Revised CATS Procedure Dec.20161
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<strong>CATS</strong> <strong>Procedure</strong> |<br />
Commercial Bank of Ethiopia December 2016
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
COMMERCIAL BANK OF<br />
ETHIOPIA<br />
Customers’ Accounts and Transaction<br />
Services (<strong>CATS</strong>) <strong>Procedure</strong><br />
December, 2016<br />
<strong>CATS</strong> <strong>Procedure</strong> | 1
Commercial Bank of Ethiopia December 2016<br />
1 Contents<br />
1. INTRODUCTION ............................................................................................................................... 1<br />
1.1 Preamble ................................................................................................................................................................................ 1<br />
1.2 Definitions ............................................................................................................................................................................. 2<br />
1.2.1 Terms and concepts ..................................................................................................................................................... 2<br />
1.3 Objectives of the <strong>CATS</strong> <strong>Procedure</strong> ........................................................................................................................... 10<br />
1.4 Scope of the procedure ................................................................................................................................................. 10<br />
1.5 Governing rules ................................................................................................................................................................ 10<br />
1.6 The Structure of the <strong>CATS</strong> Process .......................................................................................................................... 11<br />
1.7 General Authorities and Responsibilities ............................................................................................................. 12<br />
1.7.1 President ........................................................................................................................................................................ 12<br />
1.7.2 Vice President -<strong>CATS</strong> ................................................................................................................................................ 12<br />
1.7.3 District Manager ......................................................................................................................................................... 13<br />
1.7.4 Director- <strong>CATS</strong> CPC ................................................................................................................................................... 14<br />
1.7.5 Manager- <strong>CATS</strong> Operation ..................................................................................................................................... 14<br />
1.7.6 Manager- District Operations ............................................................................................................................... 15<br />
1.7.7 Branch Manager ......................................................................................................................................................... 16<br />
1.7.8 Manager- Cash Custody and Issue ...................................................................................................................... 17<br />
1.7.9 Manager- Customers Account and Operations (at <strong>CATS</strong> CPC)............................................................... 17<br />
1.7.10 Manager-ATS ............................................................................................................................................................... 18<br />
1.7.11 Head Cash Custody and Issue (LCY/ FCY) ...................................................................................................... 18<br />
1.7.12 Customer Service Manager at Branch............................................................................................................... 19<br />
1.7.13 Customer Service Manager at Cash Custody and Issue ............................................................................. 19<br />
1.7.14 Customer Service Manager at Customers’ Accounts and Operation (<strong>CATS</strong> – CPC) ...................... 20<br />
1.7.15 Customer Service Manager at ATS ..................................................................................................................... 21<br />
1.7.16 Other Performers ....................................................................................................................................................... 21<br />
2. CUSTOMER CLASSIFICATION ................................................................................................... 22<br />
2.1 Volume and value of Transaction ............................................................................................................................. 22<br />
2.2 Economic Ownership Dimension ............................................................................................................................. 22<br />
2.2.1 Private ............................................................................................................................................................................. 22<br />
2.2.2 Government .................................................................................................................................................................. 23<br />
2.2.3 Public Enterprises ..................................................................................................................................................... 23<br />
2.2.4 Associations .................................................................................................................................................................. 25<br />
<strong>CATS</strong> <strong>Procedure</strong> |
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
3. TYPES AND FEATURES OF DEPOSIT PRODUCTS AND SERVICES ................................. 26<br />
3.2 Features of deposit products and services .......................................................................................................... 27<br />
3.2.1 Features of local deposit products .......................................................................................................................... 27<br />
3.2.1.1 Features of Savings Accounts..................................................................................................................................... 27<br />
I. Ordinary Savings ........................................................................................................................................................ 27<br />
II. Women Saving Account .......................................................................................................................................... 28<br />
III. Youth saving account ............................................................................................................................................... 28<br />
IV. Teen youth saving account .................................................................................................................................... 29<br />
V. Education Savings Account.................................................................................................................................... 29<br />
3.2.1.2 Features of demand deposit Accounts ................................................................................................................... 30<br />
I. Ordinary Demand Deposit ..................................................................................................................................... 30<br />
II. Special-Demand Deposit Account ....................................................................................................................... 30<br />
III. ECX related Accounts ............................................................................................................................................... 31<br />
3.2.1.3 Features of Fixed Time deposits ............................................................................................................................... 32<br />
3.2.1.4 Other distinguishing features deposit products ................................................................................................ 32<br />
I. Muday Bank Service.................................................................................................................................................. 32<br />
II. Accounts for Minors .................................................................................................................................................. 32<br />
III. Joint accounts .............................................................................................................................................................. 33<br />
IV. Earmarked Accounts ................................................................................................................................................ 33<br />
V. Accounts for Interdicted Persons ....................................................................................................................... 33<br />
VI. Staff Accounts .............................................................................................................................................................. 33<br />
VII. Cash Indemnity Account ......................................................................................................................................... 34<br />
VIII. Overdraft account- .................................................................................................................................................... 34<br />
3.2.2 Features Foreign Deposit products ......................................................................................................................... 34<br />
3.2.2.1 Features of foreign currency Fixed-time deposit; ............................................................................................ 35<br />
3.2.2.2 Features of foreign currency Current accounts ................................................................................................. 36<br />
3.2.2.3 Non-Repatriable Birr account (saving account) ................................................................................................ 36<br />
4. ELIGIBILITY CRITERIA AND REQUIRED DOCUMENT TO OPEN ACCOUNT ......................................... 37<br />
4.1 Eligibility to open local deposit accounts ........................................................................................................ 37<br />
4.2 Eligibility to open foreign currency accounts ............................................................................................... 38<br />
4.3 Document required ................................................................................................................................................... 39<br />
4.3.1 Document required to local Currency account Opening .......................................................................... 39<br />
4.3.2 Documents required to open Foreign-Currency Accounts...................................................................... 51<br />
5. OPENING OF AN ACCOUNT ......................................................................................................................................... 54<br />
5.1 Customer creation........................................................................................................................................................... 54<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
5.2 Account and Contract Maintenance ........................................................................................................................ 55<br />
5.3 Account closing ................................................................................................................................................................ 64<br />
6. COLLECTION ................................................................................................................................... 67<br />
6.1 Collection of Cash for Deposit .................................................................................................................................... 67<br />
6.2 Collection for Money Transfer ................................................................................................................................... 69<br />
6.2.1 General Conditions for Money Transfers ........................................................................................................ 69<br />
6.2.2 Outgoing Local Money Transfer .......................................................................................................................... 71<br />
6.2.3 Bankers’ Cheque /Casher Payment Order ...................................................................................................... 73<br />
6.2.4 Account to Account Transfer (Fund Transfer) ............................................................................................. 75<br />
6.2.5 Foreign Money Transfer ......................................................................................................................................... 76<br />
6.2.6 Foreign currency Demand Draft and SWIFT Transfers ............................................................................ 76<br />
6.2.7 Purchase of Foreign-Currency Notes ................................................................................................................ 78<br />
6.2.8 Issuance of Travelers’ Cheques and Money Notes ...................................................................................... 79<br />
6.3 Collection of Negotiable Instruments for Deposit ............................................................................................ 81<br />
6.3.1 Local Cheques .............................................................................................................................................................. 81<br />
6.3.1.1 A cheque drawn on CBE Branches ..................................................................................................................... 81<br />
6.3.1.2 Clearance of Other Banks’ Cheques (including Bankers’ Cheque) ....................................................... 82<br />
6.4 High Value collection ..................................................................................................................................................... 90<br />
6.5 Foreign Cheques .............................................................................................................................................................. 93<br />
7. PAYMENT ......................................................................................................................................... 97<br />
7.1 Payment from a Current Account ............................................................................................................................ 97<br />
7.1.1 Local Cheques .............................................................................................................................................................. 97<br />
7.1.1.1 Payment in cash ............................................................................................................................................................... 97<br />
7.1.1.2 CBE Cheques/Bankers’ cheques collected by other banks (Incoming Cheques or Bankers’<br />
cheque /CPO/s) ..................................................................................................................................................................................... 99<br />
7.1.2 High Value Payments ............................................................................................................................................. 101<br />
7.1.3 FCY Cheques (NR and NT) ................................................................................................................................... 104<br />
7.2 Withdrawal from Savings Accounts ...................................................................................................................... 106<br />
7.3 Payment against Local Money Transfer .............................................................................................................. 108<br />
7.4 Payment Foreign Remittance Transfer ............................................................................................................... 110<br />
7.5 Bankers’ cheque (Cashier Payment Order (CPO)) .......................................................................................... 111<br />
7.5.1 Bankers’ cheque /CPO/payment to the beneficiary or to the Purchaser ....................................... 111<br />
7.5.2 Payment of Expired Bankers’ cheque ............................................................................................................. 113<br />
7.5.3 Payment of a Lost Bankers’ cheque ................................................................................................................. 114<br />
7.5.3.1. For lost but not expired Bankers’ cheque ..................................................................................................... 114<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
7.5.3.2. For lost and expired Bankers’ cheque ............................................................................................................ 116<br />
7.6 Handling of Retention Account ............................................................................................................................... 118<br />
8. TRANSACTION-AUTHORIZATION LIMIT ............................................................................... 120<br />
8.1 For saving accounts, Current accounts, LMTS and BANKERS’ CHEQUE /CPO/Deposit ................ 120<br />
8.2 Authorization limit when the networked branch becomes Offline ........................................................ 121<br />
8.3 Authorization limit for Account receivable and expense ............................................................................ 121<br />
8.4 Approval limit at <strong>CATS</strong>-CPC (ATS) to credit Customers’ Account ........................................................... 122<br />
8.5 For Lost Bankers’ Cheque .......................................................................................................................................... 123<br />
9. OTHER ISSUES RELATED TO OPENING, COLLECTION AND PAYMENT .................... 124<br />
9.1 Handling of Inactive Accounts ................................................................................................................................. 124<br />
9.1.1 Payment from Inactive saving accounts ........................................................................................................ 125<br />
9.2 Handling of Cash Indemnity Account ................................................................................................................... 126<br />
9.2.1 Cash indemnity account opening ...................................................................................................................... 126<br />
9.3 Handling and Issuing of Cheque books ................................................................................................................ 128<br />
9.4 Features of a Cheque .................................................................................................................................................... 129<br />
9.5 Negotiability and Endorsement of Cheque ........................................................................................................ 130<br />
9.5.1 Endorsement of Cheques ...................................................................................................................................... 130<br />
9.5.2 The Use and Transferability (Negotiability) of Cheques ........................................................................ 131<br />
9.5.3 A Stop-Payment Order ........................................................................................................................................... 131<br />
9.5.4 Insufficient Fund Cheques ................................................................................................................................... 134<br />
I. At account holding branch ................................................................................................................................... 136<br />
II. Insufficient fund Cheque presented to other branch ............................................................................... 138<br />
9.6 Customers’ Standing Instructions .......................................................................................................................... 140<br />
9.7 Issuance of Bank Statement ...................................................................................................................................... 141<br />
9.8 Customer account Balance Confirmation ........................................................................................................... 142<br />
9.9 Blocking ............................................................................................................................................................................. 142<br />
9.10 Ticket and Mandate file documentation ............................................................................................................. 144<br />
9.11 Handling of Safe Deposit Box ................................................................................................................................... 145<br />
9.11.1 Opening Safe Deposit Box .................................................................................................................................... 145<br />
9.11.1.1 General condition of renting safe deposit box ................................................................................................ 145<br />
9.11.3 Safe deposit box rental commencement ............................................................................................................... 146<br />
9.11.3 Safe deposit box visiting ............................................................................................................................................... 148<br />
9.12 Request for Changing Signature ............................................................................................................................. 148<br />
9.13 Amendment /Cancellation on LMTS ..................................................................................................................... 151<br />
9.14 Cancellation of Local Money Transfer .................................................................................................................. 152<br />
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9.15 Handling of Lost LMTS Security number ............................................................................................................ 153<br />
9.16 Handling Power of Attorney ..................................................................................................................................... 155<br />
9.17 Handling of Government Bond Coupon /the Grand Ethiopian Renaissance Dam Bond ............... 156<br />
9.17.1 Features of the Grand Ethiopian Renaissance Dam Bond (GERD) .................................................... 156<br />
9.17.2 General issues and Conditions in GERD bond operation ....................................................................... 157<br />
9.17.3 Eligibility to Buy the GERD Bond ...................................................................................................................... 158<br />
9.17.4 Duties and Responsibilities of Performers’ Involved In GERD Bond Operation.......................... 158<br />
9.18 Un-issued Passbook Stocks on Hand .................................................................................................................... 161<br />
9.19 Rubber Stamps ............................................................................................................................................................... 162<br />
9.20 Key management ........................................................................................................................................................... 164<br />
9.20.1 Custody of keys ......................................................................................................................................................... 164<br />
9.20.2 Duplicate Keys ........................................................................................................................................................... 164<br />
9.20.3 Loss, replacement .................................................................................................................................................... 165<br />
10. CASH OPERATIONS .................................................................................................................... 166<br />
10.1 Cash handling between NBE and Cash custody and issue .......................................................................... 166<br />
10.1.1 Cash Withdrawal from NBE ................................................................................................................................ 166<br />
10.1.2 Cash Lodging to NBE .............................................................................................................................................. 167<br />
10.2 Cash handling between Cash custody and issue and branches ................................................................ 167<br />
10.2.1 Cash collection from Cash custody and issue/ the NBE Issue Account-Holding Branch ......... 167<br />
10.2.2 Cash surrender to Cash custody and issue/ the NBE Issue Account-Holding Branch .............. 172<br />
10.3 Security Precautions .................................................................................................................................................... 176<br />
10.4 Cash Handling within a Branch ............................................................................................................................... 178<br />
10.4.1 Cash Limit for Customer Service Officers...................................................................................................... 178<br />
10.4.2 The <strong>Procedure</strong> for Opening and Starting the Day’s Operations .......................................................... 178<br />
10.4.3 During the Day’s Operations ............................................................................................................................... 180<br />
10.4.4 Closing Activities ...................................................................................................................................................... 182<br />
10.4.5 Cash Difference ......................................................................................................................................................... 186<br />
10.4.6 Refund of Excess Cash............................................................................................................................................ 187<br />
10.4.7 Forged (Counterfeit) Notes ................................................................................................................................. 190<br />
10.4.8 Cash Custody .............................................................................................................................................................. 191<br />
10.4.9 Exchange of Birr Notes .......................................................................................................................................... 194<br />
10.4.10 Exchange of Coins .................................................................................................................................................... 195<br />
10.4.11 Sorting Table .............................................................................................................................................................. 195<br />
10.4.12 Cash Consolidation .................................................................................................................................................. 196<br />
10.4.13 Cash Lodgment to the Vault In the middle of the operation ................................................................. 196<br />
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10.4.14 Cash Box and Stamp management ................................................................................................................... 197<br />
10.4.15 Handling of Branch cash vault and ATM safe key and Combination ................................................. 199<br />
10.4.16 Handing and Taking over vault cash ............................................................................................................... 200<br />
10.4.17 ATM Cash handling within a branch ............................................................................................................... 200<br />
10.5 Cash Related Internal Control Issues.................................................................................................................... 203<br />
10.5.1 Cash Basic concepts and Principles ................................................................................................................. 203<br />
10.5.2 Concentration and Security ................................................................................................................................. 204<br />
10.5.3 Attendance and Conduct ....................................................................................................................................... 208<br />
11. OPERATIONS AT THE FOREIGN TRANSFER AND NRNT ACCOUNT ........................... 210<br />
11.1 Foreign OBP and OBC Check Clearance ............................................................................ 210<br />
11.2 Foreign Incoming Money Transfer ..................................................................................... 211<br />
11.3. Outgoing Money Transfer through SWIFT ...................................................................... 212<br />
12. INTER-BRANCH TRANSACTIONS .......................................................................................... 213<br />
12.1 Transactions Allowed to be processed through the Online System ....................................................... 213<br />
12.2 Transactions Not Allowed To Be Processed Through the Online System ............................................ 214<br />
12.3 The Limit to Inter-Branch Transactions ............................................................................................................. 215<br />
12.4 Additional duties and responsibilities for Inter branch transactions.................................................... 215<br />
12.5 Custody of Inter-Branch Transaction Documents .......................................................................................... 215<br />
12.6 Head Office Account Reconciliation ...................................................................................................................... 215<br />
12.7 Transaction handling when Networked branch becomes offline ............................................................ 216<br />
13. PROCEDURE FOR CASH PICK AND CASHER IMPLANT SERVICES ............................... 217<br />
13.1 <strong>Procedure</strong> for cashier implant service ................................................................................................................. 217<br />
13.1.1 General Principle of Casher Implant Service ............................................................................................... 217<br />
13.1.2 Collections in the form of Cash .......................................................................................................................... 218<br />
13.1.3 Collections in the form of cheques ................................................................................................................... 220<br />
13.1.4 Account to Account transfer ............................................................................................................................... 221<br />
13.1.5 Collection through POS Machine ....................................................................................................................... 222<br />
13.1.7 Transaction Authorization and Staff Establishment ................................................................................ 224<br />
13.2 <strong>Procedure</strong> for Cash pick up service ....................................................................................................................... 224<br />
13.2.1 General principle of Cash pick up service ..................................................................................................... 224<br />
13.2.2 Duties and Responsibilities of person involved in cash pick up operation ................................... 225<br />
14. REPEAL .......................................................................................................................................... 227<br />
15. REVISION OF THE PROCEDURE ............................................................................................. 227<br />
16. EXCEPTIONS ................................................................................................................................. 227<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
17. EFFECTIVE DATE ........................................................................................................................ 227<br />
ANNEXES ..................................................................................................................................................... a<br />
ANNEX 1: The Documents Required by the Various Institutions of both the Federal and Regional State<br />
Governments .............................................................................................................................................................................................. a<br />
ANNEX 2: Government Accounts ...................................................................................................................................................... c<br />
ANNEX 3: The Required Documents to Open an Account for the Addis Ababa City<br />
Government/Administration ............................................................................................................................................................. e<br />
ANNEX 4: The Required Documents to Open Accounts for Municipalities ................................................................... e<br />
ANNEX 5 Cheque Account Operation Directives No. SBB/64/2016 ................................................................................ f<br />
ANNEX 6: The Opening and Operation of an ECX-Bank-Settlement Account ............................................................... q<br />
ANNEX 7: Directive No. FXD/31/2006 Amendment to Directive No. FXD/25/2004 the Opening and<br />
Operation of Foreign-Currency Accounts for Non-Resident Ethiopians and Non-Resident Foreign<br />
Nationals of Ethiopian Origin .............................................................................................................................................................. z<br />
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1. INTRODUCTION<br />
1.1 Preamble<br />
Commercial Bank of Ethiopia December 2016<br />
Whereas, the Commercial Bank of Ethiopia has embarked on operational<br />
excellence and business growth as strategic themes to achieve its vision, mission<br />
and values;<br />
Whereas, continuous improvement is key to reduce errors, rework, exceptions,<br />
handoffs and complexity;<br />
Whereas, the existing procedure served for more than three years and needs<br />
revision in line with the prevailing dynamic and competitive business environment<br />
and to incorporate new products introduced by the bank;<br />
Whereas, to incorporate the lessons gained in using the integrated core banking<br />
solution;<br />
Whereas, there is a need to consolidate various guidelines and memoranda for ease<br />
of reference and compliance;<br />
Now, therefore, it becomes important to review and update the existing <strong>CATS</strong><br />
procedure manual in accordance with the current operational requirements in the<br />
bank.<br />
<strong>CATS</strong> <strong>Procedure</strong> |
1.2 Definitions<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.2.1 Terms and concepts<br />
For the purpose of this procedure, the terms and concepts shall be defined as<br />
follows;-<br />
1. Accounts for Interdicted Persons: shall refer to account opened for a<br />
person designated by a court of law as being incapable of discharging her/his<br />
legal rights, or be interdicted.<br />
2. Accounts for Minors: shall refer to an account opened for an under-aged<br />
individual (minor) by the parent(s)/Tutor of the minor, or by a court order.<br />
3. Administrative Agencies: Shall mean government entities that are<br />
established by the Federal or regional governments in order to provide<br />
special emphasis on some<br />
4. Administrative Entities: shall mean all ministries established under the<br />
federal government and all tiers of regional government.<br />
5. Automated Teller Machine (ATM): shall refer to unattended acceptance<br />
terminal that has electronic capacity, accepts PIN, disburses money, and may<br />
provide balance confirmation, fund transfers between accounts and other<br />
services.<br />
6. Banker’s Cheque: shall refer to a type of negotiable instrument like any<br />
cheque; However, it is prepared by banks as per customer request and is<br />
payable upon presentation. It is endorsable to the purchaser only and valid<br />
for six months. It is also known as Cash payment order (CPO).<br />
7. Bio-metrics: shall refer to an electronic device used to capture a digital<br />
image of the finger print pattern.<br />
8. Cash Pick up service – shall mean a cash collection service provided for<br />
premium and high value customers from their premises on pre-arranged<br />
schedule and agreement.<br />
9. Cashier Implant - shall mean service provided for high value customers by<br />
assigning employee/s of the bank on the premises of high value customer on<br />
the basis on contractual agreement between the bank and high value<br />
customer.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
10. Charities: Shall mean associations which are established by the<br />
proclamation for Charities and Societies (NO.621/2008) to serve the public<br />
at large or a given social section (such as women, children, the disabled, etc.)<br />
rather than their members.<br />
11. Company: shall refer legal entity made up of an association of persons, be<br />
they natural, legal, or a mixture of both, for carrying on a commercial or<br />
industrial enterprise.<br />
12. Contract: shall refer to financial dealings made with customers with a<br />
maturity date that do not base any account. In all such contracts, the normal<br />
balance (debit or credit) shall never be changed to the other balance until the<br />
contract is cleared.<br />
13. Contractual agreement: shall refer to an agreement signed between the<br />
CBE and suppliers of selected goods and services; like special discount for the<br />
Bank's women saving account holders; and shall also refer to other<br />
agreements concluded between the CBE and customers in the context of this<br />
procedure.<br />
14. Cooperative Societies: Shall mean associations established by individuals<br />
on voluntary basis to collectively solve their economic and social problems<br />
and to democratically manage same. Cooperatives are unique in the sense<br />
that they are user-owned, User-benefited, and user-controlled as the benefits<br />
obtained are returned to members and democratically administered by<br />
members themselves.<br />
15. Core banking: shall refer to a banking service that is centralized, online and<br />
real-time exchange which is provided by networked branches of the bank<br />
where customers may access their bank account and perform basic<br />
transactions from networked branches<br />
16. Corporate customer: shall refer to a legal entity like – organization,<br />
enterprise, associations, government office and the like which the bank is<br />
dealing with.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
17. Customer: shall refer to legal person or natural person with whom the bank<br />
agrees to conduct business.<br />
18. Delinquent list: also referred as mal-operation list and shall refer to the<br />
register held by the National Bank of Ethiopia, indicating the names of<br />
demand deposit account holders whose cheque have been dishonored<br />
repeatedly and whose accounts are closed by our bank.<br />
19. Demand Deposit Account: (a current or checking account) shall refer to a<br />
non-interest-bearing account which is operated by cheque.<br />
20. Diaspora Accounts: Shall refer to a foreign currency accounts opened for<br />
Ethiopians living abroad (who live more than one year abroad); and<br />
Ethiopians by origin but with different nationalities that are referred as<br />
eligible Ethiopians.<br />
21. Document Authentication: shall refer to the process of checking the<br />
genuineness of a document from the issuing organ or other reliable sources.<br />
22. Draft: shall refer to a type of negotiable payment instrument prepared when<br />
requested by the customer, is payable upon presentation and on the<br />
destination specified on it. But if it is cancelled, it can be paid by the<br />
originating branch. It is endorsable and valid for one year.<br />
23. Earmarked Accounts: shall refer to accounts opened with other<br />
descriptions after the name or names of the account holder or holders.<br />
24. ECX Client pay-in: Shall refer to the account maintained by members in<br />
behalf of their client. Similar to member pay in account it serves as<br />
depository account, for which debit entries should be instructed by ECX.<br />
25. ECX Client pay-out: Shall refer to the account maintained by members in<br />
behalf of their client. Like member pay out account the account ownership<br />
rests with the member account holder.<br />
26. ECX Member Pay –in Account: refer to an account maintained by trading<br />
members of ECX, which serve as payment guarantee to the buyer and<br />
eventually will be used for payment against the sales agreement between<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
buying and selling parties (Traders).Members can only deposits in this<br />
account.<br />
27. ECX Member Pay-Out Account: Shall refer to the account maintained by<br />
trading members of ECX, who trade in their own account. This account is<br />
used to receive payment from the trading and the member account holder<br />
has an exclusive right on the account (Can withdraw and deposit funds).<br />
28. Education Saving Account Scholarship Fund: refer to a monetary award,<br />
granted by the CBE, for eligible Educations savings account holders.<br />
29. Education Saving Account Seed Fund: refer to a monetary award, granted<br />
by the CBE, for eligible education saving account holders if they want to use<br />
the scholarship money for Initial capital to start a small-scale business<br />
instead of pursuing higher education.<br />
30. Education Savings Account (ESA): shall refer to a purpose-oriented saving<br />
account with a relatively higher interest designed to encourage parents and<br />
anybody who aspires to pursue higher education.<br />
31. Ethiopia Commodity Exchange (ECX): shall refer to the enterprise an<br />
organized marketplace, where buyers and sellers come together to trade,<br />
assured of quality, quantity, payment, and delivery.<br />
32. Exceptions - shall refer to events that are not clearly stated on this<br />
procedure but the nature of the event is within the spirit of this procedure.<br />
33. Federal Autonomous Organs: Shall mean to independent entities of the<br />
federal government which are accountable to the house of people<br />
representatives.<br />
34. Fixed-Time Deposit: shall refer to a type of contract in which deposit is<br />
received for a certain period of time without movement and attracts a higher<br />
interest rate than the prevailing savings-interest rate.<br />
35. Foreign Exchange Retention Accounts: Shall refer to a foreign currency<br />
account that allow exporters and recipients of foreign remittance to hold a<br />
specified amount of their foreign earnings for a defined period and use their<br />
Forex holdings business promotion<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
36. Foreign-Currency Accounts: shall refer to an account in which the source of<br />
fund is overseas and can be maintained in foreign currency or in Birr.<br />
37. Fund Transfer: Shall refer to account to account money transfer among<br />
accounts in the CBE or money transfer, initiated by CBE customers, to other<br />
bank customers’ accounts.<br />
38. High value Transfer: shall refer to fund transfers forwarded from/to other<br />
Banks or Participants and by their nature such transactions are considered<br />
urgent or involve high value transactions.<br />
39. Individual: Shall mean a natural person or group of natural persons that are<br />
not formed in any form of legal person like Business Organizations, Societies,<br />
and Cooperative Societies. Associations and Charities.<br />
40. League: shall mean cooperative society league of Ethiopia established by<br />
cooperative societies at the national level.<br />
41. Mal-operation list: shall refer to the register held by the National Bank of<br />
Ethiopia, indicating the names of demand deposit account holders whose<br />
cheque have been dishonored repeatedly and whose accounts are closed by<br />
our bank.<br />
42. Minor account -shall refer to saving account opened for individuals below<br />
the age of 18 and operated by the individual parent or legal guardians.<br />
43. Mnemonic Shall refer to an alternative and easy means of referring the<br />
customer by inserting the customer name first letter and telephone number.<br />
44. Non-Resident Non-Transferable Birr Account (NRNT): Shall mean an<br />
account maintained in birr. Its Convertibility is not automatic but must be<br />
approved. (All sources for deposits in this account should be in foreign<br />
currency).<br />
45. Non-Resident Transferable Birr Account (NRT): Shall mean an account<br />
maintained in Birr by the debit of which funds can be transferred abroad in<br />
foreign currency without the necessity of obtaining foreign exchange permit<br />
(all sources for deposits in this account should be in foreign currency)<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
46. Non-Resident Transferable Foreign Currency Account (NRT FCY): Shall<br />
mean an account maintained in foreign currency by the debit of which funds<br />
can be transferred abroad without the necessity of obtaining foreign<br />
exchange permit<br />
47. Other Associations: Shall mean entities which are established based on the<br />
civil code of Ethiopia and its shall include religious organization, Idir, equb,<br />
sectorial associations, professional associations, trade unions and political<br />
parties;<br />
48. Other entities: shall refer to entities that are not explicitly defined or<br />
categorized in this procedure and shall refer to entities that operate in<br />
Ethiopia due to bilateral or other agreement between Ethiopia and the<br />
respective country or international organization .<br />
49. Outgoing Local Money Transfer: Shall refer to money transfer in the name<br />
of a designated beneficiary by collecting cash or debiting the account of the<br />
sender.<br />
50. Overdraft Account: shall refer to a demand deposit account from which<br />
withdrawal of money beyond the available balance is allowed up to the<br />
maximum approved ceiling/ limit.<br />
51. Partnership: shall mean a type of business organization in which two or<br />
more individuals pool money, skills and other resources and share profit and<br />
loss in accordance with terms of the partnership agreement and it may be<br />
established in the form of ordinary partnership, joint venture, General<br />
partnership or limited partnership.<br />
52. Personal Identification Number (PIN): shall refer to secret numeric<br />
password shared between the user and the electronic payment system which<br />
is used to access the electronic banking service.<br />
53. Point of Sale (POS) Terminal: shall refer to an electronic device used for<br />
authorizing and processing Bank card transactions at the point of sale.<br />
54. Point of sale: shall refer to the place at which a retail transaction or sales is<br />
carried out.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
55. Private Business Establishment: Shall refer to a business established as<br />
Sole Proprietorship or Business Organization which are not owned by the<br />
government.<br />
56. Private Sector: Shall mean the part of a nation's economy which is not<br />
controlled by the government.<br />
57. Prospect customer: shall refer to a proposed (potential) customer in which<br />
the bank assumes to deal with business. Such type of customers may be<br />
recruited during cross selling or any other marketing activities until the<br />
customer fulfill the eligibility criteria.<br />
58. Public Enterprises: Shall refer to a wholly state owned enterprise<br />
established for gain, manufacturing, distribution, service rendering or other<br />
economic and related activities.<br />
59. Safe Deposit Box: shall refer to a strong metal container that can be rented<br />
on annual basis to store valuables items and retained in small compartments<br />
in the bank vault. Each compartment has separate lock with a dual access key<br />
to meet the need of customers and available in a variety of size.<br />
60. Savings Account: shall refer to interest-bearing deposit account with the<br />
CBE maintained by physical and legal persons who can fulfill the<br />
requirements of the Bank.<br />
61. Societies: Shall mean associations which are established, by the<br />
proclamation for Charities and Societies (No.621/2008), to protect the<br />
interest of their members and specific segment or group of the society<br />
62. Sole Proprietorship: shall mean a business established by a single natural<br />
person.<br />
63. Special-Demand Deposit Account (SDDA): shall refer to a non-interestbearing<br />
account that is opened to fulfill the requests of those customers who<br />
for one reason or another do not want their deposit to accrue any interest.<br />
64. Staff Accounts: shall refer to a bank account that is opened by the staff of<br />
CBE.<br />
65. Supplier: shall refer to a company which has a special agreement with the<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
CBE to supply goods and services with special discount for holders of the<br />
women saving account for a specific duration.<br />
66. Tailored service –shall refer a special service provision extended by the<br />
bank to High value customers; such as assigning the bank’s employees in<br />
high value customers’ premises to perform daily banking operation based on<br />
their working relationship and contribution to the profitability and financial<br />
resource mobilization to the bank.<br />
67. Teen - Youth saving account shall refer to minors saving account with a<br />
higher interest rate opened for those individuals found between the ages of<br />
14-17 years.<br />
68. Till number: shall refer to identification number that identifies the staff<br />
involves in cash related tasks on the core banking system.<br />
69. Till to Till Transfer: shall refer to the transfer of cash from Customer<br />
service officer-Makers (at front) to senior customer service officer-cash or<br />
vice versa through the system.<br />
70. Till to Vault Transfer: shall refer to the transfer of cash from the senior<br />
customer service officer-cash to Vault through the system.<br />
71. Union: shall mean a group composed of more than one primary cooperatives<br />
societies that have similar objectives.<br />
72. Vault to Till Transfer: shall refer to the transfer of cash from the Vault to<br />
senior customer service officer-cash through the system.<br />
73. Verification of signature: shall refer to the checking of the signature with<br />
naked eye without sending the document/instrument to external forensic<br />
department.<br />
74. Women saving Account: shall refer to a type of saving account designed for<br />
women.<br />
75. Youth saving account: shall refer to a type of saving account designed for<br />
those individuals aged between 18-24 years old.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.3 Objectives of the <strong>CATS</strong> <strong>Procedure</strong><br />
The primary objectives of this procedure are to:<br />
a) Ensure standardization and quality in the <strong>CATS</strong> process<br />
b) Have a single source of reference to performers;<br />
c) Determine the duties and responsibilities of each employee under <strong>CATS</strong><br />
process; and<br />
d) Provide guidance and support to all employees under <strong>CATS</strong> process and<br />
other users, to enhance their efficiency and effectiveness so as to bring<br />
the intended operational excellence.<br />
1.4 Scope of the procedure<br />
This procedure shall cover and govern operational activities of the <strong>CATS</strong> process,<br />
including the duties and responsibilities of performers in branches as well as<br />
districts and <strong>CATS</strong>-CPC. The procedure shall also be applicable to NR/NT and<br />
foreign transfer sub process.<br />
1.5 Governing rules<br />
This procedure shall be governed by:-<br />
i. The commercial code of Ethiopia and other related laws and regulations of<br />
the country;<br />
ii. The relevant Directive of the National Bank of Ethiopia;<br />
iii. The <strong>CATS</strong> policy of the bank;<br />
iv. The accounting policy of the bank;<br />
v. Internal control framework of the bank.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.6 The Structure of the <strong>CATS</strong> Process<br />
Board of Directors<br />
President<br />
Manager - <strong>CATS</strong><br />
Operations<br />
VP - <strong>CATS</strong><br />
District Managers<br />
Director - <strong>CATS</strong> CPC<br />
Manager Bond<br />
Reconciliation<br />
Branch Managers<br />
Manager - Cash Custody and Issue<br />
Manager - ATS<br />
Manager - Customers' Account<br />
and Operation<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.7 General Authorities and Responsibilities<br />
1.7.1 President<br />
The President shall:<br />
a) Approve the <strong>CATS</strong> procedure Manual in accordance with <strong>CATS</strong> policy;<br />
b) Oversee the implementation of the <strong>CATS</strong> policy and procedure Manual;<br />
c) Oversee the overall <strong>CATS</strong> operational matters and the service delivery of the<br />
<strong>CATS</strong> process and take appropriate action if deemed necessary; and<br />
d) Oversee the structure of the process to clearly assign the authority and<br />
responsibility in the process operation.<br />
1.7.2 Vice President -<strong>CATS</strong><br />
The Vice president – <strong>CATS</strong> shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure the proper implementation of the <strong>CATS</strong> procedure within the<br />
process;<br />
c) Assess the current and future skill and talent demanded by the process and<br />
develop through training and knowledge sharing;<br />
d) Oversee proper understanding and awareness is created on the procedure by<br />
all performers of the <strong>CATS</strong> process;<br />
e) Maintain efficient integration of <strong>CATS</strong> process with other core and support<br />
processes;<br />
f) Ensure that district managers, Director-<strong>CATS</strong> CPC and other managers under<br />
the process owner are discharging their duties and responsibilities as<br />
entrusted to them in this procedure;<br />
g) Oversee appropriate risk identification, measurements and management is in<br />
place in operational activities of the process;<br />
h) Oversee the overall <strong>CATS</strong> operational matters and the service delivery of the<br />
<strong>CATS</strong> process and take appropriate action if deemed necessary;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
i) Approve additional formats or changes in the exiting formats that may be<br />
required ;and<br />
j) Initiate the revision of this procedure considering its appropriateness to the<br />
Bank’s business strategy:<br />
1.7.3 District Manager<br />
The District Manager shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure effective and efficient operation of <strong>CATS</strong> process is in place within the<br />
branches under the district’s domain;<br />
c) Ensure whether branch managers are properly monitoring and leading their<br />
respective staffs for better performance;<br />
d) Support branches and district office staffs in implementing the <strong>CATS</strong><br />
procedure;<br />
e) Ensure appropriate risk identification, measurements and management is in<br />
place in operational activities of the branches and district;<br />
f) Support the rectification of discrepancies and comments reported by internal<br />
audit, Ethics and Anti-Corruption office, district compliance and monitoring<br />
team and Branch controllers, and take the necessary remedial action;<br />
g) Assess competency gap of performers and arrange the required trainings;<br />
h) Ensure the operational activities of the branches are meant to satisfy the<br />
customers without compromising the Bank’s interest;<br />
i) Oversee the overall district operational matters and the service delivery of<br />
the district and take appropriate action if deemed necessary;<br />
j) Approve and concluded agreement for Cash pick up service and Casher<br />
implant service with high value customers ;and<br />
k) Keep the cash and ATM vault combination code of all branches under the<br />
districts domain.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.7.4 Director- <strong>CATS</strong> CPC<br />
The <strong>CATS</strong> CPC Director shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Oversee proper supply and collection of cash to and from branches;<br />
c) Ensure appropriate risk identification, measurements and management is in<br />
place in operations of the sub-process;<br />
d) Maintain the asset quality of the bank through effective monitoring of<br />
suspense account balances; and<br />
e) Ensure that outstanding items are timely settled and branch accounts at CPC<br />
are also timely reconciled; and<br />
f) Oversee the overall d operational matters and the service delivery of <strong>CATS</strong><br />
CPC and take appropriate action if deemed necessary;<br />
1.7.5 Manager- <strong>CATS</strong> Operation<br />
The <strong>CATS</strong> Operation Manager shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Assess the effectiveness of the coordination among branches, districts and<br />
<strong>CATS</strong> CPC in performing their day to day operation , propose and execute the<br />
necessary actions in consultation with Vice President –<strong>CATS</strong><br />
c) Ensure procedural compliance in branches by collaborating with districts’<br />
compliance and monitoring team;<br />
d) Collaborate with concerned parties to ensure that <strong>CATS</strong> process operational<br />
risk is identified, assessed and managed;<br />
e) Analyze the findings and rectification of discrepancies and comments<br />
reported by internal audit, Ethics and Anti-Corruption office, district<br />
compliance and monitoring team and propose the necessary remedial<br />
action;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
f) Initiates value adding processes to improve and standardize the operation in<br />
<strong>CATS</strong> process ;<br />
g) Follows up the proper implementation of the complaint handling system in<br />
<strong>CATS</strong> process and addresses critical issues related with <strong>CATS</strong>- Process;<br />
h) Examine financial regulations ,policies and procedure of the bank ;and<br />
propose provisions into <strong>CATS</strong> process and procedure for better compliance<br />
and harmony;<br />
i) Liaison with core and support process to assist districts and <strong>CATS</strong> CPC in<br />
critical issues ;<br />
j) Ensure technical trainings are delivered by competent internal trainers as<br />
per the technical training manual of the process;<br />
k) Explain and discuss <strong>CATS</strong> procedure from operational point view to<br />
concerned internal and external parties when requested and required ;<br />
1.7.6 Manager- District Operations<br />
The District Operation Manager shall;<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Assess the effectiveness of the coordination among branches under the<br />
district domain in performing their day to day operation , propose and<br />
execute the necessary actions in consultation with district –manager ;<br />
c) Support branches under the district domain in the implementation of<br />
resource mobilization strategies of the bank ;<br />
d) Collaborate with concerned parties to ensure that district operational risk<br />
are identified, assessed and managed;<br />
e) Follow up the proper implementation of the complaint handling and<br />
addresses critical issues related with the district ;<br />
f) Follow up and arrange the supply of office equipment, furniture and fittings<br />
to the new and existing branches;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
g) Ensure effective and proper utilization of resources; and<br />
h) Keep the cash and ATM vault reserves keys of all branches under the districts<br />
domain<br />
1.7.7 Branch Manager<br />
The Branch Manager shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure that internal control framework of the bank is properly implemented<br />
in all operational activities of the branch;<br />
c) Ensure appropriate risk identification, measurements and management is in<br />
place in operational activities of the Branch;<br />
d) Ensure proper understanding and implementation of the <strong>CATS</strong> <strong>Procedure</strong> by<br />
performers within the branch and shall give the required assistance and on<br />
the job training;<br />
e) Assess the overall competency gap of performers at branch and propose<br />
need based trainings that would fill the gap for the expected competency<br />
level;<br />
f) Ensure the rectification of discrepancies and comments reported by internal<br />
audit, Ethics and Anti-Corruption office, district compliance and monitoring<br />
team and Branch controllers, and take the necessary remedial action;<br />
g) Ensure all performers are discharging their duties and responsibilities laid in<br />
this procedure and take appropriate measure on performers who<br />
contravenes the <strong>CATS</strong> procedure;<br />
h) Perform all duties and responsibilities of the Manager –Customer service in<br />
the absence or in addition of job holder ; and<br />
i) Ensure that daily operations and branch book of accounts are done in<br />
accordance with this procedure as well as accounting procedure of the bank.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1.7.8 Manager- Cash Custody and Issue<br />
The Cash Custody and Issue Manager shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure the supply and collection of foreign and local currency to/from<br />
branches of CBE/NBE;<br />
c) Keep dual control of cash vault key of main issue;<br />
d) Ensure the handing and taking over of the physical cash between the Cash<br />
custody and issue, E-Payment and city branches are taken place in<br />
accordance with cash operation activities laid in this procedure;<br />
e) Ensure the daily cash transactions are properly managed and take corrective<br />
action on any cash discrepancies detected;<br />
f) Ensure appropriate risk identification, measurements and management is in<br />
place in operational activities of the team; and<br />
g) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption<br />
office, and controllers, and take the necessary remedial action;<br />
1.7.9 Manager- Customers Account and Operations (at <strong>CATS</strong> CPC)<br />
The Customer Account and Operation Manager, at <strong>CATS</strong> CPC, shall;<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure the timely processing of credit summaries;<br />
c) Ensure the timely reconciliation of branch accounts;<br />
d) Ensure list of closed current accounts due to mal operation are timely<br />
updated on the system and manually dispatched to non-networked branches;<br />
e) Ensure delinquent list of customers is timely dispatched to branches, Trade<br />
Service Process and Credit Service process;<br />
f) Ensure the timely and correct process of customer account balance<br />
confirmation ;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
g) Ensure appropriate risk identification, measurements and management is in<br />
place in operational activities of the team;<br />
h) Ensure the accurate and timely maintenance of ECX, Government and other<br />
corporate customers accounts;<br />
i) Ensure reported lost negotiable instruments are recorded for further<br />
reference and corrective action; and<br />
j) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption<br />
office, and controllers, and take the necessary remedial action;<br />
1.7.10 Manager-ATS<br />
The ATS Manager shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure all transactions are processed accurately and efficiently; and<br />
reconciled and settled as per the standard;<br />
c) Monitor the position of payment and settlement account and make sure that<br />
the balance is not overdrawn; and<br />
d) Ensure proper prioritization of payment when the balance in the Payment<br />
and Settlement is account not enough to cover all outstanding payment<br />
e) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption<br />
office, and controllers, and take the necessary remedial action;<br />
1.7.11 Head Cash Custody and Issue (LCY/ FCY)<br />
The Head at Cash Custody and issue shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Keep dual control of cash and vault key of Cash custody and issue<br />
c) Handover and takeover the physical cash notes to and from branches, NBE<br />
and other banks as per the cash operation activities laid in this procedure;<br />
d) Assign officers and coordinate required resource for efficient cash collection<br />
and issue<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
e) Ensure the cash counting and sorting takes place in accordance with this<br />
procedure;<br />
f) Follow up the settlements of claims and administer the cash discrepancies<br />
detected during cash operation; and<br />
g) Daily monitor the cash issue account movement and reconciliation status at<br />
branches<br />
1.7.12 Customer Service Manager at Branch<br />
The Customer Service Manager at branch shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Ensure that the required resources are fulfilled for daily business operation;<br />
c) Coordinate the activities of customer service officers and/or Senior customer<br />
service officers within the branch;<br />
c) Facilitate the provision of efficient and high quality service to customers as<br />
per the standard;<br />
d) Ensure all branch transactions are processed accurately and efficiently and<br />
no unauthorized transactions are left in the system for specific business day;<br />
e) Facilitate on the job training experience sharing and guidance for the proper<br />
understanding and implementation of this procedure; and<br />
f) Keep dual control of cash and vault key.<br />
1.7.13 Customer Service Manager at Cash Custody and Issue<br />
The Customer Service Manager at Cash Custody and Issue shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Keep dual control of cash and vault key.<br />
c) Handover and takeover the physical cash notes to and from branches, NBE<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
and other banks as per the cash operation activities laid in this procedure;<br />
d) Ensure the cash operation like counting and sorting takes place in<br />
accordance with this procedure;<br />
e) Assign officers and coordinate the required resource for efficient cash<br />
collection and issue; and<br />
f) Facilitate on the job training experience sharing and guidance for the proper<br />
understanding and implementation of this procedure<br />
1.7.14 Customer Service Manager at Customers’ Accounts and<br />
Operation (<strong>CATS</strong> – CPC)<br />
The Customer Service Manager at Customers’ Accounts and Operation (<strong>CATS</strong> – CPC)<br />
shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Manage the timely processing of credit summaries;<br />
c) Coordinate and monitor activities for timely and accurate branch account<br />
reconciliation;<br />
d) Update list of closed accounts due to mal operation on the system and<br />
manually dispatch to non-networked branches;<br />
e) Handle the delinquent list of customers and timely dispatch to branches,<br />
Trade Service and Credit process;<br />
f) Handle timely customer account balance confirmation;<br />
g) Handle the reported lost negotiable instruments are registered for future<br />
reference;<br />
h) Ensure the timely dispatching of new account opening instruction and<br />
account signature specimen to branches;<br />
i) Manage the accurate and timely account maintenance of ECX, Government<br />
and other corporate customers; and communicate the base branch for<br />
further processing (if any); and<br />
j) Facilitate on the job training, experience sharing and guidance for the proper<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
understanding and implementation of this procedure.<br />
1.7.15 Customer Service Manager at ATS<br />
The Customer Service Manager at ATS shall:<br />
a) Plan, direct and coordinate the activities of the team within the approved<br />
<strong>CATS</strong> procedure, guidelines and directives of the bank;<br />
b) Coordinate the daily activities for accurate and timely processing of all<br />
transaction of ATS team;<br />
c) Monitor the position of payment and settlement account;<br />
d) Develop priority list for payment when the balance is not enough to cover all<br />
the outstanding payments;<br />
e) Make timely and proper authorization as per NBE system rule and the<br />
developed priority payment list; and<br />
f) Facilitate on the job training experience sharing and guidance for the proper<br />
understanding and implementation of this procedure.<br />
1.7.16 Other Performers<br />
All other performers under the <strong>CATS</strong> process shall discharge their duties and<br />
responsibilities as per this <strong>Procedure</strong>.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
2. CUSTOMER CLASSIFICATION<br />
The bank shall classify its customers based on the following two dimensions;<br />
a) Economic Ownership Dimension<br />
b) Volume and value of transaction<br />
2.1 Volume and value of Transaction<br />
The Bank shall classify the customers in to the following three broad customer<br />
segments according to their value;<br />
i. Retail /consumer/customers -<br />
ii. Business customer<br />
iii. Premium customers<br />
2.2 Economic Ownership Dimension<br />
The Bank shall have four broad classifications by economic ownership namely:<br />
Private, Government, Public, and Associations.<br />
2.2.1 Private<br />
The Private category shall have the following sub classification;<br />
I. Individuals- Shall include single individual as well as married couples,<br />
work colleagues, school mates and other individuals that approach the<br />
bank for the purpose of joint account maintenance<br />
II. Private Businesses- Shall include Sole Proprietorship, Ordinary<br />
Partnership, Limited Partnership, General Partnership, Joint Venture,<br />
Private Limited Companies, Share Companies in the private sector,<br />
Private financial companies and other similar entities<br />
III. Other Private entities shall include:<br />
a. All forms of organization which are not formed in line with the<br />
Ethiopian law and operate under special agreement with the Ethiopian<br />
Government;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b. The various embassies operating in Ethiopia and International and<br />
regional organizations working in Ethiopia like the UN, AU, EU, IGAO,<br />
NEPAO etc; and<br />
c. Funds collected from the community, donors, and other institution<br />
which are not legally formed but facilitated by Government entities.<br />
The typical entities under this stipulation include funds collected from<br />
the community for road, water and other infrastructures<br />
2.2.2 Government<br />
The Government category shall have the following sub classification;<br />
I. Federal Government Entities<br />
a. All ministries established under the federal government state owned<br />
higher learning institutions(including universities ,colleges and other<br />
higher learning institutions ) ;<br />
b. All government administrative agencies;<br />
c. Include Federal autonomous organs which are accountable to the house<br />
of representative including; Ethiopian human right commission, The<br />
Ethiopian Election Board and others<br />
II. Regional Government Entities – This classification shall include all tiers of<br />
regional government, city administrations, state owned primary and<br />
secondary schools and any other establishment under the regional<br />
government.<br />
2.2.3 Public Enterprises<br />
The public enterprise category shall include:<br />
a. Public enterprises established as proclamation no. 25/1992 and share<br />
companies established by Government;<br />
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b. All government owned enterprises like Ethiopian Airlines Enterprise,<br />
Ethiopian sugar Corporation, Ethiopian Electric utility, Ethiopian Power<br />
cooperation and etc<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
2.2.4 Associations<br />
The Associations category shall have the following sub classification;<br />
I. Cooperative societies<br />
a. Shall include–Agricultural cooperative societies, Housing cooperative<br />
societies, industrial and artisans producers’ cooperative societies,<br />
consumers cooperative, saving and credit cooperative societies,<br />
fishery cooperative societies, mining cooperative societies<br />
b. Shall also include various establishment of cooperatives i.e. unions<br />
and league<br />
II. Charities, societies and Associations<br />
a. Shall include all local and foreign based charities ;<br />
b. Other associations shall include –professional associations and clubs<br />
sectorial associations, labor unions, trade unions, women and youth<br />
associations ,traditional “Equb” and “Edirs”, and all religious<br />
organizations and political parties .<br />
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3. TYPES AND FEATURES OF DEPOSIT PRODUCTS AND<br />
SERVICES<br />
3.1 Types of deposit products and services<br />
3.1.1 <strong>CATS</strong> process shall provide the following local deposit products;<br />
i. Savings Account: This product shall consist the basic and differentiated type<br />
ii.<br />
of savings account;<br />
a. Ordinary Saving Account<br />
b. Women Saving Account<br />
c. Youth Saving Account<br />
d. Teen-youth Saving Account<br />
e. Education Saving Account<br />
Demand deposit Account : This product shall consist the basic and<br />
differentiated type of demand deposit account ;<br />
a. Ordinary demand deposit account<br />
b. Special demand deposit account<br />
c. ECX related accounts<br />
iii. Fixed-Time Deposit<br />
3.1.2 The local deposit products listed herein above “3.1” may have the following<br />
additional distinguishing features based on the purpose of the account and<br />
the request of the customer/s;<br />
i. Account for minors<br />
ii.<br />
iii.<br />
iv.<br />
Joint Accounts<br />
Earmarked Accounts<br />
Account for interdicted persons<br />
v. Staff Accounts<br />
vi.<br />
vii.<br />
Cash Indemnity Account<br />
Overdraft Account<br />
3.1.3 Type of Foreign Deposit Products<br />
<strong>CATS</strong> process shall offer the following foreign deposit products in selected<br />
branches;<br />
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a) Non Resident Transferable foreign currency Account<br />
b) Non Resident Transferable birr Account<br />
c) Non Resident Non-Transferable birr Account<br />
d) Foreign Exchange Retention accounts<br />
I. Retention” A”<br />
II. Retention “B”<br />
e) Diaspora accounts<br />
I. Diaspora Demand deposit account<br />
II. Diaspora Fixed Time deposit<br />
III. Diaspora Non-Repatriable A/C<br />
3.1.4 Services<br />
<strong>CATS</strong> process shall provide the following services:<br />
a) Muday Bank Service<br />
b) Fund Transfer<br />
c) Local Money Transfer<br />
d) Foreign Money Transfer<br />
e) Safe deposit box<br />
f) Agency Services<br />
3.2 Features of deposit products and services<br />
3.2.1 Features of local deposit products<br />
3.2.1.1 Features of Savings Accounts<br />
I. Ordinary Savings<br />
a) It is interest bearing account which is compounded monthly;<br />
b) It can be opened individually, jointly and by corporate entities.<br />
c) It can be opened with zero balance given that there is a reasonable source<br />
of fund that bring the balance to the minimum amount of birr 25 within a<br />
month;<br />
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d) It can be operated by cash withdrawal slip, debit card, mobile and<br />
internet banking; and<br />
e) A minimum amount of birr 25 has to be maintained to keep the account<br />
operating;<br />
II.<br />
III.<br />
Women Saving Account<br />
a) It can be opened individually, jointly and by associations formed by<br />
women like Idir or Cooperatives having above 50% women members;<br />
b) It can be opened with zero balance given that there is a reasonable source<br />
of fund that bring the balance to the minimum amount of birr 25 within a<br />
month;<br />
c) It provides higher interest rate than ordinary saving account as indicated<br />
in the bank’s term and tariff;<br />
d) Account holders enjoy a discount on goods and services from the<br />
suppliers, who have agreement with CBE;<br />
e) The customer is responsible for selecting the brand, checking the<br />
functioning and genuineness of the goods before receiving them from the<br />
supplier. The Bank is not liable for any defect on the goods/services;<br />
f) It can be operated by cash withdrawal slip, mobile banking, internet<br />
banking and debit card designed for holders of women Saving Account;<br />
and<br />
g) Withdrawal of cash is allowed at any time in any amount of money.<br />
Youth saving account<br />
a) It is provided only for individuals or group of individuals in the ages of<br />
18-24;<br />
b) It can be opened with zero balance given that there is a reasonable source<br />
of fund that bring the balance to the minimum amount of birr 25 within a<br />
month;<br />
h) It provides higher interest rate than ordinary saving account as indicated<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
in the bank’s term and tariff;<br />
c) It shall be converted to normal/ordinary saving account, when the<br />
account holder reaches the age of 25 and;<br />
d) It can be operated by cash withdrawal slip, debit card, mobile and<br />
internet banking;<br />
IV.<br />
Teen youth saving account<br />
a) It can only be opened by individuals in the ages of 14-18;<br />
b) Self-employed/employed teens between the ages of 14-18 years can open<br />
and operate this account by providing Letter of confirmation from the<br />
zonal/Woreda administration and school administration. The letter shall<br />
at least state the applicant’s name, age and source of income (whether<br />
he/she generates their own income);<br />
c) The parent(s) or the tutor of the teen youth can open the account for<br />
unemployed teen or teen without own source of income. The account<br />
should be opened in the name of the teen youth, followed by the name of<br />
the signatory (signatories)—the relationship to the youth specified as<br />
either “parent(s)” or “Tutor”.<br />
d) It can be opened with zero balance given that there is a reasonable source<br />
of fund that bring the balance to the minimum amount of birr 25 within a<br />
month;<br />
e) It provides higher interest rate than ordinary saving account;<br />
f) It shall be converted to normal/ordinary saving account, when the<br />
account holder reaches the age of 18 and;<br />
V. Education Savings Account<br />
a) It is designed for saving money for Higher Education (up to<br />
undergraduate programs);<br />
b) It can be opened for oneself or for a minor by the parent(s)/tutors of the<br />
minor;<br />
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c) Parents can save for their young children's future tuition expenses right<br />
from the birth of their children;<br />
d) It provides higher interest rate than ordinary saving account as indicated<br />
in the bank’s term and tariff;<br />
e) It may grant Scholarship fund for account holders who are eligible to take<br />
part in a special scholarship program. Winners can also use the<br />
scholarship fund as Seed money for Initial capital to start a small-scale<br />
business instead of pursuing higher education; and<br />
f) Withdrawal from the Education Savings Account is allowed anytime.<br />
However, in order to be eligible for the scholarship or seed money award<br />
for a particular year, the customer shall deposit the minimum amount set<br />
by her/his preference for 12 months of the calendar year and no<br />
withdrawal in this period.<br />
3.2.1.2 Features of demand deposit Accounts<br />
All demand deposit accounts shall be operated by literate and able to<br />
sign written signature i.e. Thumbprint shall not be accepted to operate<br />
the demand deposit accounts.<br />
I. Ordinary Demand Deposit<br />
a) It is a non-interest bearing bank account usually operated by cheque;<br />
b) It can also be operated by using cheques, card, Mobile and Internet<br />
banking;<br />
c) it can be opened with a minimum balance of 1000 and 2000 for individual<br />
and business customers respectively;<br />
d) Penalty is charged if the minimum account balance is below birr 500 and<br />
has no movement for more than six months; and<br />
e) No restrictions on the number and amount of deposits and withdrawal as<br />
long as the account have sufficient balance;<br />
II.<br />
Special-Demand Deposit Account<br />
a) It is operated by passbook that is designed for the purpose;<br />
b) It is Non-interest bearing account;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) It has a hybrid features of saving account and demand deposit account;<br />
d) It can be opened individually, jointly or by corporate entities.<br />
e) It can be opened with zero balance given that there is a reasonable source<br />
of fund that bring the balance to the minimum amount of birr 25 within a<br />
month;<br />
f) No restrictions on the number and amount of deposit<br />
g) It can be operated cash withdrawal slip, debit card, mobile and internet<br />
banking; and<br />
h) A minimum amount of birr 25 has to be maintained to keep the account<br />
operating.<br />
III.<br />
ECX related Accounts<br />
a) The accounts are opened to facilitate commodity trading at ECX;<br />
b) Account opening and closure process is carried out by <strong>CATS</strong> - CPC<br />
c) These accounts include:<br />
1. Member Pay-in<br />
i. Used as payment guarantee to participate in the trading floor<br />
of ECX<br />
ii. The member is legal owner but shall empower ECX for debit<br />
transaction<br />
iii. It can only be debited by the <strong>CATS</strong>- CPC as per the instruction<br />
of ECX.<br />
2. Member Pay-out<br />
i. Used to receive payment from ECX trading; and<br />
ii. The member/account holder has exclusive right on the account<br />
3. Client Pay-in<br />
i. It is an account maintained by members on behalf of their<br />
clients; and<br />
ii. it can only be debited by the <strong>CATS</strong>-CPC as per the instruction<br />
of the ECX<br />
4. Client pay-out<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
i. an account maintained by members in behalf of their client;<br />
ii. The member/account holder has exclusive right on the account<br />
3.2.1.3 Features of Fixed Time deposits<br />
a) It is opened for a particular fixed period (time) by depositing particular<br />
amount of money;<br />
b) The period of fixed deposit is greater than or equal to 3 months ;<br />
c) Under normal circumstance withdrawal is not allowed prior to the<br />
maturity date. However if customer request any withdrawal before the<br />
maturity date , the withdrawn amount shall be entitled the normal saving<br />
interest rate and any remaining amount shall be entitled the fixed deposit<br />
interest rate.<br />
d) If the customer requests for a principal and interest rollover, it can be<br />
rolled over to the next agreed period;<br />
e) Minimum initial deposit is birr 10,000.00 or USD 5,000.00 or its<br />
equivalent in EURO or Pound Sterling.<br />
3.2.1.4 Other distinguishing features deposit products<br />
I. Muday Bank Service<br />
a) Muday Bank service is offered by the bank to accumulate and save money<br />
in designated box and deposited in to the respective customer account.<br />
b) Muday Bank service shall be provided by the bank with dual control.<br />
c) Muday Bank service is mainly designed for petty traders, semi-skilled<br />
workers, small holding farmers, shoe polishers and other similar<br />
individuals.<br />
II.<br />
Accounts for Minors<br />
a) It is a saving account opened for individuals below the age of 18;<br />
b) The account shall be opened and operated by parents or legally appointed<br />
tutor;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) At time of reaching major the total balance will be transferred to an<br />
account maintained and operated by the major.<br />
III.<br />
Joint accounts<br />
a) Joints accounts shall be maintained in name of two or three individuals to<br />
jointly operate the account; in case of joint account opening account<br />
holders shall sign additional contract design for the purpose (refer<br />
CBE<strong>CATS</strong>001-1)<br />
b) Joint accounts can be “And Account” and “And/or Account”.<br />
c) The nature of “And Account” is that all the parties should be present at<br />
the counter of the bank to give payment instruction and withdraw money.<br />
Whereas “And/or” account type allows individual account holders to<br />
withdraw money and give payment instruction separately.<br />
IV.<br />
Earmarked Accounts<br />
a) It is an account opened, with additional description indicating the<br />
purpose like “club account,” “business account,” “workshop account,”<br />
“project account,” “main account,” “branch account,” etc…;<br />
b) The customer shall explicitly request the bank in written form to add the<br />
description;<br />
c) It can be earmarked using the registered trade name or the business<br />
sector indicated on the trade license; and<br />
d) Deposit can be made in the name of either the account holder or<br />
earmarked name.<br />
V. Accounts for Interdicted Persons<br />
a) It is an account opened and operated by the Tutor appointed by the court<br />
on behalf of the interdicted person/s.<br />
VI.<br />
Staff Accounts<br />
a) Opened for CBE staff members and category shall be changed to nonstaff<br />
category codes when the staff leaves the bank; and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Staffs are not allowed to process transaction of their own in the system<br />
except in payment channels such as internet, mobile and card banking.<br />
VII.<br />
Cash Indemnity Account<br />
a) Opened in the name CBE staffs, who are engaged cash related activities<br />
and entitled for cash indemnity allowance;<br />
b) Withdrawals is approved by the CSM for settling cash shortage reported<br />
by the account holding staff and confirmed by the branch controller;<br />
c) Payments may be effected to the account holding staff after one year of<br />
leaving cash related post for which she/he was entitled the cash<br />
indemnity.<br />
VIII.<br />
Overdraft account-<br />
a) It is a demand deposit account with augmented feature that allow<br />
customers to withdraw money beyond their credit balance; and<br />
b) It can be withdrawn up to the approved limit;<br />
3.2.2 Features Foreign Deposit products<br />
(Basic features for all foreign deposit products)<br />
a) The source of fund is overseas and in foreign currency.<br />
b) The account can be maintained in hard currency or in Birr.<br />
c) Persons residing abroad can open such accounts in person or by mail in their<br />
names.<br />
d) A foreign currency shall be credited to the account through ;<br />
I. Direct crediting of the account from foreign sources via the banking<br />
system<br />
II. Foreign currency cash note;(the account holder presents a signed and<br />
sealed foreign-currency-declaration form from the Ethiopian Customs<br />
Authority for foreign currency notes above 3,000 USD) and<br />
III. Cheque deposits that originate from abroad.<br />
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e) The foreign-currency accounts are to be maintained in the following types of<br />
currencies:<br />
1. US Dollar,<br />
2. Pound Sterling and<br />
3. Euro<br />
f) The types of foreign-currency accounts shall include the following;<br />
I. Non-resident transferable foreign-currency accounts (NRT FCY);<br />
II. Non-resident transferable Birr accounts (NRT);<br />
III. Non-resident non-transferable Birr accounts (NRNT);<br />
IV. Foreign-exchange-retention accounts for exporters and for the<br />
recipients of inward remittances shall include ;<br />
1) Foreign exchange retention account A<br />
i. The account shall be used to deposit 10% of the earned foreign currency.<br />
ii. The foreign currency deposited to the account shall be used to settle<br />
account holder obligation through in foreign currency or converted to<br />
local currency, when requested by the account holder;<br />
2) Foreign exchange retention account B:<br />
i. The account shall be used to deposit 90% of the earned foreign currency up<br />
to 28 days after which period any balance shall automatically be converted in<br />
the next working day into local currency.<br />
a) Foreign-currency accounts in the names of Ethiopians and foreign nationals<br />
of Ethiopian origin (Diaspora A/C) that comprise the following:<br />
3.2.2.1 Features of foreign currency Fixed-time deposit;<br />
i. It is an interest bearing account with agreed maturity date;<br />
ii. Foreign currency is the only source of fund for the account;<br />
iii. It cannot be opened by power of attorney. However, individuals with<br />
power of attorney can operate the account;<br />
iv. The minimum maturity period is three months;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
v. It is opened with an initial deposit of US Dollar 5,000 or its equivalent in<br />
any of the eligible currencies;<br />
vi. Interest on such accounts shall be payable only if they are maintained at<br />
least for the minimum period; and<br />
vii. Interest income on such accounts is tax-free<br />
3.2.2.2 Features of foreign currency Current accounts<br />
i. It cannot be opened by power of attorney. However, individuals with<br />
power of attorney can operate the account;<br />
ii. Foreign currency is the only source of fund for the account ;<br />
iii. Withdrawals can be made at any time by writing a cheque;<br />
iv. It can be opened with an initial deposit of US Dollar 100 or its equivalent<br />
in any of the eligible currencies;<br />
v. The maximum amount to be deposited shall not exceed US Dollar 50,000<br />
or its equivalent in any of the eligible currencies; and<br />
vi. Interest shall not be paid to this account.<br />
3.2.2.3 Non-Repatriable Birr account (saving account)<br />
i. This account may take the form of saving deposit, that can be used for<br />
local payments only;<br />
ii. Foreign currency is the only source of fund for the account ;<br />
iii. It cannot be opened by power of attorney. However, individuals with<br />
power of attorney can operate the account;<br />
iv. Interest rate on such accounts shall be double of the minimum saving<br />
deposit rate set by the National Bank of Ethiopia, currently it is 10%;<br />
and<br />
v. Money can neither be transferred from this account abroad nor from<br />
the local currency to any foreign currency<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
4. ELIGIBILITY CRITERIA AND REQUIRED DOCUMENT TO<br />
OPEN ACCOUNT<br />
4.1 Eligibility to open local deposit accounts<br />
I. Ordinary Saving Account, Demand Deposit Account, Fixed-Time Deposit<br />
or Special Demand Deposit Account<br />
The following are eligible to maintain local ordinary savings account, Demand<br />
Deposit Account or Fixed-Time Deposit<br />
II.<br />
a) All natural and legal persons recognized by Ethiopian laws;<br />
b) Minors through parents or tutors ;and interdicted persons through and<br />
legal Guardians )<br />
Women Saving Account<br />
The following are eligible to maintain a women saving account<br />
a) Individual women;<br />
b) Various associations owned by women with more than 50% share<br />
c) Businesses entities fully owned by women;<br />
d) Minor women (through parents or tutors);<br />
e) Incapacitated women (through legal guardians);<br />
f) Women staffs of the CBE.<br />
III.<br />
Youth Saving Account<br />
The following are eligible to maintain a youth saving account.<br />
a) All Individuals whose age is greater than or equal to 18 and less than or<br />
equal to 24 years old;<br />
b) Individual trade operators (sole proprietorship);<br />
c) Interdicted persons (through legal guardians)<br />
d) Staffs of the CBE’<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
IV.<br />
Teen-youth Saving Account<br />
The following are eligible to maintain a teen-youth saving account.<br />
a) Individuals whose age is greater than or equal to 14 and less than 18<br />
years old and is generating his/her own income;<br />
b) Minors (through the parents or Tutor)<br />
c) Interdicted persons (through Tutor)<br />
V. Education Saving Account<br />
The following are eligible to maintain an educational saving account.<br />
a) Individuals classified as teen-youth, whose age is greater than or equal<br />
to 14 and less than 18 years old;<br />
b) Any individual, whose age is greater than 18;<br />
c) Minors (through the parents or Tutor);<br />
d) Interdicted persons (through legal Guardian ) ;and<br />
e) Staffs of the CBE’s<br />
4.2 Eligibility to open foreign currency accounts<br />
The following are eligible to open account in foreign currency:<br />
1) Embassies;<br />
2) Foreign diplomats;<br />
3) International organizations;<br />
4) Expatriate employees of international organizations;<br />
5) Foreign based Charities;<br />
6) Foreign investors;<br />
7) Ethiopians living abroad and foreign nationals of Ethiopian<br />
origin(Diasporas);<br />
8) Non-resident Ethiopian Nationals living and working outside Ethiopia.<br />
9) Non-resident foreign nationals of Ethiopian origin.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
10) Companies owned by the above-mentioned nonresidents and located<br />
outside the Ethiopian territory for more than one year.<br />
11) Ethiopian nationals living and working abroad or in due process of living<br />
abroad for work for more than one year and who can produce<br />
authenticated documents.<br />
12) Exporters;<br />
13) Recipients of inward remittances; and<br />
14) Other local/international companies with the approval of NBE<br />
4.3 Document required<br />
4.3.1 Document required to local Currency account Opening<br />
I. In general the bank shall accept the following identification Cards (IDs) to<br />
open an Account;<br />
a) Worda/Kebele ID cards;<br />
b) Employment and pension ID cards;<br />
c) School, college and university ID cards;<br />
d) Driver’s/operator’s licenses;<br />
e) Tax identification ID card;<br />
f) Passports;<br />
g) Work or residence permits; and<br />
h) Foreign-nationals-of-Ethiopian-origin ID card, together with a valid<br />
passport.<br />
i) Ethiopian Community ID.<br />
II. Acceptable ID cards shall at least consist the following information ;<br />
a) The bearer full name i.e. in case of Ethiopia Citizen Person’s name,<br />
Father’s and Grandfather’s name.<br />
b) Person’s Photo<br />
c) ID number<br />
d) Issue date<br />
e) Issuer name and issuer’s stamp<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
III. Post account opening document authentication shall be performed by the<br />
account opening branch/<strong>CATS</strong> CPC.<br />
IV. Authenticating the letter of request shall be enough instead of individual<br />
IDs in case of account opening based on letter of request issued from<br />
corporate customers of the bank or other known entities such as<br />
universities for their students ,government entities and branch’s<br />
corporate customers for their employees ;<br />
V. The bank shall require the following documents to open a local-currency<br />
deposit account;<br />
1. Individuals<br />
a) One valid and renewed ID card; and<br />
b) Tax Identification Number (TIN) for demand deposit account;<br />
c) Two recent passport-size photographs for a savings account and one for a<br />
demand-deposit account (if there is no digital camera in the branch)<br />
d) On the other hand, in order to open Teen-Youth Saving Account the<br />
following documents are acceptable as Identification cards:<br />
1) Student ID Cards;<br />
2) Birth Certificates/Birth Notifications/Baptism Cards;<br />
3) Letter of confirmation from the appropriate authority.<br />
2. Individual Trade Operators (sole proprietorship)<br />
a) One valid and renewed ID card;<br />
b) A renewed trade license and principal registration;<br />
c) A recently taken passport-size photograph (if there is no digital camera<br />
in the branch); and<br />
d) Tax Identification Number (TIN).<br />
3. Private Limited Company<br />
a) The company’s renewed trade license and principal registration; and an<br />
investment certificate (for investors);<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) A Memorandum of Association and an Article of Association attested,<br />
registered and sealed by Document Authentication and Registration<br />
Office;<br />
c) A letter of request to open and operate the account, which should be<br />
signed by the authorized person mentioned in the Memorandum of<br />
Association and in the Article of Association and bears the company’s<br />
official stamp;<br />
d) A valid and renewed ID card of the person authorized to operate the<br />
account; and one passport size digital photo for saving account to be<br />
retained by the bank (if there is no digital camera in the branch)<br />
e) A tax identification number (TIN).<br />
4. Organizations Legally Incorporated in the Following Forms:<br />
I. Partnership<br />
a) A renewed trade license and principal registration and an investment<br />
certificate (for investors) in the name of the partnership;<br />
b) A partnership agreement attested, registered and sealed by FDRE Document<br />
authentication and Registration Office;<br />
c) A letter of request to open and operate the account, which should be signed<br />
by authorized person and to which the official stamp of the partnership must<br />
be affixed, if any;<br />
d) A valid and renewed ID card of the authorized person to operate the account;<br />
and<br />
e) A tax identification number (TIN).<br />
II.<br />
Share Company<br />
a) The share company’s renewed trade license and principal registration;<br />
b) A Memorandum of Association and an Article of Association attested,<br />
registered and sealed FDRE Document authentication and Registration<br />
Office;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) The minutes of the meeting of the Board of Directors held to discuss the<br />
opening and operation of the account;<br />
d) A letter of request to open and operate the account, which is signed by the<br />
Chairperson of the Board and bears the company’s seal; however, the general<br />
manager shall sign on the request letter, if it is delegated by the board.<br />
e) A valid and renewed ID card of the person authorized to operate the account;<br />
and<br />
f) A tax identification number (TIN).<br />
5. Institutions for Higher Learning<br />
I. Colleges and Universities (State Owned)<br />
a) A letter of authority from the federal Ministry of Education or from the<br />
concerned university, Or<br />
b) A letter of authority from the concerned university or from the Education<br />
Bureau of the region, whichever is appropriate; or<br />
c) On the strength of the institution’s letter of request, if the institution was<br />
established by proclamation and its establishment was announced in the<br />
Negarit Gazetta; and<br />
d) A valid and renewed ID card of the person authorized to operate the<br />
account.<br />
II.<br />
Private Schools, Colleges and Universities<br />
a) If the private school or college was established in the form of a private<br />
limited company, all the required documents stated under 3 (a-e) must be<br />
produced, and the account should be opened in the name of the school or<br />
college;<br />
b) If the private school or college was established by an individual, all the<br />
required documents stated under 3 (a-d) must be produced and an<br />
earmarked demand deposit account should be opened in the name of the<br />
person, the school or college; and<br />
c) A valid and renewed ID card of the person authorized to operate the<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
account.<br />
6. Federal budgetary Institutions<br />
a) Letter of instruction from Ministry of Finance and Economic<br />
cooperation;<br />
b) Valid and renewed ID cards and photo of the authorized signatories;<br />
7. Regional/city/ administration budgetary Institutions<br />
a) Letter of instruction from Regional /city Finance and economic offices;<br />
b) To open account for the Administration of the Zone/Sub city’s and other<br />
offices under the Zonal’s or Sub City’s supervision, a written letter of<br />
instruction from their respective regional/city Finance and economic<br />
development offices shall be presented;<br />
c) To open account for the Administration of the Woreda and other offices<br />
under the Woreda’s supervision, a written letter of instruction from<br />
their respective Zonal or sub city Finance and economic development<br />
office shall be presented;<br />
d) To open account for entities/institutions under a particular Woreda’s<br />
domain, a written letter of instruction from the respective Woreda<br />
Finance and economic development office shall be presented;<br />
e) Valid and renewed ID cards and digital photo of the authorized<br />
signatories<br />
8. Public Enterprises<br />
a) A public enterprise shall present the Negarit Gazetta that has announced<br />
its establishment;<br />
b) The letter of appointment by the Board of Directors of the General<br />
Manager;<br />
c) A letter of request from the General Manager to open and operate the<br />
account<br />
d)Tax Identification Number (TIN) for demand deposit account; and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
e) Valid and renewed ID cards and digital photo of the authorized signatories.<br />
9. Cooperatives<br />
a) A certificate of registration issued by the appropriate authority. If the<br />
cooperative is in the process of formation, however, a letter of authority<br />
from the organizing body shall be presented.<br />
b) The approved and registered rules and regulations of the cooperative.<br />
The rules and regulations will have to; nonetheless, bear the official<br />
stamps of the registering body and of the cooperative on all their pages.<br />
c) Minutes of the most recently held meeting of the General Assembly,<br />
which clearly shows the members’ pertinent resolution. If the cooperative<br />
is in the process of formation, nevertheless, a letter of intent signed by all<br />
its members will suffice.<br />
d) A letter of request by the Chairperson to open and operate a current<br />
account.<br />
e) A valid and renewed ID card and digital photo of the person authorized to<br />
operate the account.<br />
f) Tax Identification Number (TIN) for demand deposit account;<br />
10. Labor Unions<br />
a) A certificate of registration from the federal Ministry of Labor and Social<br />
Affairs or from the region’s Bureau of Labor and Social Affairs.<br />
b) Approved and registered rules and regulations of the labor union. Each<br />
page of these rules and regulations shall bear the official stamp of the<br />
registering body and of the labor union.<br />
c) The resolution of the General Assembly that has appointed the Executive<br />
Committee of the labor union. This document must, however, bear the<br />
official stamp of the labor union and of the registering body.<br />
d) Minutes of the Executive Committee.<br />
e) A letter of request by the Chairperson to open and operate the account;<br />
f) Valid and renewed ID cards and digital photo of the authorized<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
signatories; and<br />
g) Tax Identification Number (TIN) for demand deposit account.<br />
11. Associations and Clubs<br />
a) A certificate of registration obtained from their respective organizing<br />
authorities;<br />
b) The rules and regulations of the association, which bear the official stamp<br />
of the organizing authority and of the association or club;<br />
c) Minutes of the most recently held meeting of the General Assembly at<br />
which the members thereof resolved to form the Executive Committee—<br />
duly sealed by the organizing authority;<br />
d) The minutes of the pertinent meeting held by the Executive Committee and<br />
a letter of request by the Chairperson thereof to open and operate the<br />
account;<br />
e) A letter of request by the Chairperson to open and operate the account;<br />
f) Valid and renewed ID cards and digital photo of the authorized signatories;<br />
and<br />
g) Tax Identification Number (TIN) for demand deposit account.<br />
12. Religious Organizations<br />
I. The Ethiopian Orthodox Tewahido Church<br />
a) All Ethiopian Orthodox Tewahido churches shall produce a letter of<br />
authority either from the Patriarch or by delegated persons by him;<br />
b) Valid and renewed ID cards of the authorized signatories; and<br />
c) Tax Identification Number (TIN) for demand deposit account;<br />
II.<br />
The Ethiopian Islamic Affairs Organization<br />
a) A letter of authority signed by the Chairman of the Ethiopian Islamic<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Affairs Supreme Council shall be presented to open and operate a bank<br />
account;<br />
b) Valid and renewed ID cards of the authorized signatories; and<br />
c) Tax Identification Number (TIN) for demand deposit account.<br />
III.<br />
The Ethiopian Catholic Church<br />
a) The Ethiopian Catholic Churches are required to present a letter of<br />
authority from the Secretary General of the Ethiopian Catholic Secretariat<br />
to open and operate a bank account; and<br />
b) Tax Identification Number (TIN) for demand deposit account;<br />
c) Valid and renewed ID cards of the authorized signatories.<br />
IV.<br />
The Ethiopian Evangelical Church Mekane Yesus<br />
a) A church thus named will have to obtain a letter of authority from the<br />
President of the Ethiopian Evangelical Church Mekane Yesus—that is, its<br />
central office—to open and operate a bank account; and<br />
b) Tax Identification Number (TIN) for demand deposit account;<br />
c) Valid and renewed ID cards of the authorized signatories.<br />
V. Other Religious Organizations<br />
a) Certificate of registration and letter of authorization from the Ministry of<br />
federal and Pastoralist development affairs to open an account.<br />
b) Rules and Regulations of the religious organization;<br />
c) Once the religious organization opened the initial account by the written<br />
instruction of Ministry of federal and Pastoralist development affairs, it<br />
can open another accounts for its branch offices by the instruction letter<br />
of the Chairperson or President of the religious organization; and<br />
d) Tax Identification Number (TIN) for demand deposit account;<br />
e) Once opened, their accounts shall be operated by their respective<br />
Chairperson or President.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
f) Valid and renewed ID cards of the authorized signatories are also<br />
required.<br />
13. Accounts for Minors, Interdicted Persons, Bankrupt Firms and Firms<br />
that are in the Process of liquidation<br />
I. Accounts for Minors(Teen youth)<br />
II.<br />
a) A proper letter of application submitted by the Parent on behalf of the<br />
minor;<br />
b) A ruling by a court order appointing the lawful Tutor for the minor; and<br />
c) Valid and renewed ID card of the tutor or the parent;<br />
d) Two recent digital photograph of the parent and the minor;<br />
e) A church certificate or a municipality certificate or a certificate from a<br />
hospital, etc. that gives the date of birth of the minor;<br />
Accounts for Interdicted Persons<br />
a) The ruling by a court of law pertaining to the interdiction;<br />
b) An official letter from the court ordering appointment of the Tutor;<br />
c) Two recent digital photograph of the parent and the interdicted person;<br />
d) Valid and renewed ID cards of the Tutor and the interdicted persons.<br />
III.<br />
An Account for a Firm that is in the Process of being Liquidated<br />
a) The document containing the court’s ruling with regard to the company’s<br />
bankruptcy;<br />
b) The court’s decision pertaining to the liquidation of the bankrupt<br />
company;<br />
c) An appointment of the liquidator by the court and the legal power given<br />
to her or him for the purpose; Tax Identification Number (TIN) for<br />
demand deposit account; and<br />
d) The ID cards of the authorized persons<br />
14. Account for Share companies under formation<br />
a) A letter of authority from the licensing body will have to be presented;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
and no cheques shall be issued until the customer brings Tax<br />
Identification Number (TIN) for demand deposit account;<br />
b) A valid and renewed ID card of the person authorized to operate the<br />
account;<br />
15. Account for firms under the process of registration for Investment<br />
or Trade license<br />
a) A letter of authority from the licensing body will have to be presented.<br />
b) A valid and renewed ID card of the person authorized to operate the<br />
account. However, the account will be blocked until they are presented<br />
the Investment license and Principal registration.<br />
c) If their request fails, the balance should be released and refunded up on<br />
presentation of a letter of consent from the licensing organ.<br />
16. Account for Overseas Organizations Which Are Working in Ethiopia.<br />
Overseas organization due to bilateral, contractual, multilateral, etc. agreement<br />
work in Ethiopia without establishing branch office may request for account<br />
opening for local payments. To that end, the following documents should be<br />
produced:<br />
i. Due to contractual agreement<br />
a) The overseas organization shall give power of attorney to the country<br />
representative and shall be authenticated from ministry of foreign<br />
affairs and registered by FDRE document authentication and<br />
registration office.<br />
b) Shall present memorandum and article of association of the overseas<br />
organization which is sealed by foreign affairs.<br />
c) Contractual agreement of the organization with other local<br />
organizations<br />
d) Supporting letter from the local organization giving the contract.<br />
e) A valid and renewed Id card of the person authorized to operate the<br />
account;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
f) Tax Identification Number (TIN) for demand deposit account;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ii.<br />
Due to bilateral or multilateral agreement<br />
a) A letter from Ministry of foreign affairs that requests opening of the<br />
account by specifying the delegated person to open and operate the<br />
account and/or the representative of the organization.<br />
b) The letter of Ministry of foreign affair shall be signed by the person<br />
delegated by the Ministry to that effect and shall be verified by the<br />
bank.<br />
c) A valid and renewed Id card of the person authorized to operate the<br />
account;<br />
d) Tax Identification Number (TIN) for demand deposit account;<br />
17. Accounts Opened to Manage and Control Project Fund<br />
Public enterprises, government offices, universities etc… reach an agreement<br />
with other organization to make advance payment to the organization through a<br />
separate account opened for this purpose in the name of the organization and<br />
control the fund by assigning a co-signatory from them.<br />
The following<br />
documents shall be presented up on the account opening:<br />
a) Depending on the nature of the organization which the account shall be<br />
opened, the organization shall present all the necessary documents<br />
1. To open the account and operate, letter of request shall be presented<br />
by the project funding organization<br />
2. All necessary documents of both parties, related with their legal<br />
establishment, shall be presented<br />
b) Registered contractual agreement.<br />
c) A valid and renewed Id card of the person authorized to operate the account;<br />
and<br />
d) Tax Identification Number (TIN) for demand deposit account;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
4.3.2 Documents required to open Foreign-Currency Accounts<br />
I. Embassies<br />
a) A letter of application that states the manner of operation, signed by the head<br />
of the delegation; and<br />
b) Diplomatic ID cards or passports of the signatories of the account.<br />
II. Diplomats<br />
a) A letter of application which is signed by the ambassador or her/his delegate;<br />
and<br />
b) A diplomatic ID card or passport.<br />
III. International Organizations<br />
a) A letter of application; and<br />
b) Permit from the NBE;<br />
c) The ID cards or passports of the signatories of the account.<br />
IV. Foreign Investors<br />
a) A permit from the NBE;<br />
b) The Memorandum of Association (for companies);<br />
c) The Article of Association (for companies);<br />
d) Registration Certificate or investment certificate;<br />
e) Letter from investment office;<br />
f) A letter that states the manner of the operation, signed by the person to<br />
whom the mandate is given by the Article of Association (for companies);<br />
g) If the company has a parent company, Power of attorney from the parent<br />
company shall be presented; and<br />
h) Valid ID cards or passports of the signatories of the account shall be<br />
presented. For foreigners, however, work permit or residence permit shall be<br />
presented.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
V. International Charities<br />
a) A letter of application that states the manner of the operation—from the<br />
organization’s Head Office or regional office;<br />
b) Tax Identification Number (TIN) for demand deposit account;<br />
c) Permit from the NBE; and<br />
d) ID cards or passports of the signatories of the account<br />
VI. Expatriate Employees of International Organizations<br />
a) A letter of application from the employee;<br />
b) Valid and renewed ID cards from the organization that has employed them,<br />
or driving/operating licenses, passports or trade licenses; and<br />
c) A letter from the employer, which confirms that her or his salary is paid in a<br />
foreign currency.<br />
VII. Non-Resident Ethiopians and Foreign Nationals of Ethiopian Origin<br />
a) An application form properly filled out and signed by the account holder;<br />
b) For individual foreign nationals of Ethiopian origin, valid passports and/or<br />
Ethiopian Origin identification cards;<br />
c) For businesses, a certificate of ownership/entitlement for the organization<br />
and/or the Article of Association and the Memorandum of Association;<br />
d) For those who, for one reason or another, cannot appear in person to open<br />
the NR account, a filled application form through E-mail, fax or courier<br />
service and a confirmation letter from embassy, a correspondent bank or a<br />
remittance service provider;<br />
VIII. Exporters<br />
a) A letter of application; and<br />
b) Documentary evidence of legality and incorporation as per their formation,<br />
for sole proprietorship all the documents stated under 2(a-d),for Private<br />
limited company as stated under 3(a-e) ,for partnership as stated 4-I (a-e)<br />
and for share company as stated 4 –II(a-f).<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
IX. Recipients of Inward Remittances<br />
c) A letter of application;<br />
d) A valid and renewed ID card from the employing organization, a<br />
driver’s/operator’s license, a passport or a trade license;<br />
e) Documentary evidence of legality and incorporation as per their formation,<br />
for sole proprietorship all the documents stated under 2(a-d),for Private<br />
limited company as stated under 3(a-e) ,for partnership as stated 4-I (a-e)<br />
and for share company as stated 4 –II(a-f) and<br />
f) Evidence that the applicant is a regular recipient of foreign exchange.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
5. OPENING OF AN ACCOUNT<br />
5.1 Customer creation<br />
The Customer Services Officer/Maker<br />
a) Attends to customers’ requests at the counter; interviews them and sells<br />
the Bank’s products and services.<br />
b) Receives from the customer any essential information like name, another<br />
account in the CBE (if any), address, Id number, issuance date, issued by<br />
and any additional information which helps to know the customer.<br />
c) Creates the customer as individual, or corporate as appropriate according<br />
to the nature of the customer, if the customer fulfills the eligibility criteria<br />
to open an account or enter into a contract.<br />
d) Checks whether the customer has already maintained an account in the<br />
Bank, through customer interviewing and mnemonic verification; and<br />
initiate amendment/update for discrepant/incomplete customer<br />
information before using the existing customer ID(if any ) to open the<br />
new account.<br />
e) Creates a new customer ID only if the customer has no account in any of<br />
the networked branches of the CBE in order to avoid duplicated customer<br />
ID; and<br />
f) Incorporates the customer’s record and mnemonic that is taking the 1st<br />
letter of the customer’s first name followed by her/his telephone number<br />
or Tax identification number (TIN) (the last nine digits) into the system<br />
The Customer Services Officer/Checker<br />
a) Makes sure that the pertinent information is incorporated into the system<br />
by looking at the documents presented by the customer.<br />
b) Ascertains the mnemonic is given as per the standard format;<br />
c) Authorizes the customer record.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
5.1.1 Merging Customer ID<br />
Existing Customer IDs can be merged together for offering better service and<br />
proper recording.<br />
a) The customer can lodge merger of existing customer’s ID at any of the<br />
branch he/she has an existing customer ID to be merged.<br />
b) Customer can also lodge merger of existing customer’s ID at <strong>CATS</strong> CPC.<br />
c) Branches /<strong>CATS</strong> CPC shall verify the request and merge the existing<br />
customer ID;<br />
‣ Verify the customer ID‘s to be merged together are of the same<br />
customer (refer form CBE<strong>CATS</strong>003) and ensure the customer has<br />
confirmed same thereof.<br />
‣ Verify the correct customer information are incorporated on the<br />
system and adjust if necessary.<br />
5.2 Account and Contract Maintenance<br />
The customer can lodge account opening request either of the following<br />
ways:<br />
a) At any CBE branches and service outlets;<br />
b) At <strong>CATS</strong> CPC for opening of more than one account in different branches<br />
and opening of account to be opened on special approval like ECX and<br />
Government accounts.<br />
5.2.1 Opening of Account at Branch Level<br />
I. Saving and Demand Accounts<br />
The duties and responsibilities of each performer of the Bank involved in the<br />
account-opening procedure are the following:-<br />
The Customer Services Officer/Maker<br />
a) Receives the pertinent document from the customer, based on the type of<br />
account that she or he wants to open and the requirements set thereof,<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
and identifies her/him.<br />
b) Activates the record by updating any additional information about the<br />
customer, if the customer is created as prospect customer previously,<br />
c) Ascertains that the name of the applicant requesting to open a demanddeposit<br />
account does not appear on the mal-operation list.<br />
d) Issues an account-opening application form (refer Form:CBE<strong>CATS</strong>001 and<br />
FORM: CBE<strong>CATS</strong>002), a cash or a check deposit form (Form:CBE<strong>CATS</strong>101<br />
and FORM: CBE<strong>CATS</strong>102), to be filled out by the applicant, and guides her<br />
or him on how to fill out the opening application form.<br />
e) Explains to the customer the e-payment channels in terms of the value<br />
added benefits to the customer ;<br />
f) Issues application form for VISA card, mobile banking and internet<br />
banking(Follow the E-payment procedure for detail work flow)<br />
g) Checks that the required documents are properly filled out and signed by<br />
the applicant. If the customer uses thumb print, however, she or he shall<br />
attest the thumbprint, affixing thereto a rubber stamp that reads “Signed<br />
before me.”<br />
h) Takes the customer thumb print in the presence of two witness one from<br />
the bank officers and the other from the customer side, if the customer is<br />
blind; If the customer is unable to present a witness from his side the<br />
Customer Service Manager/Branch Manager shall sign as a witness and<br />
the Customer Service officer affixing thereto a rubber stamp that reads<br />
“Signed before me.”<br />
i) Takes the customer’s finger print through the Bio-metrics device.<br />
j) Makes the customer fill out the first cheque-requisition form in case<br />
demand deposit account ;<br />
k) Takes customer picture by using the digital camera configured with the<br />
system and attach to the account details;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
l) Opens the new account in the system by using the customer ID created in<br />
the branch or other CBE branches. Writes the system generated account<br />
number on the deposit slip, on the application form and on the chequerequisition<br />
slip.<br />
m) Writes her/his name and signs on the application form on the space<br />
provided thereof—that is, where it says “Name and signature of the<br />
Maker”—and forwards all the documents submitted to her or him to the<br />
Customer Services Officer/Checker for checking and co-authorization.<br />
n) Receives the original documents from the Customer Services<br />
Officer/Checker, and collects the cash or cheque to be deposited, counts it<br />
physically and then compares the amount with the denominations<br />
written on the deposit voucher and posts the transaction.<br />
o) Subscribes mobile alert privilege to the customer by checking the validity<br />
of the telephone number filled by the customer.<br />
p) Delivers original documents (ID card, trade license and other relevant<br />
received documents), the deal slip, passbook (for saving), the gift package<br />
and the welcome note to the customer. The passbook shall be delivered to<br />
the customer upon letting him/her sign on the passbook register book. A<br />
separate passbook register book shall be used to record account opening<br />
made while providing van based banking or off-branch banking services.<br />
q) Scans the customers’ signature and relevant particulars and link with the<br />
account.<br />
r) Passes the voucher to the Branch Controller.<br />
s) Balances her/his cash on a half day and end of the cash hour and hands it<br />
over to the Senior Customer Services Officer-Cash.<br />
The Customer Services Officer-Checker<br />
a) Makes sure that the account-opening documents are properly prepared<br />
and the opened accounts are authentic;<br />
b) Makes sure that the customer’s name is not on the mal-operation list for<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
opening of current account;<br />
c) Fills out the necessary particulars on the passbook (for a savings<br />
account);<br />
d) Authorizes the account opening and Co-signs on all the account-opening<br />
documents and passbook (for a savings account);<br />
e) Puts a stamp on the affixed photo by covering therewith the lower half of<br />
it;<br />
f) Returns to the Customer Services Officer/Maker the passbook, the<br />
original documents received from the customer, the gift package that<br />
contains the welcome note signed by the Branch Manager and the giveaway<br />
materials, ID cards, and the deposit voucher;<br />
g) Forwards the cheque-requisition form (refer form CBE<strong>CATS</strong>009) filled<br />
out by the applicant to the Customer Service Manager/Senior Customer<br />
Services Officer-accounts;<br />
h) Checks and authorizes the scanned signatures; and<br />
i) Passes onto the Branch Controller the opening documents—that is, the<br />
application form, a copy of the ID card and the trade license (if the<br />
applicant is a trade operator) and all the other relevant documents (if the<br />
applicant is an organization).<br />
The Customer Service Manager/Branch Manager<br />
a) Authorizes amendment on customer record initiated by the Customer<br />
Services Officer/maker.<br />
b) Checks the daily opened accounts list from the system and receive copy<br />
document from the branch controller for further authentication, within<br />
fifteen days, in the absence of the KYC Analyst. However, if the branch<br />
manager/ Customer service Manager believes that the customer is<br />
properly identified, she/he can authorize withdrawal from the account<br />
before the document is authenticated or otherwise place post no debits<br />
until the opening document is authenticated.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) Receives the response from the document issuing organ or from KYC<br />
Analyst; Place posting restriction and inform the pertinent authorities if<br />
the document is counterfeited.<br />
The Branch Controller<br />
a) Collects all the documents from the Customer Services Officer-Checker<br />
submitted for the opening of an account and makes sure that the account<br />
is opened as per the Bank’s pertinent policy and procedure;<br />
b) Makes sure that the name of the newly opened account holder is not in<br />
the mal-operation list for all current accounts opened;<br />
c) Signs on the documents to ascertain the correctness and accuracy of the<br />
newly opened accounts;<br />
d) Makes sure that all opening document received agree with the daily<br />
opened account list on the system.<br />
e) Opens a new mandate file in the name of the account holder and keeps all<br />
relevant documents under the senior branch controller or his/her<br />
custody.<br />
f) Copies and forward all the relevant documents for saving accounts<br />
opened by corporate customers, all demand deposit account and any<br />
other suspicious new accounts to KYC Analyst/Customer Service Manager<br />
(in the absence of KYC analyst) and follow-up the authentication within<br />
fifteen days.<br />
g) Collects the authenticated documents and keeps with the opening<br />
documents.<br />
The KYC analyst-at Branch<br />
a) Checks daily account opened for fulfillment of customer information per<br />
the KYC requirement of the bank<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Checks all account opened are not given multiple customer ID if the<br />
customer do have an account at other branch(s)<br />
c) Checks daily account opening report and all the account opening<br />
documents; authenticate account opening documents like ID card, power<br />
of agency, trade license, memorandum of associations… from the<br />
concerned organ for documents issued within or nearby cities.<br />
d) Requests in writing other branches to authenticate the genuineness of<br />
documents issued in other cities on behalf of the base branch by sending<br />
the required documents,<br />
e) Follows-up accounts opened with zero balance is credited with the<br />
minimum initial deposit amount within a month and inform the branch<br />
manager for closure ;<br />
f) Receives the response from the document issuing organ; and inform the<br />
Manager or the CSM if the documents found to be counterfeited; and<br />
g) Submits the authenticated documents to senior branch controller/branch<br />
controller for filing.<br />
The Senior Customer Services Officer-Accounts<br />
a) Forwards the customer cheque request to the <strong>CATS</strong> - CPC for cheque<br />
personalization; and<br />
b) Ensures that cost of cheque books are collected from the customer<br />
account.<br />
II.<br />
Fixed-Time Deposit Contract<br />
The Customer Service Manager/Branch Manager<br />
a) Deals with the customer to set the amount of money to be deposited, the<br />
period of fixed-time/term and the interest thereon that would accrue to<br />
her or him;<br />
b) Requests the customer to fill out the application and contract(Refer form<br />
CBE<strong>CATS</strong>004) designed for the purpose;<br />
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c) Forwards the necessary documents to the Customer Service Officer<br />
Maker at the front;<br />
d) Checks and authorize the fixed time/term deposit contract; prepares a<br />
certificate of deposit (Refer form CBE<strong>CATS</strong>006) and co-signs with the<br />
Customer Service Officer Maker on the certificate of deposit;<br />
e) Requests the customer to sign on the registered copy confirming receipt<br />
of the certificate of the time deposit;<br />
f) Gives acknowledgement to the customer and forwards to her or him the<br />
deposit certificate and the advice;<br />
g) Keeps custody of the application form, the registered copy and the debit<br />
or the credit advice in a separate mandate file;<br />
h) Collects the old certificate and issues a new one upon request for renewal.<br />
i) Sets the next agreed up on period on the system if the customer agrees a<br />
principal rollover and the bank accept her/his request up on maturity<br />
j) Collects the old certificate of deposit, issues a new certificate for the<br />
remaining balance after signing the contract and amend the certificate<br />
number on the system if the customer requests partial withdrawal before<br />
maturity.<br />
The Customer Services Officer/Maker<br />
a) Creates a new fixed-time deposit in the system; and incorporates debit<br />
account, principal liquidation, interest liquidation accounts that are used<br />
at time of maturity.<br />
b) Forwards the application form registers a copy thereof and debit advice<br />
to Customer Service Manager.<br />
The Branch Controller<br />
a) Checks the name, the amount of fixed deposit, the maturity date and the<br />
signature on the contract against the system.<br />
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5.2.2 Opening of account at <strong>CATS</strong>-CPC<br />
Seniors Customer Account and Operation Officer<br />
a) Receives pertinent documents depending on the nature of the account to<br />
be opened;<br />
b) Receives a power of attorney/authority of the ECX member, entrusting<br />
the sole right of debiting the pay-in account to the Exchange, prepared in<br />
four copies, and signed by the principal authorized officials at the <strong>CATS</strong><br />
CPC, in front of two witnesses;<br />
c) Verifies the signature on the request letter;<br />
d) Creates customer Id on the system.<br />
e) Makes sure that the customer’s name is not on the mal-operation list for<br />
opening of current account;<br />
f) Opens customer account by the requested branch company code<br />
g) Scans the authorized signatories<br />
h) Forwards the documents to customer service manager-customer account<br />
for authorization and branch communication.<br />
Customer Service Manager-At Customer Account and Operation<br />
a) Receive pertinent documents depending on the nature of the account<br />
from the senior customers’ account and operation officer for<br />
authorization ;<br />
b) Makes sure that the customer’s name is not on the mal-operation list for<br />
opening of current account;<br />
c) Checks the integration of customer information on the system and<br />
cosign on the opening application form ;<br />
d) Returns the original power of attorney to the principal (ECX member)<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
once the activities related to it have been undertaken at the center;<br />
e) Authorizes customer creation, account opening, and signature capture<br />
f) Authenticates from the issuing organs relevant opening document ;<br />
g) Receives the response from the document issuing organ; Place posting<br />
restriction and inform the pertinent authorities if the document is<br />
counterfeited<br />
h) Writes a letter to the concerned branch if the request is to open an<br />
account in non-networked branch.<br />
i) Communicates in writing the opening of the account to the concerned<br />
branches or ECX for banking operation.<br />
j) Reports to ECX if an account-holding member is reprimanded, suspended<br />
or excluded from banking activities due to mal-operation specifying the<br />
type and frequency<br />
The Controller at <strong>CATS</strong> - CPC<br />
a) Collects from the customer service manager all the documents submitted<br />
for the opening an account and makes sure that the account is opened as<br />
per the Bank’s pertinent policy and procedure;<br />
b) Makes sure that the name of the newly opened account holder is not on<br />
the mal-operation list for all current accounts opened;<br />
c) Signs on the documents to ascertain the accuracy and completeness of the<br />
newly opened accounts;<br />
d) Makes sure that all opening document received agreed with the daily<br />
opened account list on the system.<br />
e) Copies and forwards all the relevant documents for saving accounts<br />
opened by corporate customers, all demand deposit account and<br />
suspicious accounts to Customer Service Manager for authentication and<br />
make follow-up the authentication within fifteen days.<br />
f) Opens a new mandate file in the name of the account holder and keeps all<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
the relevant accounting opening documents in her/his custody.<br />
5.3 Account closing<br />
I. Reasons for Closing an Account<br />
Any account (a savings or a current account) may be closed when:<br />
a) Requested by the customer;<br />
b) Customer reports loss of passbook.<br />
c) There is a court order to that effect;<br />
d) The account holder is reported dead, bankruptcy & insanity<br />
e) There is an inactive demand deposit account to be closed upon collection<br />
of service charges over a period of time;<br />
f) The account holder is on mal operation list (for Demand Deposit<br />
account); and<br />
g) Customer could not deposit a minimum amount of Birr 25.00 (twentyfive)<br />
within one month after a savings account has been opened in her or<br />
his name with a zero balance.<br />
II.<br />
Closure of Accounts<br />
The Customer Services Officer/the Maker (at the front)<br />
a) Receives a filled out form by the customer requesting the closure of the<br />
account after the customer service manager interviewed her or him;<br />
b) Receives the passbook (for saving Account);<br />
c) Advices the customer to fill out the declaration form(refer form<br />
CBE<strong>CATS</strong>010), authenticates the signature and charges her or him as per<br />
the prevailing terms & tariff for the replacement of the passbook, if the<br />
closure is due to loss of the passbook;<br />
d) Makes sure that there are no wrong debit/credit entries into the account,<br />
as well as no credit/debit entries in transit;<br />
e) Initiates the account closure process and effect payment or transfer the<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
whole balance to the customer new account in case the case of loss of<br />
passbook;<br />
f) Effects payment as per the payment procedure if the customer wishes to<br />
paid cash; and<br />
g) Cancels the passbook, if any, and forwards it to the Branch Controller.<br />
The Customer Services Officer/Checker<br />
a) Makes sure that there are no wrong debit/credit entries in the account, as<br />
well as, no credit/debit entries in transit;<br />
b) Checks the entry that brings about the closure of the account with in<br />
her/his limit and authorizes the transaction; and<br />
c) Makes sure that the passbook is collected from the customer;<br />
The Customer Service Manager/Branch Manager<br />
a) Interviews the customer before closing the account. If the customer is<br />
dissatisfied with the service further corrective measure should be taken<br />
immediately and notes the causes of dissatisfaction for management<br />
further action.<br />
b) Collects the unused cheque(s) along with the letter indicating the range of<br />
unused cheques from the customer and writes the word “Void” on each<br />
cheque leaf;<br />
c) Checks and authorizes the transaction with in her/his limit;<br />
d) Registers the unused cheques returned into the system.<br />
The Branch Controller<br />
a) Receives the unused cheque or the passbook and ticket and cheques the<br />
presentation and accuracy thereof;<br />
b) Places the documents (account-opening application form, unused<br />
cheques/passbook) in the “closed account” file in order;<br />
c) Registers the unused cheques and destroys them in the presence of<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Customer Service Manager and the Customer Service officer Maker within<br />
fifteen days of the account closure; and<br />
d) Files the minute held for the destroying the unused cheques signed by all<br />
presented in the specified venue and time to destroy the unused cheques.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
6. COLLECTION<br />
6.1 Collection of Cash for Deposit<br />
The duties and responsibilities of each staff of the Bank involved in the collection<br />
of cash consist of the following:<br />
The Customer Services Officer/Maker<br />
a) Receives the cash, the deposit slip signed by the depositor and the<br />
passbook (if any) from the depositor.<br />
b) Makes sure that the amount of money given in both words and figures is<br />
the same as that given on the deposit voucher;<br />
c) Counts the cash by comparing it with the denominations written on the<br />
deposit slip, and cheques the name and account number on the deposit<br />
slip against the system.<br />
d) Identifies and inputs the detail information of the depositor on system, if<br />
the amount is greater than the amount set by Ethiopian Financial<br />
Intelligence Center; currently it is 300,000.00 birr.<br />
e) Credits the customer’s account by specifying the depositor full name in<br />
the narrative box, if the deposit to be made is within her/his<br />
discretionary limit otherwise, dual authorization shall be requested from<br />
the concerned Customer Service Officer Checker/Customer Service<br />
Manager; and updates the passbook balance, if any;<br />
f) Forwards the referral to Customer Service Manager, if the deposit is to be<br />
made to the inactive account;<br />
g) Prints the deal slip and hands over to the customer the deal slip as a<br />
receipt and keeps the deposit voucher for further balancing and<br />
recording; If the depositor require additional deal slip for whatever<br />
reason , the additional deal slip or deposit advice should be marked as “<br />
duplicate “ or “Copy “ .<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
h) Balances her/his cash against the pertinent data on the system at the<br />
half-day and the day-end closing,<br />
i) Hands over the deposit voucher to the Branch Controller, as soon as the<br />
transaction is completed , and<br />
j) Hands over the cash beyond her/his holding limit during the day’s<br />
operation, and the whole cash except the petty-cash (each note cash<br />
denominations less than a bundle) at the half-day and the day-end closing<br />
to the Senior Customer Service Officer- Cash.<br />
The Customer Service Officer-Checker<br />
a) Checks the completeness of the deposit slip, name and account number<br />
against the system and authorizes the transaction with in her/his<br />
authorization limit.<br />
The Customer Service Manager<br />
a) Checks the completeness of the deposit slip, name and account number<br />
against the system and authorizes the transaction, if the deposit is to be<br />
made to inactive account and/or transaction amount is above the<br />
authorization limit of the Customer Service Officer-Checker.<br />
The Branch Controller<br />
a) Receives the deposit voucher and checks the completeness; and<br />
b) Confirms the proper posting of the transaction using the system<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
6.2 Collection for Money Transfer<br />
6.2.1 General Conditions for Money Transfers<br />
A. The bank accepts transfer request of customers either in cash or by<br />
instruction to debit customers’ account<br />
B. Customers can transfer money from their account maintained in CBE into<br />
another account or to be paid in cash. In addition to using internet, mobile<br />
and ATM channels, account holders can use the following modalities to<br />
transfer money from their account;<br />
1. Using Cheque Transfer: Account holders’ can transfer money to their<br />
customers’ account without the presence of the payee .In this scenario ,the<br />
following shall be followed ;using cheques by the following procedure (this<br />
procedure shall only apply when the drawer wishes to deposit or transfer the<br />
proceeds of the cheque without the presence of the payee/in case of the<br />
payee’s presence, the normal cheque deposit procedure shall be followed);<br />
i. Writes the account number on the face of the cheque along with<br />
payee’s name<br />
ii. Writes transverse line across the face of the cheque “payable in<br />
account “ or to restrict the transferability of the cheque put “ payee<br />
only “as in the case of payment to suppliers of government budgetary<br />
account ;<br />
iii. Puts drawer stamp at the back of the cheque for corporate entities ;<br />
In case of the payee’s presence, the normal cheque deposit procedure shall be<br />
followed.<br />
2. Using Account to Account format: individual customers can transfer money<br />
using the format (refer format CBE<strong>CATS</strong>103) designed for the purpose after<br />
proper identification and verification is completed ;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
3. Letter of Payment Instruction:<br />
3.1 Corporate Customers can transfer money using letter of payment instruction<br />
to effect payment through bankers’ cheque/fund transfer/local money<br />
transfer. However, the transfer initiated through payment letter of<br />
instruction should only be allowed for the following purpose of payment<br />
stated hereunder;<br />
i. To any government/public enterprise account ;<br />
ii. To their own, subsidiary/branch or company accounts;<br />
iii. To employee salary accounts ;<br />
iv. To place standing instruction (when the account holder place<br />
the instruction in person)<br />
v. Irrespective of the purpose of payment stated from i-iv, the<br />
branch manager can authorize letter of payment instruction of<br />
corporate customers based on the strength of the KYC made on<br />
the customer and following the delegation procedure<br />
hereunder.<br />
3.2 Any letter of payment instruction /request for collection or receiving of<br />
advice, of cheque books and returned cheques originated from corporate<br />
customers shall be presented to the branch by duly delegated person in<br />
writing. The following procedure shall be followed to handle letter of<br />
delegation from corporate customers;<br />
Customer Service Manager<br />
a) Receives letter of delegation, verifies the signature and confirms the<br />
genuineness of the document by communicating the<br />
owners/signatories of the corporate entities ;<br />
b) Receives delegated person’s photo, ID card as well as signature<br />
specimen and open mandate file for the future reference; The<br />
mandate file shall be maintained electronically as and when ,the<br />
system for the purpose is implemented . In case manually treated<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
,forwards the letter of delegation to Senior branch controller for<br />
maintaining it in the mandate file and send copy to Senior Customer<br />
Service officer–Accounts for future reference ;and<br />
c) Verifies the delegated person signature against the signature<br />
specimen and identifies the delegated person ID card at the back of<br />
the letter at the time of receiving letter of payment instruction; and<br />
d) Forwards letter of payment instruction to Customer Service officer for<br />
further processing.<br />
Senior Customer Service Office –Accounts<br />
a) Receives the approved letter of delegation for the future reference;<br />
and<br />
b) Verify and identify the delegated customer before handing cheque<br />
books, advice and statement of accounts;<br />
6.2.2 Outgoing Local Money Transfer<br />
The Customer Services Officer/Maker<br />
a) Receives the money transfer application form/Letter of payment<br />
instruction (Refer FORM: CBE<strong>CATS</strong>104) from the customer. If the<br />
remitter is corporate customer, a stamped application should be<br />
presented.<br />
b) Authenticates the signature of the account holder/authorized signatory, if<br />
the transfer is made from account;<br />
c) Receives the application/letter of payment instruction from the person<br />
who has been lawfully delegated for the purpose if the remitter is<br />
Corporate customer and the transfer is requested from customer’s<br />
account ;<br />
d) Interviews the customer to compare the details therein and inputs into<br />
the system the beneficiary name, remitter name, test question and<br />
answer, and amount;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
e) Collects the amount of money to be transferred, including bank charges;<br />
f) Debits the customer’s account if the amount of money to be debited is<br />
within her/his payment-authorization limit, otherwise requests dual<br />
authorization from the concerned Customer Service Officer<br />
Checker/Customer Service Manager;<br />
g) Forwards the application form to the Customer Service Officer Checker/<br />
Customer Service Manager, so as to check and authorize the transaction ;<br />
h) Hands over the deal slip (customer advice) to the remitter by keeping its<br />
confidentiality; and informs the customer to tell the security number, test<br />
question and answer to the beneficiary;<br />
i) Balances her/his cash at the end of the cash hour against the system<br />
balance and delivers the application form/letter of instruction to the<br />
Branch Controller and the cash to the Senior Customer Services Officercash.<br />
The Customer Services Officer-Checker/ the Customer Services<br />
Manager<br />
a) Checks the correctness of the application form submitted;<br />
b) Authorizes the transfer within her/his authorization-limit ; and<br />
c) Produces the deal slips after confirming that the cash has been received<br />
or the appropriate account has been debited.<br />
The Branch controller<br />
a) Receives the application form and checks the proper posting in the<br />
system;<br />
The Senior Customer Services Officer-Accounts<br />
a) Follows-up the daily balance of LMTS payable account against the system<br />
tracer;<br />
b) Forwards long outstanding items for write back approval (refer to the<br />
bank’s suspense management procedure):and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) Transfers to income by the system, when the write back request is<br />
approved.<br />
6.2.3 Bankers’ Cheque /Casher Payment Order<br />
The Customer Services Officer/Maker<br />
a) Receives the money transfer application from the customer, checks the<br />
particulars therein including the stamp for corporate customers and<br />
inputs the details into the system;<br />
b) Authenticates the signature of the account holder/authorized signatory, if<br />
the transfer is made from account;<br />
c) Receives the application/letter of payment instruction from the person<br />
who has been lawfully delegated for the purpose if the remitter is<br />
Corporate customer and the transfer is requested from customer’s<br />
account ;<br />
d) Receives cash/ debit from the customer account, including the<br />
commission, and forwards to the Checker the letter of application,<br />
together with the Bankers’ Cheque;<br />
e) Requests dual authorization if the amount beyond her/his authorization<br />
limit from the concerned Customer Service officer Checker/Customer<br />
Service Manager;<br />
f) Receives the Bankers’ cheque /CPO/from the Checker, co-signs on the<br />
prepared Bankers’ cheque /CPO/makes the remitter sign on the back of<br />
the application confirming the receipt of the original instrument and<br />
gives the instrument to the customer; and<br />
g) Balances her/his cash at the end of the cash hour against the system<br />
balance and delivers the application form/letter to the Branch Controller,<br />
and the cash to the Senior Customer Services Officer-Cash.<br />
The Customer Services Officer/Checker<br />
a) Receives the blank Bankers’ cheque /CPO/from Customer Service<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Manager;<br />
b) Makes sure that the particulars on the Bankers’ cheque /CPO/is the same<br />
as that of the customer’s application;<br />
c) Prints the Bankers’ cheque /CPO/after confirming that the cash has been<br />
received or the appropriate account has been debited;<br />
d) Signs on the Bankers’ cheque /CPO/and forwards same to the Customer<br />
Services Officer/Maker; and<br />
e) Makes sure that the serial numbers of the Bankers’ cheque /CPO/used on<br />
that particular day follow the serial numbers of the remaining unused<br />
Bankers’ cheque /CPO/form.<br />
The Customer Services Manager<br />
a) Receives and Checks the correctness of the letter of application<br />
submitted;<br />
b) Authorizes the transaction within her/his authorization-limit.<br />
c) Prints the Bankers’ cheque /CPO/after confirming that the cash has been<br />
received or the appropriate account has been debited; and<br />
d) Signs on the Bankers’ cheque /CPO/and forwards same to the Customer<br />
Services Officer/Maker.<br />
The Senior Customer Services officer-accounts<br />
a) Follows-up the daily balance of Bankers’ cheque /CPO/account<br />
against the system tracer;<br />
b) Forwards long outstanding items for write back approval ;(refer to<br />
the bank’s suspense management procedure) and<br />
c) Transfers to income by the system when the write back request is<br />
approved,<br />
The Branch controller<br />
a) Receives the application form and check proper posting of transaction in<br />
the system; and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Checks the serial number of the Bankers’ cheque /CPO/ used on that<br />
particular day and follow the serial numbers of the remaining unused<br />
demand draft/ Bankers’ cheque /CPO/form.<br />
6.2.4 Account to Account Transfer (Fund Transfer)<br />
Customer Service officer Maker<br />
a) Receives the cheque /money transfer application/letter of payment<br />
instruction from the customer, checks the particulars therein including<br />
the stamp for corporate customers ;<br />
b) Checks the proper presentation, authenticity and completeness of the<br />
amount of money in both words and figures and the signature of the<br />
beneficiary appear on the cheque /money transfer application/letter of<br />
payment instruction;<br />
c) Authenticates the signature of the account holder/authorized signatory;<br />
d) Receives the application/letter of payment instruction from the person<br />
who has been lawfully delegated for the purpose if the remitter is<br />
Corporate customer and the transfer is requested from customer’s<br />
account ;<br />
e) Authenticates the signature, and posts both the debit and credit entries, if<br />
the limit is within her/his discretionary limit; otherwise forwards the<br />
cheque /money transfer application/letter of payment instruction for<br />
dual authorization; and<br />
f) Affixes Customer Service officer - stamp on the back of the cheque or<br />
mark “posted” on the letter of payment instruction/ transfer form and<br />
post on the system by specifying the cheque type, cheque number for<br />
cheques or reference and other description for letter of payment<br />
instructions/transfer form and print the deal slip (Debit and credit<br />
advise) and hands over to the customer;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
The Customer Services Officer/Checker<br />
a) Authorizes the referral request after checking the genuineness of the<br />
document and correctness of the transaction in her/his authorization<br />
limit.<br />
The Customer Service Manager<br />
a) Authorizes the referral request after checking the completeness of the<br />
document and correctness of the transaction in her/his authorization<br />
limit.<br />
Branch controller<br />
a) Receives the cheque/ money transfer application /letter of payment<br />
instruction from the customer service officer- maker;<br />
b) Checks the proper presentation, authenticity and completeness of the<br />
transfer documents<br />
c) Checks for proper posting of transactions in the system; and<br />
d) Keeps such instruments under her/his custody.<br />
6.2.5 Foreign Money Transfer<br />
Foreign money transfer shall be made for Education, correspondence fee, seminar,<br />
Training, Symposium, workshop, conference, Membership fee, Medical fee and<br />
others in line with the pertinent directive of the NBE and the direction of the bank. If<br />
and when the branch is permitted to process foreign money transfers the following<br />
procedure shall be followed;<br />
6.2.6 Foreign currency Demand Draft and SWIFT Transfers<br />
The Customer Services Officer/Maker<br />
a) Receives the letter of application for foreign exchange or the duly<br />
completed remittance form, together with the other required documents<br />
against the check list;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Writes the system generated permit reference number on the application<br />
and forward to manager customer service for approval.<br />
c) Receives the approved permit from Customer Service Manager;<br />
d) Assigns the correspondent bank on which the draft should be drawn;<br />
e) Authenticates the signature (if the balance is to be debited from the<br />
customer’s account), does preliminary checking and forwards it to the<br />
Checker for further scrutiny;<br />
f) Receives back the application/permit, including the name of the<br />
correspondent bank, and inputs the details into the system;<br />
g) Receives the local currency equivalent in cash/debit from the customer’s<br />
account for the preparation of the draft and forwards it to the Checker;<br />
h) Signs on the draft and forwards it to the Customer Service Manager;<br />
i) Receives the draft from Customer Service Manager, makes the remitter<br />
sign on the back of the file copy and gives it to the customer;<br />
h) Input the MT-103 detail into the system and forwards it to the Customer<br />
Services Officer/Checker if the transfer is made via SWIFT; and<br />
j) Balances her/his cash at the end of the cash hour against the system<br />
balance and deliver the application form/instruction letter to the Branch<br />
Controller, and the cash to the Senior Customer Services Officer.<br />
The Customer Services Officer/Checker<br />
a) Receives the letter of application for foreign exchange from the Customer<br />
service officer-Maker and compares the contents of the document against<br />
the checklist;<br />
b) Checks the letter of application against the prepared document, the<br />
conversion of the counter value of the requested foreign currency,<br />
including related charges, for amounts in her/his discretionary limit;<br />
c) Checks the filled-out MT-103 form, then sign on it for transfers to be<br />
made via SWIFT,<br />
d) Forwards the permit to the Senior Customers Officer-Accounts, together<br />
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with a copy of the exchange control; and<br />
e) Sorts and attaches therewith the appropriate documents and files them.<br />
The Customer Service Manager<br />
a) Approves the permit and forward to customer service officer-maker if the<br />
application fulfills the NBE requirement<br />
b) Checks the availability of sufficient fund in our correspondent bank<br />
account, in accordance with the internationally accepted finance process,<br />
if necessary; and<br />
c) Co-signs on the draft;<br />
The Branch controller<br />
a) Receives the letter of application/application form and checks the proper<br />
posting in the system.<br />
The Senior Customer Services Officer – Accounts<br />
a) Sends the permit to Management Information Service (MIS), together<br />
with a copy of the exchange control, as per NBE report submission<br />
schedule<br />
6.2.7 Purchase of Foreign-Currency Notes<br />
The Customer Services Officer/Maker<br />
a) Receives and identifies the types of foreign-currency notes and makes<br />
sure that they are authentic; moreover, torn out, dog-eared notes, etc.<br />
shall not be purchased.<br />
b) Posts the currency, amount, name of the customer and phone number on<br />
the system, prints a deal slip in two copy make the customer sign on the<br />
deal slip.<br />
c) Pays to the customer in Birr and give one copy to the customer as receipt,<br />
if it is within her or his payment-authorization limit, or sends a referral, if<br />
it is above her or his payment-authorization limit; and<br />
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d) Surrenders the foreign-currency notes to the Senior Customer Services<br />
Officer-cash after balancing the day’s cash transaction, and the signed<br />
deal slip to the Branch Controller.<br />
The Customer Services Officer/Checker<br />
a) Accepts the signed deal slip authorizes the transaction with in her/his<br />
authorization limit.<br />
The Customer Service Manager<br />
a) Accepts the signed deal slip money transfer application / the Customer<br />
service office-Maker, authorizes the transaction with in her/his<br />
authorization limit; and<br />
b) Makes sure that the foreign currency notes are timely lodged to the issue<br />
branches/center for proper utilization of the resource at the bank level.<br />
The Senior Customer Services Officer-cash<br />
a) Collects the foreign-currency notes from customer service officer-maker<br />
after checking the genuineness of the note.<br />
The Branch Controller<br />
a) Checks and balances the day’s cash transaction against the system; and<br />
b) Checks and does follow-up on the local-currency and foreign-currencycash-holding<br />
positions of the branch.<br />
6.2.8 Issuance of Travelers’ Cheques and Money Notes<br />
Foreign currency in the form of cash or travelers’ cheques shall be issued in line<br />
with the pertinent directive of the NBE.<br />
The Customer Services Officer/Maker<br />
a) Receives travel documents (passport and air ticket), authenticates the<br />
letter of application and does preliminary checking thereof and forwards<br />
it to the Checker for further scrutiny;<br />
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b) Enters the data, and collects the local currency equivalent in cash or<br />
debits it from the customer’s account;<br />
c) Requests the Senior Customer Services Officer-cash to send her or him<br />
the travelers’ checks and receives same;<br />
d) Makes the customer fill in the blanks on the purchase agreement and<br />
signs on it;<br />
e) Delivers the travelers’ cheque to the customer, makes her or him sign on<br />
the face of each cheque;<br />
f) Pays the balance in foreign-currency notes to the customer, in accordance<br />
with the provisions of the pertinent directive of the NBE; and<br />
g) Surrenders the foreign and local-currency notes to the Senior Customer<br />
Services Officer-Cash after balancing the day’s cash transaction, and the<br />
tickets to the Branch Controller.<br />
The Customer Services Officer-Checker<br />
a) Receives and examines the travel document and the application form<br />
against the checklist, then makes sure that they are complete;<br />
b) Writes the permit-reference number generated by the system on the<br />
letter of application for the issuance of travelers’ cheques and money<br />
notes;<br />
c) Forwards the travel document and application to Customer Service<br />
Manager for permit approval;<br />
d) Authorizes the transaction if payment is in her/his authorization limit;<br />
and<br />
e) Writes the amount sold and the air ticket number on the pass port and<br />
put the banks stamp.<br />
The Customer Service Manager<br />
a) Receives and examines the travel document and the application form and<br />
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approves the permit; and<br />
b) Authorizes the transaction if payment is in her/his authorization limit.<br />
The Branch Controller<br />
a) Checks and balances the day’s cash transaction on the system.<br />
6.3 Collection of Negotiable Instruments for Deposit<br />
6.3.1 Local Cheques<br />
6.3.1.1 A cheque drawn on CBE Branches<br />
The Customer Services Officer/Maker<br />
a) Collects the cheque from the depositor;<br />
b) Checks the proper presentation, authenticity and completeness of the<br />
cheque—that is, makes sure that the date on which the cheque was<br />
issued, the name of the beneficiary thereof, its endorsement (account<br />
number and name of account to be deposited), the amount of money in<br />
both words and figures and the signature of the beneficiary appear on it.<br />
c) Verifies the signature, and posts both the debit and credit entries, if the<br />
limit is within her/his discretionary limit; otherwise forwards the cheque<br />
for dual authorization.<br />
d) Affixes Customer Service officer - stamp on the back of the cheque and<br />
post on the system by specifying the cheque type, cheque number on the<br />
menu and print the deal slip(credit advise)and hands over to the<br />
customer;<br />
e) Forwards the posted cheque to the Branch Controller after balancing<br />
them.<br />
The Customer Services Officer/Checker<br />
a) Authorizes the referral request after checking the genuineness of the<br />
document and correctness of the transaction in her/his authorization<br />
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limit.<br />
The Customer Service Manager<br />
a) Authorizes the referral request after checking the genuineness of the<br />
document and correctness of the transaction in her/his authorization<br />
limit.<br />
Branch controller<br />
a) Receives the cheque from the customer service officer- maker;<br />
b) Checks the proper presentation, authenticity and completeness of the<br />
cheque—that is, makes sure that the date on which the cheque was<br />
issued, the name of the beneficiary thereof, its endorsement, the amount<br />
of money in both words and figures and the signature of the beneficiary<br />
appear on it;<br />
c) Checks for proper posting of transactions in the system;<br />
d) Keeps such instruments under her/his custody.<br />
6.3.1.2 Clearance of Other Banks’ Cheques (including Bankers’<br />
Cheque)<br />
Other bank cheques or bankers’ cheques can be accepted for deposit to one’s<br />
demand deposit account or savings account on collection basis, so long as they<br />
are drawn on their respective branches and included in the cheque clearance<br />
system.<br />
A) Branches having a scanner which is compatible with the EATS<br />
The Customer Services Officer/Maker-at the front<br />
a) Collects the cheque and Bankers’ cheque /CPO/ from the depositor,<br />
together with the filled-in deposit slip;<br />
b) Checks the completeness of the cheque and the Bankers’ cheque;<br />
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c) Makes sure that the particulars filled in the deposit slip are identical with<br />
those on the check and the Bankers’ cheque /CPO/ received for deposit,<br />
that is, the name and account number of the account holder or<br />
beneficiary/payee thereof, the check’s/Bankers’ cheque /CPO/ number<br />
and the amount of money involved have been written on it and that it has<br />
been signed by the depositor;<br />
d) Affixes a crossing stamp to the face of the cheque and the Bankers’<br />
cheque /CPO/ , the stamp of the accepted for deposit/pending clearance<br />
on the back of the instrument and on both the original and the receipt of<br />
the deposit slip and then puts her or his initials on all the documents;<br />
e) Hands over the receipt/advice to the depositor after putting thereon<br />
her/his initials; and<br />
f) Forwards the cheque and the Bankers’ cheque /CPO/ and the deposit slip<br />
to the Customer Services Officer/Maker (at the back) for the EATS<br />
process.<br />
The Customer Services Officer/Maker (at the back)<br />
a) Accepts the cheques and Bankers’ cheques from the Customer Services<br />
Officer/Maker (at the front), together with the deposit slip, and ascertains<br />
that the proper formalities have been fulfilled;<br />
b) Sorts the cheques and Bankers’ cheques by bank;<br />
c) Takes the run-up of the cheques and Bankers’ cheques and cross-checks it<br />
against the total run-up of the deposit slips;<br />
d) Scans the checks and Bankers’ cheques and captures its images in the<br />
scanner interface system or the Cheque Truncation system.<br />
e) Fills all the required data in the fields; like the drawer Bank Identification<br />
Code (BIC), name of branch, the drawee account number, account name,<br />
Cheque number and amount and then the payee account number, account<br />
name etc.<br />
f) Forwards the scanned payment instruments to customer service<br />
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officer/checker(at the back);<br />
The Customer Services Officer/Checker (at the back)<br />
a) Makes sure that the Cheque and Bankers’ cheque /CPO/ is scanned and<br />
the data entered are correct;<br />
b) Exports the image from the scanner interface System/cheque truncation<br />
system to Core banking system of the bank;<br />
c) Authorize the Cheques/Bankers’ cheque /CPO/ to be sent for clearance<br />
with her/his limit;<br />
d) Produces a report from the system for those Cheques/Bankers’ cheques<br />
that are ready to be sent for clearance;<br />
e) Check the total of the run-up taken by the customer service officer-Maker<br />
(at the back) of the Cheques/Bankers’ cheque /CPO/ and compares with<br />
the report;<br />
f) Dispatches the cheques to ATS team at <strong>CATS</strong>- CPC for delivery to the<br />
representative of each drawee bank until the physical movement of the<br />
cheque stopped by NBE (until full truncation is implemented).<br />
g) Receives a returned Cheque/Bankers’ cheque /CPO/ from ATS team and<br />
register on returned dispatch book;<br />
h) Affixes cleared stamp on the cheque deposit slips for cheques accepted by<br />
other banks and forwards to the branch controller;<br />
i) For returned Cheque/Bankers’ cheque /CPO/ call the customer and<br />
dispatch it after the customer signs on the register.<br />
The Customer Service Manager<br />
a) Makes sure that the Cheque and Bankers’ cheque /CPO/ is scanned and<br />
the data entered are correct;<br />
b) Authorizes the Cheques/Bankers’ cheque /CPO/ to be sent for clearance<br />
with her/his limit;<br />
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The Senior Customer Service officer– Accounts -at branch<br />
a) Receives the cheque deposit slip from the Customer Service officer–<br />
maker and cheque against the transaction; and<br />
b) Keeps the cheque deposit slip and the list/report of submitted cheques to<br />
ATS until credited to customer account or returned cheques are received;<br />
c) keeps the cheque and cheque deposit slip until credited to customer<br />
account or rejected by the system in the case of cheque truncation<br />
system,<br />
d) Balances the outstanding customer cheque deposit slips with the internal<br />
account opened for the purpose on daily basis;<br />
e) Submits the cheque deposit slip which are credited to customer account<br />
to branch controller and returned cheques to back office maker to be<br />
subsequently delivered to the customer;<br />
f) Submits the cheque and cheque deposit slip which are credited to<br />
customer account to branch controller and rejected cheques to back office<br />
maker to be subsequently delivered to the customer in the case of cheque<br />
truncation system,<br />
The Branch Controller-at the branch<br />
a) Checks the exported image and the authorized transactions for clearing<br />
on the system;<br />
b) Receives the cheque deposit slip from the Senior Customer Service<br />
officer– Accounts and check against the transaction for agreement; and<br />
c) Receives the cheque and cheque deposit slip from the Senior Customer<br />
Service officer– Accounts and check against the transaction for agreement<br />
in the case of cheque truncation system;<br />
d) Files the documents in her or his custody.<br />
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The Customers’ Account and Operation Officer at ATS<br />
a) Receives and balance the Cheques/Bankers’ cheque /CPO/ with report<br />
send from the branch and NR /NT account and Foreign Money Transfer;<br />
b) Verifies the physical cheques against the figures on the system;<br />
c) Sort the physical cheque by bank and balance with EATS and submit to<br />
Senior Customers’ Accounts and Operation Officer;<br />
d) Prepare “Form – A” (list of total cheques value by CBE branches and NR<br />
NT account and Foreign Money Transfer per other bank) in two copies<br />
and generate “Form – B” (list of total number of cheques and amount for<br />
each other bank);<br />
e) Prepares a list of returned cheques/Bankers’ cheque /CPO/for respective<br />
branch and NR NT account and Foreign Money Transfer and dispatch to<br />
them.<br />
The Senior Customers’ Account and Operation at ATS<br />
a) Appears, after forty eight hours, at the clearing house of NBE to collect<br />
any returned Cheques/Bankers’ cheque;<br />
b) Delivers or accept the Cheques/Bankers’ cheque /CPO/ from the<br />
representative of each bank;<br />
B) Branches that do not have a scanner which is compatible with ATS<br />
system.<br />
The Customer Services Officer/Maker – at front office<br />
a) Collects the cheque and Bankers’ cheque /CPO/from the depositor,<br />
together with the filled-in deposit slip;<br />
b) Checks the completeness of the cheque and the Bankers’ cheque;<br />
c) Makes sure that the particulars filled in the deposit slip are identical with<br />
those on the cheque and the Bankers’ cheque /CPO/ received for deposit,<br />
that is, the name and account number of the account holder or<br />
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beneficiary/payee thereof, the cheques/Bankers’ cheque /CPO/number<br />
and the amount of money involved have been written on it and that it has<br />
been signed by the depositor;<br />
d) Affixes a crossing stamp to the face of the cheque and the Bankers’<br />
cheque /CPO/, the stamp of the accepted for deposit/pending clearance<br />
on the back of the instrument and on both the original and the receipt of<br />
the deposit slip and then puts her or his initials on all the documents;<br />
e) Hands over the receipt/advice to the depositor after putting thereon<br />
her/his initials; and<br />
f) Forwards the cheque and the Bankers’ cheque /CPO/and the deposit slip<br />
to the Customer Services Officer/Maker (at the back) for the EATS<br />
process.<br />
The Customer Services Officer/Maker (at the back)<br />
a) Prepares the summary sheet in two copies for each bank, signs on them<br />
and forwards them to the Customer Services Officer-checker at the back<br />
for co-signing; and<br />
b) Sends one copy of the summary sheet to ATS team at <strong>CATS</strong>-CPC together<br />
with the cheques/Bankers’ cheques<br />
The Customer Services Officer/Checker (at the back)<br />
a) Makes sure that the Cheques/Bankers’ cheques are in order and that the<br />
appropriate clearance tickets have been prepared, co-signs on the<br />
summary ticket and passes it on to the Customer Service officer -Maker<br />
(at the back office);<br />
b) Keeps one copy of the summary sheet, together with the deposit slip, until<br />
the customer account automatically credited or the cheque is returned for<br />
follow up;<br />
c) Receives a returned cheques from the ATS and registers on returned<br />
dispatch book;<br />
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d) Affixes cleared stamp on the cheque deposit slips for cheques accepted by<br />
other banks and forwards to the branch controller; and<br />
e) Calls the customer and dispatch it after the customer signs on the<br />
register; for returned Cheque/Bankers’ cheque<br />
The Senior Customer Services Officer – Accounts (at branch)<br />
a) Receives the cheque deposit slip from the Customer Service officer–<br />
maker;<br />
b) Keeps the cheque deposit slip and the list/report of submitted cheques to<br />
ATS until credited to customer account or returned cheques are received;<br />
c) Balances the outstanding customer cheque deposit slips with<br />
memorandum account on daily basis; and<br />
d) Submits the cheque deposit slip which are credited to customer account<br />
to branch controller and returned cheques to back office maker to be<br />
subsequently delivered to the customer;<br />
The Branch Controller<br />
a) Receives the cleared cheque deposit slips from the Customer Services<br />
Officer/Checker and checks for the correctness of the transaction on the<br />
system; and<br />
b) Files the documents in her or his custody;<br />
The Customers’ Account and Operation Officer - Maker at ATS<br />
a) Accepts cheques from the branches of the CBE and from the foreign<br />
transfer NR/NT accounts and Foreign Transfer for clearance with<br />
summary sheet;<br />
b) Makes sure that the authorized signatures have been affixed to the<br />
summary sheet and check the sum of all cheques against the total value<br />
on the claim ;<br />
c) Scans the cheque, Bankers’ cheque /CPO/and capture its images in the<br />
scanner interface;<br />
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d) Fills all the required data in the fields; like the drawer Bank Identification<br />
Code (BIC), name of branch, the drawee account number, account name,<br />
Cheque number and amount and then the payee account number, account<br />
name etc.;<br />
e) Exports the image from the Scanner Interface System/Cheque Truncation<br />
System to the CORE banking system;<br />
f) Sorts each cheque together with claim ticket by the concerned bank;<br />
g) Posts the value of each cheque by bank and balance the total value of the<br />
postings against the total of the claim ticket and ATS report;<br />
h) Prepare “Form – A” (list of total cheques value by CBE branches and NR<br />
NT account and Foreign Money Transfer per other bank) in two copies<br />
and generate “Form – B” (list of total number of cheques and amount for<br />
each other bank);<br />
i) Takes the run-up of the debit and credit of the claim ticket;<br />
j) Post the total value of the cheques to be dispatched to the clearing house<br />
to payable account;<br />
k) Dispatches the cheques together with “Form A” and “Form B” to the<br />
cheque clearance office at the NBE; and<br />
l) Delivers the cheques to the representative of each drawee bank until<br />
movement of physical cheque stopped by NBE.<br />
Customers’ Account and Operation Officer - Checker at ATS / Customer<br />
Service Manager at ATS<br />
a) Checks that the data entered are correct and approve the cheque to be<br />
sent for clearance. If the data are not correctly filled out return to repair<br />
status for modification;<br />
b) Approves after the necessary modification made by the customers’<br />
account and operation officer- Maker;<br />
c) Makes sure that the Cheque and Bankers’ cheque /CPO/is scanned and<br />
the data entered are correct; and<br />
d) Authorize the Cheques/Bankers’ cheque /CPO/to be sent for clearance<br />
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with her/his limit;<br />
The Senior Customers’ Account and Operation officer at ATS<br />
a) Produces a report from the system for those cheques that are ready to be<br />
sent for clearance;<br />
b) Forwards the report to Customer Account And Operation Officer to be<br />
dispatched until the cheque truncation system begins;<br />
c) Represent the bank at the clearance house and collect any returned<br />
cheques;<br />
d) Forwards the returned Cheque/Bankers’ cheque /CPO/to customer<br />
account and operation officer for the dispatch to the respective branch;<br />
e) Forwards all accepted cheques to the respective CBE Branch in order to<br />
be filed on the date of posting with their daily Ticket until the cheque<br />
truncation system begins.<br />
Controller-at ATS<br />
a) Checks the exported image and the authorized transactions for clearing<br />
on the system;<br />
b) Checks the correctness each approved cheques transaction whether it is<br />
credited to the correct account;<br />
c) Checks the high value transaction (Real Time Gross Settlement) and all<br />
other outgoing instruction<br />
6.4 High Value collection<br />
I. Incoming MT103<br />
Incoming MT103 SWIFT messages are transactions forwarded to our bank<br />
customer’s account from other banks or participants. This message types includes<br />
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Electronic Fund transfers (EFTs) or cheque cleared under special clearance with<br />
value greater than Birr 200,000.00. In this case, the following procedure shall be<br />
adhered.<br />
II.<br />
Fund transfer request form other bank customer account to CBE<br />
customer account<br />
Customer Service Officer-Maker/checker/CSM at branch<br />
a) Checks the name and account number on MT103 message with that of the<br />
system if it agrees, authorize the MT103, or take appropriate action as the<br />
case may be. The MT 103 message shall be used as a source document to<br />
authorize the transaction and no additional document is required;<br />
b) Amends the transaction if the discrepancy is minor and the branch has<br />
prior knowledge of the incoming transfer.<br />
III.<br />
Collection of other bank cheque through Special clearance with value<br />
greater than birr 200,000.00<br />
The Customer Services Officer Front Office Maker<br />
a) Collects the cheque and Bankers’ cheque /CPO/from the depositor,<br />
together with the filled-in deposit slip;<br />
b) Checks the completeness of the cheque and the Bankers’ cheque;<br />
c) Makes sure that the particulars filled in the deposit slip are identical with<br />
those on the cheque and the Bankers’ cheque /CPO/ received for deposit,<br />
that is, the name and account number of the account holder or<br />
beneficiary/payee thereof, the Cheques/Bankers’ cheque /CPO/number<br />
and the amount of money involved have been written on it and that it has<br />
been signed by the depositor;<br />
d) Affixes a crossing stamp to the face of the cheque and the Bankers’<br />
cheque /CPO/, the stamp of the accepted for deposit/pending clearance<br />
on the back of the instrument and on both the original and the receipt of<br />
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the deposit slip and then puts her or his initials on all the documents;<br />
e) Hands over the receipt/advice to the depositor after putting thereon<br />
her/his initials; and<br />
f) Forwards the cheque and the Bankers’ cheque /CPO/and the deposit slip<br />
to the Customer Services Officer/Maker (at the back) for further<br />
processing.<br />
Customer Service Officer-Back Maker<br />
a) Receives the other bank cheque and prepare MT-103 attachment<br />
designed for Special cheque clearance and sign on it.<br />
b) Forwards to the checker/CSM for co-signing.<br />
c) Sends for clearance by messenger to the respective bank branch.<br />
d) Keeps the originating bank copy signed by other bank for<br />
acknowledgment of receipt for follow up.<br />
e) Authorizes incoming MT-103 message on system when they respond if<br />
the message is correct, or amend the message and authorize.<br />
Customer Service officer-back checker<br />
a) Co-signs on the MT-103 attachment designed for special check clearance.<br />
b) Authorizes incoming MT-103 message on system when they respond if<br />
the message is correct in her/his authorization limit by checking with<br />
originating bank copy or inform the maker to amend the message for any<br />
error and authorize.<br />
Customer Service Manager<br />
a) Authorizes incoming MT-103 message on system when they respond if<br />
the message is correct in her/his authorization limit by checking with<br />
originating bank copy or inform the maker to amend the message for any<br />
error and authorize.<br />
The Branch Controller<br />
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a) Receives the cleared cheque deposit slips and acknowledgment from the<br />
Customer Services Officer/back office Maker and checks for the<br />
correctness of the transaction on the system; and<br />
b) Files the documents in her or his custody;<br />
6.5 Foreign Cheques<br />
i. Outward Bills Purchased (OBP)<br />
The Customer Services Officer/Maker<br />
a) Receives cheques issued by correspondent banks or money-transfer and<br />
exchange companies that have accounts with the CBE and other foreign<br />
bank cheques depending on the regularity the cheque, so long as the<br />
beneficiaries can produce customers’ ID cards;<br />
b) Checks the name of the beneficiary/payee, the period of the cheques<br />
validity (five months from the date on which it was issued), the issuing<br />
bank and the bank where the cheque is to be drawn and sends it (the<br />
cheque) to Customer Service Manager;<br />
c) Refers to the list of the stop-payment orders; if the cheque/travelers<br />
cheque presented to branches use online access to cheque for any stop<br />
payment order if not, it shall be referred to foreign transfer and NRNT<br />
account;<br />
d) Advices the customer to fill in the blanks on the deposit voucher, cheques<br />
the voucher, puts her or his initials on the voucher, writes thereon<br />
“Accepted for collection”;<br />
e) Advices the customer sign on the travelers’ cheques again at the counter<br />
and thereby makes her or him endorse the cheques and then compares<br />
the signature with that affixed earlier;<br />
f) Checks the office stamp ,if the deposit is made to the account of an<br />
organization and the proper endorsement ;<br />
g) Affixes a crossing stamp to the cheque/travelers’ cheque and perforates it<br />
to forestall any future double negotiations;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
h) Registers the details—that is, the date on which the cheque was received,<br />
the name of the beneficiary/payee, the cheque number, the name of the<br />
bank on which it is to be drawn, the type of the currency and the amount<br />
of the check in both currencies (foreign and local), the date on which the<br />
cheque/travelers’ cheque was settled and incorporated into the system;<br />
i) Credits the amount of money on the cheque to the customer’s account,<br />
pays cash if it is within her/his payment-authorization limit, or sends the<br />
referral to the Customer Services Officer-checker/Customer Service<br />
Manager and makes the necessary entries to reflect the transaction and<br />
gives the copy of the deposit slip to the customer; and<br />
j) Forwards the cheque—together with a covering letter and the exchange<br />
control copy to the Senior Customer Services Officer-accounts for further<br />
checking and dispatching thereof to the Foreign Transfer NRNT.<br />
The Senior Customer Services Officer -Account<br />
a) Receives the cheque with the deposit slip, authenticates the cheque,<br />
registers it and assigns to it a reference number, retains a digital<br />
photocopy thereof and co-signs the instrument and returns it to the<br />
Maker for processing;<br />
b) Makes sure that the cheque has a crossing stamp, perforated, and then<br />
retains photocopies of all the cheques;<br />
c) Dispatches the cheque to the Foreign Transfer NRNT , so that it will send<br />
it to the concerned correspondent bank for collection;<br />
d) Follows-up on the settlement of the outward bill purchased/the outward<br />
bill collections;<br />
i. If the items sent for collection are not settled within 20 days from the<br />
date of dispatch, the first tracer should be sent by using a copy of the<br />
form, or of SWIFT. Thereafter, tracers should be followed up every 20<br />
days. Before sending any tracer to the Accounts and reconciliation<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ii.<br />
sub-process, however, the Department must be contacted, as<br />
proceeds might be already credited to the account. If the items remain<br />
outstanding for more than three months, nonetheless, the<br />
correspondent bank to which the cheque was dispatched should be<br />
requested to return the uncollected items.<br />
When an uncollected -scanned cheque is returned, the concerned<br />
customer should be asked to refund the proceeds of the Cheque and<br />
all out-of-pocket expenses such as SWIFT, postage, correspondent<br />
charges, etc., and the cheque has to be handed over against its<br />
presenter’s signature.<br />
e) Upon receipt of the settlement advice from any one of our correspondent<br />
banks, settles the OBP on the system.<br />
The Customer Services Officer/Checker<br />
a) Checks the completeness of all the pertinent documents, signs on them<br />
and responds to the referral and forwards them (the documents) to the<br />
Customer Services Officer/Maker.<br />
The Customer Service Manager<br />
a) Determines whether the received cheque should be paid in OBP or on an<br />
OBC basis, and forwards it (the cheque) to the Customer Services<br />
Officer/Maker for processing.<br />
iii. Outward Bills for Collection (OBC)<br />
Checks specified under OBC are not purchased at the bank’s counter. Instead,<br />
they are accepted on a collection basis under OBC-foreign. Payments for the<br />
presenter will be effected only after confirmation is received from the<br />
concerned correspondent bank for the credit of the proceeds and advice of<br />
credit is received.<br />
The Customer Services Officer/Maker<br />
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a) Accepts the instrument with a valid ID card and checks the particulars<br />
written on the bills;<br />
b) Makes the customer fill out the deposit voucher, puts her or his initials on<br />
the voucher marking it “Accepted for collection” and affixing thereto a<br />
Customer Service Officer stamp;<br />
c) Makes the customer endorse the cheque by having her or him affix<br />
thereto her/his signature;<br />
d) Passes the cheque on to the Customer Service Officer Maker at the back<br />
office, together with the deposit voucher, for the preparation of the OBC<br />
ticket-foreign and for affixing thereto the endorsing signature and the<br />
crossing stamp, etc.; and<br />
e) Signs on the OBC ticket and forwards it to the Senior Customer Services<br />
Officer for co-signing.<br />
The Senior Customer Services Officer-Accounts<br />
1 Follows the procedure stated under OBP a-d herein above;<br />
2 Prepares a single credit OBC-foreign entry in reversal of the original<br />
single-debit entry ,upon receipt of the settlement advice from any one of<br />
our correspondent banks; and<br />
3 Marks “Settled” in the appropriate column in the OBC register, or post it<br />
into the system.<br />
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7. PAYMENT<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
The duties and responsibilities of each staff of the Bank involved in the payment<br />
process are listed as follows:<br />
7.1 Payment from a Current Account<br />
7.1.1 Local Cheques<br />
7.1.1.1 Payment in cash<br />
The Customer Services Officer/Maker<br />
a) Accepts the cheque and ID card from the payee/beneficiary;<br />
b) Checks the genuineness and completeness of the cheque—that is, makes<br />
sure that the date on which it was written and the amount of money in<br />
both words and figures appear on it and that the cheque has been signed<br />
by the account holder and endorsed;<br />
c) Makes the transaction in the presence of two witnesses one of whom<br />
should be the Customer Services Officer/Maker or the Customer Services<br />
Officer/Checker who is not processing the payment, and the other should<br />
be the customer service manager/Branch Manager.<br />
d) Identifies (write name of the payee, the ID number, address, telephone<br />
number, issue date of the ID and ID issued by) on the back of the cheque;<br />
if the bearer is other than the account holder; otherwise, marks “Account<br />
holder” on the back of the cheque;<br />
e) Authenticates the signature on the cheque and debits the appropriate<br />
customer’s account; the transaction shall be passed using the “withcheque”<br />
menu on the system);<br />
f) Identifies and inputs the detail information of the payee on system, if the<br />
amount is greater than the amount set by Ethiopian Financial Intelligence<br />
Center; currently it is 300,000.00 birr.<br />
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g) Posts the transaction and if the amount to be paid is above her/his<br />
payment-authorization limit, forwards the document to the concerned<br />
Customer Services Officer-Checker/Customer Service Manager;<br />
h) Pays the specified amount of money on the cheque to the payee by the<br />
denominations depending on the customer’s preference if possible after<br />
the transaction authorized;<br />
i) Asks the customer what type of denominations she/he requires to pay<br />
the available mix of denomination; and Writes them in to the system and<br />
pays the customer accordingly;<br />
j) Affixes the stamp of the Customer Services Officer-maker and puts her or<br />
his initials on the back of the cheque;<br />
k) Balances the cash on hand against the balance on the system; and<br />
l) Hands over the cheque to the Branch Controller after initialing it.<br />
The Customer Services Officer-Checker<br />
a) Verifies the correctness and completeness of the document and checks<br />
before payment is effected ; and<br />
b) Responds to the referral, based on her or his payment-authorization limit.<br />
The Customer Service Manager<br />
a) Verifies the correctness and completeness of the document and checks<br />
before payment is effected ; and<br />
b) Responds to the referral, based on her or his payment-authorization limit.<br />
Branch Controller<br />
a) Collects the cheque from the Customer Services Officer-Maker, and<br />
checks the transaction on the system;<br />
b) Checks the completeness of the cheque and that it has been paid based on<br />
the pertinent discretionary limit;<br />
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c) Checks that it bears the stamp of the Customer Services Officer-maker<br />
and that she or he has put her/his initials on the face of the cheque ,if the<br />
cheque is meant to be paid in cash,<br />
d) Makes sure that the cheques have been endorsed by the beneficiaries<br />
thereof; and<br />
e) Files and Keeps the payment instrument and the relevant documents;<br />
7.1.1.2 CBE Cheques/Bankers’ cheques collected by other banks<br />
(Incoming Cheques or Bankers’ cheque /CPO/s)<br />
When CBE cheques/Bankers’ cheques deposited in other banks, the other<br />
bank sends the cheques/Bankers’ cheques on collection basis for clearance<br />
by scanning the image on the EATS. The original instrument for clearance in<br />
should be sent with along with image and transaction in the absence of the<br />
Cheque truncation system.<br />
Senior Customer Account and Operation Officer at ATS<br />
a) Produces a report from the system for cheques to be received from other<br />
banks;<br />
b) Appears at the clearing house of the NBE with a list of cheques that CBE<br />
representative should receive from other banks;<br />
c) Collects the cheques drawn on CBE branches and prepared by each bank,<br />
together with “Form A”;<br />
d) Balances the total value of the received cheques against the total balance<br />
shown in form A and ‘Outgoing ATS report’;<br />
e) Submits the collected cheques from other banks to Customer account and<br />
Operation team for further processing; and<br />
f) Delivers all the returned cheques to other banks at the clearing house.<br />
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Customer Account and Operation Officer at ATS<br />
a) Receives CBE cheques collected from other banks from Senior Customer<br />
account and Operation officer;<br />
b) Sorts the cheques in the drawer branches and prepared summary report<br />
in two copies for each branch and sign on it;<br />
c) Dispatches the summary report with the cheques and retain the other<br />
copy as a tracer;<br />
d) Receives the returned cheques from Senior customer account and<br />
Operation officer after rejection is done on the system , prepares “Form<br />
A” for each bank for those cheques returned by the branches;<br />
e) Submits all the returned cheques of other banks along with relevant<br />
documents to Senior Customer Account and Operation Officer<br />
The Senior Customer Services Officer – Accounts<br />
The role of The Senior Customer Services Officer – Accounts in the absence of<br />
cheque truncation system is presented hereunder:<br />
a) Receives the cheques/Bankers’ cheques dispatched from ATS team after<br />
checking against the summary report;<br />
b) Balance the received cheques against the summary total and forward to<br />
Customer Services Officer/Maker –Back Office<br />
The Customer Services Officer/back office Maker at branch<br />
a) Receives the cheques/Bankers’ cheques from the Senior Customer<br />
Services Officer – Accounts for further processing (in the absence of<br />
cheque truncation system);<br />
b) Checks the genuineness and completeness of the cheque—that is, makes<br />
sure that the date on which it was written and the amount of money in<br />
both words and figures appear on it and that the cheque has been signed<br />
by the account holder and endorsed;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) Verifies the signature and authorize the transaction on the EATS; and<br />
d) Rejects the transaction on the system and returns the rejected cheques<br />
by specifying the valid reason before the standard time is elapsed to ATS<br />
(the physical cheque should be returned in the absence of the Cheque<br />
Truncation System);<br />
The Customer Services Officer/back office -checker at branch<br />
a) Approves the transaction on the system by verifying the signature and<br />
the genuineness and completeness of the check up to his/her approving<br />
limit;<br />
The Customer Service Manager at branch<br />
a) Approves the transaction on the system by verifying the signature and the<br />
genuineness and completeness of the cheque;<br />
The branch controller<br />
a) Checks the transaction for completeness and accuracy;<br />
7.1.2 High Value Payments<br />
I. Fund transfer request form CBE customer account to Other bank<br />
customer account<br />
Fund transfer request from CBE to other banks shall be handled when the<br />
conditions hereunder are fulfilled<br />
Customer Service Manager<br />
a) Receives instruction from the customer to transfer the fund from her/his<br />
account maintained with the branch to other bank branch;<br />
b) Checks all the particulars in the letter of application or the format<br />
designed for the purpose (Refer form CBE<strong>CATS</strong>108);<br />
c) Verifies the customer signature and forward to Customer Service officer–<br />
back maker.<br />
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d) Receives the letter of instruction after posted by the customer service<br />
officer-back maker, check all the particulars inserted correctly on the<br />
transaction and Authorize the transaction on the EATS Menu amount in<br />
her/his authorization limit.<br />
e) Forwards the letter of request to branch controller<br />
Customer Service officer-Back Maker<br />
a) Receives a letter of instruction from Customer Service Manager<br />
b) Inputs the particulars on ‘Input MT103 Outward Remittance’ menu.<br />
mandatory fields i.e. debit account, Ordering Customer, Beneficiary name<br />
and account number, Account with institution, amount etc.) And if needed<br />
additional fields like remittance information.<br />
c) Makes sure about the inputted transaction details, he/she may hold it in<br />
order to check for the 2nd time then commit.<br />
d) Forwards the instruction letter after writing ‘posted’ on the face and sing<br />
on it to the checker or to Branch controller if the amount is with her/his<br />
desecration limit.<br />
Customer service officer- back checker<br />
a) Receives the letter of instruction after posted by the customer service<br />
officer-back maker, check all the particulars inserted correctly on the<br />
transaction and Authorize the transaction on the EATS Menu amount in<br />
her/his authorization limit.<br />
b) Forwards the letter of request to branch controller.<br />
Branch controller<br />
a) Checks the instruction letter against the transaction on the system.<br />
b) Keeps the document under her/his custody.<br />
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II.<br />
Effect payment presented through Special clearance with value greater<br />
than birr 200,000.00<br />
Customer Service Officer-Back Maker<br />
a) Receives the CBE cheque with MT-103 attachment designed for Special<br />
cheque clearance;<br />
b) Verifies the other banks signature signed and authenticate the cheque<br />
presented and post the cheque in “Input MT103 Outward Remittances -<br />
Cheques “menu;<br />
c) Checks the genuineness and completeness of the cheque—that is, makes<br />
sure that the date on which it was written and the amount of money in<br />
both words and figures appear on it and that the cheque has been signed<br />
by the account holder and endorsed;<br />
d) Forwards the document and the cheque after writing ‘posted’ on the face<br />
of the cheque and sing on it, Sign on attachment by writing the time<br />
received;<br />
e) Forwards the document and the cheque to the checker for co-signing<br />
and/or authorization<br />
Customer Service Officer-Back Checker/Customer Service Manager<br />
a) Receives the Document and the cheque after posted by the customer<br />
service officer-back maker, cheque all the particulars inserted correctly<br />
on the transaction and Authorize the transaction on the EATS Menu<br />
amount in her/his authorization limit.<br />
b) Gives the originating bank copy to the other bank messenger.<br />
c) Forward the remaining document and the cheque to branch controller<br />
Branch Controller<br />
a) Receives the document and the cheque from Customer Service officer<br />
back maker and cheque against the transaction on the system.<br />
b) Keeps the document and the cheque under her/his custody.<br />
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Customer Service Manager at ATS<br />
a) Approves outgoing MT 103 originated from branches and other organs of<br />
the CBE by prioritizing outstanding payments;<br />
7.1.3 FCY Cheques (NR and NT)<br />
The Customer Services Officer/Maker<br />
a) Accepts the cheque and the ID card from the payee/the beneficiary;<br />
b) Checks the genuineness and completeness of the cheque—that is, makes<br />
sure that the date on which it was written and the amount of money in<br />
both words and figures appear on it and that the cheque has been signed<br />
by the account holder and endorsed;<br />
c) Identifies the customer on the back of the cheque;<br />
d) Authenticates the signature on the cheque and debits the appropriate<br />
customer’s account;<br />
e) Identifies and inputs the payee information , on system, if the amount is<br />
greater than the amount set by Ethiopian Financial Intelligence Center;<br />
currently it is 15,000 US Dollar or its equivalent currencies.<br />
f) Sends the referral to the Customer Services Officer-Checker/CSM for<br />
cheque values above his / her payment-authorization limit and pays the<br />
customer in cash after authorization;<br />
g) Affixes the stamp of the Customer Services Officer and puts her or his<br />
initials on the face of the cheque;<br />
h) Cross-checks the balance on the system against the cash on hand; and<br />
i) Hands over the cheque to the Branch Controller as soon as the<br />
transaction is completed.<br />
The Customer Services Officer/Checker/Customer Service Manager<br />
a) Checks the endorsement, the date that the cheque was drawn on, the<br />
amount of money in both words and figures, the signature of the person<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
who drawn the check, the account number and the name of the<br />
beneficiary/payee thereof; if the amount is within the authorization limit,<br />
b) Verifies the data related with Anti-Money Laundry is properly inputted in<br />
the system before authorization;<br />
c) Checks the correctness of the exchange-rate conversion and responds to<br />
the referral request through the system.<br />
The Branch Controller<br />
a) Collects the cheque from the Customer Services Officer-Maker, and checks<br />
the transaction on the system;<br />
b) Checks the completeness of the cheque and that it has been paid based on<br />
the pertinent discretionary limit;<br />
c) Checks that it bears the stamp of the Customer Services Officer and that<br />
she or he has put her/his initials on the face of the cheque;<br />
d) Makes sure that the cheques have been authenticated by the concerned<br />
staff of the Bank and endorsed by the beneficiaries thereof, if the cheque<br />
is meant to be paid in cash,<br />
e) Makes sure that it has been posted to the right customer’s account;<br />
f) Checks in the system—that is, against the account number—checks the<br />
numbers and the amounts of money involved and the initials on the<br />
checks;<br />
g) Files all the daily tickets (payment instruments) in accordance with the<br />
classification on the general ledger and keeps it in her/his custody.<br />
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7.2 Withdrawal from Savings Accounts<br />
The Customer Services Officer/Maker<br />
a) Receives the passbook and withdrawal voucher from the customer and<br />
checks that the withdrawal voucher (refer form CBE<strong>CATS</strong>110) is properly<br />
filled out—that is, the date on which it was withdrawn, the name of the<br />
account holder, the amount of money in both words and figures, the<br />
account number and the signature of the account holder appear on it;<br />
b) Assists the customer to put his /her thumb print on the Bio-Metric device<br />
for system verification; If the branch has the device<br />
c) Receives withdrawal voucher together with his/her ID from the<br />
customer and checks all particulars as stated above in “a“ in case the<br />
customer did not present his/her passbook and make the customer write<br />
the word “I have withdrawn without pass book” on the back of the<br />
voucher and make her/him sign on it, after the customer Service manager<br />
approved the withdrawal by writing the word “ok without passbook” on<br />
the face of the voucher;<br />
d) Makes the transaction in the presence of two witnesses one of whom<br />
should be the Customer Services Officer/Maker or the Customer Services<br />
Officer/Checker who is not processing the payment, and the other should<br />
be the customer service manager/Branch Manager.<br />
e) Attests the thumb print by either hand writing “Signed before me” or<br />
using the rubber stamp stating Same and puts her/his name and initials<br />
next to the thump print if the specimen for the account is received by<br />
thumb print;<br />
f) Counterchecks the name and account number written on the voucher<br />
against the passbook and the system;<br />
g) Identifies the customer against the scanned digital photo and<br />
authenticates the signature of the customer on the voucher against the<br />
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scanned signature;<br />
h) Verifies the data related with Anti-Money Laundry is properly inputted in<br />
the system before authorization;<br />
i)<br />
j) Forwards the documents for referral to the concerned Customer Services<br />
Officer-Checker/Customer Service Manager if the amount of money to be<br />
paid is above her/his payment-authorization limit;<br />
k) Posts the transaction and pays the specified amount of money on the<br />
withdrawal voucher to the account holder by recording the<br />
denominations into the system, depending on the customer’s preference<br />
after the transaction authorized.<br />
l) Affixes the stamp of the Customer Services Officer on the face of the<br />
withdrawal voucher and initials on both the voucher and the passbook;<br />
m) Delivers the passbook to the customer, together with the requested cash;<br />
n) Passes the voucher to the Branch Controller, immediately after the<br />
transaction has been completed ;<br />
o) Balances her/his cash at half day and end of day closing against the<br />
pertinent data on the system and surrenders it to the Senior Customer<br />
Services Officer-cash.<br />
The Customer Services Officer-Checker<br />
a) Checks the correctness and genuineness of the transaction and responds<br />
to the referral based on the payment-authorization limit given to<br />
him/her;<br />
b) Verifies the data related with Anti-Money Laundry is properly inputted in<br />
the system before authorization;<br />
The Customer service Manager/Branch Manager<br />
a) Checks the correctness and genuineness of the transaction and responds<br />
to the referral based on the payment-authorization limit given to him/her<br />
b) Approves customers’ request to withdraw without passbook;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) Acts as witness when blind customers unable to present a witness;<br />
d) Receives payment request of customers who are unable to physically<br />
come to branches due health problem and other difficulty; Assign<br />
Customer Service officer maker, branch controller and Customer Service<br />
officer checker/ Customer Service Manager per the approving limit; and<br />
advise the assigned team to make sure that the customer is conscious,<br />
able to sign in front of witnesses from the customer’s side, and follow the<br />
normal payment procedure thereof expect that of the venue and the<br />
sequence activities.<br />
The Branch Controller<br />
e) Receives the withdrawal voucher from the Customer Services Officer-<br />
Maker as soon as the transaction completed;<br />
f) Ascertains the proper completion of the voucher—that is, makes sure<br />
that the date on which it was written, the name of the account holder, the<br />
account number, the amount of money in both words and figures and the<br />
signature of the account holder appear on it;<br />
g) Makes sure entries are passed on to the appropriate account, that the<br />
initials and the stamp of the Customer Services Officer/Maker are put on<br />
the withdrawal voucher;<br />
h) Files the withdrawal voucher after ascertaining their correctness and<br />
keeps<br />
7.3 Payment against Local Money Transfer<br />
LMTS payment originated by any branch or through E-banking channels shall be<br />
paid to the beneficiary at any networked branch even within the same city.<br />
The Customer Services Officer/Maker (at the front office)<br />
a) Receives the filled out LMTS payment form (refer FORM CBE<strong>CATS</strong>107)<br />
and Beneficiary’s ID from the customer;<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Log in to the system using the Security Number and cross check the<br />
beneficiaries’ name, Remitter name, Test question and answer, and<br />
amount against the system data and the beneficiary’s ID card;<br />
c) Enters the customer’s address, the ID card’s number, the name of the<br />
issuing organization or office, the date on which it was issued and<br />
generate the ticket from the system and makes the customer signs on it<br />
(the ticket);<br />
d) Cross sell deposit products to the beneficiary to retain the customer and<br />
the whole and part of the transfer ;<br />
e) Takes the customer thumb print in the presence of two witness one from<br />
the bank officers and the other from the customer side, if the customer is<br />
blind; If the customer is unable to present a witness from his side the<br />
Customer Service Manager/Branch Manager shall sign as a witness and<br />
the Customer Service Officer affixing thereto a rubber stamp that reads<br />
“Signed before me.”<br />
f) Effects payment to the beneficiary/payee after authorization; otherwise,<br />
the transaction should be directed to the Customer Service officer–<br />
Checker or customer service Manager, based on her or his authorization<br />
limit; f the amount to be paid is within her/his payment-authorization<br />
limit,<br />
The Customer Services Officer-Checker/Customer Service Manager<br />
a) Receive customer ID, LMTS payment application, Print out and makes<br />
sure that the transaction is correct and authorize, co-signs on the cashpayment<br />
ticket with in her/his authorization limit.<br />
The Branch controller<br />
a) Receives the LMTS payment ticket from the Customer Service Officer-<br />
Maker;<br />
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b) Ascertains all the particulars on the LMTS-application form and LMTS<br />
payment ticket are identical and check the customer sign on the LMTS<br />
payment ticket and application; and check the transaction on the system.<br />
c) File and Keeps the payment ticket under her/his custody.<br />
7.4 Payment Foreign Remittance Transfer<br />
Foreign Remittance transfers originated by various money transfer organization<br />
(MTO) shall processed per the payment guideline of each MTO and the following<br />
procedure<br />
The Customer Services Officer/Maker (at the front office)<br />
a) Receives the filled our customer’s application form (use the standard<br />
format designed for specific MTO or use FORM CBE<strong>CATS</strong>112) and<br />
Beneficiary’s ID from the customer;<br />
b) Log into the MTO’s application using the Security Number and cross<br />
check the beneficiaries’ name, Remitter name, Test question and<br />
answer(if any), and amount against the system data and the beneficiary’s<br />
ID card;<br />
c) Enters the customer’s address, the ID card’s number, the name of the<br />
issuing organization or office, the date on which it was issued and<br />
generate the ticket from the system and makes the customer signs on it<br />
(the ticket);<br />
d) Cross sell deposit products to the beneficiary to retain the customer and<br />
the whole and part of the transfer ;<br />
e) Takes the customer thumb print in the presence of two witness one from<br />
the bank officers and the other from the customer side, if the customer is<br />
blind; If the customer is unable to present a witness from his side the<br />
Customer Service Manager/Branch Manager shall sign as a witness and<br />
the Customer Service Officer affixing thereto a rubber stamp that reads<br />
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“Signed before me.”<br />
f) Effects payment to the beneficiary/payee after authorization; otherwise,<br />
the transaction should be directed to the Customer Service officer–<br />
Checker or customer service Manager, based on her or his authorization<br />
limit; the amount to be paid is within her/his payment-authorization<br />
limit,<br />
The Customer Services Officer-Checker/Customer Service Manager<br />
a) Receive customer ID, Foreign remittance application, Print out and makes<br />
sure that the transaction is correct and authorize, co-signs on the cashpayment<br />
ticket with in her/his authorization limit.<br />
The Branch controller<br />
a) Receives the Foreign remittance application and print out from the<br />
Customer Service Officer-Maker;<br />
b) Ascertains all the particulars on the foreign remittance application and<br />
print out are identical and check the customer sign on the foreign<br />
remittance application and print out; and check the transaction on the<br />
system.<br />
c) File and Keeps the payment ticket under her/his custody.<br />
7.5 Bankers’ cheque (Cashier Payment Order (CPO))<br />
7.5.1 Bankers’ cheque /CPO/payment to the beneficiary or to the<br />
Purchaser<br />
The Customer Services Officer/Maker<br />
a) Receives the Bankers’ cheque /CPO/ and the ID card from the customer<br />
and makes sure that the Bankers’ cheque /CPO/ properly presented—<br />
that is, the date on which it was issued, the name of the originating<br />
branch, the full name of the beneficiary/payee or to the purchaser (if the<br />
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Bankers’ cheque /CPO/ returned by the beneficiary and endorsed) , the<br />
amount of money in both words and figures are shown and that the<br />
Bankers’ cheque /CPO/ has been signed by two authorized signatories;<br />
b) Identifies the beneficiary/payee on the back of the Bankers’ cheque<br />
/CPO/ and attaches therewith a digital photocopy thereof at the expense<br />
of the branch and authenticates the signatures on the Bankers’ cheque<br />
/CPO/;<br />
c) Verifies the signature on the Bankers’ cheque /CPO/against CBE’s<br />
Signature management system;<br />
d) Takes the customer thumb print in the presence of two witness one from<br />
the bank officers and the other from the customer side, if the customer is<br />
blind; If the customer is unable to present a witness from his side the<br />
Customer Service Manager/Branch Manager shall sign as a witness and<br />
the Customer Service Officer affixing thereto a rubber stamp that reads<br />
“Signed before me.”<br />
e) Effects payment if the amount to be paid is within her/his paymentauthorization<br />
limit and puts a stamp marked “Customer Services Officer”<br />
and her or his initials on the back side of the Bankers’ cheque /CPO/; and<br />
f) Passes the Bankers’ cheque /CPO/to the concerned Checker or to<br />
Customer Service Manager for authorization ,for any amount of money<br />
over and above her/his payment-authorization limit,<br />
The Customer Services Officer-Checker/Customer Service Manager<br />
a) Makes sure that the Bankers’ cheque /CPO/ is properly presented—that<br />
is, that the date on which it was issued, the name of the issuing branch,<br />
the full name of the beneficiary/payee and the amount of money (in both<br />
words and figures) are correct and gives authorization for the payment<br />
thereof based on the limit set thereof; and<br />
b) 0<br />
c) Makes sure that a copy of the customer’s ID card is attached to the back of<br />
the Bankers’ cheque.<br />
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The Branch controller<br />
a) Receives the Bankers’ cheque /CPO/ from the Customer Service Officer-<br />
Maker;<br />
b) Ascertains all the particulars on the Bankers’ cheque /CPO/against the<br />
system, the proper endorsement of the Bankers’ cheque /CPO/and Check<br />
the transaction is passed the correct Bankers’ cheque /CPO/Number.<br />
c) Files and Keeps the payment ticket under her/his custody.<br />
7.5.2 Payment of Expired Bankers’ cheque<br />
Bankers’ cheque /CPO/may be presented after the expiry date by the purchaser or<br />
the beneficiary due to various reasons. Request for refund of the Bankers’ cheque<br />
/CPO/kept in the hand of the purchaser shall be entertained. However, the<br />
presenter shall additional letter of requesting stating valid reason for the delay.<br />
During this time the following procedure shall be adhered by the originating branch<br />
only:<br />
Customer Service Manager<br />
a) Interviews the customer for the reasons of the delay of the Bankers’<br />
cheque /CPO/for more than six months and check the proper<br />
presentation and genuineness of the Bankers’ cheque /CPO/for refund<br />
and make her/him to sign on the back of the Bankers’ cheque;<br />
b) Checks whether the Bankers’ cheque /CPO/is Outstanding or Not. If the<br />
Bankers’ cheque /CPO/is outstanding, make the customer fill out the<br />
undertaking letter and sign on it;<br />
c) Forwards to Customer Service officer for the credit of her/his account or<br />
for refund in cash.<br />
d) Authorizes the payment transaction;<br />
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Customer Service Officer-Maker<br />
a) Receive the endorsed and approved Bankers’ cheque /CPO/ and<br />
undertaking form from the Customer Service Manager;<br />
b) Identify the customer and post on the system by using the proper menu<br />
and Pay to the purchaser or payee whichever is applicable;<br />
c) Forward to the branch Controller for checking;<br />
The Branch controller<br />
a) Receives the Bankers’ cheque /CPO/ from the Customer Service Officer-<br />
Maker;<br />
b) Ascertains all the particulars on the Bankers’ cheque /CPO/against on the<br />
system, the proper endorsement of the Bankers’ cheque /CPO/and Check<br />
the transaction is passed using the correct Bankers’ cheque<br />
/CPO/number.<br />
c) Files and Keeps the payment ticket under her/his custody.<br />
7.5.3 Payment of a Lost Bankers’ cheque<br />
a) When a Bankers’ cheque /CPO/is lost, the customer shall report in writing<br />
to the issuing or paying branch in which the customer maintains an account;<br />
7.5.3.1. For lost but not expired Bankers’ cheque<br />
The Customer Service Manager (at the issuing or paying Branch in<br />
which the customer maintains an account)<br />
a) Receives application request from the payee or the purchaser in writing;<br />
that the request has been signed by her or him, or sealed with an official<br />
stamp, if the request was lodged by an organization;<br />
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b) Informs in writing the issuing branch to stop the Bankers’ cheque, if the<br />
request is lodged to the paying branch ;<br />
c) the issuing branch in any case shall stops the instrument when receiving<br />
the request either from the branch or the customer by waving stop<br />
payment charge in the system; However the service charge shall be<br />
collected separately per the term and tariff of the bank ;<br />
d) Receives consent from the payee to safeguard its interest; and also<br />
receive undertaking from the purchaser in case of any future<br />
eventualities, if the applicant is the purchaser.<br />
e) Receives undertaking to safeguard the interest of the Bank in case of any<br />
future eventualities if the applicant is the payee,<br />
f) Encloses any other additional supporting documents as and when<br />
necessary;<br />
g) Keeps the photocopy of the entire document at the branch and forwards<br />
the letter of the request for refund and the original documents to the<br />
pertinent approving organs, if it is beyond the branch’s limit of approval;<br />
h) Forwards the approved customer’s request to Customer Service officer–<br />
Maker for payment if a request is received by the branch for the refund of<br />
expired but not lost instruments, the customer has to fill an undertaking<br />
format prepared for this purpose.<br />
i) Cosigns the payment ticket and approve the transaction on the system<br />
j) Inform Customer Accounts and Operation Manager in writing the loss of<br />
the Bankers’ cheque /CPO/for future reference.<br />
The Customer Service officer– Maker<br />
a) Receives the approved customer’s request from customer service<br />
manager and originate the necessary ticket for payment:<br />
b) Collects the service charge as per the terms and tariffs of the bank before<br />
effecting payment<br />
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c) Identifies the customer and let the customer sign on the back of the<br />
ticket, if the customer is an individual and requested payment in cash<br />
;sign and send the document for cosign and approval;<br />
d) Sign ,Post the transaction and sends the document for approval and<br />
cosigning<br />
e) Pays the customer in cash or in case of corporate customer /organization<br />
,the proceeds of the Bankers’ cheque /CPO/shall be credited to an<br />
account ;<br />
Branch Controller<br />
a) Receives and Checks the documents for completeness and accuracy:<br />
b) Checks the transaction on the system;<br />
c) Files and keeps the document in her/his custody<br />
7.5.3.2. For lost and expired Bankers’ cheque<br />
The Customer Service Manager (at the issuing or paying Branch in<br />
which the customer maintains an account)<br />
a) Receives application request from the payee or the purchaser in writing;<br />
that the request has been signed by her or him, or sealed with an official<br />
stamp, if the request was lodged by an organization;<br />
b) the paying branch shall Inform in writing the issuing branch to stop the<br />
Bankers’ cheque /CPO/If the request is lodged to the paying branch;<br />
c) the issuing branch in any case shall stop the instrument when receiving<br />
the request either from the branch or the customer by waving stop<br />
payment charge in the system;<br />
d) Receives explicit consent from the purchaser and undertaking from the<br />
payee to safeguard the interest of the Bank as well as the purchaser’s in<br />
case of any future eventualities if the applicant is the payee,<br />
e) Receives undertaking and consent from the payee to safeguard it’s<br />
interest in case of any future eventualities ,if the applicant is the<br />
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purchaser,<br />
f) Encloses any other additional supporting documents as and when<br />
necessary;<br />
g) Keeps the digital photocopy of the entire document at the branch and<br />
forwards the letter of the request for refund and the original documents<br />
to the pertinent approving organs, if it is beyond the branch’s limit of<br />
approval;<br />
h) Forwards the approved customer’s request to Customer Service officer–<br />
Maker for payment if a request is received by the branch for the refund of<br />
expired but not lost instruments, the customer has to fill an undertaking<br />
format prepared for this purpose.<br />
i) Cosigns the payment ticket and approve the transaction on the system<br />
j) Inform Customer Accounts and Operation Manager in writing the loss of<br />
the Bankers’ cheque /CPO/for future reference.<br />
The Customer Service officer– Maker<br />
a) Receives the approved customer’s request from customer service<br />
manager and originate the necessary ticket for payment:<br />
b) Collects the service charge as per the terms and tariffs of the bank before<br />
effecting payment<br />
c) Identifies the customer and let the customer sign on the back of the ticket,<br />
if the customer is an individual and requested payment in cash; sign and<br />
send the document for cosign and approval;<br />
d) Sign, Post the transaction and sends the document for approval and<br />
cosigning<br />
e) Pays the customer in cash or in case of corporate customer/organization,<br />
the proceeds of the Bankers’ cheque /CPO/shall be credited to an<br />
account;<br />
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Branch Controller<br />
a) Receives and Checks the documents for completeness and accuracy:<br />
b) Checks the transaction on the system;<br />
c) Files and keeps the document in her/his custody<br />
7.6 Handling of Retention Account<br />
The Customer Services Officer/Maker<br />
a) Receives a foreign-exchange-utilization letter of request, authenticates<br />
the signatures thereon, and makes sure that sufficient balance is available<br />
and forwards the request to the Customer Services Officer/Checker;<br />
b) Checks against the checklist to make sure that the request for foreign<br />
exchange has been lodged in line with the provisions of the pertinent<br />
directive of the NBE;<br />
c) Determines whether the request is intended for the credit of the<br />
customer’s own local-currency account, or to make payment to another<br />
party, or to transfer the money in foreign exchange abroad for payment of<br />
imports or other services;<br />
d) Debits the foreign exchange account and credits the counter value in local<br />
currency, applying the prevailing exchange rate, or debits the foreign<br />
exchange account by the requested amount of money in the case of a<br />
foreign-currency request; and<br />
e) Makes reversal entries for the unutilized balance left over in the<br />
Retention account as per the directive of the NBE.<br />
The Customer Services Officer-Checker/Manager customer service<br />
a) Receives and checks the correctness of the foreign-exchange-utilization<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
letter of request from the retention account;<br />
b) Makes sure that the foreign currency has been properly converted to Birr<br />
and that the exchange rate has been properly applied and;<br />
c) Follows-up on the customer’s foreign-exchange retention account and<br />
converts to Birr and credits her/his local-currency account for the<br />
unutilized balance left over in the “Retention account B” after 28 days<br />
have elapsed as per the directive of the NBE; and<br />
d) Authorizes the reversal entry, if the customer fails to utilize the fund<br />
within the prescribed date;<br />
The Branch Controller<br />
a) Receives the letter of application from the Maker and checks the<br />
transaction on the system and the pertinent directives to make sure that<br />
it does not contravene any of their provisions; and<br />
b) Ensures unutilized balance left over in the “Retention account B”<br />
converted to birr and credited to local currency account after 28 days;<br />
c) Files the document in her or his custody.<br />
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8. TRANSACTION-AUTHORIZATION LIMIT<br />
8.1 For saving accounts, Current accounts, LMTS and BANKERS’<br />
CHEQUE /CPO/Deposit<br />
Authorization Limit(AL)<br />
No<br />
Authorized<br />
Person<br />
Savings<br />
Account<br />
Current<br />
Account/<br />
Foreign<br />
Payments<br />
Incoming<br />
Transfers<br />
LMTS<br />
Incoming<br />
Bankers’<br />
cheque<br />
Deposit<br />
Collection<br />
for LMTS<br />
1<br />
Customer Services<br />
Officer/Maker<br />
Up to Birr<br />
40,000<br />
Up to<br />
Birr<br />
100,000<br />
Up to birr<br />
10,000<br />
Up to<br />
100,000<br />
Up to<br />
200,000<br />
N/A<br />
2<br />
Customer Services<br />
Officer/Maker,<br />
together with<br />
Customer Services<br />
Officer/checker<br />
Above birr<br />
40,000 and<br />
up to<br />
80,000<br />
Above birr<br />
100,000<br />
And up to<br />
200,000<br />
Above<br />
birr<br />
10,000<br />
And up to<br />
20,000<br />
Above birr<br />
100,000<br />
And up to<br />
200,000<br />
Above birr<br />
200,000<br />
And up to<br />
400,000<br />
Up to birr10,<br />
000<br />
3<br />
Customer Services<br />
Officer/Maker,<br />
together with the<br />
Customer Service<br />
Manager<br />
birr 80,000<br />
And above<br />
birr<br />
200,000<br />
And above<br />
birr<br />
20,000<br />
And above<br />
birr<br />
200,000<br />
And above<br />
birr<br />
400,000<br />
And above<br />
birr 10,000<br />
And above<br />
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8.2 Authorization limit when the networked branch becomes<br />
Offline<br />
The customer may request branch services even when the branch becomes offline,<br />
due to failure in connection. Thus, the branch may entertain the request of the<br />
customer considering the availability of nearby and connected branch in the area by<br />
examining the trustworthiness of the customer, the branch shall serve the<br />
customer’s withdrawal request as per the following offline payment and collection<br />
limit;<br />
No. Authorized person Saving Current<br />
1.<br />
Customer Service Officer-<br />
Marker with Customer Service<br />
Manager<br />
account<br />
account<br />
Up to 6,000.00 Up to 10,000.00<br />
8.3 Authorization limit for Account receivable and expense<br />
For any amount of transaction passed to Account receivable and expense<br />
the referral shall be authorized on the system by Branch<br />
Manager/Customer service Manager. However, those transactions require<br />
approval from the concerned organ, when the approving limit is beyond<br />
the Branch Manager.<br />
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8.4 Approval limit at <strong>CATS</strong>-CPC (ATS) to credit Customers’<br />
Account<br />
No<br />
Authorized person<br />
Authorized<br />
limit<br />
1 Customers Account & Operation Officer/Maker/ Up to 30,000.00<br />
2 Customers Account & Operation Officer/Maker/<br />
together with Customers Account & Operation<br />
Officer/Checker<br />
3 Customers Account & Operation Officer Together<br />
with Customers Service Manager/ATS Manager<br />
30,001- 60,000.00<br />
60,001 and above<br />
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8.5 For Lost Bankers’ Cheque<br />
Approving Organ<br />
For Lost But Not<br />
Expired<br />
Bankers’ cheque<br />
/CPO/<br />
For Lost And<br />
Expired<br />
Bankers’ cheque<br />
/CPO/<br />
For Expired But<br />
Not Lost<br />
Bankers’ cheque<br />
/CPO<br />
The Branch Manager or<br />
Customer Service<br />
Manager<br />
Up to Br. 10,000 Up to Br. 20,000 Face Value of<br />
Bankers<br />
Cheque/CPO/<br />
District Manager Above Br. 10,001 Above Br. 20,001<br />
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9. OTHER ISSUES RELATED TO OPENING, COLLECTION AND<br />
PAYMENT<br />
9.1 Handling of Inactive Accounts<br />
i. Current and savings accounts, which remain idle or dormant with no<br />
movement for a period of six and twelve consecutive months<br />
respectively, shall be changed by the system to “Inactive accounts,”<br />
regardless of their balances;<br />
ii. Inactive current accounts with a balance of less than Birr 500.00 are<br />
subject to service charges as per the terms and tariff semi-annually;<br />
iii. Accounts that carry balances of below the amount of the charge will be<br />
closed as part of the collection of the service charges thereon;<br />
iv. The customer service manager at the account holding branch can change<br />
the status from inactive to active when all the following requirement are<br />
fulfilled;<br />
a) The customer presents renewed and valid ID and requests for<br />
activation of his/her account;<br />
b) The customer adequately explains about the previous transactions<br />
;and<br />
c) Minimum of four transactions in the last half six months are<br />
conducted, excluding interest transactions.<br />
v. Withdrawal from Inactive saving account can be effected at any online<br />
branch whereas withdrawal from inactive demand deposit account shall<br />
only be entertained at the account holding branch only. When<br />
entertaining withdrawal from inactive saving account, the following<br />
conditions shall be fulfilled;<br />
a) The customer service manager should interview the customer in<br />
person;<br />
b) Retain the photocopy of the customer’s ID; and<br />
c) The customer presents his/her passbook;<br />
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9.1.1 Payment from Inactive saving accounts<br />
Customer Service Office – Front Maker<br />
a) Receives the passbook and withdrawal voucher from the customer and<br />
checks if the account is inactive, forward the customers and pertinent<br />
documents to the customer Service Manager<br />
b) Checks the account is properly filled out—that is, the date on which it<br />
was withdrawn, the name of the account holder, the amount of money in<br />
both words and figures, the account number and the signature of the<br />
account holder appear on it; and shall make the customer to put her/his<br />
thumb print on the Bio-Metric device for system verification;<br />
c) Checks the word ‘ok being inactive’ and signature of the customer service<br />
manager appear on the face of the withdrawal voucher;<br />
d) Requests the customer to present a renewed ID and retain the photo<br />
copy, and identify the customer at the back of the withdrawal voucher;<br />
e) Identifies the customer against the scanned photo and authenticates the<br />
signature of the customer on the voucher against the scanned signature<br />
and posts the transaction, recording the denomination on the system,<br />
and put his Customer Service Officer stamp at the face of the withdrawal<br />
voucher;<br />
f) Forwards the documents to customer service manager for authorization<br />
regardless of the amount;<br />
g) Returns the passbook , ID Card and pay the amount to the customer; and<br />
h) Forward the documents to the branch controller.<br />
Customer Service Manager/Branch Manager<br />
a) Receives a withdrawal voucher and passbook with ID cards, interviews<br />
the customer and approves the withdrawal by writing the word ‘ok for<br />
being inactive’ on the face of the withdrawal voucher and forward the<br />
document to customer service officer; and<br />
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b) Receives the deposit/withdrawal voucher with passbook from customer<br />
service officer and authorize the transaction regardless of the amount.<br />
Branch Controller<br />
a) Receives the withdrawal voucher from the Customer Services Officer-<br />
Maker as soon as the transaction committed;<br />
b) Ascertains the proper completion of the voucher—that is, makes sure<br />
that the date on which it was written, the name of the account holder, the<br />
account number, the amount of money in both words and figures and the<br />
signature of the account holder appear on it;<br />
c) Makes sure that entries are passed on to the appropriate account, that the<br />
initials and the stamp of the Customer Services Officer/Maker are put on<br />
the withdrawal voucher;<br />
d) Files the withdrawal voucher after ascertaining their correctness and<br />
keeps the files in her/his custody.<br />
9.2 Handling of Cash Indemnity Account<br />
This account shall be debited:<br />
a) To recover a shortage when a staff, entitled for cash indemnity, performing a<br />
cash transaction and evidenced by Audit report,<br />
b) To effect payment after one year for a staff entitled for cash indemnity<br />
transferred into another post or terminated his/her employment contract.<br />
9.2.1 Cash indemnity account opening<br />
The Customer Services Officer/Maker<br />
a) Receives instruction from Customer Service Manager/Branch Manager to<br />
open Cash indemnity account in the name the staff entitled for cash<br />
indemnity.<br />
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b) Advices the staff, entitled for cash indemnity, to fill the account opening<br />
form and Checks whether it is properly filled out and signed;<br />
c) Takes the customer’s finger print through the Bio-metrics device.<br />
d) Opens the account in the system by using the customer Id created in the<br />
branch or other CBE branches and appropriate product code.<br />
e) Writes the system generated account number on the application form.<br />
f) Writes her/his name and signs on the application form on the space<br />
provided thereof—that is, where it says “Name and signature of the<br />
Maker”—and forwards all the documents submitted to her or him to the<br />
Customer Services Officer/Checker for checking and co-authorization.<br />
The Customer Services Officer/Checker<br />
a) Makes sure that the account-opening documents are properly prepared<br />
and the opened accounts are authentic;<br />
b) Authorizes the account opening and Co-signs on all the account-opening<br />
documents;<br />
c) Returns to the Customer Services Officer/Maker the opening application<br />
form; and<br />
d) Checks and authorizes the scanned signatures; and Passes onto the<br />
Branch Controller the opening documents—that is, the application form.<br />
The Customer Service Manager/Branch Manager<br />
a) Checks the account opening documents against the system and ensure the<br />
account is appropriately opened, the product code and the account has a<br />
posting restriction and inform the Senior Customer service officer-<br />
Account the account number for payroll updating.<br />
b) Receives a request of cash withdrawal from Customer Service Officer<br />
Maker/Senior Customer Service Officer – Cash when cash shortage is<br />
evidenced by audit report;<br />
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c) Requests the staff to fill the withdrawal voucher by the shortage amount;<br />
d) Approves the withdrawal from cash indemnity account by writing “Ok for<br />
withdrawal” on the face of the voucher; and<br />
e) Authorize the transaction on the system.<br />
The Branch Controller<br />
a) Collects from the Customer Services Officer-Checker all the documents<br />
submitted for the opening of an account and makes sure that the account<br />
is opened as per this procedure;<br />
The Senior Customer Services Officer-Accounts<br />
a) Inserts the account number into the payroll system to manage monthly<br />
deduction amount to be credited to this account.<br />
b) Follows-up the balance of cash indemnity account whenever the balance<br />
is below minimum balance set by the bank, credit the whole cash<br />
indemnity amount after tax until it reaches the minimum balance set by<br />
the bank.<br />
9.3 Handling and Issuing of Cheque books<br />
The Customer Services Officer/Maker<br />
a) Receives the Cheque-requisition form from the customer; authenticates<br />
the signature thereon and puts her/his initials on the space provided<br />
thereof;<br />
b) Forwards the Cheque-requisition form to Customer Service<br />
Manager/Senior Customer Services Officer for further action.<br />
Customer Service Manager/Senior Customer Services Officer-Accounts<br />
a) Accepts the Cheque-requisition form from the Customer Services Officer/<br />
Maker;<br />
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b) Checks the proper presentation and completion of the Cheque-requisition<br />
form—that is, makes sure that the title of the account, the number of the<br />
account and the forms of the Cheque books required appear on it;<br />
c) Makes sure that the signature of the account holder on the Cheque -<br />
requisition form has been authenticated;<br />
d) Sends the Cheque -requisition form through system to <strong>CATS</strong>-CPC for<br />
cheque personalization;<br />
e) Collects the personalized Cheque s from <strong>CATS</strong> – CPC or the concerned<br />
organ and registers personalized cheque in cheque deliver register book<br />
and then informs the customer to collect them (the personalized checks);<br />
f) Hands over the personalized Cheque s to the customer, upon registration<br />
on the system and makes the customer sign cheque delivery book and<br />
advice the customer to count the cheque leaves received; and<br />
g) Registers the Cheque range and Cheque type in to the system account<br />
when the customer received the Cheques<br />
h) Receive and Register the personalized/blank bankers’ cheques(CPO) and<br />
issue to the respective Customer’s service officer/maker against<br />
customer’s application .<br />
9.4 Features of a Cheque<br />
a) A Cheque bears the following elements across its face:<br />
i. The name and emblem of the issuing bank;<br />
ii. The name of the issuing branch;<br />
iii. The date on which the Cheque was issued;<br />
iv. The name of the account holder and the account number;<br />
v. The name of the beneficiary/payee;<br />
vi. The amount of money shown in both words and figures;<br />
vii. The Cheque ’s number; and<br />
viii. The signature of the account holder.<br />
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b) Any deletion on the Cheque s shall not be accepted and the Cheque has to<br />
be changed.<br />
c) There should be no discrepancy between the amount of money given in<br />
words and that given in figures.<br />
d) Remind the customer of the need for sticking to the calendar of the<br />
language in which the Cheque is written.<br />
e) A Cheque is valid for only six months beginning from the date of its<br />
issuance.<br />
9.5 Negotiability and Endorsement of Cheque<br />
9.5.1 Endorsement of Cheques<br />
A Cheque should be endorsed on the reverse side thereof. The number of<br />
endorsements on a Cheque has no limit as per the Commercial Code of Ethiopia,<br />
Article 844 (1).<br />
The following are the types of endorsement that are applicable in the CBE:<br />
a) Self: if the cheque is issued for “self,” the Maker should ascertain that the<br />
Cheque has been endorsed by the drawer.<br />
b) Cash or bearer: if a cheque is drawn to the bearer or cash, the Maker should<br />
make sure that the cheque has been endorsed by the presenter.<br />
c) Specified person: the beneficiary/payee of the cheque has to be identified<br />
and told to endorse the cheque.<br />
d) If the cheque is issued to the order of the specified person followed by the<br />
word “only,” or if the word “payee only” is written on the top left corner of<br />
the face of the Cheque, only the payee/beneficiary thus indicated is allowed<br />
to cash the Cheque.<br />
e) If the cheque is issued in the name of organization, corporation, a<br />
cooperative, an association, or a government body, it will not be paid in cash,<br />
but will be credited to the beneficiary’s/payee’s account. To be endorsed, the<br />
Cheque s must bear a seal of the beneficiary and signature of the depositor.<br />
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f) If the Cheque is issued to the order of two individuals, both<br />
beneficiaries/payees will have to be identified and told to endorse the<br />
cheque drawn in their favor.<br />
g) If a Cheque is issued in the name of alternative individuals, either of the<br />
individuals must be identified and told to endorse the Cheque.<br />
h) Crossed Cheques are not at all paid in cash, but deposited into the accounts of<br />
the beneficiaries/payees thereof.<br />
9.5.2 The Use and Transferability (Negotiability) of Cheques<br />
a) Crossed Cheques<br />
Such Cheques bear two transverse lines across their faces. They can be paid<br />
by crediting the amount of money on the Cheque to the account. Such<br />
Cheques are transferable by endorsement only if they are to be credited to an<br />
account.<br />
b) The Restricted Negotiability of Cheques<br />
Cheques bearing phrases such as “Payable to account,” “Account payee only,”<br />
in addition to general crossing, can be credited to her or his account.<br />
c) Cheques Issued in the Names of Organizations or Legal Entities<br />
Unless they are restricted by the conditions explained under items a and b<br />
herein above, Cheques issued in the names of organizations are transferable<br />
to other organizations or individuals like any other Cheques, if they have<br />
been sealed and endorsed. If the Cheque is endorsed to an individual,<br />
however, she/he should bring a confirmation letter from the last endorsing<br />
organization and should be credited to customer account only.<br />
N.B. Cheque issued in the name of organization or legal entities should not be<br />
paid in cash.<br />
9.5.3 A Stop-Payment Order<br />
A stop-payment order on the Cheque can be placed for various reasons as might be<br />
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given by the account holder.<br />
a) At the time a stop-payment order is placed, there must be sufficient fund<br />
in the account that covers the value of the Cheque requested to stop<br />
payment;<br />
b) The amount of money on the Cheque under the stop-payment order will<br />
not be withdrawn until the account holder gives, in writing, an order to<br />
cancel the stop-payment order, however, the placement of stop payment<br />
order shall be cancelled upon the expiry date of the Cheque or by the<br />
court order<br />
c) The stop payment sanction shall be released if the drawer fails to produce<br />
police evidence within 15 working days that show the stop-chequepayment<br />
order was in fact requested as the cheque was lost or stolen.<br />
d) In the case of an overdraft account, the branch shall first “Stop” the<br />
Cheque on the system and send written request to credit CPC at head<br />
office/district stating the reason, the amount and other particulars to<br />
deduct the amount from the approved limit; The credit CPC in its part<br />
shall respond by deducting the limit or state the reason if otherwise to<br />
the requesting branch as soon as possible.<br />
e) When a blank Cheque is reported to have been lost, the account holder is<br />
not obligated to deposit money to her/his account when she or he<br />
presents the stop-payment order. However, the customer shall be advised<br />
that if the reported Cheque is not blank or issued Cheque to customer<br />
shall make her/him liable.<br />
I. Request for a Stop-Payment Order<br />
The Customer Service Manager<br />
a) Receives a letter of application (refer form CBE<strong>CATS</strong>013 )that indicates<br />
the reason that the account holder found it necessary to give the stoppayment<br />
order;<br />
b) Makes sure that the stop-payment order is placed by authorized person<br />
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with clearly stated reason;<br />
c) Makes sure that the Cheque on which the stop-payment order is placed is<br />
not withdrawn from the account prior to receipt of the stop-payment<br />
order;<br />
d) Gives the standard stop-payment-order form to the account holder and<br />
Make her/him to complete the form and sign on it. The standard stoppayment-order<br />
form shall only be used;<br />
e) Authenticates the signature on the form;<br />
f) Inputs into the system such relevant particulars as the Cheques number,<br />
the amount of money involved, the date on which it was issued and the<br />
name of the payee/beneficiary; and keeps the record until the account<br />
holder revoke his request and collect the service charge;<br />
g) Forwards the stop-payment-order form to the branch controller.<br />
The Senior Customer Services Officer-Accounts<br />
a) Co-signs on the ‘stop payment order’ form;<br />
The Branch Controller<br />
a) Receives the documents from Customer Service Manager;<br />
b) Checks the restriction made in the system to make sure that they comply<br />
with the pertinent rules and regulations of the Bank before she or he files<br />
them properly.<br />
II.<br />
Cancellation of a Stop-Payment Order<br />
The Customer Service Manager<br />
a) Receives a written application form for the cancellation of the stoppayment<br />
order from the account holder or authorized signatory;<br />
b) Makes the customer sign on the space provided on the stop-payment<br />
order form for the cancellation of the order;<br />
c) Authenticates the signature on the application form against the pertinent<br />
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system; and<br />
d) Incorporate into the system the necessary particulars from the cancelled<br />
stop-payment order form to cancel the stop-payment order placed<br />
previously; then signs and passes the documents on to the senior<br />
customer service officer-accounts for co-signing.<br />
The Senior Customer Services Officer-accounts<br />
a) Co-signs on the letter of request for cancellation of the stop-payment<br />
order;<br />
The Branch Controller<br />
a) Receives the documents from the CSM and checks them to make sure that<br />
they comply with the rules and regulations of the Bank and then files<br />
them.<br />
9.5.4 Insufficient Fund Cheques<br />
There are instances where a customer could make an honest error in her/his<br />
bookkeeping. Such a customer could have Cheque(s) that is/are deposited in<br />
her/his account and not cleared or returned. She or he could also have local or<br />
foreign transfers, or an approved loan not credited to her/his account due to the<br />
incompleteness of various internal operations, the pertinent procedures of the Bank,<br />
etc. These instances could be considered to be acceptable excuses for the customer<br />
for issuing insufficient fund Cheque s. In general, however, it is quite easy to<br />
determine if a customer is knowingly issuing insufficient fund Cheque s.<br />
To properly control insufficient fund Cheques;<br />
i. The branch shall take the following action as appropriate (as per the NBE<br />
Directive No SBB/64/2016 );<br />
1. record the incident for the first time in the Dishonored Cheque Register;<br />
and restricted all debit (outgoing) transactions against this account until<br />
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the dishonored cheque is fully paid to the payee or equivalent amount is<br />
blocked pending the payment to the payee<br />
2. record the incident for the second time in the Dishonored Cheque<br />
register, restricted all debit (outgoing) transactions against this account<br />
until all the cheques which have been dishonored & registered<br />
hereinabove are fully paid or equivalent amount is blocked pending the<br />
payment to the payee(s); and levy a fine of 3% of the amount appearing<br />
on the cheque dishonored for the second time but not exceeding Birr<br />
25,000 (twenty five thousand Birr)<br />
2.1 If there is no sufficient fund in the account even to cover the charges,<br />
nonetheless, leaves Birr.1.00 in the account balance, debits the<br />
customer’s account with the remaining amount and does close followup<br />
on the customer’s account to recover the unpaid charges.<br />
3. Record the incident for the third time in the dishonored Cheque register,<br />
close the account, levy a fine of 5% of the amount appearing on the<br />
cheque dishonored for the third time but not exceeding Birr 50,000 (fifty<br />
thousand Birr) and make every effort possible to collect all unused<br />
cheque leaves & pads from the drawer and report same to <strong>CATS</strong> CPC to<br />
close such persons demand deposit account in all CBE branches and<br />
inform NBE.<br />
4. Notwithstanding provisions under i(1) and i(2) debit charges like legal,<br />
insurance, advertisement, such other non-cash transactions, accrue<br />
interest against overdraft accounts against a blocked account; and the<br />
bank may unblock the account and make the fund available to the drawer<br />
;<br />
i. If the drawer presents the dishonored cheques to the bank or the<br />
payee(s) may appear in person to the bank and confirm in writing<br />
that the dishonored cheques have been fully settled in the form<br />
prescribed (refer form CBE<strong>CATS</strong>202) ; or<br />
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ii.<br />
If the payee(s) fails to appear to receive a full payment after lapse of<br />
six months of presenting the dishonored cheque.<br />
5. Those account holder who fulfill their obligation shall be deleted from<br />
the dishonored cheque register per the following table ;<br />
Description Status Action<br />
1 st time incident Full settlement of the claim or<br />
blocking of equivalent amount and<br />
has not drawn other dishonored<br />
cheques for the second time at<br />
least for 12 consecutive<br />
2 nd time incident Full settlement of the claims or<br />
blocking of equivalent amount and<br />
has not drawn other dishonored<br />
cheques for the third time at least<br />
for 24 consecutive months<br />
following.<br />
Shall be canceled<br />
from dishonored<br />
cheque register<br />
Shall be canceled<br />
from dishonored<br />
cheque register and<br />
be considered as<br />
clean<br />
I. At account holding branch<br />
The Customer Services Officer/Maker<br />
a) Checks the completeness of the Cheque and the balance of the account in<br />
the system;<br />
b) Forwards the cheque to the customer service manager for further action,<br />
if the Cheque is found to insufficient to cover the value or the cheque is<br />
incomplete for various reasons like difference in signature, amount and<br />
figure in addition to not having sufficient balance to cover the presented<br />
Cheque value.<br />
The Customer Services Manager<br />
a) Checks all the possible credit entries that might have not been posted to<br />
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the customer’s account—that is, from cash/Cheque clearance, loan,<br />
foreign and local transfers etc… Upon receipt of the Cheque from the<br />
Maker unpaid due to insufficient fund,<br />
b) Fills in all the discrepancies on the Cheque including the insufficient<br />
balance status on the Cheque returned form and affixes thereto the<br />
official stamp of the branch and retain photocopy of the Cheque for<br />
further action; However if the drawer has already stopped the cheque<br />
due to loss of cheque or theft, the branch does not need to state the<br />
balance or take action thereof.<br />
c) Affixes the returned slip to the Cheque and registers the Cheque for<br />
insufficient fund in the system;<br />
d) Ascertains whether the name of the account holder whose Cheque is<br />
returned for insufficient fund does have a prior record in the system for<br />
insufficient fund Cheques;<br />
e) Takes appropriate action as stipulated in the NBE Directive No<br />
SBB/64/2016<br />
f) If two or more Cheques are presented on a given demand deposit account<br />
for payment at the same time and if there is no sufficient fund to cover<br />
the amount of the Cheques, takes appropriate action, as stated above, for<br />
each Cheque—in accordance with the sequential order of Cheques even if<br />
the reminder is not received by the customer.<br />
g) Informs the <strong>CATS</strong> CPC, in writing, about the returned cheque due to<br />
insufficient cheque or the closure of the demand deposit account in the<br />
case of drawer writing insufficient cheque for the 3 rd time by the fastest<br />
available means within 6 working hour(refer annex 5)<br />
The Senior Customer Services Officer-Accounts<br />
a) Maintains a separate register on the system for registering Cheques<br />
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returned unpaid due to insufficient fund. The register on the system<br />
should contain the following headings in each column:<br />
i. The date and time when the Cheque was presented at the branch<br />
for payment;<br />
ii. The name of the account holder, including her or his<br />
grandfather’s name;<br />
iii. The account number;<br />
iv. Her or his address and/or telephone number;<br />
v. The date on which the Cheque was issued;<br />
vi. The Cheques number;<br />
vii. The name of the payee/beneficiary;<br />
viii. The amount of money specified on the Cheque;<br />
ix. The balance in the account at the time the Cheque was presented<br />
at the branch for payment;<br />
x. The action taken by the branch, which could be any of the<br />
following three as per the pertinent directive of the NBE:<br />
1. First warning letter served on ………<br />
2. Second warning letter served on. ……and charged Birr…<br />
on...<br />
3. Account closed on………..<br />
The Branch Controller<br />
a) Receives the documents from the customer service manager and checks<br />
them for compliance with this procedure and relevant directive of the<br />
NBE and then files on the customer mandate file.<br />
II. Insufficient fund Cheque presented to other branch<br />
(Located in other city other than the account holding branch)<br />
When a Cheque presented in other CBE branch from account holding branch, which<br />
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is located in another city, the following procedure shall be adhered. However, if the<br />
account holding branch and the branch where the Cheque is presented for payment<br />
is located within the same city, the insufficient Cheque return slip shall be issued by<br />
the account holding branch.<br />
Customer Service Managers at the Account Holding Branch and Paying<br />
Branch<br />
a) The branch that received the Cheque for payment shall scan and send<br />
through the bank’s internal email or any other available ways to the<br />
account holding branch;<br />
b) When the account holding branch receives the message shall follow the<br />
steps stated above for insufficient Cheque handling.<br />
c) The account holding branch shall write a letter that confirms the balance<br />
is insufficient to cover the Cheque to the branch (that received the<br />
Cheque for payment) signed by the CSM/Branch Manager, by putting the<br />
branch round stamp and scan and then replies by branch outlook.<br />
d) The branch that receives the Cheque for payment upon receiving the<br />
confirmation from the account holding branch will give to the payee the<br />
“Cheque returned slip” (by stating insufficient fund and by affixing a<br />
round stamp).<br />
Customer Service Manager- at Customer Account and Operation (<strong>CATS</strong>-<br />
CPC)<br />
a) Shall maintain the Dishonored Cheque Register.<br />
b) Dishonored Cheque Register shall at a minimum include the following<br />
particulars:<br />
i. name and address of the bank and its branch dishonoring a cheque<br />
ii. name, tax identification number and address of an account holder<br />
who issued a<br />
iii. Dishonored cheque<br />
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iv. date on which the cheque was dishonored and frequency of<br />
؛cheque drawing dishonored<br />
v. amount of money stated in the dishonored cheque<br />
vi. reference number of dishonored cheque<br />
vii. name of beneficiary and<br />
viii. the action taken by the bank.<br />
c) Receive from the NBE or from CBE branches list of closed account due to<br />
mal-operation.<br />
d) Updates the mal operation database on the system.<br />
e) Scans the delinquent list and send to districts by email in order to<br />
forward to non-networked branches under the district.<br />
f) Requests from Management Information Service (MIS) whether the<br />
names reported as delinquent by NBE or CBE branches have account in<br />
CBE Branches.<br />
g) Communicates the concerned branches maintaining the account in the<br />
name of the delinquent customer to close the account and report to <strong>CATS</strong>-<br />
CPC based on the reply of MIS.<br />
9.6 Customers’ Standing Instructions<br />
It is a cardinal principle of the banking industry that all customers’<br />
instructions must be given in writing and signed by the account holder<br />
/signatories. Once a standing instruction has been received from a customer,<br />
it will remain valid for an indefinite period of time unless the customer, or<br />
the account holder, gives an instruction, in writing, for the cancellation<br />
thereof.<br />
The customer has to pay the service charge set for each transaction of a<br />
standing instruction as stipulated in the terms and tariff, if it is paid in cash.<br />
The Customer Service Manager<br />
a) Receives a signed letter of standing instruction from the account holder<br />
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and reviews its proper presentation and content carefully (Refer<br />
Form:CBE<strong>CATS</strong>106)<br />
b) Interviews the account holder who has expressed her or his desire to give<br />
a standing instruction and forwards the instruction to customer service<br />
officer maker for signature authentication; and<br />
c) Forwards the standing instruction to the Senior Customer Services<br />
Officer-accounts for further action.<br />
The Senior Customer Services Officer-Accounts<br />
a) Enters all the relevant information of the standing instruction into the<br />
system prepared for the purpose and keeps same under a box file with<br />
her/him, so as to take the appropriate action thereon on the specified<br />
date; and forward the standing order form to the branch controller;<br />
b) Notifies the account holder about it immediately if there is no sufficient<br />
funds in her/his account to cover the amount.<br />
The Branch Controller<br />
1 Receives and Cheques the relevant information in the standing order<br />
form is properly incorporated in to the system.<br />
9.7 Issuance of Bank Statement<br />
Senior Customer Service Officer – Accounts<br />
a) Issues a bank statement upon the request of account holders in the form<br />
of either soft (PDF form) or hard copy by collecting the service charge as<br />
per the terms and tariffs of the bank. The account holding branch or any<br />
other networked branch shall issue bank statement to account holders/<br />
signatories.<br />
b) In case of the standing order in provision of periodic bank statement<br />
through customer’s email ,the customer shall fill application format<br />
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designed for the purpose (refer form CBE<strong>CATS</strong>011)<br />
9.8 Customer account Balance Confirmation<br />
Customer account Balance confirmation shall be requested by the account holder or<br />
by court order, or where such authority vested to any organ by proclamation.<br />
i. When the customer authorize to give a balance for their external auditors<br />
the account maintaining branch Senior Branch Controller will check the<br />
balance and communicate the Customer Service Manager/Branch<br />
manager to confirm the balance.<br />
ii. When a customer requests to write a balance confirmation to a third<br />
party, the previous day ending balance shall be confirmed by any<br />
networked branch by stating in their letter the account number and the<br />
account holding branch. The current date balance however shall exceed<br />
or equal to the previous day balance; and the letter shall state the word<br />
‘the balance can be withdrawn any time’; and<br />
iii. When the balance confirmation is requested by person other than by<br />
account holder or signatory, it should be treated by the account holding<br />
branch.<br />
9.9 Blocking<br />
An amount could be blocked from a particular account or the account itself could be<br />
fully blocked if and when the customer lodges a request for blocking, or based on a<br />
court’s ruling to that end, or any other organs having a power to block account by<br />
law, or as collateral of a loan to be extended to her or him.<br />
i. When blocking request is lodged to specific branch<br />
The following steps shall be followed:<br />
The Customer Service Manager (at branch)<br />
a) Receives a letter of instruction from the customer/ legally authorized<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
organs/Court order;<br />
b) Sets aside the fund as security under “locked” status by specifying the<br />
reason on description box on the system; writes the locking transaction<br />
number and the word ‘locked by system’ on the instruction letter. if the<br />
blocking instruction entails the partial blocking of the amount;<br />
c) Places a “Post No-debit” restriction and lock the entire amount by placing<br />
a “locked” status on the system by the specifying the reason if the<br />
blocking instruction entails the blocking of the account;<br />
d) Informs the customer that the blocking of specified amount from her/his<br />
account, indicating the reason(s) for blocking.<br />
e) Requests the customer to indicate the account number, the amount of<br />
money extended as a loan and the due date for it to be repaid if the<br />
blocking is made as a deposit of collateral for a loan,;<br />
f) When the customer repays the loan in full, which is confirmed by the<br />
concerned organ of the bank, release the locked amount;<br />
g) Replies to the concerned organ and notifies same to the customer and<br />
maintains the blocking document until it is released.<br />
h) Checks the locked amount list on the system against the document at the<br />
end of the month; and<br />
i) Passes the instruction letter to the Branch Controller after releasing the<br />
amount.<br />
The Branch Controller<br />
a) Checks the blocking instruction is properly locked, restricted or released<br />
in the system by generating “locked amount report” as the case may be;<br />
b) Receives pertinent documents from the Customer Service Manager<br />
ii. When a blocked account request is lodged to the bank (At Head office.-<br />
Center).<br />
When such a request is received by the bank, the request shall be forwarded<br />
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to the Director-Management Information Services (MIS) and shall be handled<br />
in the following manner;<br />
The Customer Service Manager- (at Customers’ Accounts and<br />
Operation)<br />
a) Receives the letter of request from Director-<strong>CATS</strong>-CPC;<br />
b) Requests MIS to search the account to be blocked on the system and<br />
identify account maintaining branch for online branch and circularizes<br />
the letter of request to branches for further action for non-networked<br />
branches;<br />
c) Instructs the specific branch(s) to lock the amount and informs the<br />
customer that her/his account has been blocked by indicating the<br />
reason(s);<br />
The Customer Service Manager- (at Branch)<br />
a) Follows the procedure stated under specific branch Upon receiving the<br />
request from <strong>CATS</strong>-CPC (a-f except c and d);<br />
9.10 Ticket and Mandate file documentation<br />
Senior Branch Controller or Branch Controller<br />
a) Files the tickets in an arrangement that can be referred easily.<br />
b) Files opening documents and mandate file by account number.<br />
c) Ensures the documents are requested by the standard request form<br />
(refer form CBE<strong>CATS</strong>204) designed for this purpose when ticket or files<br />
are needed for reference<br />
d) Hands over the documents against signature of the customer service<br />
manager/Branch manager on the register.<br />
e) Follows-up on the return of the document as early as possible.<br />
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f) Senior branch controller should maintain the records of archive<br />
documents and update it timely.<br />
9.11 Handling of Safe Deposit Box<br />
9.11.1 Opening Safe Deposit Box<br />
Safe Deposit boxes are available to any person or group that would require one<br />
for safekeeping.<br />
9.11.1.1 General condition of renting safe deposit box<br />
i. To rent a Safe Deposit Box, the customer must complete and sign a Safe<br />
deposit box agreement(Refer form CBE<strong>CATS</strong>007)<br />
ii.<br />
This agreement contains the date, customer name, customer account<br />
number, and the Safe Deposit Box Number, the annual rental fee, renewal<br />
date, terms and conditions of the agreement, customer signature and<br />
authorized signature by the bank.<br />
iii. When the first annual rent and a safe Deposit box key guarantee collected<br />
from her/his account, the bank issue two keys which fit only her/his safe<br />
Deposit box lock.<br />
iv. The minimum period of accepting a safe deposit box shall be one year.<br />
v. The maximum period for safe deposit box rental agreement is nine years,<br />
but the rent shall be collected annually (one year rent only).For any change<br />
on the rent amount the customer shall not be charged or refunded for the<br />
difference on the charge until the prepaid period elapsed.<br />
vi. When the safe deposit box needs to be broken and opened by the bank due<br />
to the reasons stated on the safe deposit box agreement, The Box will be<br />
opened in the presence of a safe deposit custodian (customer service<br />
Manager), Branch Manager and Court official as per commercial code Art<br />
923(2) who will make an inventory of the contents of the Box, and the<br />
contents will be kept in a vault or safe of the Bank until final a ruling by the<br />
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court is made.<br />
9.11.3 Safe deposit box rental commencement<br />
Whenever a customer wishes to have a Safe Deposit Box, the customer<br />
should maintain an account in the Branch. She/he should be interviewed by<br />
Customer Service Manager and should be requested to complete the<br />
standard agreement designed for this purpose (refer Form CBE<strong>CATS</strong>007);<br />
The Customer Service Manager<br />
a) Deals with the customer and assists on the preferred size of the safe<br />
deposit box and advice the customer about the agreement and how to<br />
use the box, such as to:<br />
i. Put a checklist inside the box listing all its contents.<br />
ii. Keep a copy of this list at home and update it as needed.<br />
iii. Clarifies about items prohibited for deposit in the safe Deposit box<br />
as stated in safe deposit box agreement.<br />
iv. Assure the closure of the safe deposit box and retrieval of its<br />
content after each visit.<br />
v. Inform that unpaid rent for one year will be listed as unclaimed by<br />
the bank. They can be broken, opened and the contents removed<br />
and sold;<br />
b) Requests the customer to fill out the application form and to sign the<br />
contract designed for the purpose and retain the photocopy of the ID;<br />
c) Forwards the necessary documents to the Customer Service Officer<br />
Maker at the back;<br />
d) Signs on the safe deposit box contract.<br />
e) Prepares the Safe deposit box customer ID.<br />
f) Registers the safe deposit ID and particulars on the register book.<br />
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g) Gives the safe deposit box keys and Customer safe deposit box ID against<br />
her/his signature.<br />
h) Keeps the contract, the debit advice for rent collected and the credit<br />
advice for deposit for Safe Deposit Box guarantee in a separate mandate<br />
file and Customer visit sheet;<br />
i) Identifies the customer by her/his Safe Deposit box customer ID and his<br />
personal ID When the customer visits his/her Safe Deposit box;<br />
j) Ensures the customer signs on Visit form and open the dual lock by the<br />
bank key and leave to the customer to open her/his box by her/his key;<br />
k) Locks the safe deposit box from the bank side when the customer’s visit<br />
ends; and<br />
l) Takes action as per the contract agreement if the annual rent not<br />
collected inform the customer by the address<br />
The Customer Services Officer/back Maker<br />
a) Debits of the applicant’s account, then signs and forwards same to<br />
Customer Service Manager the annual rent and deposit for Safe deposit<br />
box key guarantee as per the terms and tariff of the bank;<br />
b) Forwards the advices to Customer Service Manager.<br />
The Senior Customer Services Officer-account<br />
a) Sets a standing instruction in the system for collecting safe box rent<br />
annually;<br />
b) Follows-up monthly unexecuted standing instructions due to insufficient<br />
fund in connection with safe box rent and informs the Customer Service<br />
Manager to take action as per the contract agreement.<br />
The Branch Controller<br />
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a) Checks the contract is filled complete, signed by the customer, by the<br />
bank signatory and two witnesses.<br />
b) Signs on the contract and forwards to Customer Service Manager for<br />
custody<br />
9.11.3 Safe deposit box visiting<br />
The Customer Service Manager<br />
a) Receives the customer and identifies him/her against the mandate file<br />
kept for the purpose;<br />
b) Issues visiting format to be filled by the customer and verify the customer<br />
against his signature and details ;<br />
c) Checks whether the customer have the appropriate key to open the safe<br />
deposit box ;<br />
d) Ensures the customer have concluded rental payment and if otherwise<br />
collect the rental payment from the customer account ;<br />
e) Escorts the customer to the safe deposit box and leave her/him for an<br />
average of 15 minutes with safe deposit box ;and<br />
f) Signs and file the vising sheet in the mandate file<br />
9.12 Request for Changing Signature<br />
Frequent changes of signature must, whenever possible, be discouraged. At<br />
times, however, customers have valid reasons to change their signatures. The<br />
Bank will have to, therefore, attend to their requests. To that end,<br />
nonetheless, a customer should be required to fill out the standard<br />
application form prepared for this purpose (refer form CBE<strong>CATS</strong>008).<br />
An account holder may request for changing her or his signature for either of<br />
the following two reasons:<br />
a) When there is a difference in her/his signature from that of the one<br />
she/he had signed at the time of opening her/his account and feels that<br />
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she/he can no longer reproduce it; and<br />
b) When a non-literate account holder becomes literate and, therefore,<br />
desires to replace her/his thumb print with a written signature.<br />
A service charge as per the terms and tariff of the bank shall be collected<br />
when a customer changes her/his signature.<br />
The following steps shall be followed;<br />
The Customer Services Officer/Maker<br />
a) Identifies the applicant/account holder;<br />
b) Requests the customer to fill out the application form for a change of<br />
signature;<br />
c) identifies her/him on the application form in the presence of two<br />
witnesses If the customer is not in a position to accurately reproduce<br />
her/his previous signature;<br />
d) Advices the customer to put on the space provided in the application<br />
form three specimens of her/his new signature and a specimen of her/his<br />
old signature in the presence of two witnesses;<br />
e) Receives from Customer Service Manager the application form for a<br />
change of signature, together with an ID card, after it has been approved<br />
and sends it to the Checker for checking;<br />
f) Receives the application form for a change of signature, together with an<br />
ID card, from the Checker, after checking it;<br />
g) Attaches the application form for a change of signature with the letter of<br />
application for opening the account and sends them to the Customer<br />
Services Officer/Checker; and<br />
h) Replaces the old signature that has been entered into the system by<br />
scanning the new signature given by the customer, based on the<br />
application form for a change of signature.<br />
The Customer Services Manager<br />
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a) Interviews the customer in order to find out her or his reason(s) for<br />
deciding to change her/his signature;<br />
b) Scrutinizes the application form for a change of signature against the<br />
customer’s ID card and her/his old and new signatures;<br />
c) Co-signs, if everything is in order, on the space provided thereof on the<br />
application form for a change of signature; and<br />
d) Sends the application form for a change of signature to the Branch<br />
Controller.<br />
The Branch Controller<br />
a) Receives the application form for a change of signature, after it has been<br />
signed and co-signed by both the Maker and Customer Service Manager;<br />
and<br />
b) Checks all particulars filled in the application form for a change of<br />
signature against the copy of the customer’s ID card and the previous<br />
pertinent documents.<br />
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9.13 Amendment /Cancellation on LMTS<br />
The amendment shall require the cancellation of the original message and<br />
security number by paying the money back to the remitter and transfer new<br />
message against the expense of the customer, if amendment is initiated by the<br />
customer. Otherwise, the second transfer should be free of charge (refer form<br />
CBE<strong>CATS</strong>109)<br />
If the error is made by the remitter, the originating branch shall follow the<br />
following procedure.<br />
The Customer Services Officer/Maker<br />
a) Receives a letter of application and original customer advice (deal<br />
slip) from the remitter and forwards it to the Customer Services<br />
Officer/Checker for further checking;<br />
b) Collects the required commission for amendment and give the deal<br />
slip to the customer;<br />
c) Upon receiving the verified letter of application from the Checker,<br />
d) Writes ‘commission collected’ on the face of the customer application<br />
form and signs on it;<br />
e) Changes the status to ‘paid’ by using the security number (like a<br />
payment in cash) and prepare a new LMTS message; and<br />
f) Advises the customer to tell the new security number, test question<br />
and answer to the beneficiary with confidentiality;<br />
The Customer Services Manager<br />
a) Checks the letter of application to make sure that it contains the<br />
required information necessary to request an amendment on the<br />
message;<br />
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b) Gets the customer’s letter of application/form, which has already been<br />
filed, from the Branch Controller and authenticates the applicant’s<br />
signature against the previously maintained signature on the moneytransfer<br />
application form or identifies the customer on the application<br />
form;<br />
c) Authorizes the payment with in her/his authorization limit and the<br />
new LMTS; and<br />
d) Attaches the amendment application with the pay deal slip.<br />
Branch Controller<br />
a) Receives the amendment request from the Customer Service Manager;<br />
and<br />
b) Checks the transaction on the system.<br />
9.14 Cancellation of Local Money Transfer<br />
The originating branch that received the cancellation request (‘the remitting<br />
branch’) shall follow the following procedure:<br />
The Customer Services Officer-Maker (at the originating branch only)<br />
a) Receives the customer’s letter of application(refer form CBE<strong>CATS</strong>109),<br />
together with the former original advice for remittance, and forwards it<br />
to Customer Service Manager for approval;<br />
b) Collects the commission charge once she or he has received the approved<br />
letter of application; and<br />
c) Pays the local money transfer to the remitter after identifying the<br />
applicant by using the security number and ID card(s).<br />
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The Customer Service Manager<br />
a) Makes sure that the letter of application has the information required to<br />
request for retransfer/cancellation and approve the payment to be<br />
processed;<br />
If the beneficiary does not collect her/his money transfer,<br />
The Senior Customer Services Officer-accounts /Maker (at the back<br />
office)<br />
a) Generates a list of matured transactions from the System;<br />
b) Forward the long outstanding item for write back to the branch manager.<br />
c) When the write back proposal approved by the concerned organ transfer<br />
to income by the system.<br />
9.15 Handling of Lost LMTS Security number<br />
When the remitter lost the LMTS Security number and reports the case to the<br />
Branch for return or payment to the beneficiary, such request shall only be<br />
presented to the originating branch.<br />
The originating branch shall follow the following steps:<br />
The Customer Services Officer-Maker (at the originating branch only)<br />
a) Receives the customer’s letter of application form (referCBE<strong>CATS</strong>105),<br />
and forwards it to Customer Service Manager for processing;<br />
b) Collects the service charge and provide the advice/the deal slip to the<br />
customer; and<br />
c) After getting the security number and approval of Customer Service<br />
Manager, he/she will then pay to the remitter.<br />
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The Customer Service Manager<br />
a) Makes sure that the letter of application form has the required<br />
information;<br />
b) Finds the transaction reference number and the remitter name from the<br />
‘outstanding LMTS payable list’;<br />
c) Sends the request to Customer Service Manager at Customers’ Accounts’<br />
and Operations for LMTS security number by indicating the transaction<br />
reference number and remitter’s name by stating his/her Outlook<br />
address of the bank;<br />
d) Places a ‘stop flag’ for payment restriction in the system until security<br />
number is received from Customer Service Manager at Customers’<br />
Accounts’ and Operations for;<br />
e) Receives the security number from Customer Service Manager at<br />
Customers’ Accounts’ and Operations for through CBE’s internal email<br />
and communicate the customer; and<br />
f) Releases the ‘Stop payment’ and approves the payment upon presence of<br />
the customer.<br />
The Customer Service Manager (at <strong>CATS</strong>-CPC)<br />
a) Receives the request from Customer service Manager at originating<br />
branch;<br />
b) Searches the remittance by the reference number on the system and<br />
check the particulars against the branch request and take the security<br />
number.<br />
c) Forwards the security number to customer service Manager at branch by<br />
keeping its confidentiality through CBE internal email<br />
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9.16 Handling Power of Attorney<br />
Customers may give power of attorney to take care of their financial<br />
transactions need.<br />
Customer Service Manager<br />
a) Receives original and one copy of power of attorney letter from the<br />
agent/principal;<br />
b) Interviews the customer the service he/she and checks the power of<br />
attorney that gives the power to act the agent for the requested service by<br />
referring court and court execution guide line of the bank;<br />
c) Returns the original to the customer and forward the copy documents to<br />
KYC Analyst for authentication. If she/he is satisfied that the power of<br />
attorney shall have the power to get the service. However, if she/he is not<br />
satisfied advice the customer to adjust her/his power of attorney or<br />
forward the case to legal service for further advice;<br />
d) Receives the authentication and forward the case to the concerned officer<br />
to give the service if the power of attorney requested for a single<br />
transaction;<br />
e) Forwards the power of attorney to customer service officer-maker to<br />
receive a signature, scan and attach to the account if the power of<br />
attorney request for account operation; and<br />
f) Receives the cancellation power of attorney from the principal and delete<br />
the signature of the agent and cancel all accesses of the signatory, i.e. E-<br />
Banking products in the case of power of attorney cancellation.<br />
KYC Analyst<br />
a) Receives the power of attorney from the Customer Service Manager;<br />
b) Send the document to the issuing organ (Document authentication and<br />
registration office or other organ having a power to that end) for<br />
authentication; and<br />
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c) Receives the response from the issuing organ and inform same to the<br />
Customer Service Manager for further processing ;<br />
The Customer Services Officer-Maker<br />
a) Receives the authenticated power of attorney from customer service<br />
manager;<br />
b) Receives from the customer identification card, two or one digital photo<br />
for saving and demand deposit account respectively, and customer<br />
signature;<br />
c) Scans the signature and digital photo(take a digital photo using the digital<br />
camera ) and then attach with the account by writing the word “power of<br />
attorney”<br />
The Customer Services Officer/Checker<br />
a) Ensures that the pertinent information is incorporated into the system by<br />
looking at the documents presented by the customer.<br />
b) Authorizes the signatory record;<br />
9.17 Handling of Government Bond Coupon /the Grand Ethiopian<br />
Renaissance Dam Bond<br />
9.17.1 Features of the Grand Ethiopian Renaissance Dam Bond (GERD)<br />
a) Shall have either interest bearing or non- interest bearing ;<br />
a) Denomination starting from Birr 25 to 1million and has Serial number;<br />
b) Shall have Buyer Name and Signature;<br />
c) The GERD bond maturity is from 1-5 years and above 5 years. The bond<br />
can be redeemed from 1 to 5 years and above 5 years, which shall be on<br />
yearly basis;<br />
d) Interests earned from the GERD bond is tax-free;<br />
e) The GERD bond is transferable to third party;<br />
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f) For Bonds mature from 1-5 years, the Bond buyer can redeem bond value<br />
at least after one year from the issuance date, i.e. the GERD bond buyers<br />
cannot redeem the principal value before one year. Furthermore, the<br />
GERD bonds which are redeemed after one year but before maturity date<br />
are subject to penalty charge on the accrued interest.<br />
g) For the GERD bonds maturing above 5 years, the bond buyer can redeem<br />
bond value at least after three years from the issuance date, i.e. bond<br />
buyers cannot redeem the principal value before three years.<br />
Furthermore, the GERD bonds which are redeemed after three years but<br />
before maturity date are subject to penalty charge on the accrued<br />
interest;<br />
h) Shall have Stamp of the Ministry of Finance and Economic Cooperation<br />
(MoFEC) and signature of the Minster (MoFEC);<br />
9.17.2 General issues and Conditions in GERD bond operation<br />
a) The minimum value of bond to be purchased is birr 50 in Ethiopia and<br />
birr 500 outside Ethiopia. However there is no maximum purchasing<br />
limit.<br />
b) Lost and Mutilated bond coupons after their sale should not to be<br />
replaced with other coupons; but the bond buyer shall be provided with<br />
equivalent evidence/certificate after verifying the authenticity of the loss<br />
or mutilation by bond selling branch..<br />
c) Interest shall be calculated starting from the issue date and paid semiannually<br />
on June 30, and December 31.<br />
d) A bond holder can redeem the principal amount and collect the interest<br />
earned on the bond from the selling CBE branch.<br />
e) Principal redemption date is at the end of agreed maturity date and shall<br />
be redeemed by the selling Branch.<br />
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f) If the GERD bond buyer wants to be redeemed before maturity date, the<br />
request shall be lodged to DBE ;<br />
g) Tears, water-wash, fire-burn, or partial/complete damage during<br />
stamping, packing, or transportation before its sale and mistakes made<br />
when writing on the blank spaces of the coupons during the sale lead to<br />
voidance of the bond coupons. Such bond coupons should be stamped or<br />
written on them “Void”. Voided coupon must be reported regularly and<br />
with the voided coupon(s) sent to the Head Office of DBE in the same way<br />
as the other activities of the bond sales.<br />
9.17.3 Eligibility to Buy the GERD Bond<br />
a) All Ethiopians – rural and urban communities, micro enterprises,<br />
cooperatives, public and private enterprises, organizations,<br />
individuals and other sections of the general public;<br />
b) Foreign nationals of Ethiopian origin and non-Ethiopian origin<br />
with residence permission;<br />
c) Required documents for those 18 and older are – Kebele ID or<br />
employment ID, for minors birth certificate, for student school or Kebele<br />
ID; and<br />
d) All Ethiopians and foreign nationals of Ethiopian origin living abroad;<br />
9.17.4 Duties and Responsibilities of Performers’ Involved In GERD Bond<br />
Operation<br />
Manager –Bond Reconciliation<br />
a) Receives the bond coupons by denomination and sales receipts from DBE<br />
head office and forward the bond coupons to Bond Management Officer;<br />
b) Receives bond coupons request from Addis Ababa city District offices;<br />
approve and forward to Bond Management Officer;<br />
c) Makes sure the stock is balance;<br />
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d) ensures reports in relation to sales performance of bond coupons are<br />
collected, consolidated and forwarded to the concerned organs<br />
Bond Reconciliation Officer at Bond Reconciliation<br />
a) Collects from district offices and consolidate the overall sales<br />
performance of bond coupon;<br />
b) Prepares periodic reports that show the issued/distributed and stock of<br />
bond coupon.<br />
Bond Management Officer at Bond Reconciliation<br />
a) Receives bond coupons by denomination and sales receipts from<br />
Manager – Bond Operation Management<br />
b) registers on stock registration book and hold under his/her custody;<br />
c) hands over bond coupons by denomination and sales receipts to Addis<br />
Ababa district offices bond reconciliation officer by letting the officer sign<br />
on the bond coupon delivery register;<br />
d) balances the physical bond stock against the balance in the system or<br />
register book<br />
Bond Reconciliation Officer at District Offices<br />
a) Receives, for Addis Ababa city districts, the bond coupons by<br />
denomination and sales receipts from the bond operation management<br />
team and for outlying districts receives the coupons and sales receipts<br />
from DBE regional offices;<br />
b) Registers on stock registration book and hold under his custody;<br />
c) Receives bond request letter from Branches and hand over the bond<br />
coupons to the branch delegated person by the denomination requested<br />
and sales receipt and sign on the bond delivery format;<br />
d) Balances the stock and reports quarterly.<br />
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Customer Service Manager at Branch<br />
a) Receives the bond coupons by denomination and sales receipts from<br />
District office, register on stock registration book and hold under her/his<br />
custody.<br />
b) Assigns customer service officer - maker back office to handle bond<br />
operation.<br />
c) Delivers the bond coupons and sales receipt to customer service officer –<br />
maker back office on customer request base.<br />
d) Co-signs the bond sales receipt and puts stamp on the sales receipt form<br />
e) Approves “bond coupon’s equivalent evidence/certificate” in customer<br />
name for lost and mutilated coupons of the original bond (if any).<br />
f) Approves the redemption for the right claimant’s as per the guide line.<br />
g) Follows up the bond operation and the stock is balance<br />
Customer Service Officer – Maker Back Office at Branch<br />
a) Interviews the customer;<br />
b) Advices the customer to deposit in cash or to fill the fund transfer form to<br />
deduct from her/his account;<br />
c) Receives the bond coupons by denomination & sales receipt form from<br />
customer service manager;<br />
d) Fills all appropriate data’s to the bond coupons & sales receipt form<br />
e) Requests the customer to sign on bond coupon’s & sales receipt form and<br />
sign on the sales receipt;<br />
f) Forwards customer advice, bond coupon’s & sales receipt’s form for<br />
customer service manager for co-signing;<br />
g) Receives bond coupon’s & sales receipts from Customer Service Manager<br />
after signed , Insert in to the system;<br />
h) Delivers customer advice, bond coupon’s & customer copy of sales<br />
receipt’s to the customer;<br />
i) Balance bond sales and bond coupon issued;<br />
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j) Compile reports and report to Branch Manager;<br />
k) Receives bond coupon and sales receipt for matured bond coupon<br />
presented for redemption;<br />
l) Prepares payment ticket and forward to customer service manager for<br />
approval.<br />
m) Retain photo copy of the bond coupon.<br />
Senior Branch Controller<br />
a) Checks the completeness of the deposit voucher/account to account form<br />
and it has been credited to bond account;<br />
b) Keeps the Branch copies of issued bond sales receipt by pad under<br />
her/his custody;<br />
c) Checks stock balance against Bond coupon register monthly.<br />
d) Checks calculated interest on sample base.<br />
e) Checks the principal bond coupon amount and the payment transaction.<br />
f) Files and Keep the bond coupon after crossed, written the word ‘paid’ and<br />
payment date and the payment ticket on her/his custody.<br />
9.18 Un-issued Passbook Stocks on Hand<br />
a) All savings passbooks received from supplying organ, as per the requisition<br />
thereof, should be registered numerically in the savings passbook stock<br />
register and kept in the custody of Customer Service Manager;<br />
b) At the time that the passbook is issued, it should be recorded on the register<br />
on the system and delivered to the Customer Services Officer/Checker by<br />
dispatch book for daily use against her/his signature;<br />
c) Before any subsequent supplies of passbooks are issued, the Customer<br />
Services Officer/Checker must account for all the passbooks she/he has<br />
received; and<br />
d) Customer Service Manager should daily check the passbooks handed over to<br />
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the Customer Services Officer/Checker.<br />
9.19 Rubber Stamps<br />
A wide variety of rubber stamps are being used in the Bank. The types of rubber<br />
stamps used must be recorded in the register book prepared for the purpose.<br />
As stamps are sensitive by nature, the staffs who keep custody of rubber stamps<br />
should bear in mind that they must be kept under lock when not in use. The<br />
following are the steps to be taken in this regard.<br />
The Branch Manager/ Customer Service Manager<br />
a) Submits a stamp-requisition letter to the Facilities Management, clearly<br />
indicating the type thereof—that is, either a new one or a replacement;<br />
b) Registers all stamps received from their respective supply offices into the<br />
registered book prepared for this purpose;<br />
c) Issues the stamp to the staff who uses it against her/his signature by<br />
registering it register book prepared for this purpose;<br />
d) Ensures that the designated staffs of the Bank properly handle the stamps<br />
in their custody and always keep them (the stamps) locked up after office<br />
hours;<br />
e) Collects the old rubber stamps whenever they are replaced by new ones;<br />
f) Detaches the rubber part of old rubber stamp and destroy in the presence<br />
of Branch controller and one officer.<br />
g) Ensures that when a staff is transferred from the branch, the staff who<br />
takes her or his place takes over the rubber stamp against her/his<br />
signature in the register system; and<br />
h) Reviews the register in the system and ensures that it is properly<br />
updated.<br />
Staffs Holding the Bank’s Rubber Stamps<br />
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a) Receives the rubber stamps from Branch Manager/Customer Service<br />
Manager;<br />
b) Takes responsibility for all the stamps received against ones signatures;<br />
c) Ensures that at the end of the day, every rubber stamp is kept locked;<br />
and<br />
d) Ensures that the registered book for rubber stamps has been updated<br />
accordingly and that the rubber stamps do exist when the staff is assigned<br />
to hold the bank’s rubber stamps.<br />
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9.20 Key management<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
9.20.1 Custody of keys<br />
a. The following keys shall be recorded on the Bank’s Official Key – Register<br />
Book and Signed for by the Respective Persons responsible to handle the key<br />
I. Keys for strong room doors and large safes used as cash vaults,<br />
II. Keys for petty cash safes and grill doors for petty cash;<br />
III. Keys for server rooms:<br />
IV. Keys for safes or fire-proof cabinets containing valuable documents or<br />
instruments;<br />
V. Keys for regular filing cabinets and desks;<br />
VI. Keys for Gates and Offices;<br />
VII. Transfer of keys from person-to-person needs to be duly recorded in<br />
the register, against signature of holder, and needs to be updated<br />
regularly.<br />
b. Holders of cash vault room and cash safe keys should not leave behind their<br />
keys in the Bank premises after office hour.<br />
9.20.2 Duplicate Keys<br />
a. Duplicate keys of strong room doors and safes of branches must be held by<br />
the respective District under the dual control of the Manager-district<br />
operations and the manager of the nearby branch to the District. These<br />
duplicate keys must be kept in a safe custody at cash vault room of the<br />
nearby branch to ensure immediate supply in case of emergency.<br />
b. “Combination-Code” of cash vault doors/safes should be sent to the<br />
respective district manager (refer form CBE<strong>CATS</strong>203) being in a sealed<br />
envelope, for a precautionary measure. upon sending this confidential<br />
information shall ensure that:<br />
I. Double envelope is used.<br />
II. The outer envelope is properly sealed and marked “confidential”; and<br />
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III. The inner envelope is also properly sealed, stamped with stamp of the<br />
respective organ and marked “combination-code”<br />
c. Code numbers for Tellers’ Cash box or duplicate keys must be with the<br />
Branch Manager; and the sealed envelopes should bear the names of the user<br />
branch and person clearly and marked with phrase “Combination codeconfidential”<br />
on the envelopes.<br />
9.20.3 Loss, replacement<br />
a. The individual key holders should immediately report the loss of keys in<br />
writing to their immediate supervisors ;<br />
b. Those in custody of duplicate keys upon receipt of loss reports-must<br />
immediately supply the duplicates to the concerned Branch /individual ;<br />
c. All costs and expenses that are incurred as a result of a key or keys<br />
replacement or the change of a locking-device will be paid by the employee<br />
who lost the key or keys.<br />
d. Lost strong room door or large safe key must be totally replaced by a new<br />
one at the expense of those responsible.<br />
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10. CASH OPERATIONS<br />
10.1 Cash handling between NBE and Cash custody and issue<br />
The account held for NBE should be known as “cash held for the Currency<br />
Management of the National Bank of Ethiopia.” This is maintained by various CBE<br />
branches authorized to hold cash for the NBE. The account is:<br />
a) Debit for any amount of money lodged to it, and credit for any amount of<br />
money withdrawn there from and transferred to a bank.<br />
b) Furthermore, these branches have been authorized to withdraw from the<br />
CBE any amount of cash that is unfit for re-issuance or that is in excess of the<br />
amount considered adequate for their respective requirements.<br />
c) Both the withdrawals and lodgings of cash from these accounts ought to be in<br />
components of Birr 50,000.00. It is, nonetheless, imperative to post the<br />
transaction on NBE system by specifying amount and the denominations of<br />
the Birr notes lodged into, or withdrawn.<br />
d) To make sure that requests are lodged accordingly and promptly to the NBE,<br />
CBE’s branches are required to make a thorough assessment of their cash<br />
position well ahead of time and thereby know when the amount of the cash<br />
in their possession will decrease or increase.<br />
10.1.1 Cash Withdrawal from NBE<br />
a) Cash withdrawn from the "cash held for the National Bank of Ethiopia"<br />
for starting the day’s operations should be recorded in the bound book<br />
and a signature must appear on the space provided for that purpose. The<br />
denominations of the cash withdrawn should also be clearly disclosed in<br />
the bound book.<br />
b) Each withdrawal should be shown on the stock card kept for the purpose.<br />
c) Pass the necessary entry in the NBE system.<br />
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d) The branch that withdrew or Debit cash from its "cash held for the<br />
National Bank of Ethiopia" will credit Issue Account with NBE with contra<br />
cash.<br />
e) <strong>CATS</strong> –CPC shall make up-to-date reconciliation and follow ups.<br />
10.1.2 Cash Lodging to NBE<br />
a) Any lodging of cash should be recorded in the stock card kept for each<br />
denomination. Then, after it has been recorded, the personnel who did the<br />
lodging thereof must put her or his initials on the stock card.<br />
b) The branch that lodges cash to the "cash held for the National Bank of<br />
Ethiopia" should inform the NBE through NBE’s cash management system<br />
about the amount of the money lodged and the denominations thereof.<br />
c) Issue holding branches and Cash custody and issue will debit the Issue<br />
Account with NBE of the CBE and credit the branch Cash account that lodged<br />
the money.<br />
d) Maximum care must be taken to “Cash in Transit," to ensure the safety of the<br />
cash being transported from one place to another.<br />
10.2 Cash handling between Cash custody and issue and branches<br />
10.2.1 Cash collection from Cash custody and issue/ the NBE Issue Account-<br />
Holding Branch<br />
10.2.1.1. Responsibility of the branch<br />
I. City Branches<br />
Customer Service Manager/Branch Manager<br />
a) Prepares a letter of request to Cash custody and issue;<br />
b) The outlying branches of city districts Sends the tested message to cash<br />
custody & distribution by telephone or prepares a message on the system<br />
and send it by secured CBE’s internal e-mail by disclosing the total<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
amount of the local currency or of the foreign currency requested for,<br />
together with a breakdown thereof in denominations;<br />
c) CBE’s branches in the cities are supposed to lodge their requests in<br />
writing, indicating the following:<br />
i. The total amount of the money requested for, together with a<br />
breakdown thereof in denominations;<br />
ii. The letter of request should be signed by the Senior Customer<br />
Services Officer-Cash and by Customer Service Manager/Branch<br />
Manager;<br />
iii. The letter of request should bear the seal of the branch; and<br />
iv. The letter of request should be sent to the Cash custody and issue in a<br />
sealed envelope or by CBE internal e-mail intranet.<br />
d) Authorizes the transaction if it is on her/his authorization limit;<br />
The Senior Customer Services Officer-Cash (at a branch)<br />
a) Counts the cash, in collaboration with the Customer Services Officer at the<br />
table, ascertains the correctness of the amount and the denominations<br />
thereof by comparing it with Handing and taking over format (refer<br />
FORMCBE<strong>CATS</strong>202),When receiving cash from the senior customer<br />
services officer-Cash (Cash custody and issue) in front of the Senior<br />
Customer Services Officer from the Cash custody and issue<br />
b) Signs on the Handing and taking over format and gets the Customer<br />
Services Officer/Maker co-sign on it, affixes a stamp and hands it over to<br />
the Senior Customer Services Officer of the Cash custody and issue at the<br />
Cash custody and issue as an acknowledgement of receipt of the cash;<br />
c) Passes one copy of Handing and taking over format to one of the<br />
Customer Services Officers/Makers for posting the cash received; and<br />
d) Registers the denominations of the cash in her/his cash position book<br />
and posts the total amount thereof into his computer as cash received.<br />
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The Customer Services Officer-Maker<br />
a) Receives one copy of Handing and taking over format from Senior<br />
customer service officer-cash;<br />
b) Posts the transactions.<br />
The Branch controller<br />
a) Receives the handing and taking over form from the Customer Service<br />
Officer-Maker;<br />
b) Checks the transaction on the system;<br />
II.<br />
Outlying Branches<br />
Customer Service Manager/Branch Manager<br />
a) The outlying branches Sends tested message to Customer Service<br />
Manager at the Issue Account-Holding Branch for urgent delivery of cash;<br />
b) The Head of Insurance and Risk should be notified once a month, through<br />
a report, of the cash shipment to, or from, the branches, so that she or he<br />
will provide the necessary insurance coverage;<br />
c) Authorizes the transaction.<br />
The Senior Customer Services Officer-Cash (at a branch)<br />
a) Follows the same procedure discussed herein above under the senior<br />
customer service officer –cash for city Branches.<br />
The Customer Services Officer/Maker<br />
a) Follows the same procedure discussed herein above under the senior<br />
customer service officer for city Branches.<br />
The Branch controller<br />
a) Receives the handing and taking over form from the Senior Customer<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Service Officer-Cash;<br />
b) Checks the transaction on the system; and<br />
c) File and keeps the appropriate document<br />
10.2.1.2. Responsibility of Cash custody and issue/ the NBE Issue Account-<br />
Holding Branch<br />
i. City Branches<br />
The Head Cash custody and issue<br />
a) Upon receipt of the tested message from the branches, ascertains and<br />
decodes the message and forwards it to manager customer Services at<br />
Cash custody and issue that she or he will keep it in her/his custody; and<br />
b) Provides a van for transporting the cash, as well as the security guards<br />
who will escort it (the cash).<br />
The Manager Customer service- Cash custody and issue<br />
a) Prepares cash Handing and taking over format for the total amount of<br />
money to be supplied to the branch, disclosing the breakdown of the<br />
denominations thereof;<br />
b) Arranges the date, the time and the Senior Customer Services Officer-cash<br />
who will provide the cash to the branch; and<br />
c) Arranges the cash requested for, in accordance with the preferred<br />
denominations, and hands it over to the concerned Senior Customer<br />
Services Officer-cash, together with Handing and taking over form.<br />
The Senior Customer Services Officer-Cash (at Cash custody and issue)<br />
a) Counts the bundled-up cash, which has subsequently been stashed up<br />
in bricks, so as to ascertain the correctness of the amount thereof, in<br />
line with the lodged request, and signs one copy of Handing and taking<br />
over format which will be retained by the Manager Cash custody and<br />
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issue acknowledgement receipt of the cash;<br />
b) Takes the cash to the branch, having it escorted by the assigned<br />
security guards; and<br />
c) Hands over the cash to the Senior Customer Services Officer-Cash (at<br />
the branch), together with two copy of Handing and taking over format.<br />
ii. Outlying branches<br />
The Customer Service Manager (at the NBE Issue Account-Holding<br />
Branch)<br />
a) Follows the same procedure discussed herein above under the Head of<br />
the Cash custody and issue.<br />
The Senior Customer Services Officer-Cash (at the NBE Issue Account-<br />
Holding Branch)<br />
a) Follows the same procedure discussed herein above under the Customer<br />
Service Manager of the Cash custody and issue.<br />
The Customer Services Officer-Cash (at the NBE Issue Account-Holding<br />
Branch)<br />
a) Is responsible for taking the cash requested for by following the same<br />
procedure discussed above under the Senior Customer Services Officer-<br />
Cash (at the Cash custody and issue);<br />
The Branch controller<br />
a) Receives the handing and taking over form from the Senior Customer<br />
Service Officer-Cash;<br />
b) Checks the transaction on the system; and<br />
c) File and keeps the appropriate document<br />
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10.2.2 Cash surrender to Cash custody and issue/ the NBE Issue Account-<br />
Holding Branch<br />
10.2.2.1. Responsibility of the branch<br />
i. City Branches<br />
The Customer Service Manager<br />
a) Requests the Cash custody and issue for the collection the excess cash<br />
through letter. the following issues must fulfilled:<br />
i. The total amount of the money to be dispatched to the Cash Issue<br />
ii.<br />
iii.<br />
and Custody and the breakdown of the denominations thereof;<br />
The letter should be signed by Customer Service Manager/Branch<br />
Manager; and<br />
The letter should bear the stamp of the branch.<br />
The Senior Customer Services Officer-Cash (at the branch)<br />
a) Requests for the ID card of the Senior Customer Services Officer-Cash and<br />
ascertains that its number is similar with the one that appears in the<br />
letter;<br />
b) Prepares Handing and taking over format for the total cash to be sent to<br />
the NBE issue account-holding branch or Cash custody and issue,<br />
indicating the breakdown of the denominations and signs on it;<br />
c) Prepares the cash to be sent from the vault to Cash custody and issue, in<br />
collaboration with Customer Service Manager;<br />
d) Identifies the Senior Customer Services Officer-Cash (at the Cash custody<br />
and issue) in charge on the file copy of the Handing and taking over<br />
format which will be retained by the branch and makes her or him sign<br />
on it to acknowledge receipt of the cash; and<br />
e) Transfers the amount and denomination of cash to be dispatched to the<br />
customer service officer-maker through the system together with a copy<br />
of the handing & taking over format for posting.<br />
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The Customer Services Officer-Cash (at the branch)<br />
a) Accepts the money through the system and posts it into the system as<br />
payment.<br />
The Customer Service Manager at branch<br />
a) Authorizes the transaction; and<br />
b) Jointly prepares, with the Senior Customer Services Officer-Cash, the cash<br />
to be sent from the vault to the Cash custody and issue.<br />
The Branch controller<br />
a) Receives the handing and taking over form from the Senior Customer<br />
Service Officer-Cash;<br />
b) Checks the transaction on the system; and<br />
c) File and keeps the appropriate document<br />
ii.<br />
Outlying Branches<br />
An outlying branch having excess cash shall first inform, in writing the branch<br />
holding cash for the "National Bank of Ethiopia Issue Account" as follows:<br />
a) Sends tested messages by telephone or prepares a message on the system<br />
send by CBE’s internal e-mail;<br />
b) Discloses the total amount of the money to be dispatched and the breakdown<br />
thereof in denominations;<br />
c) Gets the letter signed by Customer Service Manager/the Branch Manager;<br />
d) Ensures that the letter has the seal of the branch. By a copy of the same letter,<br />
the Director-Account and Reconciliation shall be informed by mail of the<br />
need for an insurance coverage. The dispatching branch should also make<br />
ready the cash prior to the date of collection;<br />
e) Separates the good Birr notes from the mutilated and damaged Birr notes;<br />
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f) Wraps up, in accordance with their denominations all Birr notes that are in<br />
good condition as well as those that are mutilated and dog-eared, and the<br />
signatures of the pertinent staff must then be affixed to the wrappers;<br />
g) Arranges Wrapped-up bundles of Birr notes in bricks;<br />
h) Prepares Handing and taking over format the total amount of money to be<br />
dispatched, indicating the breakdown thereof in denominations;<br />
i) Surrenders the cash to the Senior Customer Services Officer-cash upon its<br />
arrival at the "NBE Issue Account-Holding Branch," together with Handing<br />
and taking over format.<br />
j) The Senior Customer Services Officer-Cash, for her or his part, accepts the<br />
cash and counts it, with the help from the Customer Services Officers, and<br />
thereby ascertains the correctness of its amount as per the Handing and<br />
taking over format thereof.<br />
10.2.2.2. Responsibility of Cash custody and issue/ the NBE Issue Account-<br />
Holding Branch at the time of cash collection from branches<br />
i) City branch<br />
The Head - Cash custody and issue<br />
a) Upon receipt of the letter of request from the city branches and the tested<br />
message from the outlying branches, ascertains and decodes the message<br />
and arranges a van for collecting the cash, together with the security<br />
guards who would escort the cash; and<br />
b) Prepares the introduction letter that specifies the persons carrying the<br />
cash, the security guards, the driver, etc. and signs on it.<br />
The Customer Service Manager - Cash custody and issue<br />
a) Arranges the date, the time and the Senior Customer Services Officer(s)<br />
who will collect the cash from the branch;<br />
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b) Sends the introduction letter to the branch, disclosing therein the name of<br />
the Senior Customer Services Officer and her/his ID No.; and<br />
c) Assigns a team leader to the van and entrusts her/him with the<br />
responsibility of coordinating the work of the assigned senior officers.<br />
The Senior Customer Services Officer-Cash (at Cash custody and issue)<br />
a) Takes the letter to the branch and hands it over to the Senior<br />
Customer Services Officer-Cash;<br />
b) Receives the cash, counts it as well as the denominations thereof, and<br />
ascertains that its amount and the breakdown of its denominations<br />
agree with what is written on the handing and taking format , and<br />
meticulously counts especially notes of Birr 50 and Birr 100—besides<br />
carefully checking to make sure that the bundles made of Birr notes<br />
that are below 50 are arranged in bricks; and<br />
c) Takes the cash, escorted by the security guards assigned to escort it.<br />
ii) Outlying branches<br />
Upon receipt of the letter of request from the cash-dispatching branch, the NBE<br />
Issue Account-Holding Branch shall do the following:<br />
Customer Service Manager (At NBE Issue account holding branch)<br />
a) Arranges a van that will transport the cash and the security guards who<br />
will escort it;<br />
b) Assigns a staff that will collect the cash;<br />
c) Prepares a letter to the dispatching branch, disclosing therein the name of<br />
the staff to whom the cash is to be surrendered—as well as her or his ID<br />
No.;<br />
d) All the letters that are to be written in connection therewith shall be<br />
signed by Customer Service Manager/the Branch Manager and must bear<br />
the seal of the branch;<br />
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e) The staff assigned to collect the cash and hands over the letter to the<br />
Branch Manager/Customer Service Manager who will have to then direct<br />
it (the letter) to the Senior Customer Services Officer-Cash;<br />
f) The Senior Customer Services Officer at branch arranges the cash to be<br />
dispatched, in accordance with the handing and taking over form thereon;<br />
The Senior Customer Services Officer-Cash (At NBE Issue account<br />
holding branch)<br />
a) Counts especially Birr 50 and Birr 100 notes carefully;<br />
b) Makes sure that bundled-up Birr notes that value less than Birr 50 each<br />
are wrapped up and that the signatures of the pertinent personnel have<br />
been affixed to their wrappers;<br />
c) Makes sure that the bundles have been rearranged in bricks;<br />
d) Compares the total amount of the cash with that on the handing and<br />
taking format and thereby ascertains the correctness thereof;<br />
e) Signs on the handing and taking format and affixes thereto a teller stamp<br />
to acknowledge receipt of the cash; and<br />
f) Puts the cash in a safe box and locks it up or nails it shut and does the<br />
necessary arrangement for transporting it safely, by having it escorted by<br />
the security guards assigned for the purpose.<br />
10.3 Security Precautions<br />
a) Cash consignment from one branch to another and from the Issue Accounts<br />
to the branches shall always be escorted by security guards, if a branch has<br />
no security guard of its own;<br />
b) If the distance to be covered requires an over-night stay on the way, it shall<br />
be planned in such a way that the town where the night is to be passed shall<br />
be preferred for the safety of the cash.<br />
c) Whenever possible, a trip with cash after sunset or before sunrise shall be<br />
avoided.<br />
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d) If there is a branch of the CBE in that town, the vehicle carrying the cash shall<br />
be made to stay for the night in the compound of the branch, vigilantly<br />
watched by its escorts. In the absence of a branch, however, the vehicle shall<br />
be parked either in the compound of a nearby police station or in a military<br />
camp, accompanied by its escorts.<br />
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10.4 Cash Handling within a Branch<br />
10.4.1 Cash Limit for Customer Service Officers<br />
The Customer Service Manager and Senior Customer Service Officer-Cash shall<br />
distribute cash to customer service officers as per the cash limit indicated<br />
hereunder for starting the day’s operation and during the day’s operation. However,<br />
the limit set by the branch should not exceed the amount stated hereunder:<br />
Branch Grade<br />
Maximum cash Limit of front Customer Service Officer<br />
Makers<br />
Cash for the start<br />
of the day<br />
Cash in the hand of Customer Service<br />
Officer during the day’s operation<br />
Grade III and IV 150,000 300,000<br />
Grade I and II 150,000 200,000<br />
10.4.2 The <strong>Procedure</strong> for Opening and Starting the Day’s Operations<br />
The Senior Customer Services Officer-Cash<br />
a) Opens the vault and withdraws there from the cash that will be needed<br />
for the day’s Operations jointly, with Customer Service Manager,;<br />
b) Transfer the amount of cash withdrawn from vault against the<br />
denomination through ‘Vault to till’ transfer.<br />
c) Distributes adequate physical cash in all kinds of denominations to the<br />
Customer Services Officers/Makers;<br />
d) Transfers through the system to the concerned Customer Services<br />
Officer/Maker the required-cash and the petty-cash balance held in each<br />
of the Customer Service officer cash boxes;<br />
e) Hands over the cash box that was kept locked in the vault to each<br />
Customer Services Officer/Maker; and<br />
f) Transfers the closing balance of the cash book of the previous day and the<br />
balance of the day to the cash book as balance brought forward (BBF).<br />
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The Customer Service Manager<br />
a) Opens the vault and withdraws there from the cash that will be needed<br />
for the day’s operations jointly, with the Senior Customer Services<br />
Officer-cash,;<br />
b) Writes the cash withdrawn from Vault by denomination on the bound<br />
book and make the senior customer service officer-cash put his signature<br />
on it as acknowledgment of receiving the cash.<br />
c) Authorize vault to Till Transfer;<br />
d) Assigns Customer Services Officers/Makers who will assist and facilitate<br />
the cash operation at the counter and at the master table (where the<br />
Senior Customer Services Officer-Cash is working) ;<br />
The Customer Services Officer/Maker<br />
a) Collects the cash box from the vault when it is opened in the<br />
morning;<br />
b) Opens the cash box in front of the Senior Customer Services Officer-<br />
Cash to confirm the existence of petty cash (the cash leftover in the<br />
box from the previous day), together with the personal cash<br />
brand/stamp;<br />
c) Takes the cash box to its cage, and verifies the amount of the petty<br />
cash transferred through the system against the previous day’s<br />
record and accept/authorize;<br />
d) Collects the cash from the Senior Customer Services Officer-cash and<br />
checks all the complete bricks to ascertain that each one of them<br />
contains 10 bundles and that all of them have been wrapped;<br />
e) Makes sure that the signatures or the initials of the Cash Counter and<br />
the Verifier have been affixed to the bundle. Notes of Birr 50 and Birr<br />
100 are to be accepted only by carefully counting each one of them;<br />
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f) check the amount of cash transfer through the system, authorize the<br />
‘Till transfer’ as acknowledgment of receipt of cash for the daily<br />
operation; and<br />
g) Adjusts the date of the stamps (brands) before starting the day’s<br />
operations.<br />
10.4.3 During the Day’s Operations<br />
i. Request for Additional Cash<br />
The Customer Services Officer/Maker<br />
a) Requests the Senior Customer Services Officer-cash the required<br />
additional cash.<br />
b) Collects the money, counts and ascertains the correctness of the amount<br />
and of the denominations thereof, by comparing it with what was<br />
requested; and<br />
c) Confirms to acknowledge receipt of the money by authorizing the cash<br />
transfer through the system.<br />
The Senior Customer Services Officer-Cash<br />
a) Coordinates, support and controls the activities of the Customer<br />
Services Officers/Makers and does follow-up on the balance still in<br />
their possession through her/his computer as well as physically;<br />
b) Receives the message from the Customer Services Officers/Makers<br />
when they need additional cash;<br />
c) Prepares the amount of cash requested by them after ascertaining<br />
actual need for big amount ;<br />
d) Sends the required physical cash, and transfer the same amount of<br />
Cash though the system.<br />
e) Ensures the Customer service officer-Maker has authorized<br />
(accepted) through the system immediately.<br />
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ii.<br />
Transfer of Excess Cash in the Middle of the Cash Operations<br />
The Customer Services Officer/Maker<br />
a) Sorts the cash at hand into bundles, in accordance with the<br />
denominations and balances thereof;<br />
b) Hand over the cash to the Senior Customer Services Officer, and transfer<br />
the amount of cash through the system(Till to Till transfer); and<br />
c) Ensures the Senior Customer service officer-Cash has authorized<br />
(accepted) by the system immediately.<br />
The Senior Customer Services Officer-Cash<br />
a) Receives the cash and counts it with help of the Table Master;<br />
b) Ascertains the correctness of the money received, in accordance with<br />
the denominations written down;<br />
c) Acknowledge receipt of the amount of money by authorizing the ‘till<br />
transfer’ through the system;<br />
d) Receives the money at the table by carefully counting each bundle and<br />
brick and after checking the correctness of its amount by comparing it<br />
with that in the system (‘till balance by denomination’) of the<br />
Customer Service Officer Maker (at the table) ,whenever the money at<br />
the table becomes twice the size of the front officer limit .<br />
iii.<br />
Receiving Cash Deposit at the Table<br />
The Customer Services Officer/Maker (at the table)<br />
a) Collects the money from the customer in excess of 15-bundle cash.<br />
b) Counts the Birr notes against each denomination in the bundles and<br />
ascertains the correctness thereof by comparing it with that of the<br />
voucher filled in.<br />
c) Posts the amount of money to the customer’s account using her/his user<br />
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ID, affixes a stamp to the voucher/s, signs on it and prints a deal slip;<br />
d) Makes the cash office attendant wrap the bundles of the Birr notes<br />
according to their denominations and affixes a stamp to the wrapping<br />
paper;<br />
e) Signs on the wrapped Birr notes to confirm the correctness of the amount<br />
of money in each bundle (two signatures are required on wrapped notes<br />
of Birr ten and above, and one signature on wrapped notes of Birr one<br />
and five); and<br />
e) Balances the money according to its denominations and hands it over to<br />
the Senior Customer Services Officer-cash, and transfer the cash through<br />
the system, whenever the money at the table becomes twice the size of<br />
the front officer limit.<br />
f) During lunch time in the absence of the senior customer service officer –<br />
cash; she/he shall handle till to till transfer.<br />
10.4.4 Closing Activities<br />
i. At lunch time<br />
The Customer Services Officer/Makers<br />
a) Hand over all the Birr notes in bundles, except the loose ones, to the<br />
Senior Customer Services Officer-cash and make a ‘till transfer’ through<br />
the system;<br />
b) Hands over to the Branch Controller the remaining vouchers in her or his<br />
possession,<br />
c) Balances the overall physical cash against the system and the format<br />
designed for the purpose (Refer form CBE<strong>CATS</strong>201).<br />
d) Keeps the cash in her or his hands (the petty cash) in the box, together<br />
with the stamp, lock the cash box and hands it over box to the Senior<br />
Customer Services Officer-cash.<br />
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The Senior Customer Services Officer-Cash<br />
a) Accepts the cash surrendered by the Makers, ascertains the correctness of<br />
the denominations of the total cash and acknowledges receipt of the cash<br />
by authorizing the ‘till transfer’ on the system;<br />
b) Ascertains the correctness of the cash balance of the maker in the system<br />
above the petty cash left in the maker box against the till transfer to<br />
her/him; (i.e. the customer service offices shall not keep a till balance<br />
more than birr 20,000.00)<br />
ii.<br />
The Day-End Closing<br />
The Customer Services Officer/Maker<br />
a) Amalgamates the cash in her or his hands in bundles and loose notes,<br />
sorting it by its denominations, and balances the overall cash as follows:<br />
(Refer form CBE<strong>CATS</strong>201)<br />
Beginning balance + cash received from customers + cash received from<br />
the vault (the Senior Customer Services Officer-Cash) - cash paid to the<br />
customers – cash sent to the vault = cash on hand/ Petty Cash<br />
b) Transfers to the Branch Controller the remaining deposit and payment<br />
vouchers in her or his hands,;<br />
c) Balances and transfers to the Senior Customer Services Officer-cash in<br />
two steps first the total amount, which will be transferred to the table,<br />
and secondly the petty cash balance, which will have to be kept in the<br />
cash box overnight and make a ‘Till transfer’;<br />
d) Submits to the Senior Customer Services Officer the cash box and locks up<br />
the cash box in the vault.<br />
The Customer Services Officer/Maker (at the cash table)<br />
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a) Accepts the remaining bundles at end of day from the Customer Services<br />
Officers sent to her or him;<br />
b) Checks against the system the correctness of the amount of the cash<br />
received from the table and of that surrendered to the table by each<br />
Customer Services Officer during the day; and<br />
c) Checks the correctness of the amounts of money in each brick and loose<br />
bundle and surrenders them to the Senior Customer Services Officercash.<br />
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The Customer Services Officer/Maker (at the coin-exchange window)<br />
a) Balances the money and coins she/he received from the Senior Customer<br />
Services Officer-cash, the money and the coin still in her or his hands<br />
against ‘Till balance by denomination’ on the system; and<br />
b) Submits to the Senior Customer Services Officer-cash the cash and the<br />
coins still in her or his hands and make a ‘Till transfer’.<br />
The Senior Customer Services Officer-cash<br />
a) Accepts the cash from the Customer Service officer Maker at the table,<br />
after checking against the system;<br />
b) Receives cash from the Customer Services Officers/Makers against the<br />
balance shown in the system;<br />
c) Receives the total amount of cash from the Customer Services Officers by<br />
authorizing the ‘Till transfer’ as acknowledgment of receipt of Cash.<br />
d) Makes sure that the bricks contain 10 bundles of 100 Birr notes each and<br />
that the packet bears the initials of the Counter and of the Verifier in the<br />
cases of notes of Birr ten and above, and also count each FCY currency;<br />
e) Balances the total cash (Both local and foreign currency) transaction<br />
against the Customer Services Officers’ balance in the system;<br />
f) Records the breakdown of all Customer Services Officers’ petty cash on a<br />
register for the next day’s transfer;<br />
g) Writes the balance of the daily debits and credits on the cash book;<br />
h) Fills the amount of money withdrawn from the vault during the day and<br />
the amount of money lodged to the vault on the cash book;<br />
i) Balances the cash books of local and FCY against the Vault account<br />
balance and signs on the space provided for that purpose;<br />
j) Posts the cash lodged to the vault on the system under the file ’Till to<br />
Vault transfer’; and<br />
k) Transfers the cash lodgment to the vault, together with the petty-cash<br />
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box Jointly, with Customer Service Manager.<br />
The Customer Service Manager<br />
a) Checks the correctness of the amount of the cash balanced by the Senior<br />
Customer Services Officer-cash against ‘vault Till balance by<br />
denomination’, in the system;<br />
b) Makes sure that each brick contains 10 bundles and counts all the loose<br />
Birr notes and count each FCY;<br />
c) Authorize the ‘Till to Vault transfer’ made by Senior customer service<br />
officer-cash;<br />
d) Transfers the physical cash lodgment to the vault, together with the pettycash<br />
box jointly, with the Senior Customer Services Officer.<br />
The Branch Controller<br />
a) Receives and balance all makers’ cash closing sheet against the general<br />
ledger balance of system<br />
10.4.5 Cash Difference<br />
a) Although, for control purposes only, a difference of Birr 100.00 or of any<br />
amount in excess thereof, needs to be reported separately to the branch<br />
manager and district office, it is important to note that any difference should<br />
be treated as being equally serious—regardless of its amount.<br />
b) A cash discrepancy (shortage and excess) involving Birr 100.00 and above be<br />
reported to the Branch Manager or to Customer Service Manager<br />
immediately.<br />
c) A cash discrepancy involving a shortage of Birr 1,000.00 (one thousand) or<br />
more must be immediately reported by phone to the District Office. A letter<br />
should follow, indicating the effort made to trace the difference. The letter<br />
should contain the following:<br />
i. The amount of money involved;<br />
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ii. The name of the Customer Services Officer;<br />
iii. The effort made to trace the discrepancy;<br />
iv. The action taken to settle the discrepancy; and<br />
v. Any other relevant facts.<br />
d) The Branch Manager, or Customer Service Manager, should arrange the<br />
whole cash, including the vault cash, to be checked and for a proper<br />
investigation to be done thereon. And, whenever the cash indemnity account<br />
of the concerned Customer Services Officer is insufficient to cover the loss<br />
involved, appropriate action must be taken to balance the cash position.<br />
e) All branches are required to send to the Customer Services Officer in their<br />
respective District offices their cash-discrepancy reports (shortage or excess)<br />
at the end of each quarter, regardless of the amount of money involved.<br />
10.4.6 Refund of Excess Cash<br />
a) A cash excess of up to Birr 10,000.00 has to be refunded to the rightful<br />
claimant so long as the refund has been jointly approved by the Branch<br />
Manager and Customer Service Manager.<br />
b) The refund of an excess cash of over Birr 10,000.00, but less than Birr<br />
50,000.00, has to be jointly approved by the concerned Branch Manager and<br />
the District Manager.<br />
c) The refund of an excess cash of over Birr 50,000.00 has to be jointly<br />
approved by the process owner with the concerned District Manager.<br />
d) At the time of approval, the following, among others, should be considered:<br />
i. The Application of the Claimant<br />
A request for such a refund should normally be lodged instantly. Unless a valid<br />
reason has been given for the delay, such claims should not be entertained 15<br />
days after the money was deposited. The claimant’s application must contain<br />
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such pertinent information as to how the excess occurred as well as the<br />
denominations and the other factors. This information should be<br />
counterchecked against the statement of the concerned Customer Services<br />
Officer.<br />
ii. A Written Statement of the Customer Services Officer<br />
The Customer Services Officer may recall the circumstance under which the<br />
excess occurred and she/he may even recognize the claimant. This must be<br />
included in the Customer Services Officer’s report, which should be critically<br />
looked into.<br />
iii. Receipt or a Payment Voucher in which the Excess is claimed to have occurred<br />
If the denominations reflect the error made, the refund could be approved easily.<br />
Besides, the document is essential to determine how much money was involved<br />
at the time of the deposit or withdrawal in order for the excess to occur.<br />
iv. Other Pertinent Circumstantial Evidence<br />
All other factors that corroborate the claim may be considered, although it is<br />
difficult to enumerate all of them here.<br />
The Branch Controller and the Branch Manager should work out the<br />
denominations of the excess. Deposit will be added on to the beginning cash<br />
balance by denomination and withdrawals will be deducted in the same manner<br />
to arrive at the denominations of the closing cash balance. This should be<br />
performed without fail, and those who approve the refund of excesses will<br />
consider such reports in their decisions.<br />
v. Undertaking or Guarantee<br />
If and when it cannot be completely proved that the excess belongs to the<br />
claimant, but there are some reasons to support the claim, an undertaking or<br />
guarantee should be obtained for paying back the money with interest thereon,<br />
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in case another claimant appears later on.<br />
vi. Reporting Excess Refund<br />
The Branch Controller should report to the concerned district office on the<br />
excess refund approved by the branch. The district office should then<br />
communicate the approval of the excess cash to the Internal Audit.<br />
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10.4.7 Forged (Counterfeit) Notes<br />
a) Counterfeit Birr notes shall be marked “COUNTERFIET” in front of the presenter.<br />
Otherwise, she or he shall have a ground on which to lodge a complaint as having<br />
been unduly expropriated of her/his property.<br />
b) If a rubber stamp is used for marking, it should not be heavily inked or cover the<br />
numbers, the portrait, the signature or any other feature that makes the note<br />
clearly different from that of a genuine Birr note.<br />
c) If a counterfeit money note is noticed after it has been accepted and mixed with<br />
the overall cash of the Bank and there is no way to pinpoint the presenter of the<br />
note, the Customer Services Officer who has received the counterfeit is liable for<br />
making the value of the Birr note as good as it should be. In addition to that, she<br />
or he will have to discover the Birr note and mark it accordingly and then<br />
withdraw it from circulation.<br />
d) Whenever a counterfeit Birr note is intercepted by the Bank, the Federal Police<br />
/nearest police station has to be informed about it immediately. In fact, the note<br />
itself should be sent to the nearest police station, after a stamp indicating that it<br />
is counterfeit has been affixed to it, together with a written report thereon. The<br />
report should clearly show the address of the customer and her/his statement as<br />
to how she/he acquired the note. A copy of this report along with the physical<br />
counterfeit note must then be sent to the Manager-Customers’ Account and<br />
Operation at <strong>CATS</strong>-CPC, Risk and compliance Management and the District<br />
Office.<br />
e) The Bank has no authority to detain the possessor of the note. Still, it will have to<br />
notify the police on the phone while preparing the report.<br />
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10.4.8 Cash Custody<br />
i. Good Coins<br />
a) If the branch has a coin-counting machine, the counting of the coins should<br />
be done by Cash Office attendant. The numbering of the machine should,<br />
however, be attended by the Customer Services Officer. In a branch where<br />
there is no such machine, however, the counting of the coins should be done<br />
by hand, by Cash Office attendant. In the event that the workload of the cash<br />
work is too heavy for Cash Office attendant to do the counting, nevertheless,<br />
the customer may be requested to assist in stacking up the coins. If she or he<br />
is willing to assist, he should, however, be provided with the coin tray of the<br />
Bank.<br />
b) Coins of all denominations that are hand-counted should be arranged in a<br />
pile of twenty coins each and be put in a tray in rows. A tray of coins should<br />
contain 100 piles of coins—that is, ten piles wide by ten piles long (10 X 10).<br />
Before the coins are put in a bag, the Customer Services Officer should check<br />
the accuracy of the counting of the coins arranged in the tray.<br />
c) After the counterfeit money has been counted, a small card that shows the<br />
amount, the initials of the Counter and of the Verifier as well as the date on<br />
which the counting was done should be put in the bag. Then the bag must be<br />
sealed.<br />
d) A coin bag that is full should either be sealed or tied with a string. Thereafter,<br />
a tag with the appropriate color should be attached at the end of it, showing<br />
the denominations, the amount of money, the date on which it was sealed<br />
and the initials of the persons by whom it was counted and verified as well as<br />
the name of the branch.<br />
e) In the vault, or in the cash held for the National Bank of Ethiopia (NBE), the<br />
coin bags should be kept separately, according to the types of coins they<br />
contain. In other words, coins of one denomination should be kept in one bag<br />
as indicated above.<br />
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f) Dilapidated coins should be kept separated from the coins that are in good<br />
condition, with a note in the bag showing the amount thereof and the initials<br />
of the two custodians.<br />
ii.<br />
Good Money Notes<br />
a) Except notes of Birr one, all other money notes should be counted by one<br />
person and then verified by another. Both the Counter and the Verifier of the<br />
notes should sign at the two corners of the bundles containing the first<br />
money notes. The money so counted should then be wrapped. It must also<br />
bear the initials of the Counter and of the Verifier and the date on which it<br />
was wrapped and the name of the branch where the wrapping of the bundles<br />
was done.<br />
b) A bundle should contain 100 notes, and a brick 1,000 notes. In other words,<br />
the Birr notes have to come in ten bundles, a rubber string strapped around<br />
them, with a label on one side of the brick showing the following:<br />
i. The amount of the money in Birr;<br />
ii. The date on which it was strapped;<br />
iii. The name of the branch; and<br />
iv. The initials of the Counter and of the Verifier.<br />
c) No amount of money that comprises less than 100 notes should be wrapped.<br />
And loose Birr notes should be strapped with a rubber band.<br />
d) Birr notes of one denomination must be kept in the same place, whether it is<br />
in the petty cash, the vault or in the vault marked “Cash Held for the National<br />
Bank of Ethiopia.” They should be issued in the order of first-in, first-out and<br />
should not be kept for more than one year after they have been strapped into<br />
bricks.<br />
e) All the initials or signatures on the bundles of the Birr notes must be visible.<br />
f) An incoming or outgoing consignment of cash should always be opened in<br />
the presence of the Senior Customer Services Officer-cash and Customer<br />
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Service Manager.<br />
g) Cash Office attendant Office boys/girls should never be left alone to wrap the<br />
Birr notes without the supervision of either the Customer Services Officer or<br />
the Senior Customer Services Officer.<br />
h) All Customer Services Officers should be occasionally requested to deposit<br />
fresh specimens of their respective signatures and initials in duplicate. The<br />
original must be kept by the Senior Customer Services Officer/Cashier and<br />
the duplicate should be passed on to the Branch controller/Checker so that<br />
she or he will keep it in her/his custody. The frequency for obtaining such<br />
specimens is left to the discretion of the Senior Customer Services Officer/the<br />
Branch Manager.<br />
iii.<br />
Birr Notes that are in Bad Conditions<br />
a) Birr notes that are in bad physical conditions should be kept separately,<br />
according to their denominations, segregated from the Birr notes that are<br />
still in good condition. Any mutilated or damaged Birr note should be<br />
withdrawn from circulation and kept together with the other Birr notes that<br />
are like it so that it may not be re-issued by mistake. However old, every time<br />
a Birr note of a certain denomination reaches 100 in number, it should be<br />
counted, verified and wrapped and treated like all other bundles of new Birr<br />
notes. After all the counting, wrapping and signing is completed, however, a<br />
stamp should be affixed to each bundle, to both sides thereof, with a large<br />
rubber stamp marked “DETERIORATED” with bold letters, so that the<br />
stamping appears on the full length of the bundle. Once a bundle is<br />
obliterated with such a stamp, it is highly improbable that it could be issued<br />
again by mistake for circulation.<br />
b) The damaged or mutilated Birr notes presented at the counter of the<br />
Commercial Bank of Ethiopia for redemption of their value shall be treated<br />
by the guide line of NBE.<br />
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c) The shapes and sizes that these remnant Birr notes take on from some fire,<br />
rodents and other blights are varied and numerous. Not many patterns may<br />
be devised and shaped to illustrate each of them. The NBE has, however,<br />
devised eleven patterns against which we should try to compare and<br />
determine the values of the mutilated and damaged Birr notes presented for<br />
redemption. Their samples are forwarded to all CBE’s branches under a<br />
separate cover. If a branch, nonetheless, happens to come across Birr notes<br />
whose shapes do not have any semblance to any of the eleven patterns<br />
referred to above, they are requested to refer them to the NBE.<br />
10.4.9 Exchange of Birr Notes<br />
a) For the exchange of Birr notes, the Customer Services Officer will receive<br />
from the Senior Customer Services Officer a fixed amount of physical cash in<br />
different denominations, preferably small denominations, and through the<br />
system.<br />
b) The Customer Services Officer shall count the cash she or he is provided with<br />
in front of the Senior Customer Services Officer. If an additional amount of<br />
money is needed for exchange, the Senior Customer Services Officer shall<br />
provide the cash against through the system.<br />
c) The customer service officer shall authorize the ‘Till transfer’ on the system<br />
as acknowledgment of the receipt of cash.<br />
d) The Customer Services Officer will exchange big Birr notes received from the<br />
public into Birr notes of smaller denominations and vice versa and posts on<br />
the system.<br />
c) At the end of the cash operations, during lunchtime and at the day-end<br />
closing, the Customer Services Officer will have to surrender the cash in her<br />
or his hands to the Senior Customer Services Officer-cash in different<br />
denominations and shall make a ‘Till to Till transfer’ .<br />
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10.4.10 Exchange of Coins<br />
a) For the exchange of coins, the Customer Services Officer will receive in the<br />
morning coins in bags with different denominations from the Senior<br />
Customer Services Officer and authorize the till transfer for acceptance.<br />
b) The Customer Services Officer shall examine the tag on the coin bags and the<br />
lead used for packing the coin and counts the coins with a coin-counting<br />
machine to ascertain the correctness of the amount thereof.<br />
c) The Customer Services Officer should balance the coins during lunchtime and<br />
at the day-end closing and hand over to the Supervisor the equivalent thereof<br />
in Birr notes.<br />
10.4.11 Sorting Table<br />
a) A detailed record must be kept by the Senior Customer Services Officer for<br />
recording cash denominations received from the Customer Services Officers.<br />
b) Regardless of their denominations, all Birr notes must be sorted, counted and<br />
wrapped, in collaboration with the Customer Services Officers and Cash<br />
Office attendant;<br />
c) Wrapped Birr notes should be impressed by a cash stamp and signed by both<br />
the Counter and the Verifier or by the Senior Customer Services Officers.<br />
d) The Table Master (customer service officer) should make sure that the total<br />
of the cash surrendered by the Senior Customer Services Officer-cash, as<br />
recorded in the ‘Till to Till Transfer’, agrees with that of the cash sorted and<br />
held in the Table.<br />
e) After balancing, the Table Master (Customer Service Officer) in charge will<br />
have to deliver the cash, according to its denominations, to the Senior<br />
Customer Services Officer and shall make a ‘Till to till transfer’.<br />
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10.4.12 Cash Consolidation<br />
a) It is the responsibility of the Senior Customer Services Officer to combine all<br />
the cash surrendered to her/him, including any balance of cash, which is kept<br />
in the cash room, with help from the Customer Services Officer/Maker (at the<br />
table).<br />
b) The Senior Customer Services Officer prepares the cashbook and balances<br />
the overall cash in her or his hands with that of the ‘Till transaction today’<br />
and denomination by till.<br />
c) While amalgamating and consolidating cash, the Senior Customer Services<br />
Officer-cash must make sure that the following steps are strictly followed.<br />
i. A brick should contain 10 bundles, and each bundle 100 Birr notes;<br />
ii. Bundles must be properly wrapped, sealed and bear the signatures of<br />
the Counter and of the Verifier—that is, of the Maker and the Checker;<br />
and<br />
iii. Birr 50 and Birr 100 notes will have to be carefully counted either by<br />
herself/himself or by the Table Master in charge.<br />
10.4.13 Cash Lodgment to the Vault In the middle of the operation<br />
In the middle of the daily operation when excess cash received from the<br />
customer or cash consignment received, the Customer Service Manager with the<br />
Senior Customer officer-cash shall lodge the excess cash to the Vault by writing<br />
the amount and the denomination on the bound book and make the customer<br />
service manager Sign on it.<br />
The Senior Customer service officer-cash transfers the cash through ‘Till to<br />
Vault’ menu and the Customer Service Manager authorizes it.<br />
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I. At the day end closing<br />
After handling of the cash is secured and the final closing in the cashbook is<br />
recorded according to the denominations, Customer Service Manager shall<br />
undertake the following:<br />
a) Verifies the correctness of the cashbook filled out by the Senior Customer<br />
Services Officer against the ‘Teller Transaction today’ report and ‘till<br />
balance by denomination’ on the system;<br />
b) Verifies that each brick contains 10 bundles, before transferring the cash<br />
to the vault;<br />
c) Balances the vault cash with that of the ‘till to vault’ transfer made by<br />
Senior customer service officer –cash; and<br />
d) Authorize the ‘Till to Vault transfer’ for amount lodged.<br />
10.4.14 Cash Box and Stamp management<br />
The duties and responsibilities that the operators involved in handling the cash<br />
box and brand are the following:<br />
a) The cash box that is given to one Customer Services Officer shall be<br />
transferred to another Customer Services Officers by changing the key; as<br />
far as handing and taking over is properly undertaken in writing ;<br />
b) The Customer Service Officer stamp shall be transferred to, or exchanged<br />
with, other Customer Services Officers, as far as handing and taking over<br />
is properly undertaken in writing;<br />
The Branch Manager<br />
a) Receives from the Customer Service officers at front office makers with a<br />
sealed envelope that contain the combination code and/or duplicate key;<br />
b) Keeps the sealed envelopes that contain the combination codes and/ or<br />
duplicate key of each cash box held in the branch;<br />
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c) Provides the Customer Services Officer with a sealed envelope that<br />
contains her or his personal combination code, which she/he must<br />
commit to memory and replace in an envelope before she/he begins<br />
working in the branch; and holds the duplicate key of the cash box for<br />
safekeeping.<br />
The Customer Service Manager<br />
a) Sets the cash limit of the branch before the cash operation starts;<br />
b) Registers the cash stamp into a register book, affixes the stamp to the<br />
register book and keeps it (the register book) in her or his custody; and<br />
c) Provides the Customer Services Officer-front maker with a cash stamp<br />
and a cash box individually with by letting her/him signing on the<br />
stamp handing over and taking over stamp register book.<br />
The Senior Customer Services Officer-cash<br />
a) Makes sure that the leftover cash (petty cash) physically exists in the box<br />
before placing the cash box in the vault; and<br />
b) Counts—when least expected—the cash reported on the Petty cash sheet<br />
(refer CBE<strong>CATS</strong>201) by the Customer Services Officer, in order to verify<br />
the correctness thereof.<br />
The Customer Services Officer-Maker<br />
a) Seals, signs and hands over the envelope that contain duplicate key<br />
and/or combination code to the Branch Manager for safe-keeping;<br />
b) Surrenders the cash box that contains the petty-cash balance to the<br />
Senior Customer Services Officer for safe-keeping in the vault before she<br />
or he goes out for lunch and at the end of the day;<br />
c) Starts the cash operation with the petty-cash balance in the cash box—in<br />
the morning as well as in the afternoon—and requests for additional cash<br />
when necessary;<br />
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d) Ensures that the cash stamp/brand is kept together with the petty cash in<br />
the box and that the cash box is locked with a key; and she or he was<br />
provided with and/or that its combination code has been locked and<br />
transferred to the vault.<br />
10.4.15 Handling of Branch cash vault and ATM safe key and<br />
Combination<br />
The Customer Service Manager and the Senior Customer Services Officer-cash of<br />
the branch are responsible for keeping the dual lock keys of the ATM safe and<br />
Cash Vault.<br />
In case of, the dual lock is a combination and a key; the combination shall be<br />
handled by the Customer Service manager and the physical key by senior<br />
customer service officer-cash.<br />
Customer service Manager<br />
a) Receives opened Vault or ATM Safe and make change the combination by<br />
himself and keep confidential for himself;<br />
b) Writes combination code, vault type and other particulars on<br />
Combination code reporting format and sealed in White envelope sign on<br />
the sealed part.<br />
c) Inserts the envelope on a small size kaki envelope, sealed the kaki<br />
envelope, stamp on the sealed part and write ‘Private and confidential’<br />
and send to the respective district manager.<br />
d) He/she shall not hand over the combination code instead make the taking<br />
over person to change to her/his own combination code by giving opened<br />
vault or ATM safe when hand over her/his duty.<br />
e) Changes the vault combination code to mitigate unforeseen events<br />
periodically.<br />
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In case of the dual lock is two physical keys the procedure stated above shall<br />
apply for senior customer service officer –cash, too.<br />
Senior Customer Service Officer-Cash<br />
a) Receives the vault key against her/his signature on the Key register. If the<br />
vault is a new one the duplicate key must be submitted to district<br />
operation manager as a reserve;<br />
b) Transfer of Key from one customer service Manager to another must be<br />
handled by handing and taking key registration and signing on it.<br />
10.4.16 Handing and Taking over vault cash<br />
When one of the custodian of branch’s vault temporarily rotates or permanently<br />
replaced i.e. The Manager Customer service or the senior customer service<br />
officer, the following should be performed;<br />
a) Vault Cash counting shall involve the concerned taking over and handing<br />
over staff member/s in addition to the remaining dual custodian/if any<br />
b) Cash working paper sheet which display all the cash in vault shall be filled<br />
and signed by the taking and handing over staff members<br />
c) The senior branch controller /branch controller shall witness the counting<br />
and proper handing and taking over cash as per this procedure ;and<br />
d) Combination keys shall be changed and proper handing and taking over<br />
strong room keys shall be performed per the procedure.<br />
10.4.17 ATM Cash handling within a branch<br />
The Customer Service Manager<br />
a) Monitors ATM cash status, and ensures timely cash lodgment to the<br />
ATMs.<br />
b) Ensures cash replenishments on holidays, weekends and working hours.<br />
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c) Opens the ATM door and return the switch to out-off service mode<br />
(supervisory mode)Jointly with The Senior Customer Service Officer-<br />
Cash;<br />
d) Loads the pre-counted cash on each cassette type, in accordance with a<br />
breakdown thereof in denominations, and ensures that the correct<br />
denominations are in the correct cassette and then return the cassette to<br />
its proper position Jointly with Senior Customer Service Officer-Cash.<br />
e) Inputs the correct loading for each cassette in the ATM (monitor)<br />
f) Checks and monitors ATM cash balance from the ATM cash Account to<br />
replenish it before it gets totally depleted.<br />
g) Arranges and schedules for cash reloading in weekend and holiday.<br />
h) Balances the Cash in the ATMs before reloading.<br />
i) Checks the status of the rejected cassette/purge bin and take appropriate<br />
action and exits from the supervisory mode.<br />
j) Puts the ATM into its normal position—that is, where it says ―ATM in<br />
Service.<br />
k) Ensures whether all the keys are locked before leaving the area.<br />
l) Posts the cash loading amount by front in SYSTEM, if loading falls on<br />
weekends or holyday the transaction shall be posted on the next working<br />
day, but the loading ticket shall be kept in the vault until posting.<br />
The Senior Customer Service Officer-Cash<br />
a) Withdraws cash from vault in the presence of the Customer Services<br />
Manager.<br />
b) Open the ATM door and return the switch to out-off service mode<br />
(supervisory mode) with the Customer service manager.<br />
c) load the pre-counted cash on each cassette type, in accordance with a<br />
breakdown thereof in denominations, and ensures that the correct<br />
denominations are in the correct cassette and then return the cassette to<br />
its proper position jointly with Customer Service Officer;<br />
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d) input the correct loading for each cassette in the ATM (monitor),<br />
e) Ensure the status of the rejected cassette/purge bin and exit from the<br />
supervisory mode.<br />
f) Put the ATM in to its normal position—that is, where it says ―ATM in<br />
Service.<br />
g) Ensures whether all the keys are locked before leaving the area.<br />
h) Ensures the customer service officer-maker posts the cash loading<br />
amount in System, if loading falls on weekends or holyday the transaction<br />
shall be posted on the next working day, but the loading ticket shall be<br />
kept in the vault until posting.<br />
N.B. other issues related to ATM operation management shall be adhered as<br />
per E-payment procedure.<br />
Senior Branch Controller<br />
a) Makes a surprise check the balance of ATM Cash and the balance on ATM<br />
account.<br />
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10.5 Cash Related Internal Control Issues<br />
10.5.1 Cash Basic concepts and Principles<br />
Senior customer service officer-cash/ Customer Service officer-maker<br />
a) Shall give due care to accuracy in keeping and controlling cash;<br />
b) Shall Keep adequate cash in the Cash Office, so as to be able to meet<br />
immediate requirements and to avoid opening the vault more often than<br />
necessary;<br />
c) Shall Keep sufficient coins to meet the moderate requirements of CBE’s<br />
customers;<br />
d) Shall Make sure that the cash limit is always kept to a minimum;<br />
e) Shall Inform the branch’s Management whenever unusual transactions take<br />
place;<br />
f) Shall duly keep the specimens of the signatures and of the initials of the<br />
branch’s authorized personnel;<br />
g) Shall forge good working relations with customers of the branch, and the<br />
transactions of their accounts;<br />
h) Shall make sure that all the blank spaces that appear before and after the<br />
amount of the money to be deposited when using the offline deposit form,<br />
which is written on both the original and the copy, have been closed;<br />
i) Shall show gratitude to customer after rendering the service to the customer;<br />
j) Shall ensure handing and taking over of cash has to be evidenced by an<br />
authorization on the system;<br />
k) Shall ensure that cash is promptly transferred to the Senior Customer<br />
Services Officer, so as to avoid an unnecessary accumulation thereof;<br />
l) Shall regularly keep cash notes inside the cash drawers—out of public<br />
view—not at the counter;<br />
m) Shall avoid huge build-up of surplus cash in the Cash Office by promptly<br />
transferring it to the vault, even if it has not yet been sorted for security<br />
purposes;<br />
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n) Shall avoid frequent opening of the vault by working with all those<br />
concerned in a more concerted manner so as to be able to determine the cash<br />
requirement for the day’s operations.<br />
10.5.2 Concentration and Security<br />
Customer Service officer-maker<br />
a) Make it a point to always concentrate only on what you are doing while<br />
counting, receiving and paying cash;<br />
b) Be fully aware of security requirements at the branch level and make it a<br />
point to strictly comply with all the security-related regulations;<br />
c) You should always keep cash and cashed items only in lockable<br />
drawers—not in shelves or elsewhere;<br />
d) Do away with the practice of recording cash denominations after the<br />
payment has been effected;<br />
e) You must always keep in mind that cash-related items such as vouchers,<br />
cheques, payments and receipt instruments are almost as good as cash;<br />
f) Avoid putting initials/signing on notes’ wrappers before the cash has<br />
been wrapped, and shred all wrappers that bear the initials of the<br />
Customer Services Officer, whenever you find them;<br />
g) Never forget to lock the drawers wherein you stash up cash whenever<br />
you have to leave the cash area and after office hours;<br />
h) Before you leave the premises for lunch, balance your cash, ascertain the<br />
correctness of the amount thereof and hand it (the cash in your<br />
possession) over to the Senior Customer Services Officer and lock the<br />
drawers;<br />
i) Count all the cash taken from the Senior Customer Services Officer<br />
(mandatory especially in the case of Birr 50 and Birr 100 notes) before<br />
delivering it to the customers of the Bank;<br />
j) One should always give slit/opened wrapped notes—especially Birr<br />
notes of big denominations to the customers of the Bank;<br />
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k) Remind customers of the need for carefully counting the cash given to<br />
them before leaving the cash counter;<br />
l) Avoid talking while counting cash, so as to prevent making any errors;<br />
l) If and when the customer changes her/his mind regarding the cash<br />
denominations during payment, do not try to attend to her or his request<br />
up until you have given her/him the cash as per her/his earlier<br />
preference;<br />
m) While exchanging money notes (from one currency to another), do not<br />
remove the cash presented by the customer from the counter until you<br />
have made sure that she or he has fully agreed to proceed with the<br />
exchange;<br />
n) Before effecting payment thereof, always make sure that the value of the<br />
check has been debited from the appropriate account.<br />
o) When crediting customer account make sure that the amount is collected<br />
and the appropriate account credited.<br />
p) Exchange of birr notes between Customer service officers is not<br />
permitted.<br />
Senior Customer Service Officer-Cash<br />
a) Whenever possible, undertake all your cash-related activities on<br />
relatively quiet time;<br />
b) Avoid putting coins in a money bag set aside for other denominations;<br />
c) Never forget to lock the drawers wherein you stash up cash whenever<br />
you have to leave the cash area;<br />
d) Avoid talking while counting cash, so as to prevent making any errors;<br />
e) Customer Services Officers are not allowed to keep items like bags, pieces<br />
of luggage, lunch boxes, laptop etc. in the cash area.<br />
f) No one should be admitted into the cash area, other than those employees<br />
whose work involves some type of cash-handling. Even such employees<br />
should not be allowed to roam around the cash area or to cause<br />
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unnecessary commotion.<br />
h) While on duty, Customer Services Officers are not allowed to leave their<br />
windows under any circumstances or to be engaged in long conversations<br />
with other Customer Services Officers or with the customers of the Bank<br />
across their partitions.<br />
i) Nobody should be admitted into the windows of the Customer Services<br />
Officers. And no unauthorized person should be allowed to enter the Cash<br />
Office at any time. Since all cash-related work requires maximum care<br />
and accuracy, nothing that could disrupt the attention of the Customer<br />
Services Officers should be tolerated in the cash area.<br />
j) All staffs working in the cash area must be polite, courteous, attentive and<br />
respectful toward the customers of the Bank. Proper information must be<br />
given out in response to the inquiries coming from customers. If the<br />
Customer Services Officer is uncertain about the inquiry forwarded to her<br />
or him by a customer, she or he should direct the customer to the<br />
pertinent person or Supervisor.<br />
k) Since there is no insurance coverage for the excess cash over and above<br />
the approved limit, Customer Service Manager and the Senior Customer<br />
Services Officer should make sure that the branch’s cash-holding limit is<br />
within the approved limit.<br />
The Branch Manager/Customer service Manager<br />
The branch manager shall create awareness to customer service officers<br />
before assigning them as a front office Maker.<br />
a) To change the date on the cash stamp of the branch on a daily basis;<br />
b) To concentrate on the work at hand even on relatively quiet days;<br />
c) To check properly signatures, ID cards, posting, approval and the<br />
sameness of the amount of money given in both words and figures;<br />
d) To accurately write the denominations of the cash paid to the customers<br />
of the Bank on the cash-payment instruments and to verify the<br />
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correctness of the denominations written on the cash deposit vouchers;<br />
e) To retain the original of a deposit voucher and handing over only the deal<br />
slip to the depositor;<br />
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10.5.3 Attendance and Conduct<br />
a) The Senior Customer Services Officer-cash, the Customer Services Officers<br />
and the Cash Office attendant should always be in the cash area before<br />
starting of working hour to make the necessary arrangements for the cash<br />
operations of the day and start rendering the services to the customers of the<br />
Bank as soon as the branch is open to its customers. Furthermore, since they<br />
are the staffs whom the customers of the Bank come into contact with more<br />
often, they should, as much as possible, be presentable in their appearances<br />
and thereby reflect a positive image of the Bank.<br />
b) The Senior Customer Services Officer, the Customer Services Officers and the<br />
Cash Office attendant are not normally allowed to leave the cash area. If they<br />
are compelled to do so, due to an unexpected circumstance that is beyond<br />
their control, they have to at first get the go-ahead of the concerned higher<br />
authorities.<br />
c) Telephone calls should, as much as possible, be avoided during cash hours.<br />
Customer Services Officers who are in their windows should not be disturbed<br />
by outside calls. In the event that the telephone call has to do with an<br />
important and urgent message, nevertheless, it should be received by the<br />
Customer Services Officer/Checker and communicated to the Maker after<br />
she/he has been cleared off her or his cash responsibility. Should the<br />
message turn out to be urgent and thus calls for an immediate attention, the<br />
Customer Services Officer must at first be relieved of the cash still in her/his<br />
hands and then informed of the message.<br />
d) As soon as the Customer Services Officer/Maker starts work, she or he must<br />
switch off her/his mobile (cell) phone.<br />
e) The Customer Services Officer should never be reprimanded either in writing<br />
or otherwise while she/he is in the middle of a cash operation.<br />
f) No brawls or exchange of strong words between the staffs of the Bank<br />
working in the cash area will be tolerated. The same is true about all acts that<br />
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are considered to be contributing factors to making errors.<br />
g) It goes without saying that idleness is one of the underlying causes for errors<br />
and for other unacceptable acts. The Customer Services Officers are,<br />
therefore, expected to keep themselves always busy— doing what they are<br />
supposed to do. Even if they have completed their share of work, they should<br />
assist the other staffs who have not yet completed their work. No one should<br />
leave the cash area until the daily cash has been balanced. Also, no mail<br />
should be delivered to the Customer Services Officers during cash hours, as it<br />
might contain some shocking news that could interfere with the efficiency of<br />
its recipient.<br />
h) Whenever a customer of the Bank has a complaint to lodge against a<br />
Customer Services Officer and the complaint has something to do with either<br />
the shortage or excess of cash, the Senior Customer Services Officer will have<br />
to report thereon to Customer Service Manager or to the Branch Manager.<br />
The Branch Manager should then see to it that the window of the concerned<br />
Customer Services Officer is closed and balance all the cash still in the hands<br />
of that particular Customer Services Officer, with a view to fully satisfying the<br />
customer who has lodged the complaint against her or him. In a branch<br />
where there is a Branch Controller, nonetheless, the checking must be done<br />
in her or his presence.<br />
i) All Customer Services Officers should be left alone and extra care must be<br />
taken not to disturb them while they are on duty, as any disturbance or<br />
conversation with them could result in a serious error on their part,<br />
including a shortage of cash.<br />
j) If and when a Customer Services Officer unexpectedly falls ill, she or he will<br />
have to be given permission to seek medical attention during cash hours. No<br />
matter what happens to her or him, she or he should not, nevertheless, be<br />
allowed to leave the premises of the bank without balancing and<br />
surrendering the cash in her/his hands.<br />
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11. OPERATIONS AT THE FOREIGN TRANSFER AND NRNT<br />
ACCOUNT<br />
11.1 Foreign OBP and OBC Check Clearance<br />
The Customer service officer /Maker<br />
a) Accepts checks from branches and foreign transfer and NRNT accounts<br />
for clearance, together with OBP/OBC ticket;<br />
b) Makes sure that the check has been properly presented—that is, makes<br />
sure that the date on which the check was issued and the name of the<br />
payee/beneficiary appear on it and that it was properly endorsed and<br />
that the amount of money given in words agrees with that given in<br />
figures;<br />
c) Segregates the checks by the drawee bank and/or by currency and sends<br />
them to the Checker so that she or he will in turn send them to the<br />
correspondent banks with an instruction for settlement;<br />
d) Receives back the check from the Senior Customers’ Accounts and<br />
Operations Officer and creates the transaction to post to the concerned<br />
branches/foreign transfer and NRNT accounts through the online system;<br />
and<br />
e) Prepares signs and makes settlement and single entries.<br />
The Customer service Officer/Checker<br />
a) Receives from the Maker the checks with an instruction for settlement<br />
and co-signs on the tickets;<br />
b) Rechecks the full particulars of the check and the preparation of the<br />
instruction for settlement and sends the check to the correspondent<br />
bank;<br />
c) Checks and sends the transaction to the concerned branch so that it will<br />
credit, through the online system, to the customer’s account; and<br />
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d) Transmits the message to the concerned branch.<br />
The Senior Customer service Officer<br />
a) Encodes the message to be transferred to the offline branches;<br />
b) Receives the instruction for settlement and the returned checks from the<br />
correspondent banks;<br />
c) Ascertains that the credit entry and the transactions related to it are<br />
proper in the concerned correspondent accounts and forwards the<br />
ascertainment to the Maker; and<br />
d) Does follow-up on the timely settlement of the OBP/OBC.<br />
11.2 Foreign Incoming Money Transfer<br />
Inward-money-transfer messages are usually received via SWIFT or through money<br />
transfer agents i.e. Western Union, Money Gram,,Dahabshii, Xpress, Golden money<br />
Transfer, Blue Nile, World Remit, African Exchange, Rahel Money Transfer, T & Y<br />
money transfer, Alante Micro finance, Atlantic international, Air Speed, PACO<br />
Service, LARY Exchange, etc. Occasionally, however, payment instructions could be<br />
received through Fax message or e-mail, or by browsing through the system<br />
depending on the arrangement made earlier between the Bank and the sending<br />
party.<br />
While receiving foreign-incoming-money-transfer messages, the following<br />
procedure shall be followed;<br />
11.2.1 Foreign incoming transfer received through SWIFT<br />
The Customer Service officer /Maker-(at foreign message transfer)<br />
a) Logs on to T-24, enter in to Fund transfer Menu and opens incoming MT-<br />
103 (SWIFT Message) ‘Hold menu’;<br />
b) Posts the transaction to the proper account by referring the MT-103<br />
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message from the screen;<br />
c) In the event that she or he detects a discrepancy, communicates same to<br />
the Manager-Foreign transfer for further action.<br />
The Manager Foreign Message Transfer<br />
a) Authorizes the transaction;<br />
b) In the event if there is any discrepancy, communicates same to the<br />
sending bank;<br />
11.3. Outgoing Money Transfer through SWIFT<br />
(This shall also be applicable to branches)<br />
The Customer Service Officer/Maker<br />
a) Open the money transfer application form and then makes sure that the<br />
data or information has been entered into the system properly—from the<br />
source document (i.e., checks the message on SWIFT); and<br />
b) Forwards the source document and the standard SWIFT message format<br />
to the Checker for authorization.<br />
Customer Service Manager<br />
a) Receives the source document from the Maker, together with the<br />
standard SWIFT-message format, and then makes sure that the data or<br />
information has been entered into the system properly—from the source<br />
document; and<br />
b) Authorizes the message to be sent via SWIFT to the correspondent bank.<br />
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12. INTER-BRANCH TRANSACTIONS<br />
Upon processing inter-branch transactions through the CORE banking online<br />
System, the following procedure shall be followed;<br />
12.1 Transactions Allowed to be processed through the Online<br />
System<br />
a) Cash received to the deposit of demand deposit account or saving, and<br />
loan repayment;<br />
b) Cash withdrawals from savings and active current accounts;<br />
c) CBE Cheque/Bankers’ cheque /CPO/deposited to account by debiting<br />
from one CBE Branch and credited to any other CBE Branch regardless of<br />
where the cheque is deposited;<br />
d) When Bankers’ cheque /CPO/ordered by application in favor/beneficiary<br />
of Government office shall be prepared by any branch of CBE regardless<br />
of the account holding branch.<br />
e) Any transfer request lodged in person by individual saving or demand<br />
deposit account holders against proper identification.<br />
f) Fund transfer request between two accounts of the same owner from two<br />
deferent branches.<br />
g) When an organization account and its employees’ salary account<br />
maintained in different branches, the employees’ salary account holding<br />
branch can debit the organization account by letter of instruction for the<br />
credit of its employees’ account.<br />
h) Inter-branch transactions initiated by the Central-Processing Centers of<br />
Trade Services, <strong>CATS</strong> and Credit— that is, TS’s CPC, Finance and Accounts<br />
team, <strong>CATS</strong>’s CPCs and Credit’s CPC—which affect the accounts of CBE’s<br />
customers in one of the online branches and which are related to the<br />
transactions that take place between internal accounts; and<br />
i) Transactions related to the accounts of the Ethiopian Commodity<br />
Exchange (ECX) where the debit/credit transactions originate as per the<br />
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agreement reached with the ECX.<br />
j) Transactions from savings or current accounts held with the CBE which<br />
is operated through the power of attorney ; by verifying the signature<br />
and identifying the agent against the scanned signature and photo on the<br />
system;<br />
k) Withdrawals of money from inactive savings, however, the Customer<br />
service Manager shall request the customer to present a Renewed ID and<br />
retain the photo copy of the ID, for saving account presenting passbook is<br />
mandatory, interview the customer in person, and approve the<br />
withdrawal by writing the word ‘ok for being inactive’ on the face of the<br />
withdrawal voucher.<br />
12.2 Transactions Not Allowed To Be Processed Through the<br />
Online System<br />
a) Withdrawal from inactive demand deposit account;<br />
b) Withdrawals of money from customers’ accounts that take place as per the<br />
customers’ standing instructions;<br />
c) Court order instructing payment by debiting ones account should not<br />
entertained by other branches except the account holding branch.<br />
d) Fund transfer or outgoing LMTS ordered by letter of application (LMTS or<br />
account transfer forms) from corporate customers’ demand deposit and<br />
saving accounts except Bankers’ cheque (C.P.O) transfer to government<br />
entities.<br />
e) Account to account transfers from Local currency accounts to foreign<br />
currency accounts.<br />
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12.3 The Limit to Inter-Branch Transactions<br />
a) Authorization limit mentioned above under sub article 8.1 of this procedure<br />
shall be applicable to all transactions allowed to be processed through inter<br />
branch transaction using the network system.<br />
12.4 Additional duties and responsibilities for Inter branch<br />
transactions<br />
Customer Relationship Officer<br />
a) Checks the genuineness of every transaction initiated by TS-CPC that<br />
affects the branch account.<br />
Senior Customer Service Officer- Accounts<br />
a) Makes sure that the accounting entries affect the proper account and take<br />
the necessary corrective action;<br />
b) Ensures that there is no abnormal balance in the branch’s General<br />
Ledger; and<br />
c) Reconciles the Branch account against Head office account.<br />
12.5 Custody of Inter-Branch Transaction Documents<br />
All documents pertaining to inter branch transactions shall be kept by the<br />
branch controller of the branch that carried out the transaction.<br />
12.6 Head Office Account Reconciliation<br />
Senior Customer Service Officer-Accounts (at the branch)<br />
The senior customer service officer-accounts shall, on a daily basis, oversee<br />
‘transaction to day report’ of the branch account maintained by the branch<br />
against branch account maintained in Finance process. To show the<br />
settlement of the transactions that has taken place by inter-branch<br />
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transactions. And, in order to check and thereby make sure that the interbranch<br />
accounts have been reconciled to each other.<br />
12.7 Transaction handling when Networked branch becomes<br />
offline<br />
Sometimes online branch may become offline for some reason, during this<br />
time;<br />
a) Deposit to customer account and foreign currency purchase (by a form<br />
designed for this purpose having a serial no. which will be kept by the<br />
Customer Service Manager), payment of own branch Bankers’ cheque<br />
/CPO/ , account to account transfer within the same branch, and cheque<br />
deposit within the same branch shall be allowed without restriction;<br />
b) Authorization limit stated under 8.1 shall be applied for transactions<br />
stated under ‘a’.<br />
c) For withdrawal the customer shall be advised to withdraw from the<br />
nearby branch, if any. However, if the nearby branch is far from the<br />
offline branch and The Branch manager/Customer Service Manager<br />
approved by stating the word ‘ok for withdrawal’ in the face of the<br />
withdrawal voucher or cheque, the limit set 8.2<br />
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13. PROCEDURE FOR CASH PICK AND CASHER IMPLANT<br />
SERVICES<br />
13.1 <strong>Procedure</strong> for cashier implant service<br />
13.1.1 General Principle of Casher Implant Service<br />
a) Collection service from client’s customer of the high valued customers’ of the<br />
particular site could be in the following forms;<br />
1. In the form of cash;<br />
2. Cheque deposit;<br />
3. Account to account transfer; and<br />
4. Through POS machine.<br />
b) Collection services are given at clients selected location as indicated on<br />
Contractual agreement;<br />
c) Cash withdrawal shall not be entertained on high valued customer sites;<br />
d) At least two customer service officers’ shall be assigned in high valued<br />
customer site to implement proper control on cash collection ;<br />
e) If there is a need to collect Cash and other depository items from the<br />
assigned customer service officers at high valued customers site during the<br />
day ,at least roving customer service office or senior customer officer –cash<br />
and roving controller or senior controller shall be assigned to collect the<br />
cash and related tickets and instruments.<br />
f) The District manager shall approve and concluded an agreement for casher<br />
implant service for a particular customer to ensure the overall service<br />
provision and internal control;<br />
g) The district operation manager/district manager shall avail the necessary<br />
vehicle and escort for the cash pick up; and follow-up the service per the<br />
contractual agreement.<br />
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h) The district shall select the appropriate branch to provide the service<br />
considering the proximity to high value customer’s premises, human and<br />
other resources ;<br />
i) The service shall be provided for high value customer requesting the service<br />
by considering the customer’s strategic relationship with bank, volume of<br />
sales &foreign currency earning .<br />
j) When there is need for cross-district integration to provide cash pick up<br />
service the request of client and the recommendations of the district shall<br />
submitted to V/P <strong>CATS</strong> for approval, communication and coordination<br />
13.1.2 Collections in the form of Cash<br />
The Customer Services Officer/Maker at client’s site<br />
a) Receives the cash along with the bank deposit slip signed by the<br />
passenger/client/customer of the high value customer and other<br />
supplementary client document prescribed by high valued customer and<br />
agreed with bank.<br />
b) Ensures that the amount of money given in both words and figures is the<br />
same as that are filled on the deposit voucher by the passengers;<br />
c) Counts the cash by comparing it with the denominations written on the<br />
bank deposit slip;<br />
d) Credits the high valued customer’s account by integrating the name of the<br />
depositor and other reference prescribed by high valued customer, if the<br />
collection of cash to be deposited is within her/his discretionary limit.<br />
Otherwise, dual authorization shall be requested from the concerned<br />
CSO-checker<br />
e) Collects service charge as per the bank’s terms and tariff;<br />
f) Prints the deal slip and provide a receipt to the passenger/client’s<br />
customer affixing the “Customer Service officer -Maker” stamp as an<br />
acknowledgement of cash receipt. And credit advice to the client as a<br />
bank deposit.<br />
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g) Hands over to the passenger/client customer the deal slip as a receipt<br />
and keeps the deposit voucher for further balancing and recording;<br />
h) Balances her/his cash against the pertinent data on the system with the<br />
CSO-checker at the half-day and the day-end closing,;<br />
i) Hands over the deposit voucher to the branch Senior Branch controller ,<br />
or Roving Branch Controller assigned to collect the tickets ;<br />
j) hands over the cash beyond her/his holding limit during the day’s<br />
operation, and the whole cash at the end of the day to the Senior<br />
Customer Service Officer – Cash or to the roving customer service officer<br />
assigned to collect the cash;<br />
The Customer Services Officer – Maker (assigned as Checker)<br />
a) Authorizes the transaction within her/his authorization limit;<br />
b) Counts the cash and balances the transaction with the CSO-Maker;<br />
c) Makes sure that all the transactions are done properly.<br />
The Senior Branch Controller Branch /Roving Controller assigned on<br />
high valued customers’ site<br />
a) Receives the deposit voucher from CSO-Maker at client’s site by counting<br />
the number of tickets and the total amount the ticket represent;<br />
b) Checks the proper posting in the system;<br />
c) Checks the correctness of the daily operation made by Customer service<br />
officer at clients office;<br />
The Senior Customer Services Officer - Cash /Roving Customer Service<br />
officer assigned on high valued customers’ site<br />
a) Monitor the overall cash balance on Customers Service officers till and<br />
take appropriate action to always maintain cash limit;<br />
b) Ascertains the correctness of the cash balance and collects cash from the<br />
Customer Service Officer - Maker at client’s site by authorizing on the<br />
system as confirmation of receiving ;<br />
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c) Ensures no cash shall left in the safe of Customer Service officer –Maker<br />
at clients office except Sunday’s and holidays;<br />
13.1.3 Collections in the form of cheques<br />
The Customer Services Officer/Maker at client’s site<br />
a) Collects the cheques from the passenger/client’s customer; together with<br />
the filled-in deposit slip; other supplementary client document<br />
prescribed by high valued customer.(only CBE cheques are accepted for<br />
deposit and they shall instantly be credited to high value customer<br />
account )<br />
b) Ensures that the particulars filled in the deposit slip are identical with<br />
those on the cheques received for deposit;<br />
c) Checks the proper presentation, authenticity and completeness of the<br />
cheque—that is, makes sure that the date on which the cheque was<br />
issued, the name of the beneficiary thereof, its endorsement, the amount<br />
of money in both words and figures and the signature of the beneficiary<br />
appear on it.<br />
d) Authenticates the signature, and posts both the debit and credit entries<br />
by integrating the cheque number, the name of the depositor and other<br />
reference prescribed by high valued customer , if the limit is within<br />
her/his discretionary limit; otherwise forwards the cheques for dual<br />
authorization to CSO-checker;<br />
e) Collects service charge as per the bank’s terms and tariff;<br />
f) Affixes the crossing stamp to the face of the cheque both the original and<br />
the receipt of the deposit slip and then puts her or his initials on all the<br />
documents and posts on the system;<br />
g) Hands over the deal slip/advice to the passenger/client’s customer after<br />
putting thereon her/his initials;<br />
h) Forwards the posted cheque to the Senior Branch Controller after<br />
balancing them.<br />
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The Customer Services Officer – Maker (assigned as Checker)<br />
a) Authorizes the referral request after checking the genuineness of the<br />
document and correctness of the transaction in her/his authorization<br />
limit;<br />
b) Ensures that all the transactions are done properly;<br />
The Senior Branch Controller at Branch/Roving Controller assigned on<br />
high valued customers’ site<br />
a) Receives the cheques and the tickets from the Customer Service Officers<br />
at client’s site by counting the number of tickets and the total amount the<br />
ticket represent;<br />
b) Checks the proper presentation, authenticity and completeness of the<br />
check that is, makes sure that the date on which the cheque was issued,<br />
the name of the beneficiary thereof, its endorsement, the amount of<br />
money in both words and figures and the signature of the beneficiary<br />
appear on it;<br />
c) Checks for proper posting of transactions in the system;<br />
d) Keeps such instruments and tickets under her/his custody<br />
13.1.4 Account to Account transfer<br />
The Customer Services Officer/Maker at client’s site<br />
a) Receives written and signed letter of instruction by the client’s customer<br />
to debit his/her account;<br />
b) Authenticates the signature of the account holder/authorized signatory;<br />
c) Receives the application from the person who has been lawfully<br />
delegated for the purpose if the remitter is Corporate customer;<br />
d) Debits the client’s customer account and credit the High valued<br />
customer’s account by integrating the cheque number, the name of the<br />
depositor and other reference prescribed by high valued customer, dual<br />
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authorization shall be requested from the Customer Service Officer<br />
checker if the amount is above the customer service officer limit If the<br />
amount of money to be debited is within her/his payment-authorization<br />
limit;<br />
a. Collect service charge as per the bank term and tariff<br />
b. Hands over the deal slip (Client’s customer debit advice);<br />
c. Forwards the passenger’s application form to the Customer<br />
Service officer -checker so as to cheque and authorize the<br />
transaction;<br />
d. Delivers the application form/letter of instruction to the Senior<br />
Branch.<br />
The Customer Services Officer – Maker (assigned as Checker)<br />
a) Checks the correctness of the application form submitted by the<br />
passenger/client’s customer; and<br />
b) Authorizes the transaction within her/his authorization limit.<br />
The Senior Branch Controller<br />
a) Receives the letter of instruction /application and checks the proper<br />
postings in the system.<br />
13.1.5 Collection through POS Machine<br />
The Customer Services Officer/Maker at client’s site<br />
a) Inserts or swipes the passenger/ client customer card to the chip slot or<br />
reader slot of the POS;<br />
b) Selects the services and enter the amount of cash;<br />
c) Requests the passenger/ client customer to enter her/his PIN (Personal<br />
Identification Number) for validation if the POS requests PIN otherwise,<br />
take the card as PIN less;<br />
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d) Prints the transaction receipts in two copies one for customer advice and<br />
the other as source document, after getting the authorization for the<br />
transactions;<br />
e) Requests the customer to put her/his signature on the receipts produced<br />
by the POS terminal;<br />
f) Checks the signature on the card with the signature on the transaction<br />
receipt;<br />
g) Gives one receipt to the passenger/ client customer as evidence of the<br />
transaction.<br />
End of Day Process<br />
a) Prints the daily summary and detail report using POS terminal;<br />
b) Processes end of day tasks (data capture) using POS terminal on or before<br />
the client closing hour every day, to ensure settlement for transactions and<br />
balance of daily cash transaction<br />
13.1.6 Internal Control<br />
a) The correctness cash accepted for sales of tickets of passengers shall be<br />
reconciled with the relevant documents and the agreement with the cash<br />
collected at hand shall be ascertained before returning to the branch<br />
b) The branch senior branch Controller shall ascertain the correctness of<br />
posting carried out by Customer Service Officer Maker at client’s sites with<br />
the overall daily transactions of the branch in line with this procedure.<br />
c) Deposit slip, cheque deposit slip and other evidence of collections made at<br />
client’s site shall be kept under the custody of the Senior Branch Controller<br />
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13.1.7 Transaction Authorization and Staff Establishment<br />
1. The customer service officer-maker and the customer service officer –<br />
checker with equivalent position assigned shall be assigned for dual<br />
authorization, cash counting, balancing and reconciliation ;<br />
2. The Customer Services Officer –Maker shall pass deposits transactions made<br />
through collection of cash and transfer from passengers’/client’s customers’<br />
account to client’s account up to birr 100,000 ;<br />
3. The customer service office –maker assigned on the high value customer<br />
premises shall only process credit entries intended for the high value<br />
customer account.<br />
4. Collection of cash and transfer of passenger’s/customers account to client’s<br />
account exceeding birr 100,000.00 shall be referred to CSO-checker and<br />
authorized.<br />
5. Two Customer Service Officers shall be assigned permanently at the client’s<br />
sites. The respective Branch Managers shall assign the staffs from the<br />
branches considering the staff’s skill and integrity.<br />
6. All cash transportation from the client’s site to the nearby branch shall be<br />
carried out by the branch /district vehicles accompanied by a security guard.<br />
7. Cash should be surrendered to the base branch /nearby branch at day end<br />
closing and when cash holding limit by Customer Service Officer – Makers at<br />
clients site reaches birr 500,000 and above;<br />
13.2 <strong>Procedure</strong> for Cash pick up service<br />
13.2.1 General principle of Cash pick up service<br />
a) Cash pick up services shall be given to selected premium customers ;and<br />
contractual agreement shall be concluded with the premium to that effect ;<br />
b) Collection in the form of cash and other negotiable instrument is accepted<br />
from the customers’ site ;<br />
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c) The District manager shall approve and concluded an agreement for cash<br />
pick up service of a particular customer to ensure the overall service<br />
provision and internal control;<br />
d) The district operation manager /district manager shall avail the necessary<br />
vehicle and escort for the cash pick up services; and follow-up the service per<br />
the contractual agreement.<br />
e) The district shall select the appropriate branch to provide the service<br />
considering the proximity to high value customer’s premises ,human and<br />
other resources ;<br />
f) The service shall be provided for high value customer requesting the service<br />
by considering the customer’s strategic relationship with bank, volume of<br />
sales &foreign currency earning .<br />
g) When there is need for cross-district integration to provide cash pick up<br />
service the request of client and the recommendations of the district shall<br />
submitted to V/P <strong>CATS</strong> for approval, communication and coordination.<br />
13.2.2 Duties and Responsibilities of person involved in cash pick up<br />
operation<br />
Customer service officer –maker<br />
The Customer Services Officer/Maker at client’s site<br />
a) Receives the cash along with the bank deposit slip designed for off-branch<br />
cash collection (refer CBE<strong>CATS</strong>111) signed by the representative of the<br />
customer ;<br />
b) Ensures that the amount of money given in both words and figures is the<br />
same as that are filled on the deposit voucher and the cash deposit ;<br />
c) Counts the cash by comparing it with the denominations written on the<br />
bank deposit slip;<br />
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d) Provide customer advice by affixing the “Customer Service Officer Maker”<br />
stamp as an acknowledgement of cash receipt until the provision of<br />
computer generated deal slip ;<br />
e) Credits the premium customer’s account by integrating the name of the<br />
depositor and other reference prescribed the customer as soon as return<br />
to the branch ;<br />
f) Hands over the deposit voucher to the branch Senior Branch controller<br />
and cash to senior customer service officer –cash ;<br />
The Customer Services Officer – Maker (assigned as Checker)<br />
a. Authorizes the transaction with in her/his authorization limit;<br />
The Manager Customer Service<br />
a) Authorizes the transaction with in her/his authorization limit;<br />
b) Ensures all cash deposit forms designed for off branch cash collection<br />
are accounted for.<br />
The Senior Customer Services Officer - Cash<br />
a) Ascertains the correctness of the cash balance against the system and<br />
collects cash from the customer service officers;<br />
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14. REPEAL<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
The <strong>CATS</strong> procedure approved on April 2012 and other procedures,<br />
recommendation and communication that contravene with issues and process<br />
included in this procedures are repealed and replaced by this procedure.<br />
15. REVISION OF THE PROCEDURE<br />
This procedure manual will be revised every three years. However, it shall be<br />
revised as and when necessary, based on the initiation from the <strong>CATS</strong> process<br />
owner.<br />
16. EXCEPTIONS<br />
This procedure manual shall cover the majority of all activities, duties and<br />
responsibilities of all staffs in the <strong>CATS</strong> process. There may be, however, in rare<br />
circumstances activities may not conform to this procedure manual. Therefore, such<br />
related activities to be made by exceptions shall be approved by the next higher<br />
authority level by writing the word ‘OK’ and signature.<br />
17. EFFECTIVE DATE<br />
This procedure manual shall come into force up on the approval by the president.<br />
Bekalu Zeleke<br />
______________________________<br />
December 2016<br />
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ANNEXES<br />
ANNEX 1: The Documents Required by the Various Institutions<br />
of both the Federal and Regional State Governments<br />
(Extracted from The Ministry of Finance and Economic Development, procedures in<br />
opening and operating government accounts under Guidelines No. 16/1996)<br />
The Federal Government<br />
1. Ministries, bureaus and other departments of the federal Government can open<br />
and operate bank accounts as per the instruction and authorization letter of the<br />
Federal Ministry of Finance and Economic Development.<br />
5. The bank account of any federal government institution can be operated only by<br />
the top official of the institution, of the department, etc., or by her or his<br />
delegate.<br />
6. Any withdrawal of money from the federal Government account shall be made<br />
by two signatures of the authorized or delegated persons.<br />
7. Federal Government Ministries, bureaus and other departments may open the<br />
under-listed bank account as per the authorization of the federal Ministry of<br />
Finance and Economic Development either at the NBE or at other banks<br />
designated by it (the NBE) for the purpose.<br />
Accounts of the Regional State Governments<br />
1) The authority to open and operate accounts of the regional state governments<br />
derives from the federal Ministry of Finance and Economic Development, or<br />
from one of its finance bureaus.<br />
2) Although these accounts may be operated by the officials of these organs, the<br />
balance remains subject to recall by the federal Ministry of Finance and<br />
Economic Development, or by any of its finance bureaus.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
3) The regional state governments will have, or may open, the following account<br />
Accounts for Regional Finance Bureaus<br />
1) A ‘C’ account—an account in which subsidy from the federal Government and<br />
revenues collected from the regions is deposited and an order is given on fixedand<br />
capital-budget payments. This account may be opened in the capital city of<br />
each region if and when requested by the Ministry of Finance.<br />
2) A ‘C’ account—in which regional revenues collected from woredas and zones<br />
and fixed budgets allotted to them are deposited.<br />
3) A ‘B’ account—in which a fixed budget is allotted to the regional finance bureaus,<br />
so that it will be re-allotted to the budgetary offices in the region.<br />
Accounts for other Regional Bureaus<br />
1) A ‘B’ account—wherein their fixed budget is deposited to and withdrawn from.<br />
2) One or more ‘B’ accounts—for bureaus that are entitled to a capital budget, to<br />
which the budget paid to each project is deposited and withdrawn from.<br />
3) A ‘C’ account—for bureaus with capital projects undertaken within zones. The<br />
account is to be opened in the name of zonal finance offices, and payments are to<br />
be made through these offices.<br />
4) A special account ‘A’—for those with projects whose expenses are covered by<br />
foreign aid and loan, in order to deposit or withdraw from the loan and the aid<br />
sent for each project. The Amount is to be opened for the loan as well as for the<br />
aid and, if necessary, for each project.<br />
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ANNEX 2: Government Accounts<br />
TYPE ‘A’ ACCOUNTS<br />
It is a type of account, which may be opened for the projects whose activities are<br />
carried out financed by foreign or international aid. Such an account is also opened<br />
when the aid agreement dictates the opening of a bank account.<br />
TYPE ‘B’ ACCOUNTS<br />
It is a type of account, which may be opened for allocation of budgets from the central<br />
Treasury for the purpose of fixed and capital expenditure.<br />
TYPE ‘C’ ACCOUNTS<br />
It is a type of account, which may be opened in the name of the central Treasury of the<br />
federal Ministry of Finance and Economic Development.<br />
TYPE ‘D’ ACCOUNTS<br />
It is a type of account, which may be opened by a court order or as per the instruction<br />
of the concerned federal government institution as deposit.<br />
TYPE ‘F’ ACCOUNTS<br />
It is a type of account, which may be opened for the purpose of funds established by<br />
proclamation outside the general funds legally authorized.<br />
TYPE ‘L’ ACCOUNTS<br />
It is a type of account, which may be opened for projects whose activities are carried<br />
out financed by a foreign loan, on the strength of the loan agreement.<br />
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TYPE ‘S1’ or TYPE ‘S2’ ACCOUNTS<br />
It is a type of account, which may be opened in a foreign currency, if the aid given or<br />
the loan advanced is in a foreign currency and requires the opening of a special<br />
account.<br />
If the aid given or the loan advanced is in USD, a special foreign-currency account, S1,<br />
shall be opened. If the aid given or the loan advanced is in other currencies, however, a<br />
special foreign-currency account, S2, shall be opened.<br />
The federal government institutions, departments, etc., shall present to the CBE a<br />
written request and the following documents for the opening of the accounts described<br />
herein above either in their own names or in the names of others like them.<br />
The applicants must, nonetheless, fulfill the following:<br />
1. State in the letter of request the reason for opening a bank account;<br />
2. State clearly in Amharic and English the name of the account, the name of the<br />
branch where the account is to be opened and the names of the persons who<br />
are authorized to operate the account;<br />
3. State clearly the duration of the project, if the newly opened account is for a<br />
project whose activities are carried out or undertaken financed by aid or a loan;<br />
and<br />
4. Produce/present to the branch a digital photocopy of the loan contract or of the<br />
aid agreement, if the newly opened account has any connection with aid or loan.<br />
The letter of request for opening a new account shall be signed by the top<br />
officials of the federal Government or by their delegates.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ANNEX 3: The Required Documents to Open an Account for the<br />
Addis Ababa City Government/Administration<br />
The City Government/Administration<br />
The order of the Mayor or of the Deputy Mayor of the Administration is required.<br />
Sub-City Administrations<br />
A letter that discloses the names of the persons authorized to operate the account<br />
and signed by the officials as stated above has to be submitted.<br />
Kebele Administrations<br />
A joint instruction from the Chief Executive Officer and the Head of Economic<br />
Services of the sub-City in which the concerned Kebele administration is found is<br />
required.<br />
ANNEX 4: The Required Documents to Open Accounts for<br />
Municipalities<br />
The Addis Ababa City and sub-City Municipalities<br />
Only the Mayor of Addis Ababa has the power to decide who should be authorized to<br />
operate the accounts of the sub-City Administrations. So her/his instructions are<br />
required in this regard.<br />
The Municipalities of the Regional States<br />
The authority to open and operate an account in the names of these municipalities is<br />
derived from the Mayor of the capital of the regional state or from the Head of its<br />
Urban Development and Housing Office. In either case, the regulation that<br />
established them should be carefully and closely consulted before any account is<br />
opened.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ANNEX 5<br />
Cheque Account Operation Directives No. SBB/64/2016<br />
WHEREAS, proper use of a cheque as payment instrument is crucial in facilitating<br />
؛services smooth and cashless exchange of goods and<br />
WHEREAS, cheque as a negotiable instrument is recognized and given legal<br />
؛laws protection under Ethiopian<br />
WHEREAS, the National Bank of Ethiopia is entrusted with the responsibility of<br />
؛systems creating and maintaining efficient, safe and sound payment<br />
WHEREAS, there is a need to determine the manner of proper operation of cheque<br />
of a bank and thereby to ensure its safety and credibility as the payment<br />
؛instrument<br />
NOW, THEREFORE, the National Bank of Ethiopia has issued these Directives<br />
pursuant to the authority vested in it by Article 27(2) of National Bank of Ethiopia<br />
Establishment Proclamation (as amended) No. 591/2008.<br />
1. Short Title<br />
These Directives may be cited as "Cheque Account Operation Directives No.<br />
SBB/64/2016”.<br />
2. Definition<br />
For the purpose of these Directives:<br />
2.1 “bank” means a company licensed by the National Bank to undertake<br />
؛Government banking business or a bank owned by the<br />
2.2 “cheque” means the meaning ascribed to it under the Ethiopian<br />
Commercial Code<br />
؛cheque “cheque account” means any account operated by 2.3<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
2.4 “close an account” means terminating operation (debiting and crediting)<br />
of a cheque account or deactivating a cheque account;<br />
2.5 “delinquent list” means a record maintained at the National Bank and<br />
each bank Containing detail information about a cheque dishonored for the<br />
third time reported by the drawee;<br />
2.6 “dishonored cheque” means a cheque drawn without sufficient fund cover<br />
in the account and is rejected by paying bank for this reason;<br />
2.7 “dishonored cheque register” means a register maintained by a bank in<br />
which؛particulars stipulated under sub-article 7.2 of these directives are<br />
recorded;<br />
2.8 “drawer” means a cheque account holder who signs on a cheque giving an<br />
order to his bank to pay the amount specified therein to a payee using finds<br />
in his cheque account maintained in the bank;<br />
2.9 “National Bank” means the National Bank of Ethiopia٠<br />
2.10“person” means any natural or juridical person<br />
2.11 “stop-cheque-payment order” means an instruction issued by a cheque<br />
account (holder to its bank to cancel cheque payment(s);<br />
2.12 Any expression in the masculine gender includes feminine.<br />
3. Scope of the Directives<br />
The Provisions of these directives shall be applicable to all banks operating in<br />
Ethiopia<br />
4. General Requirements<br />
4.1 Upon opening of a cheque account, a bank shall:<br />
4.1.1 verify that the name of a person requesting to open the cheque account<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
4.1.2 request the person to produce at a minimum taxpayer registration<br />
؛certificate/TIN<br />
4.1.3 inform its customer about the use and purpose of cheque account,<br />
cheque, and the consequences of misusing ؛them and<br />
4.1.4 Include in the cheque account opening agreement a clause about the<br />
measures that shall be taken when there is misuse of cheque in<br />
accordance with these directives and the bank’s internal policies and<br />
procedures.<br />
4.2 If a person has multiple cheque accounts in various branches of a bank, the<br />
bank shall aggregate all the cheque accounts in its branches and treat them<br />
as a single account for purpose of closing the cheque account.<br />
4.3 A bank shall request existing customers to produce tax identification<br />
numb.er (TIN) within six months from effective date of these directives, after<br />
which the bank shall not issue new cheque book unless the account holders<br />
produce the number.<br />
4.4 Without prejudice to the generality of sub-article 4.1 of this article, a bank<br />
shall develop and put in place its own internal policies and procedures on<br />
proper operation of cheque.<br />
5. Action to be Taken by a Bank Upon Dishonoring a Cheque<br />
5.1 Dishonoring a Cheque for the First Time<br />
5.1.1 Upon dishonoring a cheque drawn by a drawer for the first time any<br />
period after opening of a cheque account in line with article 4 of these<br />
directives, the bank shall:<br />
a) record the incident for the first time in the Dishonored Cheque Register;<br />
and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) block all debit (outgoing) transactions against this account until the<br />
dishonored cheque is fully paid to the payee or equivalent amount is<br />
blocked pending the payment to the payee.<br />
5.1.2 An account holder whose incident has been recorded in the Dishonored<br />
Cheque Register in line with 5.1.1(a) hereinabove but who has fulfilled all<br />
obligations related to dishonored cheque which includes full settlement<br />
of the claim or blocking of equivalent amount and has not drawn other<br />
dishonored cheques for the second time at least for 12 consecutive<br />
months following such registration, may be deleted from such register<br />
and be considered as clean.<br />
5.1.3 All dishonored cheques presented to a bank before deleting the name of a<br />
drawer from the Dishonored Cheque Register in line with 5.1.2<br />
hereinabove shall be treated as the second and third time dishonored<br />
cheques, even if two or more cheques have been presented at a time or<br />
simultaneously by the same payee.<br />
5.2 Dishonoring a Cheque for the Second Time<br />
5.2.1 Upon dishonoring a cheque drawn by a drawer for the second time within<br />
12 consecutive months following the date of presentation' of the<br />
dishonored cheque to the bank for the first time under 5.1.1 hereinabove,<br />
the bank shall:<br />
a) record the incident for the second time in the Dishonored Cheque<br />
؛Register<br />
b) block all debit (outgoing) transactions against this account until all<br />
the cheques which have been dishonored & registered under 5.1.1(a)<br />
5.2.1(a) hereinabove are hilly paid or equivalent amount is blocked<br />
pending the payment to the payee(s); and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) levy a fine of 3% of the amount appearing on the cheque dishonored<br />
for the second time but not exceeding Birr 25,000 (twenty five<br />
thousand Bin.).<br />
5.2.2 An account holder whose incident has been recorded in the Dishonored<br />
Cheque Register in line with 5.2.1(a) hereinabove but who has fulfilled all<br />
obligations related to dishonored cheques which includes full settlement of<br />
the claims or blocking of equivalent amount and has not drawn other<br />
dishonored cheques for the third time at least for 24 consecutive months<br />
following the date of presentation of the first dishonored cheque to the bank,<br />
may be deleted from such register and be considered as clean.<br />
5.2.3 A dishonored cheque presented to the bank before deleting the name of the<br />
drawer from the Dishonored Cheque Register in line with 5.2.2 hereinabove<br />
shall be treated as the third time dishonored cheque.<br />
5.3. Dishonoring a Cheque for the Third Time<br />
5.3.1. Upon dishonoring a cheque drawn by a drawer for the third time within<br />
24 consecutive months following the date of presentation of the<br />
dishonored cheque to the bank for the first time under 5.1.1 hereinabove,<br />
the bank shall:<br />
a) record the incident for the third time in the Dishonored Cheque<br />
؛Register<br />
b) close the account, levy a fine of 5% of the amount appearing on the<br />
cheque dishonored for the third time but not exceeding Birr 50,000<br />
(fifty thousand Birr) and make every effort possible to collect all<br />
unused cheque leaves & pads from the drawer and report same to the<br />
National ؛Bank and<br />
c) keep the cheque account of such person closed at all its branches.<br />
5.3.2. A bank shall deny service of cheque account operation using a cheque to a<br />
customer whose name has been circulated by the National Bank in line<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
with sub-article 10.2 of these ؛directives or may allow such customer to<br />
operate his cheque account in line with restrictions stipulated under 5.3.3<br />
and maintain the. List in line with sub-article 7.3 of these directives.<br />
5.3.3. A bank may, after deducting its own receivables from the account, allow a<br />
person whose cheque account has been closed in line with 5.3.1<br />
hereinabove to obtain banking services other than those that involve<br />
drawing a cheque against cheque account such as payable or other<br />
accounts, like saving or fixed deposits until the National bank deletes<br />
such drawer’s name from the delinquent list in line with sub article 8.1 of<br />
these directives;<br />
5.4. Notwithstanding provisions under 5.1.1(b) and 5.2.1(b) hereinabove upon<br />
fulfillment of the condition set under sub-article 5.2.1(c), the bank may unblock<br />
the account and make the fund available to the drawer:<br />
5.4.1. if the drawer presents the dishonored cheques to the bank or the<br />
payee(s) may appear in person to the bank and confirm in writing that<br />
the dishonored cheques have been fully settled in the form prescribed<br />
under Annex-I of these ؛directives or<br />
5.4.2. if the payee(s) fails to appear to receive a full payment after lapse of six<br />
months of presenting the dishonored cheque.<br />
5.5. Notwithstanding provisions under 5.1.1, 5.2.1 and 5.3.1 hereinabove, a bank<br />
may:<br />
5.5.1 debit charges like legal, insurance, advertisement and such other noncash<br />
transactions against a blocked ؛account and<br />
5.5.2 accrue interest against overdraft accounts.<br />
5.6. Deletion of a drawer’s name from Dishonored Cheque Register in line with subarticles<br />
5.1.2 and 5.2.2 of this article shall be subject to quarterly internal audit<br />
of the bank.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
5.7. Cheques dishonored before the effective date of these directives shall be treated<br />
as first, second and third time dishonored cheques, as the case may be, and<br />
fulfill all requirements set in these directives, respectively.<br />
6. Prohibiting Cases of Stop-cheque-payment Order<br />
6.1 A bank may not accept a stop-cheque-payment order request of a drawer with a<br />
mere purpose of evading the punishments stipulated under article 5<br />
hereinabove of these directives.<br />
6.2 For the purpose of sub-article 6.1 hereinabove, a stop-cheque-payment order<br />
request shall be presumed to have been made with a mere purpose of evading<br />
the punishments stipulated under article 5 hereinabove of these directives if:<br />
6.2.1 the request was made at the moment when the cheque account of the<br />
drawer was not covered with sufficient funds to satisfy the claim of a payee<br />
as was written on a specific cheque at the issuing and/or presenting dates<br />
for ؛payment and<br />
6.2.2 the drawer fails to produce police evidence within 15 working days<br />
following the date the cheque was presented for payment to prove the<br />
stop-cheque-payment order was in fact requested as the cheque was lost or<br />
stolen.<br />
6.3 Except as established otherwise under sub-article 6.2 hereinabove, a bank may<br />
not consider whatsoever reason as valid autonomous ground to accept or reject<br />
cheque-payment order of the drawer<br />
Maintenance of Dishonored Cheques Register and Delinquent List<br />
6.4. A bank shall maintain the Dishonored Cheque Register.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
6.5. Without prejudice to the generality of sub-article 7.1 hereinabove, the<br />
Dishonored Cheque Register shall at a minimum include the following<br />
particulars:<br />
6.5.1. name and address of the bank and its branch dishonoring a cheque<br />
6.5.2. name, tax identification number and address of an account holder who<br />
issued a<br />
Dishonored cheque<br />
6.5.3. date on which the cheque was dishonored and frequency of drawing<br />
dishonored<br />
؛cheque<br />
6.5.4. amount of money stated in the dishonored cheque<br />
6.5.5. reference number of dishonored cheque<br />
6.5.6. name of beneficiary and<br />
6.5.7. the action taken by the bank.<br />
6.6. The National Bank and all other banks shall maintain the delinquent list<br />
name of a cheque account holder which has been circulated by the National<br />
Bank to the banking industry when a cheque which has been drawn by a<br />
drawer is dishonored for third time.<br />
7. Conditions for Deleting the Name of a Drawer from Delinquent List and<br />
Reinstatement<br />
Of Closed Cheque Account<br />
7.1. Without prejudice to the discretion of a bank under sub-article 5.3.2<br />
hereinabove, the National Bank may lift the restriction set on the cheque<br />
account operation upon fulfillment of the following conditions:<br />
7.1.1. the drawer is suspended from use of cheque account for a minimum<br />
of 12 consecutive months effective from the date of closure of the<br />
؛bank account by the<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
7.1.2. the drawer shall present satisfactory evidences that all cheques which<br />
have been, dishonored& registered under sub-articles .5.1.1(a),<br />
5.2.1(a) and .5.3.1(a) of these directives are fully settled or produce a<br />
letter from the bank which indicates equivalent amount of funds have<br />
been blocked pending the payment to the payee(s). Under such<br />
circumstance, a call to collect the stated money within the specified<br />
date and bank shall be made by the drawer ,as his own cost ,to the<br />
payee in widely circulating newspaper at least once per week for<br />
three consecutive weeks; or if the drawer is unable to trace the<br />
whereabouts of the dishonored cheque/s which have been registered<br />
under sub-articles 5.1.1(a), 5.2.1(a) and 5.3.1(a) of these directives<br />
after full settlement of the cheque value to the payee(s), the payee(s)<br />
may appear in person to the National Bank and confirm in writing<br />
that the dishonored cheque have been fully settled in the form<br />
prescribed under Annex -I of these ؛directives or keep equivalent<br />
amount in a blocked account pending a call to collect the stated money<br />
within specified date and bank to be made by the drawer, at his own<br />
cost, to the payee in widely circulating newspaper at least once per<br />
؛weeks week for three consecutive<br />
7.1.3. the drawer shall produce a letter from his bank that amount of<br />
penalties charged in line with article 5 of these directives have been<br />
fully settled;<br />
7.1.4. the drawer shall file a written application with the National Bank,<br />
with a copy to the Federal Police Commission, attested by an oath to<br />
indicate his intention and commitment to use a cheque in operating<br />
his cheque account honestly and carefully in the ؛future and<br />
7.1.5. the drawer shall present an undertaking in a duly completed and<br />
؛directives signed letter as specified under Annex-11 to these<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
7.2. A bank shall provide cheque account service to the person whose name<br />
has been deleted from the delinquent list in line with the preceding subarticles<br />
of this article.<br />
7.3. The National Bank and each other bank shall maintain a separate register<br />
for the names of persons deleted from delinquent list.<br />
7.4. If the payee fails to appear and collect the funds blocked under 8.1.2 or<br />
8.1.3 hereinabove after specific date stated in a newspaper call made in<br />
line with the same sub-articles, the bank may unblock the account and<br />
make the funds available to the drawer.<br />
8 Conditions for Allowing New Cheque Account Opening to a Person<br />
Prohibited Because of Similar Name in the Delinquent List<br />
8.1 Notwithstanding provisions under sub-article 8.1 hereinabove, the National<br />
Bank may allow a person, who has been prohibited from opening new cheque<br />
account because of similar name in the delinquent list, upon fulfillment of the<br />
following conditions:<br />
8.1.1 the person shall file a written application with the bank that initially closed<br />
the cheque account in the form prescribed under Annex-111 of these<br />
directives, with a copy to the National Bank, Banking Supervision<br />
؛Directorate<br />
8.1.2 within 10 calendar days of receiving the written application under 9.1.1<br />
hereinabove, the bank shall produce satisfactory evidences that assure<br />
whether the closed account is of the person or not to the National Bank,<br />
؛Directorate Banking Supervision<br />
8.1.3 the National Bank, upon receiving satisfactory evidences in line with 9.1.2<br />
hereinabove, shall allow a bank to open new cheque account if the closed<br />
account is not of the person and circulate same to the banking industry,<br />
with a copy to the ؛applicant and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
8.1.4 A bank may open a cheque account in line with sub-article 4.1 of these<br />
directives to a customer whose name. Has been circulated by the National<br />
Bank in line with sub-article 9.1.3 hereinabove.<br />
9 Reporting and Information Sharing<br />
9.1 A bank shall send a report to the National Bank, Banking Supervision<br />
Directorate, regarding customers whose cheque accounts are closed in line<br />
with sub-article 5.3.1(b) of these directives in the form prescribed under<br />
Annex-IV, on the following five working days from the date of such closure.<br />
9.2 The National Bank shall compile the reports received from banks in line with<br />
the preceding sub-article of this article and circulate same in the banking<br />
industry, with a copy to the Federal Police Commission.<br />
9.3 The National Bank shall also circulate to the banking industry the name of<br />
cheque account holder deleted from the delinquent list in line with subarticle<br />
8.1 of these directives.<br />
9.4 A bank shall circulate reports received from the National Bank in line with<br />
sub-articles 10.2 and 10.3 hereinabove to all its branches within three<br />
working days from the date of receiving such reports with a copy to the<br />
National Bank, Banking Supervision Directorate.<br />
9.5 A bank shall also circulate name of a drawer who has been recorded in the<br />
Dishonored cheque Register in line with sub-articles 5.1.1(a), 5.2.1(a) and<br />
5.3.1(a) of these directives at the end of every month to all its branches in the<br />
form prescribed under Annex-V to update respective branches database.<br />
10 Repeal<br />
Directive No. SBB/31/2002 is hereby repealed and replaced by these directives.<br />
11 Effective Date<br />
These Directives shall enter into force as of the 1 st day of December 2016<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
TEKLEWOLD ATNAFU<br />
GOVERNOR<br />
<strong>CATS</strong> <strong>Procedure</strong> |<br />
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General<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ANNEX 6: The Opening and Operation of an ECX-Bank-<br />
Settlement Account<br />
• <strong>CATS</strong>’s CPC shall be the single point of contact for the ECX to open an account. An<br />
Account-Clearing and Settlement Team will, therefore, be formed at a branch of<br />
the CBE where the ECX settlement account is maintained. The Team will<br />
comprise as its members a Maker and a Checker and be responsible for handling<br />
the day-to-day operations and transactional instructions of the ECX.<br />
• The account shall be opened for any member of the ECX who is not barred from<br />
owning and operating bank accounts by the National Bank of Ethiopia due to<br />
mal-operation.<br />
• The ECX-related accounts to be opened are the following:<br />
a. An ECX-settlement account;<br />
b. Member pay-in;<br />
c. Member pay-out (this could be an existing account);<br />
d. Member clearing pay-in (if a member clears pay-ins for a non-clearing<br />
member)<br />
e. Client pay-in (if a member acts as an intermediary to other clients);<br />
f. Client pay-out (if a member acts as an intermediary to other clients);<br />
g. Member clearing pay-out (if a member clears for others);<br />
h. Limited member pay-out (this can be an existing account);<br />
i. Limited member client pay-out ( if a limited member acts as an<br />
intermediary); and<br />
j. Correspondent settlement bank accounts for the ECX (for inter-bank<br />
transfers):<br />
1. Correspondent<br />
2. Mirror (mirror of own account in a correspondent bank).<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
• The accounts mentioned above shall be created in any branch of the CBE that is<br />
electronically networked to its (CBE’s) core banking database, except the limited<br />
member pay-out account and the limited member client pay-out account, which<br />
can be created even in a non-networked branch. The member and member client<br />
accounts can be opened in branches other than where the ECX-settlement<br />
account is opened.<br />
1. Opening an ECX-Bank-Settlement Account<br />
1. The ECX-settlement accounts, member pay-in and pay-out accounts and<br />
client pay-in and pay-out accounts and clearing pay-in accounts must be<br />
opened in an electronically networked branch.<br />
2. The limited member pay-out account and the limited member client pay-out<br />
account can be operated from either an electronically networked branch or a<br />
non-networked branch.<br />
3. After the account is opened, if an account holder member is reprimanded,<br />
suspended or excluded from banking activities due to mal-operation, the<br />
settlement branch shall immediately report to the <strong>CATS</strong>’s CPC, specifying the<br />
type and frequency of the subsequent reporting to the ECX.<br />
4. An account-opening order shall be forwarded by the ECX account-opening<br />
facilitation letter to <strong>CATS</strong>’s CPC, which clearly specifies the following:<br />
o The type of ECX membership;<br />
o The required ECX bank account; and<br />
o The networked branch that the member has selected for the new<br />
account.<br />
5. <strong>CATS</strong>’s CPC instructs the selected branch to open the ECX-member type<br />
account.<br />
6. The member shall present a power of attorney, giving the sole right of<br />
debiting the pay-in account, prepared in four copies, to the Exchange, which<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
must be signed by the principal authorized official at the counter of the<br />
account-opening branch, in front of two witnesses, one of whom must be the<br />
Branch Manager.<br />
7. The account-opening branch shall immediately send, through fax, a copy of<br />
the signed (completed) power of attorney, together with the number of the<br />
account opened with the <strong>CATS</strong>’s CPC for further communication to the ECX<br />
and for maintaining the ECX-settlement account at the branch.<br />
8. The original power of attorney shall be delivered to the principal (or to the<br />
ECX member) once it has been ascertained that all the required documents<br />
have been submitted to the branch.<br />
9. The account-opening branch shall subsequently send to the <strong>CATS</strong>’s CPC a<br />
copy of the customer’s trade license, a copy of the power of attorney and<br />
copies of the Article of Association and of the Memorandum of Association.<br />
2. The Operation of an ECX-Bank-Settlement Account<br />
1. The Settlement Team shall accept instructions, process them and send its<br />
responses thereto electronically every working day—that is, Monday<br />
through Friday—in the following manner:<br />
1) Pay-in transaction:<br />
2) Balance enquires:<br />
14:00–16:00 (+1 hour extension for<br />
Exceptions)<br />
17:00 –19:00 (+1 hour extension for<br />
Exceptions)<br />
(Could be ECX gateway serve, not core banking)<br />
3) Pay-out transactions: 08:00 –10:00 (<br />
4) The times given herein above are likely to change in<br />
the future when the ECX begins trading commodities futures and the<br />
banks complete full automated integration with their core banking<br />
systems.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
2. The Settlement Team shall accept the electronic data that constitutes the<br />
instruction given by the Exchange, via the primary and backup delivery<br />
channels as follows:<br />
a. Primary via dial-up point to point—that is, electronic data secure<br />
electronic delivery; and<br />
b. Backup via USB biometric disk—that is, secure electronic data,<br />
manual delivery.<br />
The Team shall, however, accept the data in any other form, if the ICT<br />
system fails.<br />
3. The instruction given by the Exchange shall be applicable to the following<br />
accounts:<br />
a) Members’ pay-in and pay-out accounts opened by members who are<br />
trade operators;<br />
b) Members’ and clients’ pay-in and pay-out accounts opened by<br />
intermediary members;<br />
c) Clearing pay-in accounts opened by intermediary members;<br />
d) Limited members pay-out accounts operated by limited members;<br />
e) Limited member client pay-out accounts opened by limited intermediary<br />
members; and<br />
f) The settlement account opened by the Exchange.<br />
4. The Settlement Team shall accept no payment instruction from the Exchange<br />
unless it has been issued by authorized personnel thereof and the<br />
authorization has been authenticated against the pertinent documents.<br />
5. Under no circumstances should the Team stop or delay the process of daily<br />
pay-in or pay-out settlements covered by the deposits in the pay-in accounts<br />
or in the Exchange-settlement account, respectively.<br />
6. The Team shall immediately report to the Exchange if it comes across any<br />
account that does not hold sufficient funds to cover the amount it was<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
instructed to settle.<br />
7. Under no circumstances may the Team refuse to process a debit instruction<br />
on a member, client or on a clearing pay-in account, if the branch had by<br />
10.00 AM the previous working day given the Exchange a balance greater<br />
than or equal to the amount of money in the debit instruction so that the<br />
amount of funds in the pay-in account would not be less than the balance that<br />
the Bank had confirmed to the Exchange.<br />
8. Every month, the Team shall send electronic bank-account statements for<br />
member pay-in and clearing pay-in and member client pay-in and client payout<br />
accounts.<br />
9. If the Exchange requests for an additional account statement, nonetheless,<br />
the Exchange shall be charged as per CBE’s Terms and Tariffs.<br />
3. ECX-Related Accounts<br />
3.1 The Conditions that must be Met to Open Accounts<br />
a) For ECX-Level Accounts<br />
An ECX-Settlement Account:<br />
1) The ECX is the legal owner of this account;<br />
2) The ECX has an exclusive right to all debits and credits;<br />
3) The ECX will send electronic debit instructions for this account;<br />
4) The ECX will send electronic credit instructions for this account;<br />
5) No checkbooks may be issued on this account;<br />
6) No payment cards may be issued on this account; and<br />
7) All settlement transactions will take place via ECX’s electronic<br />
instructions.<br />
b) For Member-Level Accounts<br />
i. Member Pay-in (to the ECX)—mandatory for members to trade on their<br />
own accounts:<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1) The member is the legal owner of this account;<br />
2) The member may give the ECX power of attorney and thereby<br />
empower it to request for debits;<br />
3) No member may withdraw money from this account;<br />
4) The ECX will send electronic balance enquires for this account;<br />
5) The ECX will send electronic debit instructions for this account;<br />
6) No checkbook may be issued on this account; and<br />
7) No payment cards may be issued on this account.<br />
ii. Member for Client Pay-in (to ECX) –Optional for trading on behalf of<br />
clients<br />
1) Member is the legal owner of this account;<br />
2) Member signs Power of attorney giving ECX sole right to request<br />
debits;<br />
3) No Member withdrawals allowed on this account;<br />
4) ECX will send electronic balance enquiries for this account;<br />
5) ECX will send electronic debit instructions for this account;<br />
6) No cheque book issued on this account;<br />
7) No visa card issued on this account.<br />
iii.<br />
Member pay-out (from the ECX)—mandatory for members to<br />
trade on their accounts:<br />
1) The member is the legal owner of this account;<br />
2) Cheque books may be issued if required;<br />
3) The ECX will send electronic credit instructions to this account;<br />
4) The member has an exclusive right to request debits; and<br />
5) This can be an existing customer account.<br />
iv.<br />
Member for Client Pay-out (from ECX)- Optional for trading on<br />
behalf of clients<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1. Member is the legal owner;<br />
2. Cheque book can be issued if required;<br />
3. ECX will send electronic credit instructions to this account;<br />
4. Member has sole right to request debits.<br />
v. Member clearing pay-in (to the ECX)—mandatory for clearing on<br />
behalf of other members:<br />
1) The member is the legal owner of this account;<br />
2) The member gives the ECX power of attorney and thereby<br />
empowers it to request for debits;<br />
3) No member may withdraw money from this account; and<br />
4) The ECX will send electronic balance enquiries for this account;<br />
5) The ECX will send electronic debit instructions for this account;<br />
6) No cheque book may be issued on this account; and<br />
7) No payment card may be issued on this account.<br />
iv client pay-in (to the ECX)—mandatory for the member to trade on<br />
behalf of the clients:<br />
1) The member is the legal owner of this account;<br />
2) The member gives the ECX power of attorney and there by<br />
empowers it to request for debits;<br />
3) No member may withdraw from this account;<br />
4) The ECX will send electronic balance enquiries for this account;<br />
5) The ECX will send electronic debit instructions for this account;<br />
6) No cheque book may be issued on this account; and<br />
7) No visa card may be issued on this account.<br />
v Client pay-out (from the ECX)—mandatory for members to trade on<br />
behalf of Clients:<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
1) The member is the legal owner of this account;<br />
2) Cheque books may be issued on this account, if required;<br />
3) The ECX will send electronic credit instruction to this account; and<br />
4) The member has an exclusive right to request for debit.<br />
vi. Limited member client pay-out (from the ECX)—mandatory for a limited<br />
member to trade on behalf of clients:<br />
1) The limited member is the legal owner of this account;<br />
2) Cheque books may be issued on this account, if required;<br />
3) The ECX will send electronic or TT credit instructions to this<br />
account; and<br />
4) The limited member has an exclusive right to request for debits.<br />
vii. Member clearing pay-out (from the ECX)—mandatory for processing<br />
withdrawals on behalf of other members:<br />
1) The member is the legal owner of this account:<br />
2) Checkbooks may be issued on this account, if required;<br />
3) The ECX will send electronic credit instructions to this account;<br />
4) The member has an exclusive right to request for debits; and<br />
5) This account must be a new one.<br />
c) For Bank-Level Accounts<br />
i) The ECX’s Correspondent Settlement Bank Account<br />
1) The correspondent bank is the legal owner of this<br />
Account;<br />
2) The account must be used when the ECX needs to transfer funds<br />
from its ECX-settlement account in one bank to its ECX-settlement<br />
account in another bank in order to meet its pay-out obligations to<br />
its members in a timely and efficient manner;<br />
3) The ECX will send electronic credit instructions for this account<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
while processing the pay-in;<br />
4) The ECX will send electronic debit instructions for this account<br />
while processing the pay-out;<br />
5) Any ECX debit will be covered by a corresponding ECX credit (at<br />
the time the pay-out is processed) to the correspondent bank<br />
account in the owning bank; and<br />
6) The responsibility of accounting for these transactions and<br />
repatriating the funds from other banks as and when required<br />
rests with the CBE.<br />
The Pay-In Emergency Process<br />
The ECX transfer from the Deposit Fund (the Settlement Guarantee Fund) to the<br />
ECX-Settlement Account will take place when the ECX lodges a request thereof, in<br />
writing, signed by two of the signatories of the ECX-Settlement-Guarantee-Fund<br />
account. The Bank, for its part, must immediately process the request and confirm to<br />
the Manager of the Clearing House when this has been completed, but no later than<br />
10:30 AM.<br />
The Bank should, on a daily basis, inform the ECX of the balance of the Settlement-<br />
Guarantee-Fund account via the electronic network that connects the ECX with the<br />
data center of the Bank.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
ANNEX 7: Directive No. FXD/31/2006 Amendment to Directive<br />
No. FXD/25/2004 the Opening and Operation of Foreign-<br />
Currency Accounts for Non-Resident Ethiopians and Non-<br />
Resident Foreign Nationals of Ethiopian Origin<br />
Whereas, it is necessary to create incentives for Ethiopians in the diaspora to<br />
maintain foreign-currency accounts in their home country so as to encourage<br />
domestic investment;<br />
Whereas, the operation of foreign-currency accounts by non-resident Ethiopians<br />
can support the international foreign-exchange reserve and ease the balance-ofpayments<br />
problem of the country;<br />
Whereas, allowing Ethiopians who reside abroad to open foreign-currency<br />
accounts could encourage foreign direct investment;<br />
Now, therefore, in accordance with Articles 6 and 61 of the Monetary and Banking<br />
Proclamation No. 83/1994, the National Bank of Ethiopia hereby amends Directive<br />
No. FXD/25/2004 issued for the opening and operation of foreign-currency<br />
accounts for non-resident Ethiopians in domestic commercial banks.<br />
Article 1<br />
Definitions<br />
For the purpose of this directive, unless the context provides otherwise, 1.1 “Non-<br />
Resident Ethiopians” shall mean:<br />
a) All Ethiopian nationals who have lived abroad for more than one year;<br />
b) Business entities owned by non-resident Ethiopians and located outside the<br />
Ethiopian territory for more than one year;<br />
c) Ethiopian nationals living and working abroad, or are in the process of leaving<br />
Ethiopia to live and work abroad for more than one year, and can produce<br />
authenticated documents to that effect.<br />
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1.2 “Non-Resident (NR) Foreign National of Ethiopian Origin” shall mean<br />
(1) A non-resident and holder of a valid identification card, obtained pursuant to<br />
Proclamation 270/94, attesting that h/she is a foreign national of Ethiopian<br />
origin.<br />
(2) A business entity owned by non-resident foreign nationals of Ethiopian<br />
origin and located outside the Ethiopian territory.<br />
1.3 “Non-Resident (NR) Foreign-Currency Account” refers to the two types of<br />
accounts stated under Article 4 of this directive and maintained in foreign<br />
currency by the debit of which funds can be transferred abroad and/or used<br />
locally without any permit from the Bank.<br />
1.4 “Opening Banks” are authorized commercial banks in Ethiopia;<br />
1.5 “The Bank” is the National Bank of Ethiopia,<br />
1.6 “The Account” is a foreign-currency account opened by non-resident<br />
Ethiopians or foreign nationals of Ethiopian origin.<br />
1.7 “Certificate” means commercial banks’ deposit certificate issued to the<br />
depositor in recognition of her/his ownership of the deposited sum of money;<br />
1.8 “Foreign Currencies” refers to the three types of currency indicated under<br />
Article 5 of this directive and which the Bank accepts for purposes of foreign<br />
exchange.<br />
1.9 “Deposits” shall mean foreign-currency deposits received by the opening<br />
bank. They shall also include cash certificate, cheque or other deposits of a<br />
similar nature.<br />
Article 2<br />
Eligibility Criteria<br />
2.1 The following individuals and/or enterprises may open a foreign-currency<br />
account in any of the authorized commercial banks in Ethiopia.<br />
a) Non-resident Ethiopians; and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
b) Non-resident foreign nationals of Ethiopian origin.<br />
2.2 Non-resident Ethiopians/foreign nationals of Ethiopian origin shall present the<br />
following documents to open an NR foreign-currency account in domestic<br />
banks:<br />
a) Application forms properly filled out and signed by the account holder;<br />
b) For individuals, a valid passport and/or an identification card showing that<br />
the applicant is a foreign national of Ethiopian origin; and<br />
c) For businesses, a certificate of ownership or entitlement, and for an<br />
organization, an Article of Association and a Memorandum of Association.<br />
2.3 Applicants who could not be physically present to open the NR account in the<br />
domestic banks shall use the Ethiopian embassies, correspondent banks or<br />
nearby remittance-service providers to validate their identities.<br />
Article 3<br />
Opening Foreign Currency Accounts<br />
3.1 A foreign-currency account may be opened for individuals and/or enterprises<br />
that fulfill the eligibility criteria set under Article 2 (2.1) of this directive.<br />
3.2 Persons residing abroad can open such accounts in person or by post in their<br />
names. The banks may also establish contact with potential account openers<br />
using e-mail, fax, telex and/or other electronic media authorized by the Bank.<br />
Subsequently, however, the bank should receive authenticated documents to<br />
open the accounts.<br />
3.3 A request for opening an account for deposit in foreign currency shall be<br />
accompanied by a letter of application and a specimen signature.<br />
3.4 An individual and/or enterprise may open all or one of the foreign-currency<br />
accounts enumerated under Article 4(4.1) of this directive.<br />
3.5 Power-of-attorney holders are not allowed to open foreign-currency accounts<br />
or to credit the account on behalf of non-residents and/or foreign nationals of<br />
Ethiopian origin. Power-of-attorney holders are, nonetheless, allowed to<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
withdraw from these accounts for the purposes enumerated in Article 7.1 of<br />
this directive, in addition to investment purposes, provided that the document<br />
explicitly empowers them to operate the accounts.<br />
3.6 The minimum amount required for an initial deposit to open a demand deposit<br />
account shall be USD 100.00 (one hundred) or its equivalent in any of the<br />
eligible currencies mentioned under Article 5(5.1) of this directive.<br />
3.7 The minimum amount required in an initial deposit to open a fixed deposit<br />
foreign-currency account shall be USD 5,000.00 (five thousand) or its<br />
equivalent in any of the eligible currencies mentioned under Article 5(5.1) of<br />
this directive.<br />
3.8 The maximum amount to be deposited in current accounts shall be USD<br />
50,000.00 (fifty thousand).<br />
3.9 Two or more eligible joint depositors may, together, open a single account.<br />
3.10 An individual may open a demand deposit account in only one of the<br />
domestic banks, whereas she/he may open fixed deposit accounts in more<br />
than one bank.<br />
Article 4<br />
Types of Permitted Accounts<br />
Commercial banks may open the following types of non-resident foreign currency<br />
accounts:<br />
a) Fixed-time deposit accounts, which take the form of a deposit certificate, issued<br />
in the name of the depositor. The maturity period may vary, based on the<br />
agreement reached between the depositor and the opening bank. The minimum<br />
maturity period for such an account shall, nevertheless, be three months.<br />
b) A current account, which takes the form of a current deposit where withdrawals<br />
may be made at any time upon demand by writing a cheque and/or by following<br />
a pre-arranged procedure adopted by the opening bank.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
c) A non-Repatriable Birr account, which may take the form of a savings deposit<br />
that can be used for local payments only.<br />
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Article 5<br />
Types of Currency<br />
5.1 Banks are required to maintain foreign-currency accounts only in the following<br />
types of currency:<br />
a) The US dollar;<br />
b) Pound Sterling; and<br />
c) Euro.<br />
5.2 Banks may accept deposits in other convertible currencies that include the<br />
Canadian dollar, the Saudi riyal, the Japanese Yen, the Australian dollar and<br />
UAE’s dirham. These currencies shall then be converted to any of the three<br />
currencies enumerated herein above under Article 5.1 at the spot exchange rate,<br />
based on the preference of the account opener.<br />
Article 6<br />
Crediting the Account<br />
6.1 A foreign-currency account opened by non-resident Ethiopians shall be<br />
credited only with resources transferred or originated from abroad in one or a<br />
combination of the following ways:<br />
a) Direct crediting of the account from foreign sources through the banking<br />
system;<br />
b) Travelers’ cheques brought by the account holder from abroad;<br />
c) Money notes, provided that the account holder presents a signed and sealed<br />
foreign-currency declaration form if it is above 3,000.00 US dollar from the<br />
Ethiopian Customs Authority;<br />
d) Cheque deposits that originate abroad;<br />
e) A transfer from another type of non-resident foreign-currency account<br />
owned by individuals and/or enterprises; and<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
f) Receipts through international payment cards/credit cards.<br />
Article 7<br />
Use of the Account<br />
7.1 The foreign-currency accounts may be used as follows:<br />
a) To make local payments in Birr;<br />
b) To transfer to other foreign-currency accounts, which may include transfer<br />
to other foreign-currency accounts in any of the authorized commercial<br />
banks in Ethiopia;<br />
c) To make such foreign payments as imports and other foreign-service<br />
payments, provided the account holder has the required business license to<br />
do so;<br />
d) To effect the transfer of money to another country;<br />
e) To convert into a Birr account at the ruling exchange rate;<br />
f) Payments for bank charges levied by the opening bank, if any; and<br />
g) To serve as collateral or guarantee for loans or bids.<br />
7.2 Current accounts may be withdrawn against a cheque written and a withdrawal<br />
slip, or according to any other pre-arranged procedure.<br />
7.3 The bank maintaining these accounts shall allow repatriation abroad of the<br />
deposits opened in any of the accounts mentioned under Article 4 a and b of<br />
this directive upon request by the account holder.<br />
7.4 Repatriation of the deposits shall not exceed the initial balance plus any interest<br />
receipt on the deposit amount.<br />
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Article 8<br />
Closure of the Account<br />
COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
8.1 A fixed-time deposit foreign-currency account mentioned under Article 4 of<br />
this directive can be closed upon request by the depositor with a notification of<br />
not less than five working days. Withdrawal of the fund prior to its maturity is<br />
subject to a penalty, which could be the forgoing of interest thereon.<br />
8.2 If a fixed-time deposit is not closed upon maturity, the opening bank may renew<br />
it, in consultation with the depositor.<br />
8.3 A fixed-time deposit account may be withdrawn against the deposit certificate<br />
and the specimen signature previously left with the bank, or according to the<br />
prearranged procedure.<br />
8.4 A foreign-currency account will not be opened, if there is sufficient proof that<br />
the money was acquired through money laundering or from the financing<br />
services of a terrorist organization.<br />
Article 9<br />
Interest Rates<br />
9.1 No interest shall be paid on a non-resident foreign-currency current account.<br />
9.2 Commercial banks are allowed to set their own interest rates on non-resident<br />
fixed-time foreign-currency accounts, provided that the interest rate does not<br />
exceed the prevailing LIBOR rate.<br />
9.3 Interest on a non-resident fixed-time foreign-currency deposit shall be payable<br />
only if the foreign currency was kept for a minimum period of three months.<br />
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9.4 The payment of interest on fixed-time deposits maturing on Saturdays, Sundays,<br />
holidays and non-business working days shall be determined based on the<br />
succeeding working day. The interest-rate payment on non-Repatriable Birr<br />
accounts shall be double the minimum savings-deposit rate set by the NBE.<br />
Article 10<br />
Issuance of Certificates<br />
10.1 The opening bank shall issue to the depositor a fixed-time deposit certificate in<br />
her or his name, if the account opened is a fixed-time deposit account.<br />
10.2 The interest rate that the opening bank agrees to pay shall be clearly stated on<br />
the deposit certificate.<br />
10.3 For a current account, the opening bank shall issue to the depositor a cheque<br />
book or advice notifying of the opening of the account.<br />
10.4 In the case of Article 3.2., the certificate of deposit (CD) or cheque book may be<br />
kept in the custody of the opening bank, whereas a certificate of custody shall<br />
be issued to the depositor or the deposit book may be mailed to the depositor, if<br />
she/he wishes so.<br />
Article 11<br />
Conversion of Non-Resident Foreign-Currency Accounts To<br />
Resident Birr Accounts<br />
11.1 When non-resident Ethiopians change their permanent residence to Ethiopia,<br />
their non-resident foreign-exchange accounts shall be<br />
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Converted to residents’ Birr accounts by the bank that maintains them (the<br />
accounts) at the prevailing inter-bank exchange rate; or<br />
11.2 In the case of a fixed-time deposit, the account may remain as a non-resident<br />
foreign-currency account, if the account holder returns to Ethiopia to settle<br />
permanently before the maturity date of the account. Upon maturity of the<br />
account, however, such accounts should be converted to resident Birr<br />
accounts.<br />
11.3 The provision of Article 7.1 (e) of this directive shall be applicable, if the<br />
account holder requests that it be made applicable.<br />
Article 12<br />
Prohibitions<br />
12.1 Foreign exchange acquired either from foreign-exchange bureaus or any<br />
other local sources or foreign exchange shall not be used to credit and/or<br />
open a foreign-currency account.<br />
12.2 Banks shall not honor a cheque drawn or endorsed by a non-resident foreigncurrency<br />
account holder in favor of a resident who does not hold a similar<br />
non-resident foreign-currency account.<br />
Article 13<br />
Obligations of the Opening Bank<br />
13.1 The bank where a foreign-currency account has been opened has the<br />
following obligations:<br />
a) It shall be responsible for maintaining the confidentiality of the account of the<br />
depositor;<br />
b) It shall, within 20 days after the end of each month, send a report to the Banking<br />
and Foreign Exchange Directorate and to the Economic<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Research and Monetary Policy Directorate of the Bank based on the pertinent<br />
format; and<br />
c) At the close of each business day, the foreign-currency position of all such<br />
accounts opened in a bank shall not exceed 15% (fifteen percent) of its total<br />
capital as per the provisions of Directive No. SBB/23/97.<br />
Article 14<br />
Provision of Incentives<br />
14.1 The deposit account can serve as collateral to get credit in local currency<br />
from domestic banks, in line with the credit policy of the bank where the<br />
account is opened.<br />
14.2 The interest income from non-resident foreign-currency fixed-time deposit<br />
accounts shall be free from income tax.<br />
14.3 In addition to the above incentives, banks shall create an environment that is<br />
conducive to the holders of such accounts as follows:<br />
14.3.1 Banks shall provide the account holder with a statement of the account<br />
every month;<br />
14.3.2 Banks shall create a test-key so that the account holder can order<br />
withdrawals and/or any local payments;<br />
14.3.3 Banks shall credit interest to such accounts at least on a quarterly basis;<br />
14.3.4 Banks shall create a mechanism whereby the account holder can give a<br />
standing authorization to the opening bank for permanent payments; and<br />
14.3.5 Banks shall clearly list out their correspondent banks or agents in various<br />
overseas centers, which are in operation of foreign-currency accounts, so<br />
as to enable non-resident Ethiopians to easily contact them.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Article 15<br />
Inspection<br />
The Bank may inspect any of the banks where such accounts are opened at any time<br />
and thereby make sure that the provisions of this directive are being complied to.<br />
Article 16<br />
Penalties<br />
16.1 A bank that violates any of the provisions of this directive shall be penalized,<br />
in accordance with the Licensing and Supervision of the Banking Business<br />
Directive non.SBB/27/2001.<br />
16.2 Any bank that fails to comply with the reporting requirement specified under<br />
Article 13.1 (b) shall pay a penalty of Birr 1,000.00 (one thousand) per day of<br />
delay. The penalty so assessed will be automatically deducted from the<br />
bank’s account maintained with the NBE.<br />
16.3 Where an account holder violates the provisions of this directive, the bank<br />
where the account is opened may suspend the account and immediately<br />
report the case to the Bank.<br />
Article 17<br />
Repeal<br />
The regulation related to the opening and operation of foreign-currency accounts<br />
for non-resident Ethiopians and non-resident foreign nationals of Ethiopian origin<br />
issued under directive No. FXD/25/2004 is hereby repealed and replaced by<br />
Directive No. FXD/31/2006.<br />
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016<br />
Article 18 Miscellaneous Provisions<br />
This directive shall enter into force as of the 28th day of August 2006.<br />
Number and Balance of Accounts Opened by Non-Resident Ethiopians<br />
Name of Bank: ---------------------<br />
Month: ------------------------------<br />
Type of Account<br />
Number of Accounts Opened Total Account Balance Current Account<br />
USD<br />
Euro<br />
Pound<br />
Fixed-Time Deposit Account USD<br />
Euro<br />
Pound<br />
Non-Repatriable Birr Account.<br />
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