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Can you summarize 3 NYCRR Part 504?
General RegulationsBanking and Non-Banking Organizations > Banking Division Transaction Monitoring and Filtering Program Requirements and Certifications
Short Summary
This document governs the requirements and certifications for the Transaction Monitoring and Filtering Program in the banking division. It applies to various regulated institutions, including banks, trust companies, private bankers, savings banks, savings and loan associations, branches and agencies of foreign banking corporations licensed to conduct banking operations in New York, check cashers, and money transmitters licensed pursuant to the New York Banking Law. The document outlines the requirements for regulated institutions to maintain a Transaction Monitoring Program and a Filtering Program. The Transaction Monitoring Program is designed to monitor transactions after their execution for potential BSA/AML violations and suspicious activity reporting. The program should be based on the risk assessment of the institution, regularly updated, and appropriately match BSA/AML risks to the institution’s businesses, products, services, and customers/counterparties. It should also include detection scenarios with threshold values and amounts to detect potential money laundering or other illegal activities. The Filtering Program, on the other hand, is aimed at interdicting transactions prohibited by OFAC. It should be based on the risk assessment of the institution, include technology or tools for matching names and accounts, and undergo regular testing and analysis. Both programs require identification of relevant data sources, validation of data integrity, governance and management oversight, funding, qualified personnel or consultants, and periodic training. The document emphasizes the need for documentation, remedial efforts for areas requiring improvement, and availability of such documentation for inspection by the superintendent.
Whom does it apply to?
Regulated Institutions, including banks, trust companies, private bankers, savings banks, savings and loan associations, branches and agencies of foreign banking corporations licensed to conduct banking operations in New York, check cashers, and money transmitters licensed pursuant to the New York Banking Law
What does it govern?
Regulated Institutions' Transaction Monitoring and Filtering Program
What are exemptions?
No specific exemptions are mentioned in this document
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
New York