Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:
Banks must establish and maintain effective risk management and control processes over its DCCs and DSAs, including:
Banks must establish and maintain effective risk management and control processes over their Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements (DSAs). This includes appropriate recognition and financial reporting of income, expenses, assets, and liabilities, appropriate treatment of losses associated with these products, and assessment of the adequacy of internal controls and risk mitigation activities. These elements are fundamental to ensuring the bank properly manages and mitigates risks associated with these financial products.
Banks must establish and maintain effective risk management and control processes over their Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements (DSAs). This includes assessing the adequacy of internal controls and risk mitigation activities, along with appropriate recognition and financial reporting of income, expenses, assets, and liabilities, as well as the treatment of losses associated with these products. Additionally, before entering into a contract, the bank must obtain the customer's written affirmative election to enter into the contract and written acknowledgment of the receipt of the disclosures.