New York Department of Financial Services’ (DFS) new anti-terrorism and anti-money laundering regulation that requires financial institutions operating in the state to maintain programs to monitor transactions for possible money laundering has gone into effect.
The new rule, first proposed in December 2015, mandates regulated institutions to monitor and filter transactions for potential Bank Secrecy Act, anti-money laundering breaches, and to prevent dealings with sanctioned entities.
Under the new rule, institutions are required to adopt an annual board resolution or senior officer compliance finding that confirms the measures taken for compliance with the rule.
The resolution or finding should confirm that documents, reports, certifications as well as opinions of officers and other relevant parties have been reviewed by the board of directors or senior official.
Commenting on the rule, superintendent Vullo said: “This regulation represents an important milestone in DFS’s longstanding mission to improve and strengthen BSA and AML compliance among New York’s financial institutions and make certain that banks are not being used to help finance terrorism and other illegal activities.”