NY may require banks to install watch list, transaction monitoring to thwart terrorism funding

ALBANY, N.Y. – New York regulators have proposed requiring banks to annually certify having sufficient programs to deter terrorism financing and money laundering.

The Department of Financial Services says Tuesday the proposed regulations will apply to all New York-regulated banks, branches of foreign banks licensed to operate in the state and licensed check cashers and money transmitters.

The rules would require banks to certify that they monitor transactions and filter them through watch lists. The proposal is subject to 45 days of public comment.

Regulators say that over the last four years, their investigations into terrorist financing, U.S. sanctions violations and anti-money laundering compliance uncovered serious shortcomings. They say they found faults in transaction monitoring and filtering programs, governance, oversight and accountability at senior levels.