Policies and procedures required.

CFR · 2024-01-01 · US · Title 12

(a) All non-exempt participants in designated payment systems shall establish and implement written policies and procedures reasonably designed to (b) A non-exempt financial transaction provider participant in a designated payment system shall be considered to be in compliance with the requirements of paragraph (a) of this section if— (1) It relies on and complies with the written policies and procedures of the designated payment system that are reasonably designed to— (i) Identify and block restricted transactions; or (ii) Otherwise prevent or prohibit the acceptance of the products or services of the designated payment system or participant in connection with restricted transactions; and (2) Such policies and procedures of the designated payment system comply with the requirements of this part. (c) For purposes of paragraph (b)(2) in this section, a participant in a designated payment system may rely on a written statement or notice by the operator of that designated payment system to its participants that states that the operator has designed or structured the system's policies and procedures for identifying and blocking or otherwise preventing or prohibiting restricted transactions to comply with the requirements of this part as conclusive evidence that the system's policies and procedures comply with the requirements of this part, unless the participant is notified otherwise by its Federal functional regulator or, in the case of participants that are not directly supervi

official document · source cfr-2024 · id 12:§ 233.5