New Part 416 of the Superintendent's Regulations
(Anti-Money Laundering Programs for Applications for Licenses, Branches and Acquisitions by Licensed Check Cashers and Licensed Money Transmitters)
April 9, 2008
ANTI-MONEY LAUNDERING PROGRAMS FOR APPLICATIONS FOR LICENSES, BRANCHES AND ACQUISITIONS BY LICENSED CHECK CASHERS AND LICENSED MONEY TRANSMITTERS
(Statutory authority: Law Sections 10, 39, 44, 367, 369, 370, 371, 370-a, 641, 646, 649 and 652-a.)
416.1 Anti-Money Laundering Programs
416.2 License Applications
416.3 Branching Applications
416.4 Acquisition Applications
Sec. 416.1 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 licensed check casher license or licensed money transmitter license (each a “Licensee”), a branch office of a Licensee or for approval to acquire Licensee to demonstrate an anti-money laundering program that complies with applicable federal anti-money laundering laws (31 U.S.C. Chapter 53, subchapter II)* and regulations promulgated by the United States Department of the Treasury (31 CFR part103.125)* (hereinafter, referred to as “31 CFR 103”). In addition, the Superintendent seeks to assure compliance with applicable regulations of the Office of Foreign Asset Control regulations issued by the United States Department of the Treasury (“OFAC”) (31 CFR part 500 et. seq.)*.
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 in this section 416.1.
For purposes of this Part, the required anti-money laundering program shall, at a minimum:
Incorporate policies, procedures, and internal controls reasonably designed to assure compliance with 31 CFR 103, including;
Policies, procedures, internal controls developed and implemented under this section shall include provisions for complying with the requirements of 31 CFR 103 including, to the extent applicable to the Licensee, requirements for:
- Verifying customer identification;
- Filing reports;
- Creating and retaining records; and
- Responding to law enforcement requests.
A Licensee that has an automated data processing system should integrate its compliance procedures with such systems.
- Designate a person to assure day to day compliance with the program and 31 CFR 103. The responsibilities of such person shall include assuring that:
Each Licensee properly files reports, and creates and retains records, in accordance with applicable requirements of 31 CFR Part 103;
The compliance program is updated as necessary to reflect current requirements of 31 CFR Part 103, and related guidance issued by the Department of the Treasury; and
Each Licensee provides appropriate training and education in accordance with 31 CFR Part 103.
- Provide education and/or training of appropriate personnel concerning their responsibilities under the program, including training in the detection of suspicious transactions to the extent that the entity is required to report such transactions under applicable federal law and regulations; and
- Provide for independent review to monitor and maintain an adequate program.
The anti-money laundering program shall be in writing and each Licensee shall make copies of the anti-money laundering program available for inspection by the Superintendent as appropriate.
Each Licensee will further be required to demonstrate that it has, or on the effective date of the transaction that is the subject of the application, will have, risk-based policies, procedures and practices to ensure, to the maximum extent practicable, that its transactions comply with OFAC requirements.
Compliance with applicable federal requirements shall constitute compliance with the provisions of this Part.
Sec. 416.2 License Applications
All applications submitted for prior approval of the Superintendent to become a Licensed Check Casher or Licensed Money Transmitter shall be accompanied by information demonstrating that the applicant will maintain an anti-money laundering program that satisfies the requirements set forth in section 416.1.Sec. 416.3 Branching Applications
All applications submitted for the prior approval of the Superintendent to establish a branch or branches by any Licensed Check Casher 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 416.1.
Sec. 416.4 Acquisition Applications
All applications submitted for the prior approval of the Superintendent to merge with, purchase and/or assume, or acquire control (as defined in the applicable provisions of the Banking Law) of, any Licensed Check Casher or Licensed Money Transmitter shall in every case be accompanied by information demonstrating compliance with, or a plan that would comply with, the requirements set forth in section 416.1.
Sec. 416.5 Waivers
In considering an application subject to this Part, the Superintendent may determine, for good cause shown, that the lack of compliance with any of the requirements of this Part does not necessarily preclude approval of the application.
* For information regarding the United Sates Code (USC or U.S.C.), the Code of Federal Regulations (CFR) and the Federal Register, see Supervisory Policy G 1.