New York DFS Proposed BSA/AML and Sanctions Requirements: New York Department of Financial Services Issues Proposed Transaction Monitoring and Filtering Program Requirements and Annual Senior Compliance Officer Certification

Sullivan & Cromwell LLP - December 2, 2015
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The New York Department of Financial Services (the “NYDFS”) yesterday issued a proposed regulation (the “Proposed Regulation”) that sets forth, for financial institutions chartered or licensed under the New York Banking Law (a “Regulated Institution”), the attributes of a transaction monitoring and filtering program to ensure compliance with applicable federal Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) laws and regulations and sanctions administered by the Office of Foreign Assets Control (“OFAC”).  In addition, the Proposed Regulation would require a senior compliance officer of each Regulated Institution to make an annual certification as to an institution’s compliance with the requirements of the regulation, with the potential for criminal penalties for the officer if the certification is “incorrect or false.”  The effective date would be immediate on final issuance and would apply to all “state fiscal years” beginning April 1, 2016.  Comments are due 45 days after publication in the New York State Register.