1. Transactions with Related Parties must not be undertaken on more favorable terms (e.g. in credit assessment, tenor, interest rates, fees, amortization schedules, requirement for collateral) than corresponding transactions with non-related counterparties.

2. Banks must have policies and processes in place to identify individual exposures to and transactions with Related Parties as well as the total amount of exposures, and monitor and report on them through an independent credit review or audit process. Exceptions to policies, processes and limits must be reported to the appropriate level of the Bank’s Senior Management and, if necessary, to the Board, for timely action. Senior Management must monitor Related Party Transactions on an ongoing basis, and the Board must also provide oversight of these transactions

3. The Board must ensure that transactions with Related Parties (including internal group transactions) are reviewed to assess risk and are subject to appropriate restrictions (e.g. by requiring that such transactions be conducted on arm’s length terms) and that corporate or business resources of the Bank are not misappropriated or misapplied.

4. Transactions with Related Parties and the write-off of related-party exposures exceeding specified amounts or otherwise posing special risks are subject to prior approval by the Bank’s Board. Members of the Board with conflicts of interest must be excluded from the approval process of granting and managing related party transactions. Banks must report any breaches promptly to the Central Bank. The Central Bank may determine additional capital and/or provisioning requirements to cover any such breaches.

5. Banks must have policies and processes in place to prevent persons benefiting from the transaction and/or persons related to such a person from being part of the process of granting and managing the transaction.

6. Banks must maintain a register of related parties and details for each related party transaction.