New Part 115 of the General Regulations of the Banking Board
(Anti-Money Laundering Programs for Applications for Charters, Acquisitions and Mergers and Changes of Control)
April 9, 2008
ANTI-MONEY LAUNDERING PROGRAMS FOR APPLICATIONS FOR CHARTERS, ACQUISITIONS AND MERGERS AND CHANGES OF CONTROL
(Statutory authority: Banking Law Sections 10, 14(1), 24, 26, 29, 39, 44,142,143-a, 143-b, 201, 324, 413, 450, 461, 519, 601, 601-a and 601-b.)
115.1 Anti-Money Laundering Program
115.2 Charter and License Applications
115.3 Acquisition and Merger and Change in Control Applications
Sec. 115.1 Anti-Money Laundering Programs
This Part is issued to assure ongoing compliance with the existing practice of the Superintendent of Banks (the “Superintendent”) to require each applicant for a charter, or for approval of an acquisition, merger or change of control to demonstrate an anti-money laundering program that complies with applicable federal anti-money laundering laws, including a required customer identification program (31 U.S.C. Chapter 53, Subchapter ll and 31 U.S.C. 5318(l))* and regulations promulgated by the United States Department of Treasury (31 CFR part 103.120)* , and, as appropriate, regulations of the Board of Governors of the Federal Reserve System (12 CFR parts 208.63 and 211.24)*, regulations of the Federal Deposit Insurance Corporation (12 CFR 326.8)*, and regulations of the National Credit Union Administration (12 CFR part 748.2)*. In addition, the Department seeks to assure compliance with applicable regulations issued by the Office of Foreign Asset Control of the United States Department of the Treasury (“OFAC”) (31 CFR part 500 et seq)*.
(a) Each applicant shall demonstrate that it has, or on the effective date of the transaction that is the subject of the application, will have, an anti-money laundering program that complies with the applicable federal anti-money laundering laws and regulations referred to this section 115.1.
(b) For purposes of this Part, the required anti-money laundering program shall, at a minimum:
- Provide for a system of internal controls to assure ongoing compliance;
- Provide for independent testing for compliance to be conducted by bank personnel or by an outside party;
- Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and
- Provide training for appropriate personnel.
(c) The anti-money laundering program shall be in writing, approved by the institution’s board of directors or equivalent body, and such approval shall be noted in the minutes of the board of directors or equivalent body.
(d) Each applicant shall also maintain, as part of its anti-money laundering program, a customer identification program that complies with the applicable federal anti-money laundering laws and regulations referred to in this section 115.1.
(e) Each applicant also shall demonstrate that it has, or on the effective date of the transaction, will have, risk-based policies, procedures and practices to ensure, to the maximum extent practicable, that its transactions comply with OFAC requirements.
(f) Compliance with the applicable federal requirements shall constitute compliance with this Part.Sec. 115.2 Charter and License Applications
All applications submitted for approval by the Department to establish a bank or trust company, private banker, savings bank, savings and loan association, safe deposit company, investment company, credit union, to establish a branch or agency in New York State of a foreign banking corporation or to establish a representative office of a foreign banking corporation shall be accompanied by information demonstrating that the applicant maintains or will maintain an anti-money laundering program that satisfies the requirements set forth in section 115.1.Sec. 115.3 Merger, Purchase and Assumption, Acquisition and Change of Control Applications
All applications for approval by the Department to merge with, purchase and/or assume, or acquire control (as defined in the applicable provisions of the Banking Law) of, any bank or trust company, savings bank, savings and loan association, investment company, safe deposit company or credit union shall be accompanied by information demonstrating that the applicant has or will have an anti-money laundering program that satisfies the requirements set forth in section 115.1.
Sec. 115.4 Waivers
In considering an application, the Department may determine, for good cause shown, that lack of compliance with any of the requirements of this Part does not necessarily preclude approval of the application.
* For information regarding the United States Code (USC or U.S.C.), the Code of Federal Regulations (CFR) and the Federal Register, see Supervisory Policy G 1.