N.Y. Comp. Codes R. & Regs. tit. 3 § 115.1

Current through Register Vol. 46, No. 51, December 18, 2024

Section 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 for a charter, or for approval of an acquisition, merger or change of control to demonstrate an anti-money laundering program that complies with applicable Federal anti-money laundering laws, including a required customer identification program (31 U.S.C. chapter 53, subchapter ll and 31 U.S.C. 5318 [l])[FN*]and regulations promulgated by the United States Department of Treasury ( 31 CFR part 103.120)*, and, as appropriate, regulations of the Board of Governors of the Federal Reserve System (12 CFR parts 208.63 and 211.24)*, regulations of the Federal Deposit Insurance Corporation (12 CFR 326.8) *, and regulations of the National Credit Union Administration ( 12 CFR part 748.2)*. In addition, the department seeks to assure compliance with applicable regulations issued by the Office of Foreign Asset Control of the United States Department of the Treasury ("OFAC") ( 31 CFR part 500 et seq.)*.

(a) Each applicant shall demonstrate that it has, or on the effective date of the transaction that is the subject of the application, will have, an anti-money laundering program that complies with the applicable Federal anti-money laundering laws and regulations referred to in this section.

(b) 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.

(c) 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.

(d) Each applicant shall also maintain, as part of its anti-money laundering program, a customer identification program that complies with the applicable Federal anti-money laundering laws and regulations referred to in this section.

(e) Each applicant also shall demonstrate that it has, or on the effective date of the transaction, will have, risk-based policies, procedures and practices to ensure, to the maximum extent practicable, that its transactions comply with OFAC requirements.

(f) Compliance with the applicable Federal requirements shall constitute compliance with this Part.

[FN*] For information regarding the United States Code (USC or U.S.C.), the Code of Federal Regulations (CFR) and the Federal Register, see Supervisory Policy G 1.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 115.1