N.Y. Comp. Codes R. & Regs. tit. 23 § 500.20

Current through Register Vol. 46, No. 45, November 2, 2024

Section 500.20 - Enforcement

(a) This regulation will be enforced by the superintendent pursuant to, and is not intended to limit, the superintendent's authority under any applicable laws.

(b) The commission of a single act prohibited by this Part or the failure to act to satisfy an obligation required by this Part shall constitute a violation hereof. Such acts or failures include, without limitation:

(1) the failure to secure or prevent unauthorized access to an individual's or an entity's nonpublic information due to noncompliance with any section of this Part; or

(2) the material failure to comply for any 24-hour period with any section of this Part.

(c) In assessing any penalty for a violation of this Part pursuant to the Banking Law, Insurance Law or Financial Services Law, the superintendent shall take into account, without limitation, factors including:

(1) the extent to which the covered entity has cooperated with the superintendent in the investigation of such acts;

(2) the good faith of the entity;

(3) whether the violations resulted from conduct that was unintentional or inadvertent, reckless or intentional and deliberate;

(4) whether the violation was a result of failure to remedy previous examination matters requiring attention, or failing to adhere to any disciplinary letter, letter of instructions or similar;

(5) any history of prior violations;

(6) whether the violation involved an isolated incident, repeat violations, systemic violations or a pattern of violations;

(7) whether the covered entity provided false or misleading information;

(8) the extent of harm to consumers;

(9) whether required, accurate and timely disclosures were made to affected consumers;

(10) the gravity of the violations;

(11) the number of violations and the length of time over which they occurred;

(12) the extent, if any, to which the senior governing body participated therein;

(13) any penalty or sanction imposed by any other regulatory agency;

(14) the financial resources, net worth and annual business volume of the covered entity and its affiliates;

(15) the extent to which the relevant policies and procedures of the company are consistent with nationally recognized cybersecurity frameworks, such as NIST; and

(16) such other matters as justice and the public interest require.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 500.20

Adopted, New York State Register March 1, 2017/Volume XXXIX, Issue 09, eff. 3/1/2017

Amended New York State Register November 1, 2023/Volume XLV, Issue 44, eff. 11/1/2023