NYDFS proposes enhanced character reviews for bank officers, including CCOs

Banks operating in New York would have to step up their vetting of executives and senior officers, including chief compliance officers, under new guidance proposed by the New York State Department of Financial Services (NYDFS).

The NYDFS proposed banks chartered or licensed in New York provide more information to the department regarding the character and fitness of directors and senior officers upon onboarding and regularly after, the department said Tuesday in a press release.

The proposed requirements are necessary because while senior officers are generally investigated during onboarding, certain standards might be outdated and include only a criminal background check and not a check for conflicts of interest, the NYDFS said.