Proposed 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)
August 16, 2007
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 to acquire a Licensee, 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) and regulations promulgated by the United States Department of the Treasury (Section 103.125 of Title 31, Code of Federal Regulations, Parts 0 to 199 Money and Finance, Treasury ( revised as of July 1, 2005))(hereinafter referred to as “31 CFR Part 103”). In addition, the Superintendent seeks to assure compliance with applicable Office of Foreign Asset 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 and are published by the United States Government Printing Office, Washington, DC 20402. Copies are available for 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:
Incorporate policies, procedures, and internal controls reasonably designed to assure compliance with 31 CFR Part 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 Part 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 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 the provisions of this Part.
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 compliance with 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 compliance with 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, 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.