The New York State Department of Financial Services has finalized its anti-money laundering rule for financial institutions chartered in the state. The final rule includes many changes to the proposal, removing or modifying several ABA-opposed elements.
For example, the final rule removed the controversial requirement for an annual certification by a senior compliance officer with personal liability for non-compliance, replacing it with a board or senior compliance officer certification of compliance to the best of their beliefs. ABA argued that the proposed regulation would have forced chief compliance officers to accept liability for actions outside their control and ultimately deter qualified individuals from accepting the chief compliance officer role.
The key elements of New York’s new AML regime that each institution will be required to have a transaction monitoring program and a watch list filtering program. Working with the New York Bankers Association, ABA will review the rule to see whether it may lead banks to close or not open marginal accounts and further perpetuate the “derisking” trend.
Read the final rule.