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To prevent financial accidents in the credit-specialized industry, such as credit card companies, measures are being taken to strengthen the rotational work system and mandate compliance monitoring personnel to be at least 1% of executives and employees.
The Financial Supervisory Service announced on the 25th that it has completed the enactment and revision of the ‘Best Standards for Internal Control’ as part of the plan to improve internal control in the industry prepared in November last year.
This enactment and revision is significant in that it reorganized the internal control standards currently being operated individually by the Women’s Warriors into four exemplary standards, including ‘standard internal control standards’. Each exemplary standard includes contents to prevent financial accidents in the industry, such as establishing internal control standards, reinforcing the management of used car finance and credit card company affiliates, introducing rotational work and command leave systems, and strengthening the compliance monitoring system.
The standard internal control standards stipulate in detail the authority and role of each internal control organization, including the board of directors, CEO, internal control committee, and compliance officer. In addition, compliance officer’s appointment, status, term, and independence are guaranteed, and compliance monitoring system operation standards such as the basis for correction and improvement in case of violation of internal control standards are followed. △ Periodic management of the status of concurrent positions of executives and employees △ Prevention of money laundering and public intimidation funds △ Understanding. Compliance requirements, such as management of work related to concerns about conflicts, have been established.
The ‘Used Car Finance Sales Practice Improvement Guidelines’ were revised to focus on preventing loan fraud and strengthening follow-up management. When depositing the loan to a third party, the main details of the loan are informed to the customer through a text message service, etc., a phone call with the customer (Happy Call), confirmation of vehicle photos submitted by the customer before or after loan execution, and payment using an escrow account are 2. Improvements were made to take more than one action. This is a measure to prevent the possibility of misuse or embezzlement of used commercial vehicle loans. For post-mortem reinforcement, check whether the vehicle title has been transferred and a mortgage has been established within a certain period of time after handling the loan, and conduct periodic checks on whether the title has been transferred.
The standard financial accident prevention guidelines stipulate high-risk tasks that require separation of duties, such as fund management, and include the application of a three-stage or more strengthened approval process when changing the division of duties. In addition, continuous employment in the same department should not exceed 5 years, but in unavoidable cases, approval must be obtained from the personnel manager. In the case of high-risk work, a command leave system was introduced for long-term employees exceeding 5 years. In order to improve compliance monitoring capabilities, a plan is also included to secure compliance monitoring personnel at more than 1% of executives and employees and to consider related work experience, such as internal control, when appointing compliance officers.
PF loan management will also become stricter. When conducting a PF business through a real estate land trust, the loan amount must be remitted to the trust company management account or customer account initially registered. The loan borrower is notified of the remittance details via text message, phone, etc., and regular checks are also conducted on the appropriateness of changes to withdrawal information such as designated accounts and user seals.
In addition, when handling a loan, supporting documents are verified through materials and methods that can verify their authenticity, such as scraping and public my data information from the Ministry of Public Administration and Security, and if the contact information used during non-face-to-face financial transactions cannot be verified in the person’s name or matches the previous contact information registered with the company, In other cases, identity verification procedures are also strengthened.
Each female warrior plans to develop a computer system and maintain internal regulations in relation to the implementation of best practices.
An official from the Financial Supervisory Service said, “We will continue to make efforts to establish a sound internal control culture by implementing best practices,” and added, “We plan to strengthen internal control education through the Credit Finance Association and check the reflection of internal regulations and implementation status for each company.”
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Tags: Strengthening rotational work card capital companies .. Reorganization Financial Supervisory Services internal control practices
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