NY Moves to Tighten Bank Security Regulations
Aiming to make it tougher on militants to finance terrorism, the Cuomo administration will shortly announce new regulations on banks in New York that will, among other things, force a chief compliance officer to certify whether a bank maintains systems to detect and prevent illicit money transfers. A false certification would be a crime.
“Money is the fuel that feeds the fire of international terrorism,” Cuomo said in a statement to the Times. “At a time of heightened global security concerns, it is especially vital that banks and regulators do everything they can to stop that flow of illicit funds.”
No regulation has been officially released yet so it still is not clear whether it will include asset size or charter exemptions, or apply just to banks headquartered in NY or to any bank with a branch in the state.
In a recent post I explained that NY has signaled increasing frustration with the pace at which federal regulators were moving to tighten data security protocols. Here is a link to the article.
In case you missed it, Sheldon Silver, one of the longest serving speakers in New York history was convicted in federal court yesterday on 7 criminal counts including honest service fraud. The prosecution alleged, among other things, that Silver awarded state funds to a doctor in return for client referrals to the personal injury firm where Silver was a counsel.