that has failed miserably with a track record to prove it.

Banks and financial institutions are reeling from the constant churning of changes requiring millions of dollars of adapting to regulations that DO NOT WORK

It is costing the consumers and businesses MILLIONS of dollars in wasted time and redundant procedures that more than 60% of the Basel accord participants DO NOT UNDERSTAND AS A WHOLE.

There is also a growing, but silent resentment by many to the entire structure of Basel regulations, but no one wants to address an “alternative”.

It is TIME.

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