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Risk Management Manual of Examination Policies

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Section 17.1 - International Report Pages and Workpapers

Foreign Exchange Activities

99999

NOTE: A negative answer below (questions 2 through 8(e)) may be indicative of a condition in need of correction. Such answers may call for comment, or expanded treatment, below or elsewhere in the examination report.

Description	Yes	No
1. Is the bank engaged, in any manner, in foreign exchange activities? If ï¿½Yesï¿½, answer the following questions:	X
2. Is the net open position of each foreign currency reasonable in relation to the bank's total capital and reserves?	X
3. Is the aggregate net open position of all foreign currencies reasonable in relation to the bank's total capital and reserves?	X
4. Are the future maturities of foreign currency assets, liabilities, and contracts reasonably matched with respect to long and short positions in all time periods?	X
5. Does a current revaluation of the bank's foreign currencies reflect an insignificant profit or loss?	X
6. Has the directorate and/or head office imposed reasonable guidelines and limits with respect to foreign exchange operations?	X
7. Are guidelines and limits being adhered to by active management?	X
8. With respect to foreign exchange operations, are the following adequate:
(a) recording procedures?	X
(b) bookkeeping procedures other than 8(a)?		X
(c) contract confirmation procedures?	X
(d) internal routines and controls other than 8(c)?	X
(e) audit procedures?	X

8(b) Refer to comments under Audit and Internal Controls.

Last Updated 02/02/2005

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