Productopedia

Product Description:

Arrangements refer to umbrella contracts established, for example, by Bank A franchise & arrangements with central organizations, typically large corporations.

Through these arrangements, the local Bank A can serve local entrepreneurs effectively and efficiently.

These arrangements may encompass various areas, including finance, leasing, logistics, insurance, and asset management.

Additional Information:

An umbrella contract may cover areas such as finance, leasing, logistics, insurance, and asset management.

There is no fee for setting up the arrangement contract.

This contract allows franchise owners to access products at special rates under the umbrella agreement.

However, the financial arrangements will apply to each specific product obtained by the franchise through a local bank.

Fees are only incurred when a franchise takes out a separate product with a member bank.

Inherent Risk Rating: Low (0.0%)

Risk Indicators:

• No risks

Possible mitigation controls:

• Ongoing monitoring of a business relationship that is triggered by a specific event and includes a view of customer information, risk profile and transactions. Events can include adverse news, a change in status, a change in address, a request for a higher-risk product or service, a change in beneficial ownership or control, a type of business, a move to a higher-risk country, or unusual activity.
• Monitoring of inducements or gifts, and entertainment.
• Includes taking steps to gain an understanding of a customer's business activities, including the nature of the business to be taken with a bank and the anticipated volume and value of the business.
• A product or service requires entering into a legally binding agreement or contract (which can be standard or tailored) with the relevant counterparty (i.e., ISDA, Repo Agreements).
• Entering into a transaction before completing CDD (Customer Due Diligence) or EDD (Enhanced Due Diligence), as appropriate, is not allowed.
• Daily sanctions and adverse press screening, in addition to the risk review cycle.
• The Source of Wealth (SOW) of the client is understood.
• Conducts a detailed examination of specific transactions identified as being higher risk.