In an effort to combat money laundering and corruption – along with the bigger, related ills of terrorism and the recent 2007-08 financial crisis, the former head of the New York Department of Financial Services has laid out a three-part approach for future federal action, Security Management writer Mark Tarallo reports in its August issue.

According to the article, Benjamin Lawsky, who led the NYDFS from 2011-15, advocates for an increase in (1) accountability on Wall Street; (2) money laundering prevention in the banking sector; and (3) cybersecurity efforts for the financial markets.

To address money laundering, senior executives should be required to confirm the adequacy of their bank’s anti-money laundering systems – and penalized for misconduct where appropriate, the article states.

Stephanie Quinones, an attorney in Gunster‘s banking and financial services law practice who works out of the firm’s Fort Lauderdale office, was asked to comment on Lawsky’s approach.

Whether the proposals are implemented beyond New York will depend, she told Security Management’s Tarallo, on whether the requirements are tenable legally; safeguards such as a “reasonable reliance” standard may be needed to help protect bank executives acting in good faith.

In addition, she says in the article, it will not be be easy for the reforms to become federal regulations without a fight from well-funded federal lobbying industry groups.

Read the article: Corruption Crusader (Security Management, a publication of ASIS International, 8/19/15)

Find out more about Stephanie Quinones or Gunster’s banking & financial services law practice.


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