The New York rule became effective January 1, 2017.
The New York State Department of Financial Services (DFS) has
issued a regulation that requires certain New York
regulated financial institutions to maintain programs to monitor
and filter transactions for potential Bank Secrecy Act (BSA),
anti-money laundering (AML) violations, and to prevent
transactions with sanctioned entities. The rule, which became
effective January 1, is Part 504 of DFS Superintendent's
Regulations [Rule] and details which institutions subject to DFS
jurisdiction must comply. This regulation "will be enforced
pursuant to [DFS'] authority under any applicable laws."
It is thus possible that violation of the rule could lead to
penalties under New York's banking and penal laws for
falsifying business records, offering a false statement for filing,
or failing to maintain accurate books and records.
