Last Tuesday, Gov. Cuomo announced that that the state’s Department of Financial Services (DFS) will propose new anti-money laundering regulations that are intended to prevent money from flowing through Wall Street banks and into the hands of terrorist and criminals.
The proposed rules would clarify and expand the responsibility of New York State-chartered banks to prevent money laundering, including requiring a chief compliance officer to certify that a bank maintains systems to “detect, weed out and prevent illicit” money transfers, and would also require banks to maintain stringent electronic filters to weed out and flag suspicious transactions that violate U.S. economic sanctions and other rules.
Gov. Cuomo said:
“Money is the fuel that feeds the fire of international terrorism. Global terrorist networks simply cannot thrive without moving significant amounts of money throughout the world. At a time of heightened global security concerns, it is especially vital that banks and regulators do everything they can to stop that flow of illicit funds.”
DFS’s proposed regulations will be open for public comment for 45 days.