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Article (27) Risk Management and Internal Controls

C 3/2023 Effective from 29/9/2023
27.1Restricted Licence Finance Companies and Agents must have appropriate, approvcd risk governance frameworks in place that identify all material risks. This includes policies, processes, procedures, systems and controls to identify, measure, evaluate, monitor, report and control or mitigate material sources of risk on a timely basis.
 
27.2Restricted Licence Finance Companies and Agents must ensure that they have instituted adequate internal controls, ensured proper segregation of duties within the organisational structure and that their operations are undertaken within the boundaries of clearly documented policies, authorities and procedures
 
27.3Restricted Licence Finance Companies’ and Agents’ definition and assessment of material risks must take into account its risk profile, nature, size and complexity of its business and structure.
 
27.4Restricted Licence Finance Companies and Agents must have in place mitigating action plans for key material risks and monitor and report on these on an ongoing basis.
 
27.5Restricted Licence Finance Companies and Agents must institute adequate internal controls and management procedures in relation to cyber and fraud related risks.
 
27.6Restricted Licence Finance Companies and Agents must have adequate resources to undertake proper underwriting of credits and compreshensive credit risk assessments of Borrowers prior to approving a Short-Term Credit.