18.2.1The Licensed Person must ensure that unclaimed funds are assessed, documented, monitored and disclosed on a monthly basis subject to the below standards:
a)The Licensed Person must implement Policies and Procedures to assess, document, disclose and monitor unclaimed funds. These Policies and Procedures must be approved by the Board of Directors (or by the Owner/Partners where there is no Board of Directors);
b)Roles and responsibilities in relation to the management of unclaimed funds must be clearly defined;
c)The unclaimed funds must be segregated and held as cash in local currency stock or kept in the local bank account. This fund must not be used for day to day business activities;
d)The Licensed Person must constantly try to communicate with the respective customer(s) to refund unclaimed funds;
e)The Licensed Person must assess the amount of unclaimed funds as on the last day of every month and disclose it as a separate item under “Current Liabilities” of the monthly return Form No. 1; and
f)The Internal Auditor must review the procedures and the management of unclaimed funds as stated under Paragraphs 18.2.1 (a) to (e) of this Chapter and report its findings to the Board of Directors (or to the Owner/Partners where there is no Board of Directors).