The New York State Department of Financial Services (#NYDFS ) has just directed banking institutions under its supervision to integrate blockchain analytics tools into their compliance frameworks. This move is an important step aimed at mitigating the risks of money laundering and evading sanctions as banks increasingly engage with digital assets.
Expand the scope of supervision
This new directive applies to all licensed banks in #Newyork , including branches of foreign institutions. Director Adrienne Harris stated that this is necessary due to banks engaging in activities related to cryptocurrencies, including their own initiated virtual currency initiatives.
Previously, NYDFS only required licensed crypto companies to use these tools. Now, banks are also required to use blockchain analytics tools to screen customer wallets, verify the source of funds, monitor high-risk virtual asset service providers, and detect illegal financial activities.
Promote transparency and protection
NYDFS emphasizes that this is a supervisory requirement, not a strict regulation. Institutions are encouraged to tailor their controls to fit their business models and risk tolerance levels. Although New York is known for having some of the strictest regulations, this move shows the regulator's proactive approach in adapting to technological developments. It affirms that the adoption of blockchain is inseparable from measures to protect the integrity of the financial ecosystem. #anhbacong