Branch Operation Manual PDF

Process: Start of Day at Cash Area Unit: Cash & Client Service Process ID: Concern cash Officer, BOM/BM Procedure: 1. At start of the day, vault custodians (as per DOA) open the cash vault jointly after deactivation of Access Control system by any of the vault custodians for collecting cash & no...

Process: Start of Day at Cash Area Unit: Cash & Client Service Process ID: Concern cash Officer, BOM/BM Procedure: 1. At start of the day, vault custodians (as per DOA) open the cash vault jointly after deactivation of Access Control system by any of the vault custodians for collecting cash & non-cash items from vault. Start of Day Control Point (CP):1 at Cash Area 1. Vault must be opened at least 10 minutes before starting the transactions. Cash should be ready at counter before serving the customer. 2. Both the vault custodians have to sign on the prescribed register with specific purpose (Cash Item). 3. If Custodians of non-cash item need to enter into the vault, either of the custodians is enough to go with vault custodians. S/he must be sign on the vault register with specific purpose. 4. Grill Door must be closed immediately after coming out from vault. 5. BM/BOM/Concern Officer ensure that all CCTV cameras are capturing images covering full cash area and DVR are recording the same properly before starting the transaction. 2. Concern cash Officer (HT) takes cash from vault physically in presence of BM/BOM (as per DOA) & prepares Inter Teller Cash Exchange sheet (See Annexure: A) & immediately passes the accounting entry in Finacle. 3. Concern cash Officer (HT) affixes “Transfer Seal”, put signature with PIN, and write down the “DC Number on the Inter Teller Cash Exchange sheet. Accounting Entries (AE)#1 Start of Day at Cash Area Dr Cr HT A/C Vault A/C 4. Concern cash Officer (HT) distributes the seals to all Tellers and all Security items to Concern Officer starting their work. 5. Concern cash Officers prepare Inter Teller Cash Exchange sheet for collecting the cash from HT, collects the distributed amount verbally, write down on the Inter Teller Cash Exchange sheet accordingly, and submit to HT with name, Pin & Finacle ID writing on the Inter Teller Cash Exchange sheet. Page | 1  Start of Day at Cash Area Control Point (CP):2 1. In case of any cash will be handed over taken over between Head Teller to Teller (vice versa) through Finacle Inter Teller Cash Exchange sheet should be completed as per process. 2. Concern Officer must ensure that all the packets are in order and each packet contains 100 Pcs note. 3. For loose amount, Concern teller counts all the notes by using machine/manually before accepting the amount & must ensure the quality of the notes. 4. If any short/excess found on the packet, immediately informs to HT. If HT can’t find out, must inform to BOM/BM. 6. Concern Officer (HT) checks & matches the Inter Teller Cash Exchange sheet, passes the necessary accounting entries in Finacle. HT affixes “Transfer Seal” put signature with seal & distributes cash to respective Teller(s). Accounting Entries (AE)#2 Start of Day at Cash Area Dr Cr Individual Teller A/C HT A/C Teller Cash Exchange Sheet/Voucher Vault to HT or HT to Vault Branch Name: XYZ Date From: XXXX050100000001 To: XXXX05010010000X 1000 500 200 100 50 20 10 5 2 1 Total Amount: Transfer By Stamp & DC Received By Page | 2 HT to Teller or Teller to HT Branch Name: XYZ Date From: XXXX05010010000X To: XXXX05010010000X 1000 500 200 100 50 20 10 5 2 1 Total Amount: Transfer By Stamp & DC Received By 7. All the transaction must be verified as per Financial Delegation of Authority (DOA). 8. At EOD, Branch Manager/BOM (as per DOA) runs “HTV” option from Finacle to verify all financial transaction. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Concern Officer / Concern Associates with the non-compliance of Officer needs to prepare the Operational Risk Bangladesh Bank law and regulation which bundles as per Bangladesh may create regulatory risk. Bank guideline to avoid any kind of regulatory risk. Regulatory Reference: 1. Bangladesh Bank – EPROSha:26-A(Policy)/06/2180, 22/11/06; DCM Circular-01/2015 2. DCM Circular 06/2019, 09/11/2019 3. Internal Circulars & Guidelines - BBL/HO/R & lC/Circular/08/06, 20/05/08. Page | 3 Process: Security in Cash Area Unit: Cash & Client Service Process ID: Concern cash Officer/BOM/BM Procedure: 1. Cash premises are Entry Restricted area. Only Concern Officer, Vault Key Custodian, BOM, Branch Manager, MD, DMD, HORB, HOBB, Regional Head of Branch banking, HORM, HORMD, HOL & RA, Internal & External Audit Team, Custodian of Security Item & Locker (Master Key, Surrendered Key, and Unrented Key), Cash Sorter/Support Staff and designated persons whom are authorized to enter into Cash Area. 2. “Entry Restricted” mark should be hang on the Access Control door. Before entering into the cash area all authorized person must deactivate the Access Control door by using Security codes/ID card. 3. Whenever any Concern Officer leaves the counter, he/ she must lock his/ her own cabinet & lock his/her computer screen by pressing windows key+L. Concern Officer should inform his/her superior before leaving the counter/premises. 4. Any person assigned by BM (other than Key Custodian) wants to enter in “Cash Vault” must sign with purpose, PIN, time in, time out, & Dept. name in the register in presence of key custodian(s). 5. BM/BOM will maintain this register with his/her opinion and it should be ready at all the time for any inspection. 6. Ensure CCTV coverage in every area/corner of cash area including HT & cash sorter desk. DVR time should be matched with real time. 7. Burglar/Fire/panic Alarm and Seismic Detector are to be tested on monthly basis (in last week of the month) & keep record in a separate register using below format. Date of checking Time of checking Burglar Alarm Fire Alarm Panic Alarm Seismic Alarm OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK OK / not OK Page | 4 Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Unauthorized person completely Security Risk arises from the inadequate security Operational Risk prohibited to enter in the cash measures taken for cash area. area. Regulatory Reference: 1. Bangladesh Bank – EProSha:26-A(Policy)/06/2180, 22/11/06 2. Internal Circulars & Guidelines – BOM-2015 Page | 5 Process: Counter, Vault Limit Checking and Cash Area Management Process ID: Concern cash Officer, BOM/BM Unit: Cash & Client Service Procedure: Counter, Vault Limit Checking:- 1. During the transaction period at any time of the day, if Teller/HT finds counter limit has exceeded from approved insurance limit, the excess cash must immediately (max. 01 hour) be transferred to vault both in system and physically. Cash must be transferred in vault within 30 minutes of Finacle posting. Counter, Vault Limit Checking Control Point (CP): 1 1. HT is authorized to carry out transaction for transferring cash from counter to vault. 2. Voucher Creation is obligatory with maker & Checker Signature. 3. HT/BOM/BM checks teller cash position in Finacle over a particular interval during transaction hour & performs a surprise checking (surprise checking doesn’t mean to check total cash one by one). 4. HT ensures cash bundles are properly signed by the concerned cash officer. 2. HT prepares Exchange Format (See Annexure: A), passes necessary entries in Finacle, affixes Transfer Seal, write down the DC number, sign with seal/pin and forward to BOM/ BM for approval. Accounting Entries (AE): 1 Counter, Vault Limit Checking Dr. Cr. Vault A/C HT A/C 3. HT monitors the vault limit continuously during the transaction hour and if the vault limit exceeds from approved limit, HT immediately informs to BOM/BM verbally and arranges to prepare the excess amount for remit to IBCM/Other Branch/BB/BB Agent (For more details please see the Cash Remit through IBCM from BOM). 4. BOM/HT analyzes the vault status and transaction patterns of the counter and if required place a request upon verbal approval from BM/BOM to IBCM/ Other Branch/BB/BB Agent over phone call, letter or mail. 5. IBCM sends a mail to BOM/BM of the Feeder/Other- Branch/ ADC requesting to receive the excess cash with Cc to remitting branch & Department of Safety and Security (Where IBCM support is available). 6. HT of the remitting branch arranges the cash for remit to IBCM/Other Branch/BB/BB Agent accordingly. (Please follow the Cash Remit through IBCM Process from BOM) 7. At day end, if HT finds cash exceeding vault limit which cannot be transferred through IBCM, or by other means; immediately informs to the BOM/BM. Page | 6 8. On last day of the week, BM will check & count total cash of the vault and put signature on vault proof sheet with annotation. 9. BM/BOM will try to maintain vault limit as per guidance of Treasury. If the limit exceeds, BM/BOM should obtain approval from CM/Regional Head as per Treasury guidance. 10. No stapling will be done except Tk. 1000 denomination. Re-issue, Non-issue, Claims & Mutilated noted must be separated as per DCM Circular. Counter, Vault Limit Checking Control Point (CP): 2 BOM/HT closely analyzes the day vault status within the regular transaction hour and if required remit the excess cash within the banking hour. Teller Cash Exchange Sheet/Voucher Vault to HT or HT to Vault Branch Name: XYZ Date From: XXXX050100000001 To: XXXX05010010000X 1000 500 200 100 50 20 10 5 2 1 Total Amount: Transfer By Stamp & DC Received By HT to Teller or Teller to HT Branch Name: XYZ Date From: XXXX05010010000X To: XXXX05010010000X 1000 500 200 100 50 20 10 5 2 1 Total Amount: Transfer By Stamp & DC Received By Page | 7 Cash Area Management:- 1. During banking hour, if Teller/HT wants to go outside of premises for business purpose or any other reason for more than 20 minutes, must handover the cash to other Teller/HT. ATM replenishment will be out of this purview. 2. Cash receiver will match the cash physically with Finacle balance. If found okay, s/he will receive through Cash Exchange Sheet. 3. BM/BOM will perform surprise/sanity check of any Teller/HT’s cash at least once a week. 4. BM/BOM check Teller/HT cash position time to time so that they can find out if there is any abnormality. 5. Teller/HT cannot handover more than 20 Lac to Cash Sorter at one go. Amount with denomination must be written in Cash Sorter Register with both signature. 6. UO assigned for cash area (by changing ID in Finacle), can enter in cash area without BM/BOM permission. 7. Teller/HT/Cash Sorter must keep money bag/purse outside the cash area under BOM or designated officer’s custody. 8. If any support staff/vendor enters into cash area or vault during bank hour for sweeping or any other reason, must entry in cash area entrance register. 9. If any unauthorized person (BB official, Internal or External Auditor etc.) wants to enter into cash area, must collect authorized letter from them. 10. Cash area entrance door must be locked all the time. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan BM/BOM/HT closely monitors the Arises from the activities which are failed to vault & counter limit on regular Operational Risk initiate & conducts accordingly to the Internal interval and maintain the and guideline. approved limit to avoid any kind of Audit Comments. Financial Risk arises when the vault amount BOM/BM is authorized to remit Financial Risk exceeds the insurance coverage amount and any the cash if vault limit exceeds. robbery activities happened. Regulatory Reference: 1. Bangladesh Bank: DCM Circular-04/2021; DCM Circular-12/2015; DCM Circular-2019-4732, dated 19 November 2019. 2. Internal Guideline: Bankers Blanket Bond (BBB); Branch Operation Mannual-2015 Page | 8 Process: Cash Deposit Unit: Cash & Client Service Process ID: Concern Cash Officer Procedure: 1. Concern cash Officer receives cash with properly filled up Cash deposit slip from depositor. 2. Concern Teller checks the Account number, Account title, date, amount in word & figure, denomination and other required fields have been completed and s/he tallies the received cash denomination and amount with that of the deposit slip. (For more details, please see KYC process of walk-in customer issued on October, 2021 by AML) 3. Concern Teller checks the genuineness of the notes and counts the cash either manually or using the note counting machine in front of the depositor. 4a. For any mismatch or incompleteness, Concern Officer asks the depositor to regularize with signature. 4b. If everything seems satisfactory, Concern Officer inputs the details in the Finacle and write down the DC number on both part of the deposit slip. Accounting Entries (AE)#1 Cash Deposit Dr Cr Individual Teller A/C Customer A/C 5. Concern Officer affixes “Cash Received” seal and signature on both plies of the deposit slip, returns the customer’s copy to depositor, and keeps the Bank’s copy. 6. At day end, Concern Officer takes “HFTR” print out from Finacle, checks & crosscheck (by other user) the vouchers and puts his/her signature with PIN and date on the report. 7. In case any discrepancy is identified Branch Manager/BOM/HT request the Concern Officer to regularize immediately. Concern Officer regularizes it accordingly and resubmits to Branch Manager/BOM/HT. Cash Deposit Control Point (CP) # 1 For any exception, approval is required from competent authority. 8. Branch Manager/BOM/HT ensures the cross checking of the voucher and signs on the “Brown Top Sheet” with name seal. 10. HT preserves all daily vouchers as per voucher preservation process. 11. At day end BM/BOM/HT verifies all the financial transactions by running HTV option in Finacle. 12. For fake note, please follow relevant DCM circular of Bangladesh Bank. Page | 9 Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan This risk is emerging and caused from faulty Sufficient CCTV coverage has to be Regulatory Risk infrastructure issue like cash counter without in place. sufficient CCTV coverage. When cash deposit threshold, Arises from the process of converting identity of Concern Officer must collect valid AML Risk illegally obtained funds to appear like generated NID, source of fund information & from a legitimate source. make short KYC as per guideline. Concern Officer must carefully check Financial risk arises after daily balancing the amount and denomination in financial transaction like less amount received deposit slip and then receives cash. Financial Risk from the depositors which cause financial loss Concern Officer must verify the note for the Bank. that whether it is genuine note or fake note. Regulatory Reference: 1. Bangladesh Bank- a. EproSha:26-A(Policy)/06/2180, 22/11/06 b. Policy 1(2007-191), 04-07-2007 c. AML Circular No. 19/2008, 14/08/08 d. AML Circular No. 21/2009, 21/04/09 e. AML Circular Letter No. 01/2009, 30/06/09 f. AML Circular No. 24, 03/03/10 g. DCMPS_Issue_Cor_09X102, 12/04/09 h. DCMPS_Cor_09X367, 07/01/10. 2. Internal Circulars & Guidelines- a. lC&C/instruction Circular/01/03, 28/12/03 b. BBL/Ho/RM/Icir. /07/Forged Note-1, 26/07/07 c. BBL/HO/RM/instruction Circular- AML /07, 27/09/07 d. Lotus Mail/08, 09/03/08 e. BBL/R&lClRe- issue Note/2008/03, 10/04/08 f. BBL/HO/R & lC/Circular./2008/06, g. Lotus Mail, 27/05/08 h. BBL/RM/Exc. Move.-14/O5, 02/10/09. 3. BFIU Circular-26 Page | 10 Process: Cheque Deposit Transfer Unit: Cash & Client Service Process ID: Concern Officer Procedure: 1. Full Time Employee (Concern Officer) receives BBL Cheque with filled up deposit slip from depositor and affixes “BBL Crossing” on the cheque. 2. Concern Officer/Maker (cash or service) ensures the necessary information including a) Account Number (Both Dr. & Cr) b) Account Title (Both Dr. & Cr) c) Date (Post Dated & Stale cheque must not be accepted) d) Amount in word & figure e) Cheque number and cheque date on deposit slip f) Check under UV lamp and affixes (UV Checked) Seal at back of the cheque g) Concern Officer/Maker must ensure the genuineness/alteration of the cheque as per N.I act h) Signature Verification with system i) Call back must be done as per call back process (if required) N.B: For any mismatch or incompleteness, Concern Officer/Maker asks the depositor to regularize the discrepancy. 3. Concern Officer/Maker inputs & Posts (if within limit) the details in the Finacle and writes down the DC number on the deposit slip and cheque. Cheque Deposit- Accounting Entries (AE)#1 Transfer Dr Cr Drawer’s Account Payee’s Account 4. Concern Officer endorses the Cheque and 2-ply deposit slip with a transfer seal and put tick mark beside “Signature Verification”, “Payees Account Credited” and “Authorized for Payment “. 5. BM/ BOM verifies the transaction in system as per financial DOA and signs on the transfer Cheque. 6. At EOD/when required, Concern Officer/Maker takes print out from Finacle, checks the vouchers and puts his/her signature with name seal on the report. Another Concern Officer cross checks the vouchers and signs with name seal on the report. 7. BM/BOM & a Concern Officer ensure the cross checking of the voucher and signs on the “Brown Top Sheet” with seal and date. If any discrepancy is found, BM/BOM requests the respective Concern Officer to Page | 11 regularize immediately. 8. A Concern Officer preserves all daily vouchers as per voucher preservation process. 9. At EOD, BM/BOM/Concern Officer verifies all the financial transactions through HTV menu in Finacle. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Compliance Risk arises from delayed / wrong Before input any Cheque information response to cheque and wrong information in the Finacle, Concern Officer should Operational passed through Cheque which may causes check all the information carefully Risk penalty and financial losses for the Bank. considering the NI act of the instrument. Fraud risks arises from the misuse or taking advantage of the existing guideline regarding Before honor any Cheque Concern Regulatory the negotiable Instrument Act of the bank. Officer should carefully check the Risk Stopped/False/Duplicate/Stale Cheque may physical instrument considering NI Act. place in the counter. Reputation risk is the negative public opinion To avoid any kind of reputational risk that affects organization’s ability to continue Concern Officer arranges to pass the Reputational serving the existing clients. It arises from accounting entry if everything is in Risk failure to meet basic expectations of order & try to avoid any unjustified performance that apply to any comparable delay. organizations operating in the same field. Before leaving the desk, Concern Arise from the failure to ensure proper security Officer must ensure that his/her ID is ICT Risk of Finacle ID by the respective Concern Officer. locked and must not share ID among Concern Officer. Regulatory Reference: 1. Bangladesh Bank- a. AML Circular Letter No. 01/2009, 30/06/09 b. BRPD Circular Letter No 9, 26/11/96 c. BRPD Circular Letter No 14, 05/11/97. 2. Internal Circulars & Guidelines- BBL/ RM/ lC/ 01/07, 20/02/07, 21/03/21. Page | 12 Process: Cheque Deposit - Clearing (BACH) Unit: Cash Area Process ID: Concern Officer, BOM/BM Procedure: 1. Any FTE of Branch can receive Clearing Cheque with filled up deposit slip from customer/ depositor. Receiver of cheque puts BBL crossing and will pass it to Concern officer of cash area for checking clearing Cheque through UV lamp and mark it at back side of cheque. Moreover, s/he will check the following:- a. Account Number b. Account Status c. Account Title (must be matched with Finacle) d. Date (postdated and stale dated cheque) e. Amount in words & figure f. Drawer bank & branch name and Cheque number g. Account Number, A/C Title and depositor phone no. must be mentioned at the back of the cheque 2. Cheque will be received if material things on cheque are found okay. Concern Officer affixes “Received for Clearing” seal with signature on the 2-ply deposit slip. Concern Officer also affixes the “Payees A/C Credited” or “Received Payment” endorsement as appropriate on the backside of the Cheque with signature and mark high value or regular value on the clearing seal. 3. Concern Officer returns the customer’s copy of the deposit slip to the depositor. 4. Concern Officer hands over all the Clearing Cheque to the Concern staff of BACH processing. 5. The maker will scan the cheques meticulously using BACH Scan Module. 6. If everything is in order according to BACH processing guideline then the maker will submit and checker will upload and ensure the uploading of the cheques. 7. Here, two steps (Data Entry and Authorization) need to be performed by BACH team-HO, in case of centralized branch Cheque processing mode. 8. Cheque discards and details report needs to be generated by Concern Officer after BB cut off time of cheque processing. Discarded cheques report will be downloaded from dChecker report module. 9. Discarded cheques will be returned to the depositor by Concern Officer taking sign into the discard report/register. 10. Reconciliation will be performed by a concern officer after the presentment time is over (physical cheques will be reconciled with the Cheque receiving register and cross match the credit Account number and amount with deposit slips based on dChecker Details report). 11. Generate respective branch wise cheque return report by a Concern Officer after BB Cheque Return Cut Off time is over, to check if any cheque is returned. Page | 13 11. Return cheque details will be recorded in return cheque register if found any. 12. Cheque will be returned to customer as per Bank guideline. Note: It must be mentioned here that in case of decentralized Branch Cheque clearing mode, additional two steps (Data Entry and Authorization) need to be performed by respective branches. As per BACPS V 2.0 guideline one Cheque can be presented three times. If a Cheque is returned from respective bank/branches once with reason, then that Cheque will be presented in next presentment lines simultaneously. 13. In case a cheque is lost, branch should follow the below procedure: a. Check with respective bank whether the cheque is already honored or not. If not, arrange a GD entry and take up with customer with GD. If honored, seek guidance from HoOPS. b. Need to write to Payee bank with GD for STOP payment against the cheque. c. Customer will have to arrange a new cheque for the same and you need to give him/her a copy of GD as evidence that instrument is lost. d. Place the cheque through BACH. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan AML issue must be considered AML risk arises from the process of converting before accept the Cheque. NI Act AML Risk identity of illegally obtained funds to appear like must be followed carefully at the generated from a legitimate source. time of receiving/processing cheque by Concern Officer/respective staff. It is caused from negative public opinion about our service quality; internal/external fraud etc. Before honoring/dishonoring any which may affect our reputation to retain current Cheque, Concern Officer should Reputational Risk portfolio and grow further if ignorance found in carefully check the physical processing the cheque or even dishonoring any instrument considering NI Act. cheque without proper reason code. Page | 14 Regulatory Reference: 1. Bangladesh Bank- PSD Circular No-07, Bangladesh Automated Cheque Processing System (BACPS) V 2.0 Operating Rules & Procedures, Published 05 December 2019. 3. Payments & Transactions Operational Manual:\\10.5.31.146\process_notes\PROCESS_NOTES_VERSION_2 , Published September 2020 4. Bangladesh Bank- PSD circular no1/2013, Bangladesh Automated Clearing House (BACH) regarding BACH charge, published on 28 February 2013. 5. The Negotiable Instruments Act, 1881, (Act No. XXVI OF 1881). Page | 15 Process: Returned Clearing Cheque Management Unit: Cash Area Process ID: Concern officer, BM/BOM Procedure: 1. Concerned Officer contacts with the beneficiary of the Cheque over the phone number available in Finacle on the same day. 2. If able to contact with beneficiary, Concern Officer informs about the return Cheque and request to collect the Cheque from the respective service outlets by 15 working days. 3. Concerned Officer requests customer (in case of account holder) to sign on the register & handover the return cheque Concern Officer verifying the sign from Finacle. 4. In case of Bearer with Collection Authorization, Concern Officer verifies the customer’s signature with the system, calls back to customer as per callback guideline and if everything is found okay then collect Bearer’s sign in the delivery register & handover the cheque to bearer. 5. In case of corporate customer, RM or designate of that a/c can take consent from customer through mail to provide the returned cheque to their local representative. Representative name & NID number/Staff ID number must me mentioned in the mail. Branch should match the ID number of bearer & collect NID before handing over the cheque. If Unable to Contact: a. If unable to contact with beneficiary, concerned Officer will hold it for 15 working days & try to communicate over the phone. This call back (only date & time) information should be written (not mandatory) in the Return Clearing Cheque report. b. If the cheque is not collected by the beneficiary by 15 working days, respective Concern Officer will send the cheque to the beneficiary's mailing address (as recorded in Finacle) on 16th/17th working day with a forwarding letter and preserve a copy of forwarding letter along with shippers copy. c. For any exception (If cheque to be preserved more than 15 working days as per customer request) Concern Officer will seek approval from Branch Manager. d. If the cheque is undelivered to the customer’s mailing address and courier returns to bank, Concern Officer puts the received seal on the Envelop, and attach with the Cheque. Concern Officer gives entry in the courier return register with date & signature and preserves the Cheque with forwarding letter in dual control till 6 months of cheque issuing date. Page | 16 Register Format is as follows: Account Drawee Archiving/ Initiated Verified Date Name Chq No Amount No Bank Delivery Date By By a. Return reason should be written on the Envelop by courier staff with full name, sign and date. b. If the Cheque is undelivered for six months branch sends the Cheque to archive as per voucher preservation process. (See the undelivered Return Cheque Management Process) Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Designated person must contact Compliance Risk arises from delayed / wrong over phone and request response to queries regarding return cheque customer to collect return delivery which causes penalty and financial cheque immediately. losses. Operational Risk Concern officer from service outlets needs to be careful at the Arises from the negative publicity regarding time of handling return clearing service level of the bank in return cheque cheque and inform to the delivery. respective account holder to avoid such risk. Fraud risks arises form misuse or taking Designated person must check advantage of the existing rules regulations or the customer authorization Regulatory Risk company policy of return cheque delivery to before handover the cheque to unauthorized person the bearer. Legal risk arises from the legally unenforceable Respective Officer from service documents, contract, lawsuits or adverse outlets must preserve all the Legal Risk judgments of return cheque delivery which can POD copy of Returned Clearing disrupt or negatively affect bank’s operations Cheque for the audit purpose. and financials Regulatory Reference: 1. Bangladesh Bank- a. BRPD Circular Letter No 9, 26/11/96 b. BRPD Circular Letter No 14, 05/11/97 c. DCMPS Regulation draft, 11/01/09 d. DCMPS Circular No. 1, 13/01/09. 2. Internal Circulars & Guidelines- Lotus Mail, 24/12/09. 3. Process:- BOM-2015 Page | 17 Process: Undelivered Returned Cheque Management Unit: Cash Area Process ID: Designated Custodian Procedure: 1. Undelivered returned Cheque should be sent to archive by Concern Officer ones in every Six Months. Before sending to archive, Concern Officer will start affixing “Not collected by beneficiary” seal on the backside of the Cheque. For cost saving, it should be sent with regular voucher archival. 2. Concern Officer will mention the reason for “sent to archive due to undelivered” with date on “Courier Return Delivery Register”. 3. Custodians will preserve all the undelivered returned Cheque in dual control. 4. If customer comes to take the cheque within six months then Concern Officer will check full name and signature with Finacle, the delivery can be made. For bearer, authorization letter with account holder attestation is required. (Call back process to be followed) 5. Customer/Bearer will sign on the forwarding letter at the time of taking delivery. 6. “Not collected by beneficiary” seal must be cancelled by Custodians with signature, seal and date. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Compliance Risk arises from delayed / wrong If designated custodian identifies response to queries and wrong returns & any discrepancy immediately information submitted to regulatory authorities Operational Risk convey to Manager and keep regarding escalate any discrepancy in record in a File with signature and undelivered return Cheque which may cause for date. penalty. It arises from the inadequate security measures Designated custodian of service taken for Preservation and Archiving of outlets must check the customer ICT Risk undelivered Return Cheque which may causes authorization before handover the undue incidence or financial losses. cheque to the bearer. Regulatory Reference: 1. Bangladesh Bank- a. BRPD Circular Letter No 9, 26/11/96 b. BRPD Circular Letter No 14, 05/11/97 c. DCMPS, 11/01/09 d. DCMPS CIRCULAR NO. 1, 13/01/09. 2. Internal Circulars & Guidelines: BOM-2015 Page | 18 Process: Pay Order (PO)/Demand Draft (DD) Sell/Purchase from Other Bank. Note: This process is applicable only for “Internal Fund Management” with other than Corresponding Bank through PO/DD Sell/Purchase. Customer PO/DD sell/purchase will not be accepted. Unit: Cash Area Process ID: Concern Cash Officer/BOM/BM Procedure: Cash Receiving 1. BM/BOM monitors “Cash Vault Status” & transaction pattern & forecasts the cash requirement for branch operations. 2. BM confirms with nearest Other Bank’s BM through Phone Call/Physical Visit/mail, asking for cash requirements against BRAC Bank’s Pay Order (PO) if needed extra cash. Branch Manager may receive request through mail with forwarding letter as per guideline from Other Bank’s Branch Manager for cash requirements. 3. If nearest other bank BM agrees, sends an email to BM/RM/Regional Head/CM for cash as per Financial DoA for approval with Cc to BOM & BM/RM/Regional Head/ CM about the BBL PO to be purchased by Other Bank’s Nearest Branch. After receiving the forwarding letter and mail, bank officials will scan it and send to IBCM for signatory check. PO/DD Sell/Purchase Control Point (CP):1 BM clearly mentions required amount, justified reason for cash requirements, Bank, Branch Name, two BBL FTE’s Name, and Designation & PIN in approval mail. 4. After receiving the approval from BM/RM/Regional Head/CM, BM informs to nearest other bank BM regarding the cash collection & advice BOM & Concern Officer to issue a Pay Order as per fund requirements raised by Service Outlets & approval. Accounting Entries (AE): 1 PO/DD Sell/Purchase Dr. Cr. Cash Arrangement with other Bank PAYMENT ORDER-BRANCH (xxxx050260140026) (xxxx050370000001) Page | 19  PO/DD Sell/Purchase Control Point (CP):2 a. Proper narration needs to be mention in Particulars field as “PO issue for cash received from … Bank …… Branch. b. Pay Order issuing charge will not be applicable. c. Pay Order will be issued in favour of …… Bank ……… Branch. 5. After issuing the Pay Order (PO) in Finacle, BM arranges to prepare a “Forwarding Letter” in prescribed format (Annexure A). 6. BM issues a letter to the nearest Police Station (if IBCM support is not available) for necessary police force as security purpose, arranges pool vehicle & informs Department of Safety & Security GSS along with above group. PO/DD Sell/Purchase Control Point (CP):3 Police protection/Cash Carrying Service initiative will be taken by Branch. Department of Safety & Security is also informed. 7. BM/BOM & Concern Officer as per the forwarding letter jointly go to the Other Bank’s Nearest Branch with BBL PO in favor of that bank, security box & forwarding letter for receiving cash through pool vehicle & necessary police force. 8. BM/BOM & Concern Officer come to the Service Outlets, hands over the box to Concern cash Officer under CC Camera, Concern Officer will open the box in front of BM/BOM. 9. Concern Officer prepares Debit & Credit Voucher with proper narration & immediately passes necessary accounting entry in Finacle, write DC number, affixes Cash Received Seal, sign jointly with BM with date & time. Accounting Entries (AE): 2 PO/DD Sell/Purchase Dr. Cr. CASH IN HAND-TELLER-1-BDT Cash Arrangement with other Bank (xxxx050100100001) (xxxx050260140026) PO/DD Sell/Purchase Control Point (CP):4 a. Transaction should be completed within the banking transaction hour. b. BM/BOM & Concern Officer jointly confirms quality & quantity of the cash before handover the PO. c. Cash must be carrying in a security box under dual lock. d. BM/BOM & Concern Officer ensure necessary security measures. Page | 20 Cash Remit to other Bank 10. A prescribed letter is received by BM/BOM from the Other Bank’s Nearest Branch, asking for Cash against their Pay Order (PO)/Demand Draft (DD) for cash remit purpose. PO/DD Sell/Purchase Control Point (CP):5 1. In request letter clearly mention that Pay Order is issued for taking cash support from BRAC Bank and takes full responsibility for fund clear. 2. Pay Order has to be issued in favour of BRAC Bank Limited. 11. BM/BOM checks the apparent genuineness of the PO & Forwarding Letter by performing call back to other bank BM (as per NI ACT 1991 & MICR Guideline by Bangladesh Bank, for example-UV, MICR, Leaf, Signature match, issuing limit with authorization letter/signature booklet) of the PO. 12. If the PO & Letter is okay, concern officer/BOM takes an approval from BM to remit the cash to other Bank with a CC to AH, RH, Branch Governance & concern Treasury Unit. Cash Management Control Point (CP):6 If BM knows that any signatory resign/transfer from other bank branch, maximum effort needs to be taken to update the authorization letter/signature booklet & stop to honour the PO/DD. 13. After getting positive confirmation from Treasury for signature verification (PA holder), BM/BOM advices concern FTE to clear the PO through BACH and to pass necessary accounting entries as per process. 14. If Signature of PA holder is not found in signature booklet and confirmed by IBCM, Branch Manager should not honour the remit request of other Bank. However, if Branch Manager of requesting Bank send a letter stating that signatures in PO are put by their designated staff and send their branch signatory list with that forwarding letter, Branch Manager of BBL can proceed the remittance if he is convinced with that request. Otherwise, remit should be made after honouring the PO through BACH. 15. Concerned FTE prepares takes initiative to hand over the cash to the representatives of Other Bank under CCTV coverage (two authorized Officials of Other Bank as per the authorization letter) after proper verification. Cash Accounting Entries (AE): 7 Management Dr. Cr. RECEIVABLE AGAINST DD (CASH SALE) CASH IN HAND-TELLER-1-BDT (0000050260140004) (xxxx050100100001) 16. Concern Officer prepares Credit Voucher properly, mentioning the reason as “PO/DD No: …………… Purchased against Cash Handover to ………. Bank, sign as “Prepared By”, collects signature from BOM as “Checked By” & BM as “Approved By”. Takes a photocopy of the PO/DD, forwarding letter & preserved with other documents. Page | 21 Annexure: A Date: The Manager XXXX Bank Ltd. XXXX Branch XXXX Subject: Requesting for Cash against Payment Order Dear Sir/Madam, To continue regular payment procedure of our branch, we need additional cash backup to meet our branch cash requirement which you may have surplus at your end. At present we need BDT……………….. (in word:……..) It will be collected from you against our Payment Order number ……………………… dated on ………………………. We highly appreciate the support you extended to us and looking forward to a scope to return you the same. The cash will be received by two of our authorized branch official, whose details & signature are attached below with necessary security. Branch Name of the Staff PIN Staff Designation Manager Officer Number Signature Attestation Regards- Branch Manager Seal Class & Serial No Regulatory Reference: IBCM guideline for cash remit. Page | 22 Process: Outstation Bank Collection (OBC) Unit: Cash Area Process ID: Concern Officer, BOM/BM Procedure: 1. Receipt of Non-MICR cheque is restricted & discouraged by senior management. If branch has to receive (in case of Govt. cheque) from valued customer by any means, must take indemnity from (Annexure-A) with full signature from depositor. Staff should explain the key contain of indemnity form to depositor. 2. Concern Officer receives the OBC (Only Govt. Cheque) cheque with filled up deposit slip from customer. Concern Officer checking collection Cheque through UV lamp concern official affix the “BBL Crossing” seal at appropriate place and tallies the total Cheque amount & number of Cheque with that of the deposit slip. The checking points are a. Account Number b. Account Status c. Account Title (must be matched with Finacle) d. Date (postdated and stale dated cheque) e. Amount in word & figure f. Drawer bank & branch name and Cheque number 3. Concern Officer puts received seal on the deposit slip, affixes BBL endorsement stamp “Payee’s account will be credited Concern Officer realization” at back of the cheque, returns customer copy to depositor and put OBC no (Serial no.) 4. Concern Officer will send the cheque along with deposit slips, forwarding letter & MIS (as bellow) to respective branch/nearest clearing zone (which is applicable) in a sealed envelope through courier service. MIS should contain following information. Sl No Account No Bank Name Cheque No Amount 5. Concern Officer will preserve a full set of documents for future reference. 6. Charge will be applicable as per SOC Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Concern officer need to prevent any kind of To comply with Money Laundering money laundering activities, which includes Prevention Act-2002 all the AML Risk converting identity of illegally obtained funds to concern official need to apply due appear like generated from a legitimate source. diligence at the time of LBC Page | 23  activities Concern official needs to handle Concern official may lost/misplace the the instruments with maximum Reputational Risk instrument which may arise reputational risk. care to avoid any kind of reputational & SQ risk To avoid any kind of financial risk May arise if proper security measures are not Concern Officer should ensure all Financial Risk taken at the time of cash collection kind of security measures as per bank policy. To avoid any kind of financial risk May arise if proper security measures are not Concern Officer should ensure all ICT Risk taken at the time of cash collection kind of security measures as per bank policy. Annexure-A Indemnity form vetted by the Legal.docx Regulatory Reference: 1. Bangladesh Bank- a. BRPD Circular Letter No 9, 26/11/96 B. BRPD Circular Letter No 14, 05/11/97 C. BRPD Circular No. 20, 25/10/03 D. AML Circular No. 22/2009, 21/04/09 e. BRPD Circular Letter No. 02, 10/03/04 2. Internal Circulars & Guidelines- a. Lotus Mail, 23/11/09 b. Lotus Mail, 24/12/09 c. RM/ IC /O3 /06, 09/03/06. 3. Mail from Head of Branch Governance regarding Discouraging & Discontinuation (from 1st Dec-21) of Non- MICR Cheque on 11.10.2021 Page | 24 Process: Cash Withdrawal through Cheque Unit: Cash & Client Service Process ID: Concern Cash Officer, BOM/BM Procedure: 1. Customer (account holder/bearer) places the BBL Cheque to the Concern Officer for cash withdrawal. 2. Concern Officer verifies the cheque under UV light, Checks Account number, Account title, date, amount in word & figure, available balance in account, Cheque number and matches the Account holder’s signature with the system. For slight mismatch of signature (max. 20%), BOM/BM/RM may take a discretionary call to make the payment. In that case, concerned BOM/BM/RM must verify/authenticate the signature. 3. In case of any alteration (if customer’s counter sign is available), call back confirmation (if drawer is not physically present) must be done by FTE (Other than transaction initiator) following the call back guideline. Cash Withdrawal Control Point (CP) # 1 through Cheque - For counter payment (in case of bearer): BM/BOM/HT/RM must ensure the genuineness of alteration on the cheque as well through communicating with the account holder/mandate (if required). BM/BOM/HT/RM can also put note on the back of the cheque. - Call back can be performed by calling account holder/mandate regardless who signs on the cheque. - Call back will be done as per call confirmation guideline. 4. If everything is OK, Concern cash Officer collects customer’s first signature on the back side of the cheque for placement & signature must be verified with Finacle on the cheque. 5. In case of cash withdrawal by any illiterate customer BRPD Circular-04, dated 21 May 2018 to be followed. 6. Concern Officer inputs the necessary information in the Finacle and writes down the DC number in the Cheque. Cash Withdrawal through Cheque Accounting Entries (AE)#1 Dr Cr Customer A/C Individual Teller A/C 7. In case of above from authorize limit, “Authorized for payment” is required from BM/BOM/HT as per Financial DOA/Finacle limit with approver signature. 8. Concern Officer needs to affix prescribed “Cash Paid” seal on cheque for signature verification, UV checking, Authorization for payment & cash paid. Page | 25 9. Concern Officer checks and counts the cash manually or using the note counting machine in front of the customer and writes down the denomination on the backside of the cheque. 10. Concern Officer collects the second signature of the customer on the backside of the Cheque for collecting the money and pays cash to the customer. Concern Officer requests the customer to count and check the cash in front of him/her. 11. If any cheque is dishonored, and bearer wants return slip, can be given taking bearer NID & signature on photocopy of cheque. Proper reason of dishonor must be marked in return slip. Need to put seal, signature with date & time on slip. NID copy, photocopy of cheque & photocopy of return slip must be kept in a file. 12. At the EOD, Checker of the FTIR will generate FTIR report, check accordingly and endorses by signature & seal after transaction initiator’s signature. 13. At day end, Branch Manager /BOM/HT verifies all the financial transactions by running HTV menu in Finacle. Risks and Mitigation: Risk Description/Control Risk Type Risk Mitigation Plan Failure Detail It arises from delayed/ wrong Before input any Cheque information in the input of cheque in system and Finacle, Concern Officer should check the all the Operational Risk wrong information passed through information written on the instrument Cheque which may causes penalty considering NI Act (A/C number, A/C Title, Date, and financial losses for the Bank. AIW, AIF, Cheque No & customer’s signature) It arises after daily balancing Before handing over cheque amount to financial transaction like beneficiary, Concern Officer must count the Financial Risk excess/less amount to the notes and writes down the denomination on the beneficiary. back side of the cheque in front of the customer IT security risk arises from the failure to ensure proper security of Before leaving the desks, Concern Officer must ICT Risk information system in sharing each ensure that his/her Finacle ID is log-off. other Finacle ID. Regulatory Reference: 1. Bangladesh Bank- BRPD Circular Letter No 9, BRPD Circular Letter No 14, AML Circular No. 7; BRPD Circular-04, dated 21 May 2018 2. Internal Circulars & Guidelines: BOM-2015 3. NI Act-1881 Page | 26 Process: Cash Withdrawal through Withdrawal Slip Process Unit: Customer Service, Cash & Client Service Process ID: Concern Service and Cash Officer Procedure: 1. Customer physically comes at Customer Service area of service outlets to withdraw cash through “Cash Withdrawal Slip”. Cash Withdrawal Control Point (CP):1 through Withdrawal Slip 1. “Cash Withdrawal Slip” can be accepted in very special case upon satisfaction/justified to the Branch Manager/Branch operation manger. 2. Customer’s physical presence is mandatory for payment cash against Cash Withdrawal Slip. 3. Customer can withdraw up to BDT1 Lac through Cash withdrawal slip. (Exception should be endorsed by BM/AH). 4. Charges will be applied as per the SOC (if any). 2. Concerned Officer asks the reason for wanting to use Cash Withdrawal Slip from the customer. Then s/he refers the customer to BOM. On the basis of the justification of the reason, BOM/BM will provide the prescribed “Cash withdrawal slip” to the customer. 3. BOM/Designated requests the customer to fill up “Cash Withdrawal Slip” properly with signature. 4. BOM/Designated check the slip, verifies signature from Finacle and affixes Received Seal with time, pin/seal and forward the Cash Withdrawal Slip to BM/ Designated for approval. 5. BM/ Designated checks Cash Withdrawal Slip and if the reason seems justified s/he approves as per “Delegation of Authority,” & return to BOM/ Designated. 6. BOM/ Designated receives and forwards the “Cash Withdrawal Slip” to Concern Officer through any Branch Official and advice the customer to collect the cash from respective counter by following the cash receives procedure. 7. Concern Officer checks the “Cash Withdrawal Slip” along with support/approval by BM/Designate. Cash Withdrawal Control Point (CP):2 through Withdrawal Slip 1. Concern Officer checks customer name, account number, amount in word & figure BM/BOM signature with seal/pin, received seal with time are in place. 2. Customer physically present on the counter to collect the cash. 8. If everything seems satisfactory, Concern Officer will process the transaction as per the “cash withdrawal through cheque process“. Page | 27 Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Before input any information in the It arises from delayed/ wrong input of cheque in Finacle, CCSO should check the all the system and wrong information passed through information written on the instrument Operational Risk Cheque which may causes penalty and financial considering NI Act (A/C #, A/C Title, losses for the Bank. Date, Amount in word Amount in Figure & customer’s signature) Before handing over cheque amount to It arises after daily balancing financial beneficiary, CCSO must count the notes Financial Risk transaction like excess/less amount to the and writes down the denomination on the beneficiary. back side of the cheque in front of the customer IT security risk arises from the failure to ensure Before leaving the desks, CCSO must ICT Risk proper security of information system in sharing ensure that his/her Finacle ID is log-off. each other Finacle ID. Regulatory Reference: 1. Bangladesh Bank-22/04/98, BRPD Circular No. 6. 21/04/09, AML Circular No. 21/2009. 30/06/09, AML Circular Letter No. 01/2009. 2. Internal Circulars & Guidelines: BOM-2015 Page | 28 Process Name: Cash Withdrawal by Premium/Corporate Customer Process Unit: PB Lounge, Service Outlets, Customer Service Process ID: Concern RM and cash officer Procedure: 1. Premium/Corporate Banking customers comes to the RM at Premium/Corporate Lounge of the branch. In absence of Premium/Corporate Banking Lounge, customer comes to CSM/ BM for cash withdrawal. Cash Withdrawal by Control Point (CP): 1 Premium/Corporate Customer Corporate Customers or their delegates come to BOM /BM for cash withdrawal. 2. Premium/Corporate Banking customers submit properly fills up and signed cheque/ cash withdrawal slip to RM/BOM/BM. Cash Withdrawal by Control Point (CP): 2 Premium/Corporate Customer Bearer can withdraw cash only through cheque. 3. RM/BOM/BM forwards the cheque/ cash withdrawal slip to Concern cash Officer for cash payment. 4. Concern cash Officer provides cash to RM/CSM/BM by following cash withdrawal through cheque/ Cash withdrawal slip process and passes necessary entry in Finacle. Cash Withdrawal by Accounting Entries (AE): 1 Premium/Corporate Customer Dr. Cr. Customer A/C Individual Teller A/C Cash Withdrawal by Control Point (CP): 3 Premium/Corporate Customer 1. For Corporate customer, if the amount is above BDT 5,000,000 then approval to be taken from respective Unit Head/SRM/RM/BM as per DOA. 2. For any PB customer, if the amount is above BDT 1,000,000, then approval has to be taken from respective RM/BM as per DOA. Page | 29  3. Concern Officer ensure that two signatures is taken on the back side of the cheque as confirmation of “Placing the cheque” & “Receiving the cash”. 4. Concern Officer must write down the denomination on the back side of the Cash Withdrawal Slip 5. RM/CSM/BM provides cash to the Premium/Corporate Banking Customer or Bearer. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Respective RM/CSM/BM must check It causes from adverse publicity regarding the report and recommend such a Operational Risk service quality business practices and way as if customer feels proud to associations. have relationship with BBL. May arise if RM/CSM/BM fails to follow the To avoid any audit comments all the ICT RISK procedure for security measures at the time of concern persons carefully follow the cash payment. procedures. Regulatory Reference: 1. Bangladesh Bank-26/11/96, BRPD Circular Letter No 9, 14/08/05, AML Circular No. 7, 11/05/97, BRPD Circular Letter No 14. 2. Internal Circulars & Guidelines: BOM-2015 Page | 30 Process: Cash Withdrawal through POS (with Debit card) Unit: Cash & Client Service of selected SOL Process ID: Concern Cash Officer Procedure: 1. Account holder comes at service outlets and requests Concern Officer for cash withdrawal through POS of the branch. POS service from Branch is currently discontinued. Only few branches whose have no branch adjacent ATM are allowed for payment through POS machine. 2. Concern Officer requests the Account holder to swap the Card in POS machine and insert the PIN. Concern Officer also request customer to collect two copies of slip from POS. Cash Withdrawal through Control Point (CP) # 1 POS (Debit Card). 1. Account holder is allowed to withdraw Maximum BDT 3,00,000 through POS. 2. Account holder’s physical presence is must for withdrawal cash through POS 3. Account holder signs in front side of both copies of slip and submits to Concern Officer. 4. Concern Officer verifies the Account holder’s signature with system and affix “Signature Verified” seal with signature. Concern Officer also matches Photo with the system. 5. Concern Officer inputs necessary entries on the Finacle, write down the DC number and affix the ‘Cash Paid’ seal. Concern Officer writes down the denomination on the back side of the Slip (Merchant Copy). 6. Concern Officer requests the account holder to put one signature on back side of the slip (Merchant Copy) before handing over the withdrawn amount to the account holder. Thus, Concern Officer processes the transaction & preserves the voucher as per “Cash withdrawal through cheque process” Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan 1. Activities which are fail to initiate & conduct Concern official must check the Account accordingly to the internal regulatory guideline holder’s signature in the system and for cash withdrawal through POS. make sure that the cash paid to the Operational Risk 2. It arises from delayed/ wrong input of account holder only. cheque in system and wrong information Before input any information in the passed through Cheque which may causes Finacle, concern official should check all penalty and financial losses for the Bank. the information written on the slip (A/C Page | 31  number, Date, Amount in Figure & customer’s signature) Before handing over amount to customer, It arises if the concern official hands over the concern official must count the notes and Financial Risk excess/short amount to customer without writes down the denomination on the counting the cash back side of the slip in front of the customer. Regulatory Reference: 1. Bangladesh Bank- 26/11/96, BRPD Circular Letter No 9.14/08/05, AML Circular No.11/05/97, BRPD Circular Letter No 14. 2. Internal Circulars & Guidelines: BOM-2015 Page | 32 Process: Cash Withdrawal from Central Bank/BB Agent Bank Unit: Cash & Client Service Area Process ID: HT, BM/BOM Procedure: 1. If Branch needs to withdraw cash from Bangladesh Bank/BB Agent Bank, informs to respective BM & BOM of Feeding branch to receive the cash through mail. Feeding Branch itself may require cash withdrawal from Bangladesh Bank/BB Agent Bank. HT/BOM of feeding branch will send a mail to his/her BM for approval with the reason for such cash withdrawal. Department of Safety & Security, CM, Regional Head must be kept in CC. Cash Withdrawal from Control Point (CP):1 Central Bank Branch needs to mention following points on the mail: a. Amount b. Denomination c. CIT Company Name (if any) d. CIT Supervisor Name with Clock/Pin number (if any) e. Vehicle No. (if any) 2. Feeding Branch issues a Bangladesh Bank/BB Agent Bank Cheque with two signatories (as per PoA) for an amount that is required for customer payment/ATM replenishment. Write the cheque without any error and alteration. BM/BOM must check the BB cheque before handover to concerned officers who will bring cash from BB. 3. Concern officer will take CIT service or vehicle with Police protection to bring the cash from BB/Agent Bank of BB. 4. After completing all the procedures that required to withdraw cash from BB, concern officers put total cash into trunk box & ensure dual lock of the trunk. They will bring the trunk to vehicle with the help of CIT personnel (if any) & safely come to feeding branch. 5. HT of the Feeding Branch receives the cash in presence of BOM/BM from the CIT Supervisor/authorized officers after counting the bundle and through signing on the receipt jointly with BOM/BM. Cash Withdrawal from Accounting Entries (AE): 1 Central Bank Dr. Cr. HT A/C Balance with Bangladesh Bank- BDT A/C Page | 33  Cash Withdrawal from Control Point (CP):2 Central Bank HT of the Feeding Branch needs to confirm: 1. Security Tags are intact 2. CIT Supervisor & company information is properly matched 3. Denominations are matched. 4. Both PoA holder signatures are also required at back side of counterpart of said cheque leaf 5. Cash must be withdrawal maintaining insurance limit for transit. 6. HT attaches the acknowledgment copy of the receipt with the voucher. The voucher is preserved as per the voucher preservation process. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Concern Officer needs to confirm that the security tag number/clock If the security tags number/clock number/PIN/ID number is number/PIN/ID number is not check and matching as per documents and Operational Risk verify or if Concern Officer fail to receive physically. Cash should receive in the cash in cash premises without the cash premises and the ensuring proper security. entrance door in cash area must lock in this transit period Regulatory Reference: 1. Guidance from IBCM time to time 2. Guidance from Department of Safety & Security time to time 3. BOM-2015 Page | 34 Process: Prize Bond Purchase Unit: Cash & Client Service Process ID: Concern Cash Officer, BOM/BM Procedure: 1. Customer comes at Cash counter and requests for selling Prize Bond to the Bank. 2. Concern Officer asks the selling amount from the customer verbally and requests the customer to gives the Prize Bond. 3. If account holder wants to credit the amount to account instead of taking cash, Concern Officer ad- vice the account holder to deposit with deposit slip. 4. Extra caution needs to take by the Concern Officer in case of purchasing the Prize Bond from non- customer to avoid accepting any kind of Fake Prize bond. If found okay, the prize bonds should be counted properly. 5. Concern Officer prepares Debit Voucher, passes necessary entries in system, affixes Seal, writes down the DC number, signs with seal/pin and forward to designated Concern Officer for approval and collects customer signature on the back side of the “Debit Voucher” as received confirmation & hands over the cash to the customer. 6. Concern Officer gives the necessary entries in the prescribed “Prize Bond Register”. At EOD for- wards the Register along with “Prize Bonds at hand” to designated Concern Officer for checking. For- mat will be as follows: Designated Concern Date Denomination In Out Balance BOM/BM Sign official Signature 7. BOM/BM matches the physical Prize Bond with system, Register & collects the day end GL Account print out from Finacle, jointly sign & pin/seal with dual custodian & preserve with EOD cash balancing report. 8. At the last working day of every quarter/ the day before the draw ceremony, BOM/BM matches the physical Prize Bonds along with register and preserves the Prize Bond instruments in a “Sealed Enve- lope” jointly sign by BM/BOM & Concern Officer. Concern Officer inputs all the unsold Prize Bond in- formation in the “Prize Bond Draw Register” as per bellow information. Prize Designated BOM/BM Date Denomination In Out Balance Bond Concern Officer Sign Sl No Signature Page | 35 9. On next day of lottery being held, Concern Officer collects the Prize Bond Result Sheet published in newspaper/web and matches the Prize Bond numbers with result sheet. BOM ensures whether any prize is owned or not. If any prize is owned, BOM immediately informs to BM verbally. 10. A mail along with scan copy of owned Prize Bond & result sheet will be forward to Branch Govern- ance, Regulatory Affairs & Treasury with CC to BM and Area Head before sending the original docu- ments. Photocopy of Prize Bond, result sheet & mail communication should be preserved in a file for future record. 11 As guided by competent authority branch will collect prize money from Bangladesh Bank. On reali- zation of the prize money from Bangladesh Bank, the amount will be credited into income account or staff welfare fund, decided by Bank Management. 12. If no price is owned, Dual Custodian affixes “NO PRIZE IS OWNED” with seal, date on the result sheet & preserve in the file for future record. Risks and Mitigation: Risk Type Risk Description/Control Failure Detail Risk Mitigation Plan Operational Risk It arises from delayed / wrong response to To avoid compliance risk all the queries and information regarding Prize Bond to Regulatory Risk concern persons should carry out customers which may cause for adverse the Internal & External circulars situation for bank. It is cause from negative public opinion about Concern persons need to carry the Prize Bond sale which highly affects bank’s issue with special care so that any Reputational Risk ability to establish or retain relationship kind of reputational risk not arises. customer & Bangladesh Bank. May arise if the Concern officer will deliver Concern Officer confirms twice Financial Risk excess Prize Bond or received less cash from before received cash or hands over customer Prize Bond to customer so that any kind of financial risk may not arise. Regulatory & Reference: 1. Bangladesh Bank - DMD/(PB)-01/09-36 2. Internal Circulars & Guidelines - lC&C/ instruction Circular/08/04 Page | 36 Process: Prize Bond Sale Unit: Cash & Client Service Process ID: Concern Cash Officer, BOM/BM Procedure: 1. Customer comes at Cash counter and requests for purchasing Prize Bond from Bank. 2. Concern official asks the required amount from the customer verbally and checks the Prize Bond status from reconciliation register. 3. If the asking amount is available in vault, Concern officer informs the customer regarding the available amount. 4. If the asking amount is not available in branch custody, Concern officer requests the customer to reduce the requirements. 5. Concern official prepares Credit Voucher, passes necessary entries in Finacle, affixes Seal, writes down the DC number, signs with seal/pin and forward to designated officer for approval. Concern official collects customer signature (name, mobile number & address should also be collected in case of non-a/c holder) on the back side of the “Credit voucher” as received confirmation & hands over the Prize Bond to the Customer after receiving the equivalent amount of money against prize bond. 6. Branch needs to maintain a minimum amount of BDT 1000 Prize Bond. 7. Ensures that “Prize Bond Sale & Purchase” notices are displayed on Notice Board as per Bangladesh Bank guideline all the time 8. At the day end the prize bond should be reconciled as following format: BOM/BM Date Denomination In Out Balance Concern Official Signature Signature 9. Branch will stop Prize Bond Sale before 5 working days of Prize Bond Draw Ceremony. 10. BOM/BM matches the physical Prize Bond with System & Register & collects the day end GL Account print out from Finacle, jointly sign with Concern officer & preserve with EOD cash balancing report. Risks and Mitigation: Risk Type Risk Description/Control Failure detail Risk Mitigation Plan It arises from delayed / wrong response to queries To avoid compliance risk all the Regulatory Risk and information regarding Prize Bond to customers concern persons should carry out the which may cause for adverse situation for bank. Internal & External circulars. It is cause from negative public opinion about Prize Concern persons need to carry the Reputational Risk Bond sale which highly affects bank’s ability to issue with special care so that any Page | 37  establish or retain relationship customer & king of reputational risk not arises. Bangladesh Bank. Concern person confirms twice before May arise if the Concern person will deliver excess received cash or hands over Prize Financial Risk Prize Bond or received less cash from customer. Bond to customer so that any king of financial risk may not arise. Reference: 1. Bangladesh Bank -DMD/(PB)-01/09-36 2. Internal Circulars & Guidelines: BOM-2015 Page | 38 ATM Cash Replenishment & Reconciliation (Non-AB Coverage) Unit: Customer Services Process ID: ATM Custodians, Concern Officer, BOM Procedure: 1. Respective ATM Custodians decide cash replenish requirements on the basis of Analysing status of the specific ATM transaction. ATM Cash Replenishment & Balancing (Non-AB Control Point (CP):1 Coverage) 1. Branch Manager assigns two custodians to monitor ATM in Branches time to time. 2. When ATM replenishment is required within the banking hour, custodians immediately inform to the BOM/BM and place the requirements of cash with specific denomination to Head Teller. ATM Cash Replenishment & Balancing (Non-AB Control Point (CP):2 Coverage) 1. When ATM specific account needs to be replenished, Respective Custodians must replenish it promptly as if Customer gets better service from BBL. 2. On Holidays it must be monitored that sufficient cash is in ATM vault. 3. HT prepares “Debit & Credit” voucher for the cash as per requirements. Concern Officer writes down “DC number”, affixes Payment seal on the Debit voucher. 4. HT collects the cash from the vault/cash counter as per required denomination by passing necessary Accounting Entries in Finacle jointly HT/UO & BOM/BM. ATM Cash Replenishment & Balancing Accounting Entries (AE): 1 (Non-AB Coverage) Dr. ATM Teller A/C 5. ATM Custodians arranges to count, checks the cash manually or with cash counting machine ensuring the quality & quantity of the notes as per voucher & denomination in presence of HT. 6. ATM Custodians arranges to carry the cash with proper security as per Department of Safety & Security Country Guideline to the ATM Booth. Custodians must inform to the BM/BOM before start from service outlets (in case of off-site ATM). 7. Depending on the loading plan of the respective personnel of the Branch for that particular ATM, custodians will either remove the residual cash from all the cassettes and load fresh cash into the cassettes or will load cash without removing the residual cash. For either of the cases, the loaded/added amount must be as per ‘ATM Cash Distribution Sheet /ATM Debit Voucher’. Please note, any ATM Page | 39 replenished without removing residual cash must be replenished through removing residual cash on next loading schedule. ATM Cash Replenishment & Balancing (Non-AB Control Point (CP):3 Coverage) 1. Custodians must ensure the physical cash matches with the GL Balance while replenishing. 2. The captured card must be collected at least once in a day and delivered to designated service officer for next course of action. For off-site ATM, captured card can be collected one day interval including last day & first day of the week (For details please follow the “Capture Card Management” process from Alternate Banking Operational Manual). 3. HT ensures that the denomination is writing down on the back side of the voucher & custodian’s signature with pin number is taken. 4. Custodians need to checks the ATM Booth premises and ensure that no unauthorized “Skimming Device” is installed on the machine or premises. Custodians will maintain a check list for checking the skimming devices according to prescribed format and duly signed by both custodians and keep into the ATM Booth for further reference. (See Annexure-A for the template of “ATM Booth Check List for Skimming”). 5. If such identified, custodians immediately inform it to below group: 5.a Head of Alternate Banking 5.b Head of Retail Risk Management 5.c Head of Retail Banking 5.d Branch Manager 5.e Head of Department of Safety & Security 5.f Branch Governance Team 8. Both the Custodians jointly visit the respective ATM Booth & operates the ATM cash replenishment servicing as per process. Both the custodians must sign on the ATM Booth In-Out Register at all the time during visit of the ATM Booth/ATM Machine Servicing. 9. Both the Custodians collect the “Print Counter” from respective ATM, sign on the "Print Counter" jointly and arrange to carry the ATM return cash to the service outlets as per process (For details please follow the “Cash Replenishment in ATM” process from Alternate Banking Operational Manual). Page | 40 ATM Cash Replenishment & Balancing (Non-AB Control Point (CP): 4 Coverage) Before leaving the ATM premises, Replenishment Team check every cassette, dispenser and ATM Booth area carefully and ensure that no note is left anywhere. 10. Respective Custodian takes the Core Banking Report from HACLINQ option of Finacle, matches with “Print Counter” properly, adds the amount found in Rejected/Retract Bin & Cassettes physically and reconciles the account. 11. At day end, the physical return amount received from cash replenishment of an ATM is reconciled with the balance of the ATM teller GL of that particular ATM shown in the snapshot of CBS taken before replenishment. The accounting entries in CBS: Dr. Cr. Physical Amount received as ‘ATM Return’ Branch HT/Teller ATM Teller GL 12. After the account entry, if ATM Teller GL is Zero (0), the reconciliation is considered settled. 13. If ‘ATM Return’ amount is more than ATM Teller GL balance, the surplus amount will be adjusted in Surplus GL through one additional entry in CBS as below: Dr. Cr. Surplus Amount Branch HT Payable for Cash Surplus - ATM 14. If ‘ATM Return’ amount is less than ATM Teller GL balance, Branch concern personnel will inform ATM Reconciliation Unit (Central Operation) through mail with a copy to Branch Manager/ BOM/ADC Concern personnel for investigation. ATM Reconciliation Unit will investigate the reason for the shortage and will provide feedback in reply mail. 15. Based on the feedback and cause of shortage, following entries will be made to settle the ATM Teller GL. a) In case of Unwanted Identified Reversal transaction, the account entry in CBS will be: Dr. Cr. Shortage Amount Customer Account ATM Teller GL b) In case of Over Dispensed/Physical Shortage/Reason Unidentified, the account entry in CBS will be: Dr. Cr. Shortage Amount Receivable Cash Shortage ATM Teller GL - ATM 16. ATM cash shortage should be adjusted as following the guided in the approved memo on ‘ATM/CDM Cash Shortage/Surplus Adjustment Guideline’ dated 15 June 2016. 17. At day end, replenishment information will be forwarded by all Branches to ATM Reconciliation Unit for the reconciliation of replenishment amount including any shortage/surplus amount. Sample template to be used for this purpose is in Annexure-B. 18. Custodians arrange to prepare “Debit” & “Credit” voucher for adjustment of cash shortage/surplus, pass necessary accounting entries in Finacle, affix Received & Payment “Seal”, puts “DC” number, sign on the voucher and forwards to Approver. Page | 41 19. Approver receives the voucher, checks the voucher, and approves the transaction in Finacle & sign on the voucher with seal & sign. 20. In case of on-site ATM replenishment, custodians can either bring cash in a trunk with dual lock and replenish the cassettes in the ATM booth or bring the cassettes in counter for replenishment as convenient. For off-site ATM, custodians should bring cash with proper security and replenish in ATM booth. ATM Journal Log Checking: 1. At EOD/at the time of replenishment/add cash, ATM custodians collect the ATM cash Ledger from ATM machine jointly. 2. Respective custodian matches the ATM cash Ledger with Finacle GL. 3. Respective custodian confirms that whether any mismatch found or not. 4a. If any mismatch found, ATM custodians jointly check the ATM Journal Log and try to identify the reason for mismatch. ATM Journal Log Checking Control Point (CP):1 (Non-ADC Coverage) 1. If the mismatch yet to be identified after checking the ATM custodian/HT/BOM immediately inform to reconciliation Team. 2. Any kind of unidentified mismatches should be reported to the competent authority as per Cash Difference Handling Procedure Guideline. 4b. If no mismatch found, ATM custodians put signatures on the ATM Journal jointly with date, time &PIN. 5. BOM/HT/BM checks the voucher, matches the balance with ATM journal & Finacle GL and approves the entry in Finacle as per approval limit with sign, seal/pin. RISKS AND MITIGATION: Risk Type Risk Description/Control Failure detail Risk Mitigation Plan Operational a. Effectiveness of a bank’s Internal Control 1) ATM Custodians & BM needs Risk and Compliance system in preventing or to monitor & consider that the detecting policy / process violations, replenishment amount is misstatements, control lapses etc. are the covered under insurance components of this guideline. coverage. b. Premises maintenance risk arises from 2) To avoid such kind of risk inadequate maintenance of the premise’s concern custodians needs to security. It largely affects the safety in which take adequate security at the people have to work on the premise