In order to combat the menace of money laundering, New York is expected to conduct random audits of banking systems that would be primarily designed to check such illegal activities.
New York’s chief financial services regulator on Wednesday said that the state will bring significant changes in the design of bank systems so that the loopholes can be dealt and the cases of money laundering can be checked.
Benjamin Lawsky, superintendent of the New York’s Department of Financial Services, said that senior bank executives are expected to be needed to personally confirm that the banking systems are adequate for the detection of possible money laundering cases.
But the proposed measures could also bring more headaches for the financial institutions and their executives following payments of hundreds of millions and even billions of dollars by the world’s largest banks for settling the lapses in policing transactions from entities under the US sanctions.
“We believe there may be widespread problems with transaction monitoring and filtering systems in the banking industry. Improving those systems is critical to stopping criminal activity, including terrorism,” Lawsky said.
According to Lawsky, the agency is expecting to move instantly on the random audits and new requirements by the executives. He also hopes other regulators to follow similar initiatives.