Through the recent issuance of updated Anti Money Laundering rules and regulations, we are able to strike a balance between prudential requirements and realistically not having direct knowledge of those in under-served areas. To address this difficulty, our new rules rely on 3rd parties already embedded in the communities to fulfil the face to face requirements of the Know-Your-Customer threshold 3.
The model results are for GDP-weighted averages of the zero-coupon yields of the big four sovereign issuers (Germany, France, Italy and Spain). While impact elasticities may have been larger during the peak times of the pandemic, the same model (estimated based on the APP experience) is used to quantify APP and PEPP impacts. Results are subject to estimation and model uncertainty.