New Part 116 of the General Regulations of the Banking Board
(Maintenance of Anti-Money Laundering Compliance Programs by Banking Organizations and Foreign Banking Corporations Licensed to Maintain a Branch or Agency)
April 9, 2008
MAINTENANCE OF ANTI-MONEY LAUNDERING COMPLIANCE PROGRAMS BY BANKING ORGANIZATIONS AND FOREIGN BANKING CORPORATIONS LICENSED TO MAINTAIN A BRANCH OR AGENCY
(Statutory authority: Banking Law Sections 10, 14(1), 37(3), 39 and 44.)
116.1 Covered Entities
116.2 Anti-Money Laundering Programs
116.3 Additional Reports
- This Part shall apply to all “Banking Organizations” and “Foreign Banking Corporations.”
- The term “Banking Organization” shall have the meaning ascribed to it in section 2 of the New York Banking Law.
- The term “Foreign Banking Corporation” shall mean any branch, agency or representative office located in New York State of a foreign banking corporation licensed to maintain such a facility under Article V or Article V-B of the Banking Law.
Every Banking Organization and every Foreign Banking Corporation, in order to guard against money laundering through their institutions, shall establish and maintain an anti-money laundering program that complies with applicable federal anti-money laundering laws (31 U.S.C. Chapter 53, subchapter II)*, including the obligation to file Suspicious Activity Reports (“SARS”) (31 U.S.C. 5318(g))* and a customer identification program (31 U.S.C. 5318(l))*, and regulations promulgated by the United States Department of Treasury (12 CFR part 103.120)*, and, as appropriate, regulations of the Board of Governors of the Federal Reserve Board (12 CFR parts 208.63 and 211.24)*, the Federal Deposit Insurance Corporation (12 CFR part 326.8)* and the National Credit Union Administration (12 CFR part 748.2)*. In addition, when ordered, each such entity shall provide within 30 days a written report to the Superintendent of Banks (the “Superintendent”) detailing the extent to which it has established such a program. Every Banking Organization and Foreign Banking Corporation also shall comply with applicable regulations issued by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”) (31 CFR part 500 et. seq.)*.
- 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.
- 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.
- Every Banking Organization and every Foreign banking Corporation will also be required to demonstrate, as part of their anti-money laundering programs, a customer identification program that complies with the applicable federal anti-money laundering laws and regulations referred to in this section 116.1
- Every Banking Organization and every Foreign Banking Corporation will further be required to demonstrate they have in place risk-based policies, procedures and practices to ensure, to the maximum extent practicable, that its transactions will comply with OFAC requirements.
- Every Banking Organization and every Foreign Banking Corporation shall file SARs in accordance with applicable federal law and regulations.
- Compliance with applicable federal requirements shall constitute compliance with this Part.
Sec. 116.3 Additional Reports
Every Banking Organization and every Foreign Banking Corporation shall provide such additional reports regarding its compliance with this Part as shall be directed by the Superintendent.
* For information regarding the United States Code (USC or U.S.C.) ,the Code of Federal Regulations and the Federal register(CFR), see Supervisory Policy G 1.