New York Codes, Rules and Regulations Title 23 - FINANCIAL SERVICES
New York Codes, Rules and Regulations (NYCRR)
Title 23 – Financial Services
1. Overview of Title 23
Title 23 of the New York Codes, Rules and Regulations contains the administrative rules governing financial services in the State of New York. These regulations are issued and enforced primarily by the New York State Department of Financial Services (DFS).
Title 23 regulates a wide range of financial institutions and activities to ensure:
Financial stability
Consumer protection
Market integrity
Compliance with state and federal financial laws
2. Scope and Coverage
Title 23 applies to various entities, including:
Banks and trust companies
Insurance companies and insurance producers
Mortgage bankers and brokers
Money transmitters and check cashers
Credit unions (state-chartered)
Virtual currency businesses
Financial service providers operating in New York
3. Objectives of Title 23
The main objectives of Title 23 are to:
Protect consumers from unfair, deceptive, or abusive financial practices
Ensure safe and sound operation of financial institutions
Promote transparency and accountability in financial markets
Prevent financial crimes, including fraud and money laundering
Regulate emerging financial technologies and digital assets
4. Structure of Title 23
Title 23 is divided into chapters and parts, each dealing with specific financial sectors or regulatory themes.
A. Banking Regulations
Licensing and supervision of state-chartered banks
Capital requirements and risk management
Lending practices and loan servicing standards
Deposit regulations and reporting obligations
B. Insurance Regulations
Licensing of insurers, agents, brokers, and adjusters
Policy forms and premium rates
Claims handling procedures
Market conduct examinations and enforcement
C. Mortgage and Lending Rules
Mortgage banker and broker licensing
Consumer disclosures and fair lending practices
Prohibited acts and penalties
Foreclosure prevention and borrower protections
D. Anti-Money Laundering and Cybersecurity
Compliance programs for financial institutions
Transaction monitoring and record-keeping
Cybersecurity requirements for protecting customer data
Reporting of suspicious or unauthorized activity
E. Virtual Currency and Financial Technology
Licensing and supervision of virtual currency businesses
Custody, capital, and compliance requirements
Consumer disclosures and risk management
Safeguards against fraud and misuse of digital assets
5. Powers of the Department of Financial Services
Under Title 23, the DFS has authority to:
Grant, suspend, or revoke licenses
Conduct examinations and audits
Issue cease-and-desist orders
Impose civil penalties and fines
Require corrective action or compliance plans
DFS acts as both a regulator and enforcement authority.
6. Consumer Protection Measures
Title 23 includes strong consumer protection provisions, such as:
Prohibition of unfair or deceptive practices
Requirements for clear disclosures
Standards for handling consumer complaints
Regulation of fees, charges, and interest rates
Protection of personal and financial data
7. Compliance and Enforcement
Financial institutions regulated under Title 23 must:
Maintain proper records
File periodic reports with DFS
Implement internal controls and compliance programs
Cooperate with regulatory examinations
Failure to comply may result in:
Monetary penalties
License suspension or revocation
Corrective orders or enforcement actions
8. Importance of Title 23
Title 23 plays a critical role in:
Maintaining confidence in New York’s financial system
Protecting consumers in one of the world’s largest financial markets
Ensuring ethical and lawful financial practices
Adapting regulation to evolving financial technologies
9. Summary Table
| Aspect | Description |
|---|---|
| Authority | New York Codes, Rules and Regulations |
| Title | Title 23 – Financial Services |
| Regulator | New York State Department of Financial Services |
| Coverage | Banking, insurance, lending, fintech, virtual currency |
| Key Goals | Consumer protection, stability, compliance |
| Enforcement Tools | Licensing, audits, penalties, corrective orders |
10. Conclusion
NYCRR Title 23 provides a comprehensive regulatory framework governing financial services in New York State. By combining strict oversight, consumer protection, and enforcement powers, it ensures that financial institutions operate safely, fairly, and transparently while adapting to modern financial developments.
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