reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 101 - BANKING DIVISION ASSESSMENTS › Section 101.6 - Special Assessments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) When
				the Superintendent shall determine that the expenses associated with a specific
				examination, investigation or review are best allocated solely to the
				individual institution or institutions subject to such examination or
				investigation, rather than to an Industry Group generally or any subgroup
				thereof, such expenses shall be billed separately as provided for in this
				subdivision. The time of each person associated with such examination or
				investigation shall be multiplied by the average costs of the examiners and
				specialists at their respective grade levels assigned to such examination or
				investigation, plus expenses for travel outside of New York, and the resulting
				amount shall be assessed separately to each such institution subject to such
				examination or investigation in such amounts as the Superintendent shall deem
				appropriate. Alternatively, if another entity or person is selected to perform
				an examination, investigation or review of an individual institution or
				institutions, the expenses associated with such examination, investigation and
				review shall be the amount of the contract for such services and such portion
				of the Department's administrative expenses associated with such contract as
				the Superintendent shall deem appropriate. The resulting amount shall be
				assessed separately to each such institution subject to such examination,
				investigation or investigation in such amounts as the Superintendent shall deem
				appropriate.
Such special assessments shall be billed within one hundred
				  and eighty days after the calendar quarter within which such expenses were
				  incurred. Such amounts shall be paid within thirty days of the date of such
				  billing.
In making a determination to make a special assessment and
				  to allocate such assessment between one or more institutions, the
				  Superintendent shall include such factors as she or he shall deem appropriate,
				  including, but not limited to: the significance of the examination to the
				  conduct of business by a given Industry Group or institutions; the potential
				  seriousness of any violations of law or regulation identified by, or under
				  review in, such examination or investigation; the likelihood that such
				  violations are common within an Industry Group; and the extent to which an
				  institution attempted to cover up or failed to disclose the existence of such
				  violations.
(b) The
				Superintendent may exempt any not-for-profit entity licensed by the Department
				from any assessments otherwise applicable to such entity when the
				Superintendent determines the public benefit warrants such exemption.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.1 - Background

Current through Register Vol. 46, No. 28, July 10, 2024
In 2015, the Department of Financial Services ("Department")
				  adopted 23 NYCRR Part 200, which required persons engaged in virtual currency
				  business activity, as defined in 23 NYCRR 200.2(q), to obtain a license,
				  subject to certain exemptions, before engaging in such activity in New York.
				  This licensing regime was created under the authority granted to the Department
				  by the Financial Services Law ("FSL").
Generally, the Department's costs and expenses are charged to
				  and paid by persons regulated by the Department. At the time that Part 200 was
				  adopted, FSL section 206 provided that the costs and expenses of the Department
				  would be respectively charged to and paid by the persons regulated by the
				  Department pursuant to the Banking Law or the Insurance Law, with no provision
				  made for the assessment of costs for persons regulated pursuant to the FSL. In
				  2022, the Laws of New York, Chapter 58, Part III, amended FSL Section 206 (a),
				  as of June 30, 2022, to require the Department to assess the costs and expenses
				  of regulating persons licensed pursuant to 23 NYCRR Part 200 ("Licensees"). FSL
				  section 206 (a) now states: "ersons regulated under that engage in 'virtual
				  currency business activity,' as that term is defined by the department, shall
				  be assessed by the superintendent for the operating expenses of the department
				  that are solely attributable to regulating such persons...."
To effectuate the authority granted by the recent amendment
				  of the FSL, this regulation sets forth the basis for allocating the
				  Department's costs and expenses among Licensees, and the process for making
				  such assessments. This regulation only applies to Licensees, and the assessment
				  only covers the costs and expenses associated with the Department's oversight
				  of each person's virtual currency business activities. Accordingly, to the
				  extent that a person is licensed to engage in virtual currency business
				  activities under the FSL, and concurrently as a money transmitter pursuant to
				  Article XIII-B of the Banking Law, such person will be billed separately for
				  each license. To the extent that a person holds multiple licenses to engage in
				  virtual currency business activities pursuant to 23 NYCRR Part 200, such person
				  will be billed separately for each license. Persons who engage in virtual
				  currency business activities as a limited purpose trust company or a banking
				  organization will continue to be assessed under 23 NYCRR Part 101. To such an
				  extent that a person holds both a limited purpose trust charter under the
				  Banking Law and a license pursuant to 23 NYCRR Part 200, such person will be
				  billed separately for each charter and license.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
The following definitions apply in this Part:
(a)
Hourly Rate
means the
				average hourly salary and fringe benefit cost of the examiners and staff
				assigned to the supervision of Licensees plus a multiplier, as determined by
				the superintendent, representing a portion of the other operating overhead
				expenses of the Department.
(b)
Custody Basis
means the measurement tool used to assess 50% of
				the Supervisory Hours, as defined below, among Licensees. The Custody Basis is
				based on the total United States Dollar value of virtual currency held on
				behalf of customers by each Licensee averaged over the prior four quarter-end
				balances reported. Depending on the total virtual currency custody average, the
				Custody Basis for each Licensee will be categorized by size as small, medium,
				or large, resulting in an allocation, respectively, of 5%, 15%, and 30% of 50%
				of the Supervisory Hours.
(c)
Custody Basis Assessment for an individual Licensee
means the
				product of the Custody Basis Hours and the Hourly Rate.
(d)
Custody Basis Hours
means the Custody Basis share of either 5%, 15%, or 30% of the total
				Supervisory Hours, divided by the total number of Licensees that have the same
				Custody Basis share.
(e)
Licensee
means any person who is licensed pursuant to 23 NYCRR
				Part 200. The term Licensee shall only apply to the virtual currency business
				activities, as that term is defined in 23 NYCRR 200.2(q), of persons licensed
				pursuant to 23 NYCRR Part 200.
(f)
Person
means an individual, partnership, corporation,
				association, joint stock association, trust, or other entity, however
				organized.
(g)
Regulatory
				Component represents the cost of examining licensees. For an individual
				Licensee
means the Total Operating Cost, as defined below, less the
				Supervisory Component divided by the total number of Licensees.
(h)
Supervisory Component for an
				individual Licensee
means the sum of its Transaction Volume Basis
				Assessment, as defined below, and its Custody Basis Assessment.
(i)
Supervisory Hours
means
				the total number of hours worked by staff attributable to the ongoing
				supervision of Licensees, including the monitoring of Licensees, the processing
				of license or material business changes, and responding to inquiries.
(j)
Total Operating Cost
means:
(1) the sum of the total operating
				expenses of the Department that are solely attributable to its oversight of
				Licensees; and
(2) the proportion
				deemed just and reasonable by the superintendent of the other operating
				overhead expenses of the Department which may be assessed against Licensees
				under FSL section 206(a).
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.3 - Billing and Assessment Process

Current through Register Vol. 46, No. 28, July 10, 2024
The New York State fiscal year begins April 1 and ends March
				  31 of the following calendar year. Each Licensee subject to assessment pursuant
				  to this Part is billed five times for a fiscal year: four quarterly assessments
				  (each approximately 25 percent of the anticipated annual amount) based on the
				  estimated budget to cover the Total Operating Cost at the time of the billing,
				  and a final assessment (or true-up), based on the actual Total Operating Cost
				  for the fiscal year. Any Licensee that is licensed for any part of a quarter
				  shall be assessed for the full quarter. Such amounts shall be paid within 30
				  days of the date of such billing.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.4 - Computation of Assessment

Current through Register Vol. 46, No. 28, July 10, 2024
The total annual assessment for a Licensee shall be the sum
				  of its Supervisory Component and its Regulatory Component.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.5 - Penalties/Enforcement Actions

Current through Register Vol. 46, No. 28, July 10, 2024
All Licensees shall be subject to all applicable penalties,
				  including late fees and interest, provided for by the FSL, the State Finance
				  Law or other applicable laws. Enforcement actions for nonpayment could include
				  suspension, revocation, expiration or termination of a person's license or such
				  other actions as the superintendent may deem appropriate.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 102 - VIRTUAL CURRENCY LICENSEE ASSESSMENTS › Section 102.6 - Special Assessments

Current through Register Vol. 46, No. 28, July 10, 2024
When the superintendent shall determine that the expenses
				  associated with a specific examination, investigation or review are best
				  allocated solely to the individual Licensee or Licensees subject to such
				  examination or investigation, rather than to all Licensees generally or any
				  subgroup thereof, such expenses shall be billed separately as provided for in
				  this subdivision. The time of each person associated with such examination or
				  investigation shall be multiplied by the average costs of the examiners and
				  specialists at their respective grade levels assigned to such examination or
				  investigation, plus expenses for travel outside of New York, and the resulting
				  amount shall be assessed separately to each such Licensee subject to such
				  examination or investigation in such amounts as the superintendent shall deem
				  appropriate. Alternatively, if another entity or person is selected to perform
				  an examination, investigation or review of an individual Licensee or Licensees,
				  the expenses associated with such examination, investigation and review shall
				  be the amount of the contract for such services and such portion of the
				  department's administrative expenses associated with such contract as the
				  superintendent shall deem appropriate. The resulting amount shall be assessed
				  separately to each such Licensee subject to such examination, investigation or
				  investigation in such amounts as the superintendent shall deem appropriate.
				  Such special assessments shall be billed within 180 days after the calendar
				  quarter within which such expenses were incurred. Such amounts shall be paid
				  within 30 days of the date of such billing. In making a determination to make a
				  special assessment and to allocate such assessment between one or more
				  Licensees, the superintendent shall include such factors as she or he shall
				  deem appropriate, including, but not limited to: the significance of the
				  examination to the conduct of business by a given Licensee or group of
				  Licensees; the potential seriousness of any violations of law or regulation
				  identified by, or under review in, such examination or investigation; and the
				  extent to which a Licensee attempted to cover up or failed to disclose the
				  existence of such violations.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.1 - Introduction

Current through Register Vol. 46, No. 28, July 10, 2024
This Part contains regulations relating to the conduct of
				  business involving Virtual Currency, as defined herein, in accordance with the
				  superintendent's powers pursuant to the above-stated
				  authority.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part only, the following definitions
				  shall apply:
(a)
Affiliate
means any Person that directly or indirectly controls, is controlled
				by, or is under common control with, another Person;
(b)
Cyber Security Event
means any act or attempt, successful or unsuccessful, to gain
				unauthorized access to, disrupt, or misuse a Licensee's electronic systems or
				information stored on such systems;
(c)
Department
means the New
				York State Department of Financial Services;
(d)
Exchange Service
means
				the conversion or exchange of Fiat Currency or other value into Virtual
				Currency, the conversion or exchange of Virtual Currency into Fiat Currency or
				other value, or the conversion or exchange of one form of Virtual Currency into
				another form of Virtual Currency;
(e)
Fiat Currency
means
				government-issued currency that is designated as legal tender in its country of
				issuance through government decree, regulation, or law;
(f)
Licensee
means any
				Person duly licensed by the superintendent pursuant to this Part;
(g)
New York
means the State
				of New York;
(h)
New York
				Resident
means any Person that resides, is located, has a place of
				business, or is conducting business in New York;
(i)
Person
means an
				individual, partnership, corporation, association, joint stock association,
				trust, or other entity, however organized;
(j)
Prepaid Card
means an
				electronic payment device that:
(i) is usable
				at a single merchant or an affiliated group of merchants that share the same
				name, mark, or logo, or is usable at multiple, unaffiliated merchants or
				service providers;
(ii) is issued
				in and for a specified amount of Fiat Currency;
(iii) can be reloaded in and for only Fiat
				Currency, if at all;
(iv) is
				issued and/or reloaded on a prepaid basis for the future purchase or delivery
				of goods or services;
(v) is
				honored upon presentation; and
(vi) can be redeemed in and for only Fiat
				Currency, if at all;
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.3 - License

Current through Register Vol. 46, No. 28, July 10, 2024
(a) License
				required. No Person shall, without a license obtained from the superintendent
				as provided in this Part, engage in any Virtual Currency Business Activity.
				Licensees are not authorized to exercise fiduciary powers, as defined under
				Section 100  of the Banking Law.
(b)
				Unlicensed agents prohibited. Each Licensee is prohibited from conducting any
				Virtual Currency Business Activity through an agent or agency arrangement when
				the agent is not a Licensee.
(c)
				Exemption from licensing requirements. The following Persons are exempt from
				the licensing requirements otherwise applicable under this Part:
(1) Persons that are chartered under the New
				York Banking Law and are approved by the superintendent to engage in Virtual
				Currency Business Activity; and
(2)
				merchants and consumers that utilize Virtual Currency solely for the purchase
				or sale of goods or services or for investment purposes.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.5 - Application fees

Current through Register Vol. 46, No. 28, July 10, 2024
As part of an application for licensing under this Part, each
				  applicant must submit an initial application fee, in the amount of five
				  thousand dollars, to cover the cost of processing the application, reviewing
				  application materials, and investigating the financial condition and
				  responsibility, financial and business experience, and character and general
				  fitness of the applicant. If the application is denied or withdrawn, such fee
				  shall not be refunded. Each Licensee may be required to pay fees to the
				  Department to process additional applications related to the
				  license.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.7 - Compliance

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Generally. Each
				Licensee is required to comply with all applicable federal and state laws,
				rules, and regulations.
(b)
				Compliance officer. Each Licensee shall designate a qualified individual or
				individuals responsible for coordinating and monitoring compliance with this
				Part and all other applicable federal and state laws, rules, and
				regulations.
(c) Compliance policy.
				Each Licensee shall maintain and enforce written compliance policies, including
				policies with respect to anti-fraud, anti-money laundering, cyber security,
				privacy and information security, and any other policy required under this
				Part, which must be reviewed and approved by the Licensee's board of directors
				or an equivalent governing body.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.8 - Capital requirements

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				Licensee shall maintain at all times such capital in an amount and form as the
				superintendent determines is sufficient to ensure the financial integrity of
				the Licensee and its ongoing operations based on an assessment of the specific
				risks applicable to each Licensee. In determining the minimum amount of capital
				that must be maintained by a Licensee, the superintendent may consider a
				variety of factors, including but not limited to:
(1) the composition of the Licensee's total
				assets, including the position, size, liquidity, risk exposure, and price
				volatility of each type of asset;
(2) the composition of the Licensee's total
				liabilities, including the size and repayment timing of each type of
				liability;
(3) the actual and
				expected volume of the Licensee's Virtual Currency Business Activity;
(4) whether the Licensee is already licensed
				or regulated by the superintendent under the Financial Services Law, Banking
				Law, or Insurance Law, or otherwise subject to such laws as a provider of a
				financial product or service, and whether the Licensee is in good standing in
				such capacity;
(5) the amount of
				leverage employed by the Licensee;
(6) the liquidity position of the
				Licensee;
(7) the financial
				protection that the Licensee provides for its customers through its trust
				account or bond;
(8) the types of
				entities to be serviced by the Licensee; and
(9) the types of products or services to be
				offered by the Licensee.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.9 - Custody and protection of customer assets

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each Licensee shall maintain a surety
				bond or trust account in United States dollars for the benefit of its customers
				in such form and amount as is acceptable to the superintendent for the
				protection of the Licensee's customers. To the extent a Licensee maintains a
				trust account in accordance with this section, such trust account must be
				maintained with a Qualified Custodian.
(b) To the extent a Licensee stores, holds,
				or maintains custody or control of Virtual Currency on behalf of another
				Person, such Licensee shall hold Virtual Currency of the same type and amount
				as that which is owed or obligated to such other Person.
(c) Each Licensee is prohibited from selling,
				transferring, assigning, lending, hypothecating, pledging, or otherwise using
				or encumbering assets, including Virtual Currency, stored, held, or maintained
				by, or under the custody or control of, such Licensee on behalf of another
				Person except for the sale, transfer, or assignment of such assets at the
				direction of such other Person.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.10 - Material change to business

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				Licensee must obtain the superintendent's prior written approval for any plan
				or proposal to introduce or offer a materially new product, service, or
				activity, or to make a material change to an existing product, service, or
				activity, involving New York or New York Residents.
(b) A "materially new product, service, or
				activity" or a "material change" may occur where:
(1) the proposed new product, service, or
				activity, or the proposed change may raise a legal or regulatory issue about
				the permissibility of the product, service, or activity;
(2) the proposed new product, service, or
				activity, or the proposed change may raise safety and soundness or operational
				concerns; or
(3) a change is
				proposed to an existing product, service, or activity that may cause such
				product, service, or activity to be materially different from that previously
				listed on the application for licensing by the superintendent.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.12 - Books and records

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				Licensee shall, in connection with its Virtual Currency Business Activity,
				make, keep, and preserve all of its books and records in their original form or
				native file format for a period of at least seven years from the date of their
				creation and in a condition that will allow the superintendent to determine
				whether the Licensee is complying with all applicable laws, rules, and
				regulations. The books and records maintained by each Licensee shall, without
				limitation, include:
(1) for each
				transaction, the amount, date, and precise time of the transaction, any payment
				instructions, the total amount of fees and charges received and paid to, by, or
				on behalf of the Licensee, and the names, account numbers, and physical
				addresses of (i) the party or parties to the transaction that are customers or
				accountholders of the Licensee; and (ii) to the extent practicable, any other
				parties to the transaction;
(2) a
				general ledger containing all asset, liability, ownership equity, income, and
				expense accounts;
(3) bank
				statements and bank reconciliation records;
(4) any statements or valuations sent or
				provided to customers and counterparties;
(5) records or minutes of meetings of the
				board of directors or an equivalent governing body;
(6) records demonstrating compliance with
				applicable state and federal anti-money laundering laws, rules, and
				regulations, including customer identification and verification documents,
				records linking customers to their respective accounts and balances, and a
				record of all compliance breaches;
(7) communications and documentation related
				to investigations of customer complaints and transaction error resolution or
				concerning facts giving rise to possible violations of laws, rules, or
				regulations;
(8) all other records
				required to be maintained in accordance with this Part; and
(9) all other records as the superintendent
				may require.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.13 - Examinations

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each Licensee
				shall permit and assist the superintendent to examine the Licensee whenever in
				the superintendent's judgment such examination is necessary or advisable, but
				not less than once every two calendar years, including, without limitation, to
				determine:
(1) the financial condition of the
				Licensee;
(2) the safety and
				soundness of the conduct of its business;
(3) the policies of its management;
(4) whether the Licensee has complied with
				the requirements of laws, rules, and regulations; and
(5) such other matters as the superintendent
				may determine, including, but not limited to, any activities of the Licensee
				outside the State of New York if in the opinion of the superintendent such
				activities may affect the Licensee's Virtual Currency Business
				Activity.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.14 - Reports and financial disclosures

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each Licensee shall submit to the
				superintendent quarterly financial statements within 45 days following the
				close of the Licensee's fiscal quarter in the form, and containing such
				information, as the superintendent shall prescribe, including without
				limitation, the following information:
(1) a
				statement of the financial condition of the Licensee, including a balance
				sheet, income statement, statement of comprehensive income, statement of change
				in ownership equity, cash flow statement, and statement of net liquid
				assets;
(2) a statement
				demonstrating compliance with any financial requirements established under this
				Part;
(3) financial projections and
				strategic business plans;
(4) a
				list of all off-balance sheet items;
(5) a chart of accounts, including a
				description of each account; and
(6) a report of permissible investments by
				the Licensee as permitted under this Part.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.15 - Anti-money laundering program

Current through Register Vol. 46, No. 28, July 10, 2024
(a) All values in United States dollars
				referenced in this Section must be calculated using the methodology to
				determine the value of Virtual Currency in Fiat Currency that was provided to
				the Department under this Part.
(b)
				Each Licensee shall conduct an initial risk assessment that will consider
				legal, compliance, financial, and reputational risks associated with the
				Licensee's activities, services, customers, counterparties, and geographic
				location and shall establish, maintain, and enforce an anti-money laundering
				program based thereon. The Licensee shall conduct additional assessments on an
				annual basis, or more frequently as risks change, and shall modify its
				anti-money laundering program as appropriate to reflect any such
				changes.
(c) The anti-money
				laundering program shall, at a minimum:
(1)
				provide for a system of internal controls, policies, and procedures designed to
				ensure ongoing compliance with all applicable anti-money laundering laws,
				rules, and regulations;
(2) provide
				for independent testing for compliance with, and the effectiveness of, the
				anti-money laundering program to be conducted by qualified internal personnel
				of the Licensee, who are not responsible for the design, installation,
				maintenance, or operation of the anti-money laundering program, or the policies
				and procedures that guide its operation, or a qualified external party, at
				least annually, the findings of which shall be summarized in a written report
				submitted to the superintendent;
(3) designate a qualified individual or
				individuals in compliance responsible for coordinating and monitoring
				day-to-day compliance with the anti-money laundering program; and
(4) provide ongoing training for appropriate
				personnel to ensure they have a fulsome understanding of anti-money laundering
				requirements and to enable them to identify transactions required to be
				reported and maintain records required to be kept in accordance with this
				Part.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.16 - Cyber security program

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Generally.
				Each Licensee shall establish and maintain an effective cyber security program
				to ensure the availability and functionality of the Licensee's electronic
				systems and to protect those systems and any sensitive data stored on those
				systems from unauthorized access, use, or tampering. The cyber security program
				shall be designed to perform the following five core cyber security functions:
(1) identify internal and external cyber
				risks by, at a minimum, identifying the information stored on the Licensee's
				systems, the sensitivity of such information, and how and by whom such
				information may be accessed;
(2)
				protect the Licensee's electronic systems, and the information stored on those
				systems, from unauthorized access, use, or other malicious acts through the use
				of defensive infrastructure and the implementation of policies and
				procedures;
(3) detect systems
				intrusions, data breaches, unauthorized access to systems or information,
				malware, and other Cyber Security Events;
(4) respond to detected Cyber Security Events
				to mitigate any negative effects; and
(5) recover from Cyber Security Events and
				restore normal operations and services.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.17 - Business continuity and disaster recovery

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each Licensee shall establish and
				maintain a written business continuity and disaster recovery ("BCDR") plan
				reasonably designed to ensure the availability and functionality of the
				Licensee's services in the event of an emergency or other disruption to the
				Licensee's normal business activities. The BCDR plan, at minimum, shall:
(1) identify documents, data, facilities,
				infrastructure, personnel, and competencies essential to the continued
				operations of the Licensee's business;
(2) identify the supervisory personnel
				responsible for implementing each aspect of the BCDR plan;
(3) include a plan to communicate with
				essential Persons in the event of an emergency or other disruption to the
				operations of the Licensee, including employees, counterparties, regulatory
				authorities, data and communication providers, disaster recovery specialists,
				and any other Persons essential to the recovery of documentation and data and
				the resumption of operations;
(4)
				include procedures for the maintenance of back-up facilities, systems, and
				infrastructure as well as alternative staffing and other resources to enable
				the timely recovery of data and documentation and to resume operations as soon
				as reasonably possible following a disruption to normal business
				activities;
(5) include procedures
				for the back-up or copying, with sufficient frequency, of documents and data
				essential to the operations of the Licensee and storing of the information off
				site; and
(6) identify third
				parties that are necessary to the continued operations of the Licensee's
				business.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.18 - Advertising and marketing

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each
				Licensee engaged in Virtual Currency Business Activity shall not advertise its
				products, services, or activities in New York or to New York Residents without
				including the name of the Licensee and the legend that such Licensee is
				"Licensed to engage in Virtual Currency Business Activity by the New York State
				Department of Financial Services."
(b) Each Licensee shall maintain, for
				examination by the superintendent, all advertising and marketing materials for
				a period of at least seven years from the date of their creation, including but
				not limited to print media, internet media (including websites), radio and
				television advertising, road show materials, presentations, and brochures. Each
				Licensee shall maintain hard copy, website captures of material changes to
				internet advertising and marketing, and audio and video scripts of its
				advertising and marketing materials, as applicable.
(c) In all advertising and marketing
				materials, each Licensee shall comply with all disclosure requirements under
				federal and state laws, rules, and regulations.
(d) In all advertising and marketing
				materials, each Licensee and any person or entity acting on its behalf, shall
				not, directly or by implication, make any false, misleading, or deceptive
				representations or omissions.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.19 - Consumer protection

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Disclosure of material risks. As part of establishing a relationship with a
				customer, and prior to entering into an initial transaction for, on behalf of,
				or with such customer, each Licensee shall disclose in clear, conspicuous, and
				legible writing in the English language and in any other predominant language
				spoken by the customers of the Licensee, all material risks associated with its
				products, services, and activities and Virtual Currency generally, including at
				a minimum, the following:
(1) Virtual Currency
				is not legal tender, is not backed by the government, and accounts and value
				balances are not subject to Federal Deposit Insurance Corporation or Securities
				Investor Protection Corporation protections;
(2) legislative and regulatory changes or
				actions at the state, federal, or international level may adversely affect the
				use, transfer, exchange, and value of Virtual Currency;
(3) transactions in Virtual Currency may be
				irreversible, and, accordingly, losses due to fraudulent or accidental
				transactions may not be recoverable;
(4) some Virtual Currency transactions shall
				be deemed to be made when recorded on a public ledger, which is not necessarily
				the date or time that the customer initiates the transaction;
(5) the value of Virtual Currency may be
				derived from the continued willingness of market participants to exchange Fiat
				Currency for Virtual Currency, which may result in the potential for permanent
				and total loss of value of a particular Virtual Currency should the market for
				that Virtual Currency disappear;
(6) there is no assurance that a Person who
				accepts a Virtual Currency as payment today will continue to do so in the
				future;
(7) the volatility and
				unpredictability of the price of Virtual Currency relative to Fiat Currency may
				result in significant loss over a short period of time;
(8) the nature of Virtual Currency may lead
				to an increased risk of fraud or cyber attack;
(9) the nature of Virtual Currency means that
				any technological difficulties experienced by the Licensee may prevent the
				access or use of a customer's Virtual Currency; and
(10) any bond or trust account maintained by
				the Licensee for the benefit of its customers may not be sufficient to cover
				all losses incurred by customers.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.20 - Complaints

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Each Licensee
				shall establish and maintain written policies and procedures to fairly and
				timely resolve complaints.
(b) Each
				Licensee must provide, in a clear and conspicuous manner, on its website or
				websites, in all physical locations, and in any other location as the
				superintendent may prescribe, the following disclosures:
(1) the Licensee's mailing address, email
				address, and telephone number for the receipt of complaints;
(2) a statement that the complainant may also
				bring his or her complaint to the attention of the Department;
(3) the Department's mailing address,
				website, and telephone number; and
(4) such other information as the
				superintendent may require.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.21 - Transitional Period

Current through Register Vol. 46, No. 28, July 10, 2024
A Person already engaged in Virtual Currency Business
				  Activity must apply for a license in accordance with this Part within 45 days
				  of the effective date of this regulation. In doing so, such applicant shall be
				  deemed in compliance with the licensure requirements of this Part until it has
				  been notified by the superintendent that its application has been denied, in
				  which case it shall immediately cease operating in this state and doing
				  business with New York State Residents. Any Person engaged in Virtual Currency
				  Business Activity that fails to submit an application for a license within 45
				  days of the effective date of this regulation shall be deemed to be conducting
				  unlicensed Virtual Currency Business Activity.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.22 - Severability

Current through Register Vol. 46, No. 28, July 10, 2024
If any provision of this Part or the application thereof to
				  any Person or circumstance is adjudged invalid by a court of competent
				  jurisdiction, such judgment shall not affect or impair the validity of the
				  other provisions of this Part or the application thereof to other Persons or
				  circumstances.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 201 - Registration Requirements and Prohibited Practices for Credit Reporting Agencies › Section 201.0 - Introduction

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The New York
				State Department of Financial Services (DFS) has been monitoring the practices
				of consumer credit reporting agencies including:
(1) the failure of consumer credit reporting
				agencies to safeguard consumer data;
(2) the failure of consumer credit reporting
				agencies to maintain accurate consumer credit data; and
(3) the failure of consumer credit reporting
				agencies to appropriately investigate consumer disputes of alleged inaccuracies
				in credit reports.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 201 - Registration Requirements and Prohibited Practices for Credit Reporting Agencies › Section 201.1 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
For purposes of this Part only, the following definitions
				  shall apply:
(a) Consumer means an
				individual.
(b)
(1) Consumer report means any written, oral,
				or other communication of any information by a consumer reporting agency
				bearing on a consumer's credit worthiness, credit standing, credit capacity,
				character, general reputation, personal characteristics, or mode of living that
				is used or expected to be used or collected in whole or part for the purpose of
				serving as a factor in establishing the consumer's eligibility for (i) credit
				or insurance to be used primarily for personal, family, or household purposes,
				(ii) employment purposes, or (iii) other purposes authorized under section three hundred eighty-b  of the General Business Law.
(2) Consumer report does not include (i) any
				report containing information solely as to transactions or experiences between
				the consumer and the person making the report, (ii) any authorization or
				approval of a specific extension of credit directly or indirectly by the issuer
				of a credit card or similar device, or (iii) any report in which a person who
				has been requested by a third party to make a specific extension of credit
				directly or indirectly to a consumer conveys his decision with respect to such
				request, if the third party advises the consumer of the name and address of the
				person to whom the request was made and such person makes the disclosures to
				the consumer required under section three hundred eighty-i  of the General
				Business Law.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 201 - Registration Requirements and Prohibited Practices for Credit Reporting Agencies › Section 201.2 - Registration

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Every consumer
				credit reporting agency that, within the previous 12-month period, has
				assembled, evaluated, or maintained a consumer credit report on one thousand or
				more New York consumers shall register with the superintendent in a form and
				manner acceptable to the superintendent.
(b) Every consumer credit reporting agency
				that is required to register pursuant to subdivision (a) shall designate in its
				registration one or more officers and one or more directors responsible for the
				business entity's compliance with the financial services, banking, and
				insurance laws, rules and regulations of this state.
(c) Every consumer credit reporting agency
				that is required to register pursuant to subdivision (a) at any time between
				June 1, 2018 and September 1, 2018, shall make the registration required by
				subsection (a) of this section on or before September 15, 2018, pursuant to the
				instructions and registration form available at
www.dfs.ny.gov
. Any other consumer credit
				reporting agency shall make the registration required by subsection (a) of this
				section within 15 days of when it is first required to register pursuant to
				subdivision (a) pursuant to the instructions and registration form to be
				published by the department.
(d)
				Every consumer credit reporting agency required to register pursuant to
				subdivision (a) of this section shall renew its registration by February 1,
				2019 for the 2019 calendar year, and by February first of each successive year
				for the calendar year thereafter pursuant to the instructions and registration
				form to be published by the department.
(e) The superintendent may refuse to renew a
				consumer credit reporting agency's registration if, after notice and hearing,
				the superintendent determines the registrant or any member, principal, officer
				or director of the applicant, is not trustworthy and competent to act as or in
				connection with a consumer credit reporting agency, or that any of the
				foregoing has given cause for revocation or suspension of such registration, or
				has failed to comply with any minimum standard. Before refusing to renew the
				registration of any consumer credit reporting agency pursuant to the provisions
				of this Part, the superintendent shall give notice to the registrant and shall
				hold, or cause to be held, a hearing not less than 15 days after the giving of
				such notice.
(f) Registrants under
				this section shall be subject to examination by the superintendent as often as
				the superintendent may deem it necessary.
New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 201 - Registration Requirements and Prohibited Practices for Credit Reporting Agencies › Section 201.3 - Acting Without a Registration

Current through Register Vol. 46, No. 28, July 10, 2024
(a) No
				individual, firm, association, corporation or other entity may engage in the
				business of a consumer credit reporting agency in New York by furnishing a
				consumer credit report on a New York consumer to any individual or entity
				without having a valid registration as a consumer credit reporting agency filed
				with Section 201.02 of this Part unless the individual, firm, association,
				corporation or other entity is not required to be registered pursuant to
				section 201.02(a) of this Part.
(b)
				No regulated person may pay any fee or other compensation to any consumer
				credit reporting agency that is required to be registered pursuant to section
				201.02(a) of this Part but fails to possess the required
				registration.
(c) No regulated
				person may transmit any information about a resident of New York State to a
				consumer credit reporting agency that is required to be registered pursuant to
				section 201.02(a) of this Part but fails to possess the required
				registration.