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Banking Groups Line Up Opposition to New York’s Compliance Certification Plan
By Colby Adams
printA New York regulator's plan to hold senior bankers legally responsible for compliance failures conflicts with federal rules and threatens to exacerbate an industry trend to shed risk-fraught accounts wholesale, lobbying groups said. Under the proposal, chief compliance officers (CCOs) or their "functional equivalent" must certify each year to the New York State Department of Financial Services (NYSDFS) that their institutions' programs for detecting, preventing and reporting illicit funds transfers meet 20 minimum standards. Bankers who submit an "incorrect or false" certification could face criminal prosecution, the agency said. The state's proposal could add "disparate and contradictory requirements" to a...
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