NYDFS to Release Tough New AML Standards Today

July 1st, 2016

NYDFS to Release Tough New AML Standards Today

Recurring Theme:  Market Transparency & Individual Accountability

Summary Analysis: 

After an exclusive preview, the Wall Street Journal reported that the New York Department of Financial Services (NYDFS) plans to release tough new anti-money laundering (AML) rules. The New York financial regulator is expected to publish the rules later today.

The initiative to overhaul the AML regime was one of the last things former Superintendent Benjamin Lawsky took on before his departure. The rules were completed under his successor Maria Vullo and will become effective next year. Most notably, the regulations will change the liability associated with AML violations. Following a growing trend among regulators to enhance individual accountability, the NYDFS’s new rules will require senior management to certify the validity of a firm’s AML controls, thus making that individual potentially culpable for associated wrongdoing.

Resources:

Press:

http://www.wsj.com/articles/new-york-banking-regulator-to-publish-new-rules-to-prevent-money-laundering-1467244800