Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
NYDFS issued an enforcement action with an against money services business Moneygram. Some takeaways: $8.25 million civil monetary penalty. Classic typology of “many-to-one” transactions was highly suspicious. Store front agents accounted for dramatic spike in volume and dollar value of payments sent to China in short time period. No monitor imposed but remediation and reporting … Read more
The U.S. Department of Justice extended the monitorship it had imposed on Deutsche Bank. Some takeaways: DOJ found that Deutsche Bank violated a 2021 Deferred Prosecution Agreement relating to FCPA matters. The violation arose because Deutsche Bank “untimely reported” unrelated allegations concerning the purported overstating of the use of ESG criteria in another business line. … Read more
According to NYDFS: “As part of DFS’s work to become a leading, data-driven regulator of the global financial services sector, the Department has been assessing a number of technology tools and service providers to augment current supervisory capabilities. Accelerating the procurement process is a critical step to strengthen the Department’s ability to enforce anti-money laundering … Read more
In light of the Russian invasion of Ukraine, NYDFS issued an advisory concerning compliance issues relating to cybersecurity, cryptocurrency and sanctions. Press release found here: https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220225_ukraine_escalation_impact_financial
NYDFS takes enforcement action against the National Bank of Pakistan. Some takeaways: $35 million civil monetary penalty NYDFS may impose independent consultant or monitor after a year in the event progress on remediation is unsatisfactory There is a parallel settlement with the Federal Reserve Board which includes a $20 million penalty as well. The NYDFS … Read more
Important industry cooperation among some lead players in crypto in setting compliance standards, called “T.R.U.S.T.” Press release here: https://www.coinbase.com/blog/introducing-the-travel-rule-universal-solution-technology-trust
NYDFS Superintendent Adrienne A. Harris sat down for a fireside chat with the Brookings Institution’s Center on Regulation and Markets. Here are some takeaways: – On Enforcement: NYDFS will be focusing enforcement on “kitchen table” issues. – On Cybersecurity: NYDFS is working on updating and improving its cybersecurity regulation. – On Climate Change: NYDFS will … Read more
NYDFS completed its first investigation by the new Office of Pharmacy Benefits regarding a price spike. According to NYDFS findings: “Cipla has entered into an agreement with OPB to put in place new internal controls governing the reporting of drug prices and will report on the implementation and maintenance of those new controls in one … Read more
Interesting take in pymts.com on NYDFS Crypto Regulation: “NYDFS will not only remain relevant as the regulator of the largest financial center in the world, but as the obvious yardstick against which proposed national rules are measured.” Article is found here: https://www.pymnts.com/cryptocurrency/2022/in-adrienne-harris-nydfs-getting-firm-but-friendly-crypto-regulator/
Adrienne A. Harris has been confirmed as NYDFS Superintendent. Her statement may be found here: https://www.dfs.ny.gov/reports_and_publications/statements_comments/st202201251