N.Y. Comp. Codes R. & Regs. tit. 3 § 416.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 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 for approval to acquire licensee to demonstrate an anti-money laundering program that complies with applicable Federal anti-money laundering laws (31 U.S.C. chapter 53, subchapter II)[FN*]and regulations promulgated by the United States Department of the Treasury (31 CFR part 103.125)* (hereinafter, referred to as " 31 CFR 103 "). In addition, the Superintendent seeks to assure compliance with applicable regulations of the Office of Foreign Asset Control regulations issued by 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) incorporate policies, procedures, and internal controls reasonably designed to assure compliance with 31 CFR 103, including;

(i) 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:

(a) verifying customer identification;

(b) filing reports;

(c) creating and retaining records; and

(d) responding to law enforcement requests.

(ii) A licensee that has an automated data processing system should integrate its compliance procedures with such systems.

(2) designate a person to assure day to day compliance with the program and 31 CFR 103. The responsibilities of such person shall include assuring that:

(i) each licensee properly files reports, and creates and retains records, in accordance with applicable requirements of 31 CFR part 103;

(ii) 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

(iii) each licensee provides appropriate training and education in accordance with 31 CFR part 103.

(3) 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

(4) provide for independent review to monitor and maintain an adequate program.

(c) 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.

(d) Each licensee will further be required to demonstrate that it has, or on the effective date of the transaction that is the subject of the application, will have, risk-based policies, procedures and practices to ensure, to the maximum extent practicable, that its transactions comply with OFAC requirements.

(e) Compliance with applicable federal requirements shall constitute compliance with the provisions of 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 § 416.1