Title Page
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COMPLIANCE RISK ASSESSMENT:
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CREDIT PROVIDER NAME:
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BRANCH NAME:
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NCR No:
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Conducted on
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PREPARED BY:
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LOCATION:
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PRESENT: (MANAGER)
INTRODUCTION
INTRODUCTION
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The purpose of this engagement is the assessment of compliance maturity within your business. Where you have existing controls, these will be assessed and recommendations made where necessary. Policies and procedures are tested in respect of their effectiveness during our compliance monitoring, however it is important to establish a baseline so as to ensure we can assist in addressing your risk areas, as part of your compliance risk plan.
Once the report has been completed, this should be provided to the governing body of the credit provider as part of the risk management process.
Please note that it incumbent on you to ensure implementation. We cannot make you compliant, we can merely assist you with the right tools.
GOVERNANCE
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Onsite NCR Audit:
ANTI MONEY LAUNDERING
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The credit provider is neither an accountable nor a reporting institution, however is a Juristic representative of an accountable institution ( Bengil Konsultante Bk).
s 50(2)(b) 1.12
Credit Providers that are accountable institutions in terms of FICA are required to establish and verify the identity of their clients, report suspicious transactions, and keep records, report cash transactions in excess of a prescribed limit and train staff on their obligations in terms of FICA. -
Does the credit provider have procedures in place to comply with the provisions of FICA that are applicable. Check training register, and copies of ID and proof of address on file (PHOTO)
LICENCE DISPLAY
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s 52(5) 1.14 Does the credit provider post its registration certificate (or duplicate registration certificate) in every premises from which it conducts the activities for which it is registered? Check NCR licence is displayed - PHOTO
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s 52(5) 1.15 - Does the credit provider reflect its registered status and registration number, in a legible typeface, on all its credit agreements and communications with a consumer? NCR registration number in a legible and visible manner on credit agreements and communications (check documents and adverts) - PHOTO
DISCLOSURES - CREDIT DECLINED AND ADVERSE CREDIT REPORTS
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s 62(1) 2.3 - Does the credit provider have procedures in place to respond to any request by a consumer in terms of section 62(1), including providing the dominant reason for refusing to enter into a credit agreement with a consumer? Check to see whether there is access to the procedures and that these are being applied
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s 62(2) 2.4 - Does the credit provider have procedures in place to advise a consumer of the name and contact details of a credit bureau from whom an adverse credit report has been received in terms of section 62(2)? Check to see whether there is access to the procedures and that these are being applied.
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s 72(1) 3.6 - With reference to question 3.5, does the credit provider have procedures in place to provide the consumer with a copy of the prescribed adverse information to be reported to the credit bureau? Check to see whether there is access to the procedures and that these are being applied.
DOCUMENTATION
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s 64(1) 2.7 - Does the credit provider make documents available in plain and understandable language in terms of section 64(1)? CHECK ONE CLIENT FILE (PHOTO)
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s 170 & Reg 56 10.6 - Does the credit provider have procedures in place to retain the information required in terms of regulation 55 for a period of three years from the date of termination of the credit agreement, or in the case of an application for credit that is refused or not granted for any reason, from date of receipt of the application? Check how records are kept, what is kept, and for how long (PHOTO AND COMMENT)
CONFIDENTIALITY
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s 68(1) 3.1 - Does the credit provider have procedures in place to protect the confidentiality of a consumer's confidential information? Check to see whether there is access to the procedures and that these are being applied. System security - password access etc. (FAIS and NCA)?
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s 68(1) 3.1 - Does the credit provider have procedures in place to protect the confidentiality of a consumer's confidential information? Check to see whether there is access to the procedures and that these are being applied. Physical security - PHOTO
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s 68(1) 3.3 - Does the credit provider have procedures in place to ensure that confidential information is only released or reported to the extent permitted or required in the Act or other legislation? Check to see whether there is access to the procedures and that these are being applied. Ask what the procedure is and comment.
ADVERTISING
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s 76(4) 4.10 - Does the credit provider have procedures in place to ensure that an advertisement contemplated in section 76(4) does not advertise a form of credit that is unlawful and is not misleading, fraudulent or deceptive? Check advertisements (PHOTO).
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Reg 21(6) 4.14 - Does the credit provider have procedures in place to ensure that an advertisement or a direct solicitation for credit does not contain the following statements or phrases (or similar phrases): - "no credit checks required", - "blacklisted consumers welcome", or - "free credit"? Check advertisements (PHOTO) The following may NOT be advertised: "no credit checks required", "blacklisted consumers welcome", "free credit"
FILE AUDITS
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s 81(2) 5.2 - Does the credit provider have procedures in place to conduct the assessment required in terms of section 81(2) prior to entering into a credit agreement? (affordability assessment to combat over indebtedness and prevent reckless credit). 3 File audits – affordability assessment done and on file (PHOTO)
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s 74(1) 4.1 - Does the credit provider offer any credit agreement on the basis that the agreement will automatically come into existence unless the consumer declines the offer? Note that this is prohibited in terms of section 74(1).
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s 90(2)(l) 6.3 - In terms of section 90(2)(l), the following provisions in a credit agreement have been declared unlawful: <br>• where a consumer agrees to deposit his identity document, credit or debit card, bank account or ATM card or other similar document with the credit provider; • Where a consumer provides his personal identification code or number to access an account to the credit provider. Does any credit agreement or supplementary agreement of the purchaser contain such a provision? Check files to see if there is any evidence of this - No actual ID's or ATM cards may be kept in the branch <br>
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s 92(1) 7.1 - In terms of Section 92(1) a credit provider must provide a consumer with a pre-agreement statement and quotation in Form 20 when entering into a small credit agreement. Does the credit provider have procedures in place to comply with this requirement? Check client files. (PHOTO)
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s 93(1) 7.6 - Section 93(1) provides that the credit provider must deliver to the consumer, without charge, a copy of a document that records their credit agreement. Does the credit provider have procedures in place to give effect to this? (PHOTO)
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s 74(6)(b) 4.5 - Does the credit provider have procedures in place to ensure that the credit provider, when entering into a credit agreement, provides the consumer with the option to be excluded from tele-marketing campaigns, from any marketing or customer lists or any mass distribution of email or sms messages as contemplated in section 74(6)(b)? Check to see whether there is access to the procedures and that these are being applied. Check application forms.
INSURANCE
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s 106(5)(b) 8.11 - In terms of section 106(5)(b), where a credit provider arranges an insurance policy on behalf of a consumer; the credit provider must disclose the cost to the consumer of the insurance supplied. The credit provider must also disclose the amount of any fee, commission, remuneration or benefit receivable by the credit provider in respect thereof. Does the credit provider have procedures in place to disclose these amounts to the consumer in Form 21? (PHOTO) <br>
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s 106(6)(a) 8.12 - In terms of section 106(6)(a), where a consumer elects to substitute an insurance policy of the consumer’s own choice, the credit provider may require that the consumer allow the credit provider to pay the premiums due under the policy and then bill the consumer for those premiums. Does the credit provider have procedures in place to obtain an instruction from the consumer to this effect in Form 22? Is the Credit "Know Your Rights" poster visible and accessible? (PHOTO) <br>
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s 106(6)(a) 8.12 - In terms of section 106(6)(a), where a consumer elects to substitute an insurance policy of the consumer’s own choice, the credit provider may require that the consumer allow the credit provider to pay the premiums due under the policy and then bill the consumer for those premiums. Does the credit provider have procedures in place to obtain an instruction from the consumer to this effect in Form 22? <br>Check application form for consent to deduct premiums on behalf of client. Is this present?
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s 106(6)(a) 8.12 - In terms of section 106(6)(a), where a consumer elects to substitute an insurance policy of the consumer’s own choice, the credit provider may require that the consumer allow the credit provider to pay the premiums due under the policy and then bill the consumer for those premiums. Does the credit provider have procedures in place to obtain an instruction from the consumer to this effect in Form 22? <br>Check application form for freedom of choice. Is this present?
COMPLAINTS
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Complaints management <br>Is the complaints process in each branch visible and accessible to the public (FAIS and NCA) (PHOTO)
FINALISATION
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COMPLIANCE OFFICER
