Proposed 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)
August 16, 2007
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 subject to sections 115.2 and 115.3, in order to guard against money laundering through their institutions, to demonstrate an anti-money laundering program that complies with applicable federal anti-money laundering laws (31 U.S.C. Chapter 53, Subchapter II), including a required customer identification program (31 U.S.C. 5318(l)), and regulations promulgated by the United States Department of Treasury (Section 103.120 of Title 31, Code of Federal Regulations, Parts 0 to 199 Money and Finance, Treasury (revised as of July 1, 2005)), and, as appropriate, regulations of the Board of Governors of the Federal Reserve Board (Sections 208.63 and 211.24 of Title 12, Code of Federal Regulations, Parts 200 to 219 Banks and Banking (revised as of January 1, 2006)), regulations of the Federal Deposit Insurance Corporation (Section 326.8 of Title 12, Code of Federal Regulations, Parts 300 to 499 Banks and Banking (Revised as of January 1, 2006)), and regulations of the National Credit Union Administration (Section 748.2 of Title 12, Code of Federal Regulations, Parts 600 to 899 Banks and Banking (Revised as of January 1, 2006)). In addition, the Department seeks to assure compliance with applicable Office of Foreign Assets Control regulations issued by the United States Department of the Treasury (Part 500 et. seq. of Title 31, Code of Federal Regulations, Parts 500-904 Money and Finance (revised as of July 1, 2005)) The referenced federal regulations are authored by the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the National Credit Union Administration, respectively, and are published by the United States Government Printing Office, Washington, DC 20402. Copies are available for public inspection and copying at the New York City office of the New York State Banking Department located at the address stated in Supervisory Policy G 1 of this Title.
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.
Applicants will also be required to demonstrate, as part of their anti-money laundering programs, a customer identification program that complies with applicable federal law.
Applicants will further be required to demonstrate policies, procedures and practices reasonably designed to assure compliance with the regulations of the U.S. Department of Treasury’s Office of Foreign Assets Control.
Compliance with applicable federal requirements shall constitute compliance with this Part.
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 or to establish a branch or agency in New York State of a foreign banking corporation shall be accompanied by information demonstrating compliance with 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 compliance with 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.