Certified Anti-Money Laundering Specialist (CAMS) 2025 – 400 Free Practice Questions to Pass the Exam

The Basel Principles were first issued in 1988 by the Basel Committee on Banking Regulations. This committee, established by the central bank governors from the Group of Ten countries, focused on enhancing the understanding of key financial stability issues and providing a forum for collaboration on banking supervisory matters.

The 1988 issuance of the Basel Principles aimed to address the weaknesses in bank regulation and supervision following the financial crises of the late 1980s. It laid down essential guidelines and frameworks for banking supervision, which included the assessment of banks' capital adequacy, risk management practices, and the necessity of a sound governance structure.

By establishing these principles, the Basel Committee sought to fortify the banking system and reduce the risk of systemic crises resulting from inadequate regulatory practices. This foundational work has since evolved into more comprehensive agreements, including Basel II and Basel III, which further refine and enhance the principles of banking regulation and supervision in a global context.

Other options mention various institutions and dates that do not align with the actual issuance of the Basel Principles, highlighting a misunderstanding of the historical context regarding banking regulations and the role of the Basel Committee.