CA-5.8.108

Past version: Effective from 01 Apr 2008 to 31 Mar 2011
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Given the reliance on monitoring and control systems to limit credit risk, the bank must have an effective internal process for assessing compliance with all critical policies and procedures, including

(a) regular internal and/or external audits of all critical phases of the bank's receivables purchase programme.
(b) verification of the separation of duties (i) between the assessment of the seller/servicer and the assessment of the obligor and (ii) between the assessment of the seller/servicer and the field audit of the seller/servicer.
Apr 08