Commercial Lending Compliance Checklist

I. Compliance Overview

• Objective: Ensure that [Your Company Name] adheres to all relevant legal and industry standards regarding commercial lending practices.

• Responsible Party: [Your Name], [Your Title]

• Date of Last Review: [Date]

• Next Scheduled Review: [Next Review Date]

II. Customer Due Diligence

• [Your Company Name] has established procedures for conducting thorough customer due diligence before approving commercial loans.

• Verify that customer identification and verification procedures are followed according to regulatory requirements.

• Confirm that Know Your Customer (KYC) checks are performed to assess the risk associated with potential borrowers.

III. Loan Documentation

• Ensure that all necessary loan documentation is completed accurately and in accordance with regulatory standards.

• Verify that loan agreements contain all essential terms and conditions, including interest rates, repayment schedules, and collateral details.

• Confirm that loan documentation is reviewed by legal experts to ensure compliance with applicable laws and regulations.

IV. Credit Risk Management

• Conduct thorough credit assessments to evaluate the creditworthiness of commercial loan applicants.

• Verify that risk rating methodologies are applied consistently to assess and mitigate credit risks.

• Monitor credit exposures and establish risk limits to manage credit risk effectively.

V. Regulatory Reporting

• [Your Department] is responsible for ensuring timely and accurate regulatory reporting for commercial lending activities.

• Verify that all required regulatory reports, such as Call Reports or HMDA reports, are submitted on time.

• Confirm that data accuracy and integrity are maintained throughout the reporting process.

VI. Fair Lending Compliance

• Ensure that commercial lending practices comply with fair lending laws and regulations to prevent discrimination.

• Monitor lending decisions and practices to detect and address any potential disparities in treatment.

• Provide fair lending training to staff members involved in the lending process to promote awareness and adherence to fair lending principles.

VII. Anti-Money Laundering (AML) Compliance

• [Your Company Name] has implemented AML policies and procedures to prevent money laundering and terrorist financing activities.

• Conduct customer due diligence checks to identify and verify the source of funds for commercial loan transactions.

• Report suspicious activities to the appropriate regulatory authorities and maintain records of such reports.

VIII. Signature

I, [Your Name], hereby acknowledge that I have reviewed the Commercial Lending Compliance Checklist Template for [Your Company Name] and affirm our commitment to implementing and maintaining the outlined procedures and practices to ensure compliance with commercial lending standards.

Your Company Name]

Date:                              

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