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Proposed Regulations
Proposed New Part 115 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)

 

August 16, 2007


Part 116 

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.)

Sec.
116.1 Covered  Entities
116.2 Anti-Money Laundering Programs
116.3 Additional Reports

Sec. 116.1 Covered Entities 

  1. This Part shall apply to all “Banking Organizations” and “Foreign Banking Corporations.”
  2. The term “Banking Organization” shall have the meaning ascribed to it in Section 2 of the New York Banking Law.
  3. The term “Foreign Banking Corporation” shall mean any branch or agency located in New York State of a foreign banking corporation licensed to maintain such a facility under Article V of the Banking Law.
Sec. 116.2 Anti-Money Laundering Programs

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.A.§ 5318(g)) and a 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)) (revised as of January 1, 2003)), 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)), 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 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, when ordered, such entities shall provide within 30 days a written report to the Superintendent of Banks (the “Superintendent”) detailing the extent to which each institution has established such a program. The Department also 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.   

  1. For purposes of this Part, the required anti-money laundering program shall, at a minimum:  
    1. Provide for a system of internal controls to assure ongoing compliance;
    2. Provide for independent testing for compliance to be conducted by bank personnel or by an outside party;
    3. Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and
    4. Provide training for appropriate personnel.
  2. 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.
  3. 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 applicable federal law.
  4. Every Banking Organization and every Foreign Banking Corporation 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.
  5. Every Banking Organization and every Foreign Banking Corporation shall file SARs in accordance with applicable federal law and regulations.
  6. 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. 

Explanatory All Institutions Letter

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