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Document payments to third parties.


CONTROL ID
08905
CONTROL TYPE
Establish/Maintain Documentation
CLASSIFICATION
Preventive

SUPPORTING AND SUPPORTED CONTROLS




This Control directly supports the implied Control(s):
  • Establish, implement, and maintain a third party payment system., CC ID: 08903

There are no implementation support Controls.


SELECTED AUTHORITY DOCUMENTS COMPLIED WITH




  • Review policies and procedures in place to monitor originating customer balances for credit payments (e.g., payroll) to ensure payments are made against collected funds or established credit limits and daily caps. Also determine whether payments in excess of established credit limits and daily caps … (App A Tier 1 Objectives and Procedures Objective 8:9, FFIEC IT Examination Handbook - Retail Payment Systems, April 2016)
  • For non prefunded arrangements determine whether the institution places blocks on outgoing payments to deposit accounts, applies them as reductions to credit lines, or includes them in the overall funds transfer monitoring process. (App A Tier 2 Objectives and Procedures J.4, FFIEC IT Examination Handbook - Retail Payment Systems, April 2016)
  • Determine whether management approves payments resulting in extensions of credit lines or drawings against uncollected funds and retains documentation to support the approvals. Determine whether the institution performs credit assessments of customers originating large dollar volumes of ACH credit t… (App A Tier 2 Objectives and Procedures J.5, FFIEC IT Examination Handbook - Retail Payment Systems, April 2016)
  • Determine whether management approves draws against uncollected ACH deposits and maintains documentation to support approvals for debits originated by high-risk customers. (App A Tier 2 Objectives and Procedures J.7, FFIEC IT Examination Handbook - Retail Payment Systems, April 2016)