BANK 4.8.5 Policies — transactions with related parties

(1) A banking business firm’s policy must establish:
(a) effective systems to identify, monitor and report individual and total exposures to, and transactions with, related parties;
(b) procedures to prevent a member of the governing body, a member of the firm’s senior management or any other person who stands to gain a benefit from a related-party transaction from being part of the process of granting and managing the transaction;
(c) well-defined criteria for the write-off of exposures to related parties;
(d) prudent and appropriate limits to prevent or address conflicts of interest; and
(e) procedures for tracking and reporting exceptions to, and deviations from, limits or policies.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).