TOPIC: Retail Banking

CIP exception error rate

VP at a bank ($1.1BUSA)
Good morning, 

Looking for feedback about CIP/new account errors and what you require at account opening.  

What is your CIP exception error rate?  Does your FI have disciplinary action or incentive penalties if a banker consistently has errors or takes a long time to fix the errors? If so, what is it? 

Does your FI run OFAC on minor, trust/estate name or business name each time an account is opened or only when they’re new to the bank? Also, does your front line add risk ratings to the accounts or does your back office update that field? 

I appreciate your feedback.  You may also e-mail me if that is easier.

Thank you so much!

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      General Ledger Reconciliation: Member Over Payments

      Employee at a credit_union ($598MUSA)
      Asking as a non-accountant so any help would be greatly appreciated.

      How do other FI's handle small member over payments related to loan payoffs or other loan-related transactions? Specifically, when there is a small over payment of say $0.01 or $2 do you send that to the member or is there an accounting rule or industry regulation allowing a de minimis exception to allow the FI to put that small dollar amount into the GL? 

      The issue is when this is a recurring event, and there are many members in the situation, the research and mailing costs add up. Obviously, if the dollar amount is significant the amount must be returned. But what about these tiny over payments? Whether it is one penny or $100 the money belongs to the member but is there something in the accounting rules or regs that allow for a de minimis over payment to go into a GL. 

      The goal is to find a workable solution with limited staff and hours available for the research and processing of these small over payments. 

      Thanks in advance and please let me know if I may clarify. 

        Overdraft sweep path

        AVP at a credit_union ($175MUSA)
        We are looking at turning on the overdraft path sweep with increments of $25.00; meaning it would pull $25.00 to cover overdraft, or if the purchase was $26.00, it would pull $50.00.  Does anyone have any sample notice they would give to the members?  I'm thinking we would put something in our quarterly statement.

          Second-line Risk Testing / Risk Matrix Template

          AVP at a bank ($102MUSA)
          I am in the process of developing out the second-line of defense testing scripts for risk mgmt areas (deposits, BSA, Lending/Credit, finance, etc) and documenting the specific controls.  Is anyone willing to share their process, test scripts with what questions/items you review? Or a risk control matrix/template that outlines risks and controls common to the community banks.
          Thank you, 

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