Complying with NYSDFS Regulation Part 504
Transaction monitoring systems and models, along with sanctions filtering systems, have been around for quite some time. However, now, the board of directors or a senior officer at institutions regulated by the New York State Department of Financial Services (NYSDFS) must certify that these systems comply with NYSDFS Regulation Part 504.
This paper discusses the importance of financial institutions establishing a plan around certification and how they must consider not only how robust their transaction monitoring and filtering programs are but also how these programs are managed and tested over time. To ensure compliance, now is the time for institutions and anti-money laundering (AML) officers to ask questions and develop a detailed understanding of their processes and controls, as well as the accuracy and integrity of their data.