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In Wait for NY’s Executive Liability Rule, Talk of ‘Unintended Consequences’
By Colby Adams
printAn expected New York State regulatory proposal is likely to raise questions on how much senior bank executives can and should know about their anti-money laundering programs, according to compliance experts. In February, New York Superintendent of Financial Services Benjamin Lawsky disclosed in a speech that his agency was developing and would "move quickly" on plans to randomly assess if banks are properly flagging suspicious transactions, and to require senior executives to "personally attest" for the quality of their compliance programs. "A whack-a-mole approach-simply bringing enforcement actions when we find problems-is not, by itself, enough. Particularly because we believe there...
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