On March 31, 2016, ACC, its Compliance & Ethics Committee, Financial Services Committee, New York chapters, and 74 general counsel and compliance officers filed comments objecting to a proposal by the New York Department of Financial Services (DFS) to impose criminal liability on chief compliance officers for failure to meet new DFS annual certification requirements.
The proposed addition of Part 504 to Title 3 NYCRR would require chief compliance officers, or their functional equivalents, to certify that their institutions’ transaction monitoring and watch-list filtering systems meet the proposed state requirements. An incorrect or inaccurate certification would result in the imposition of personal criminal liability against the compliance officer. If enacted, the DFS requirement could set a dangerous precedent for other financial regulators to follow, and the ACC letter strongly objects to the imposition of criminal penalties for an inaccurate certification.
Click here to view the letter.