NY Superintendent Lawsky Proposes New Rules
Benjamin Lawsky, New York Superintendent of Financial Services, delivered remarks at Columbia Law School earlier this week. In his remarks, he outlined several new proposals the agency plans to tackle in upcoming months. Given that the New York Department of Financial Services oversees many of the biggest names on Wall Street, the new proposed rules could be quite impactful.
Superintendent Lawsky said his agency was focused on enhancing “Wall Street accountability,” preventing money laundering and strengthening cyber security. To improve accountability, the Department of Financial Services will pursue both corporate and individual enforcement.
With respect to money laundering, Superintendent Lawsky said the agency would use “a more holistic solution,” as opposed to a “whack-a-mole approach.” He proposed random audits of regulated firms’ transaction monitoring and filtering systems as well as requiring senior executives to attest to the adequacy of money laundering monitoring systems.
To combat burgeoning cyber security threats, the Department of Financial Services is “revamping” its bank examinations to include cyber security preparedness. Superintendent Lawsky said the agency was also considering requiring firms receive “robust” representations and warranties from third party vendors to demonstrate that they have “critical cyber security protections” in place.
- Lawsky’s Speech: http://www.dfs.ny.gov/about/speeches_testimony/sp150225.htm