New York to propose banking rules to prevent illicit financing: source

(Reuters) - New York Governor Andrew Cuomo is preparing to impose new regulations on banks operating in the state to prevent money laundering and the financing of militant groups, a Cuomo administration official told Reuters on Monday.

The new rules, which Cuomo plans to propose this week, will force a chief compliance officer to certify whether a bank maintains systems to detect and prevent illicit money transfers.

If the compliance officers file a false certification, they could face charges.

The rules, if implemented, will aim to block criminals and militant organizations from using the New York financial system to fuel their activities.

In September, the United States tightened financial pressure on the Islamic State group, designating 15 people as the organization's supporters for providing technical, logistic or financial backing, working as political leaders or recruiting foreign fighters.

(Reporting by Suzanne Barlyn in New York and Amrutha Penumudi in Bengaluru; Editing by Sandra Maler)