Monday, July 4, 2016


The New York State Department of Financial Regulation has finalized its landmark regulations on making senior management, and the compliance officer in command, strictly liable for AML/CFT/OFAC failures. It is anticipated that these new rules will be a game-changer, as other jurisdictions will most likely follow New York's lead, on a truly effective method of imposing personal liability for Anti-money Laundering deficiencies at financial institutions.

The new regulations, which go into effect on 2017, require annual board of directors resolutions, or a senior officer's officer's compliance finding confirming AML compliance. The AML program must:

(1) Maintain a Transaction Monitoring Program.
(2) Maintain a Watch List Filtering Program.
(3) Backed up by annual board of directors resolution or senior officer compliance finding.

Readers are urged to review the complete text* of the DFS regulations.
*Banking Division Transaction Monitoring and Filtering Program requirements and Certifications

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