Revised CATS Procedure Dec.20161

CATS Procedure |
Commercial Bank of Ethiopia December 2016

COMMERCIAL BANK OF ETHIOPIA December 1, 2016
COMMERCIAL BANK OF
ETHIOPIA
Customers’ Accounts and Transaction
Services (CATS) Procedure
December, 2016
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Commercial Bank of Ethiopia December 2016
1 Contents
1. INTRODUCTION ............................................................................................................................... 1
1.1 Preamble ................................................................................................................................................................................ 1
1.2 Definitions ............................................................................................................................................................................. 2
1.2.1 Terms and concepts ..................................................................................................................................................... 2
1.3 Objectives of the CATS Procedure ........................................................................................................................... 10
1.4 Scope of the procedure ................................................................................................................................................. 10
1.5 Governing rules ................................................................................................................................................................ 10
1.6 The Structure of the CATS Process .......................................................................................................................... 11
1.7 General Authorities and Responsibilities ............................................................................................................. 12
1.7.1 President ........................................................................................................................................................................ 12
1.7.2 Vice President -CATS ................................................................................................................................................ 12
1.7.3 District Manager ......................................................................................................................................................... 13
1.7.4 Director- CATS CPC ................................................................................................................................................... 14
1.7.5 Manager- CATS Operation ..................................................................................................................................... 14
1.7.6 Manager- District Operations ............................................................................................................................... 15
1.7.7 Branch Manager ......................................................................................................................................................... 16
1.7.8 Manager- Cash Custody and Issue ...................................................................................................................... 17
1.7.9 Manager- Customers Account and Operations (at CATS CPC)............................................................... 17
1.7.10 Manager-ATS ............................................................................................................................................................... 18
1.7.11 Head Cash Custody and Issue (LCY/ FCY) ...................................................................................................... 18
1.7.12 Customer Service Manager at Branch............................................................................................................... 19
1.7.13 Customer Service Manager at Cash Custody and Issue ............................................................................. 19
1.7.14 Customer Service Manager at Customers’ Accounts and Operation (CATS – CPC) ...................... 20
1.7.15 Customer Service Manager at ATS ..................................................................................................................... 21
1.7.16 Other Performers ....................................................................................................................................................... 21
2. CUSTOMER CLASSIFICATION ................................................................................................... 22
2.1 Volume and value of Transaction ............................................................................................................................. 22
2.2 Economic Ownership Dimension ............................................................................................................................. 22
2.2.1 Private ............................................................................................................................................................................. 22
2.2.2 Government .................................................................................................................................................................. 23
2.2.3 Public Enterprises ..................................................................................................................................................... 23
2.2.4 Associations .................................................................................................................................................................. 25
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
3. TYPES AND FEATURES OF DEPOSIT PRODUCTS AND SERVICES ................................. 26
3.2 Features of deposit products and services .......................................................................................................... 27
3.2.1 Features of local deposit products .......................................................................................................................... 27
3.2.1.1 Features of Savings Accounts..................................................................................................................................... 27
I. Ordinary Savings ........................................................................................................................................................ 27
II. Women Saving Account .......................................................................................................................................... 28
III. Youth saving account ............................................................................................................................................... 28
IV. Teen youth saving account .................................................................................................................................... 29
V. Education Savings Account.................................................................................................................................... 29
3.2.1.2 Features of demand deposit Accounts ................................................................................................................... 30
I. Ordinary Demand Deposit ..................................................................................................................................... 30
II. Special-Demand Deposit Account ....................................................................................................................... 30
III. ECX related Accounts ............................................................................................................................................... 31
3.2.1.3 Features of Fixed Time deposits ............................................................................................................................... 32
3.2.1.4 Other distinguishing features deposit products ................................................................................................ 32
I. Muday Bank Service.................................................................................................................................................. 32
II. Accounts for Minors .................................................................................................................................................. 32
III. Joint accounts .............................................................................................................................................................. 33
IV. Earmarked Accounts ................................................................................................................................................ 33
V. Accounts for Interdicted Persons ....................................................................................................................... 33
VI. Staff Accounts .............................................................................................................................................................. 33
VII. Cash Indemnity Account ......................................................................................................................................... 34
VIII. Overdraft account- .................................................................................................................................................... 34
3.2.2 Features Foreign Deposit products ......................................................................................................................... 34
3.2.2.1 Features of foreign currency Fixed-time deposit; ............................................................................................ 35
3.2.2.2 Features of foreign currency Current accounts ................................................................................................. 36
3.2.2.3 Non-Repatriable Birr account (saving account) ................................................................................................ 36
4. ELIGIBILITY CRITERIA AND REQUIRED DOCUMENT TO OPEN ACCOUNT ......................................... 37
4.1 Eligibility to open local deposit accounts ........................................................................................................ 37
4.2 Eligibility to open foreign currency accounts ............................................................................................... 38
4.3 Document required ................................................................................................................................................... 39
4.3.1 Document required to local Currency account Opening .......................................................................... 39
4.3.2 Documents required to open Foreign-Currency Accounts...................................................................... 51
5. OPENING OF AN ACCOUNT ......................................................................................................................................... 54
5.1 Customer creation........................................................................................................................................................... 54
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
5.2 Account and Contract Maintenance ........................................................................................................................ 55
5.3 Account closing ................................................................................................................................................................ 64
6. COLLECTION ................................................................................................................................... 67
6.1 Collection of Cash for Deposit .................................................................................................................................... 67
6.2 Collection for Money Transfer ................................................................................................................................... 69
6.2.1 General Conditions for Money Transfers ........................................................................................................ 69
6.2.2 Outgoing Local Money Transfer .......................................................................................................................... 71
6.2.3 Bankers’ Cheque /Casher Payment Order ...................................................................................................... 73
6.2.4 Account to Account Transfer (Fund Transfer) ............................................................................................. 75
6.2.5 Foreign Money Transfer ......................................................................................................................................... 76
6.2.6 Foreign currency Demand Draft and SWIFT Transfers ............................................................................ 76
6.2.7 Purchase of Foreign-Currency Notes ................................................................................................................ 78
6.2.8 Issuance of Travelers’ Cheques and Money Notes ...................................................................................... 79
6.3 Collection of Negotiable Instruments for Deposit ............................................................................................ 81
6.3.1 Local Cheques .............................................................................................................................................................. 81
6.3.1.1 A cheque drawn on CBE Branches ..................................................................................................................... 81
6.3.1.2 Clearance of Other Banks’ Cheques (including Bankers’ Cheque) ....................................................... 82
6.4 High Value collection ..................................................................................................................................................... 90
6.5 Foreign Cheques .............................................................................................................................................................. 93
7. PAYMENT ......................................................................................................................................... 97
7.1 Payment from a Current Account ............................................................................................................................ 97
7.1.1 Local Cheques .............................................................................................................................................................. 97
7.1.1.1 Payment in cash ............................................................................................................................................................... 97
7.1.1.2 CBE Cheques/Bankers’ cheques collected by other banks (Incoming Cheques or Bankers’
cheque /CPO/s) ..................................................................................................................................................................................... 99
7.1.2 High Value Payments ............................................................................................................................................. 101
7.1.3 FCY Cheques (NR and NT) ................................................................................................................................... 104
7.2 Withdrawal from Savings Accounts ...................................................................................................................... 106
7.3 Payment against Local Money Transfer .............................................................................................................. 108
7.4 Payment Foreign Remittance Transfer ............................................................................................................... 110
7.5 Bankers’ cheque (Cashier Payment Order (CPO)) .......................................................................................... 111
7.5.1 Bankers’ cheque /CPO/payment to the beneficiary or to the Purchaser ....................................... 111
7.5.2 Payment of Expired Bankers’ cheque ............................................................................................................. 113
7.5.3 Payment of a Lost Bankers’ cheque ................................................................................................................. 114
7.5.3.1. For lost but not expired Bankers’ cheque ..................................................................................................... 114
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
7.5.3.2. For lost and expired Bankers’ cheque ............................................................................................................ 116
7.6 Handling of Retention Account ............................................................................................................................... 118
8. TRANSACTION-AUTHORIZATION LIMIT ............................................................................... 120
8.1 For saving accounts, Current accounts, LMTS and BANKERS’ CHEQUE /CPO/Deposit ................ 120
8.2 Authorization limit when the networked branch becomes Offline ........................................................ 121
8.3 Authorization limit for Account receivable and expense ............................................................................ 121
8.4 Approval limit at CATS-CPC (ATS) to credit Customers’ Account ........................................................... 122
8.5 For Lost Bankers’ Cheque .......................................................................................................................................... 123
9. OTHER ISSUES RELATED TO OPENING, COLLECTION AND PAYMENT .................... 124
9.1 Handling of Inactive Accounts ................................................................................................................................. 124
9.1.1 Payment from Inactive saving accounts ........................................................................................................ 125
9.2 Handling of Cash Indemnity Account ................................................................................................................... 126
9.2.1 Cash indemnity account opening ...................................................................................................................... 126
9.3 Handling and Issuing of Cheque books ................................................................................................................ 128
9.4 Features of a Cheque .................................................................................................................................................... 129
9.5 Negotiability and Endorsement of Cheque ........................................................................................................ 130
9.5.1 Endorsement of Cheques ...................................................................................................................................... 130
9.5.2 The Use and Transferability (Negotiability) of Cheques ........................................................................ 131
9.5.3 A Stop-Payment Order ........................................................................................................................................... 131
9.5.4 Insufficient Fund Cheques ................................................................................................................................... 134
I. At account holding branch ................................................................................................................................... 136
II. Insufficient fund Cheque presented to other branch ............................................................................... 138
9.6 Customers’ Standing Instructions .......................................................................................................................... 140
9.7 Issuance of Bank Statement ...................................................................................................................................... 141
9.8 Customer account Balance Confirmation ........................................................................................................... 142
9.9 Blocking ............................................................................................................................................................................. 142
9.10 Ticket and Mandate file documentation ............................................................................................................. 144
9.11 Handling of Safe Deposit Box ................................................................................................................................... 145
9.11.1 Opening Safe Deposit Box .................................................................................................................................... 145
9.11.1.1 General condition of renting safe deposit box ................................................................................................ 145
9.11.3 Safe deposit box rental commencement ............................................................................................................... 146
9.11.3 Safe deposit box visiting ............................................................................................................................................... 148
9.12 Request for Changing Signature ............................................................................................................................. 148
9.13 Amendment /Cancellation on LMTS ..................................................................................................................... 151
9.14 Cancellation of Local Money Transfer .................................................................................................................. 152
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
9.15 Handling of Lost LMTS Security number ............................................................................................................ 153
9.16 Handling Power of Attorney ..................................................................................................................................... 155
9.17 Handling of Government Bond Coupon /the Grand Ethiopian Renaissance Dam Bond ............... 156
9.17.1 Features of the Grand Ethiopian Renaissance Dam Bond (GERD) .................................................... 156
9.17.2 General issues and Conditions in GERD bond operation ....................................................................... 157
9.17.3 Eligibility to Buy the GERD Bond ...................................................................................................................... 158
9.17.4 Duties and Responsibilities of Performers’ Involved In GERD Bond Operation.......................... 158
9.18 Un-issued Passbook Stocks on Hand .................................................................................................................... 161
9.19 Rubber Stamps ............................................................................................................................................................... 162
9.20 Key management ........................................................................................................................................................... 164
9.20.1 Custody of keys ......................................................................................................................................................... 164
9.20.2 Duplicate Keys ........................................................................................................................................................... 164
9.20.3 Loss, replacement .................................................................................................................................................... 165
10. CASH OPERATIONS .................................................................................................................... 166
10.1 Cash handling between NBE and Cash custody and issue .......................................................................... 166
10.1.1 Cash Withdrawal from NBE ................................................................................................................................ 166
10.1.2 Cash Lodging to NBE .............................................................................................................................................. 167
10.2 Cash handling between Cash custody and issue and branches ................................................................ 167
10.2.1 Cash collection from Cash custody and issue/ the NBE Issue Account-Holding Branch ......... 167
10.2.2 Cash surrender to Cash custody and issue/ the NBE Issue Account-Holding Branch .............. 172
10.3 Security Precautions .................................................................................................................................................... 176
10.4 Cash Handling within a Branch ............................................................................................................................... 178
10.4.1 Cash Limit for Customer Service Officers...................................................................................................... 178
10.4.2 The Procedure for Opening and Starting the Day’s Operations .......................................................... 178
10.4.3 During the Day’s Operations ............................................................................................................................... 180
10.4.4 Closing Activities ...................................................................................................................................................... 182
10.4.5 Cash Difference ......................................................................................................................................................... 186
10.4.6 Refund of Excess Cash............................................................................................................................................ 187
10.4.7 Forged (Counterfeit) Notes ................................................................................................................................. 190
10.4.8 Cash Custody .............................................................................................................................................................. 191
10.4.9 Exchange of Birr Notes .......................................................................................................................................... 194
10.4.10 Exchange of Coins .................................................................................................................................................... 195
10.4.11 Sorting Table .............................................................................................................................................................. 195
10.4.12 Cash Consolidation .................................................................................................................................................. 196
10.4.13 Cash Lodgment to the Vault In the middle of the operation ................................................................. 196
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
10.4.14 Cash Box and Stamp management ................................................................................................................... 197
10.4.15 Handling of Branch cash vault and ATM safe key and Combination ................................................. 199
10.4.16 Handing and Taking over vault cash ............................................................................................................... 200
10.4.17 ATM Cash handling within a branch ............................................................................................................... 200
10.5 Cash Related Internal Control Issues.................................................................................................................... 203
10.5.1 Cash Basic concepts and Principles ................................................................................................................. 203
10.5.2 Concentration and Security ................................................................................................................................. 204
10.5.3 Attendance and Conduct ....................................................................................................................................... 208
11. OPERATIONS AT THE FOREIGN TRANSFER AND NRNT ACCOUNT ........................... 210
11.1 Foreign OBP and OBC Check Clearance ............................................................................ 210
11.2 Foreign Incoming Money Transfer ..................................................................................... 211
11.3. Outgoing Money Transfer through SWIFT ...................................................................... 212
12. INTER-BRANCH TRANSACTIONS .......................................................................................... 213
12.1 Transactions Allowed to be processed through the Online System ....................................................... 213
12.2 Transactions Not Allowed To Be Processed Through the Online System ............................................ 214
12.3 The Limit to Inter-Branch Transactions ............................................................................................................. 215
12.4 Additional duties and responsibilities for Inter branch transactions.................................................... 215
12.5 Custody of Inter-Branch Transaction Documents .......................................................................................... 215
12.6 Head Office Account Reconciliation ...................................................................................................................... 215
12.7 Transaction handling when Networked branch becomes offline ............................................................ 216
13. PROCEDURE FOR CASH PICK AND CASHER IMPLANT SERVICES ............................... 217
13.1 Procedure for cashier implant service ................................................................................................................. 217
13.1.1 General Principle of Casher Implant Service ............................................................................................... 217
13.1.2 Collections in the form of Cash .......................................................................................................................... 218
13.1.3 Collections in the form of cheques ................................................................................................................... 220
13.1.4 Account to Account transfer ............................................................................................................................... 221
13.1.5 Collection through POS Machine ....................................................................................................................... 222
13.1.7 Transaction Authorization and Staff Establishment ................................................................................ 224
13.2 Procedure for Cash pick up service ....................................................................................................................... 224
13.2.1 General principle of Cash pick up service ..................................................................................................... 224
13.2.2 Duties and Responsibilities of person involved in cash pick up operation ................................... 225
14. REPEAL .......................................................................................................................................... 227
15. REVISION OF THE PROCEDURE ............................................................................................. 227
16. EXCEPTIONS ................................................................................................................................. 227
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
17. EFFECTIVE DATE ........................................................................................................................ 227
ANNEXES ..................................................................................................................................................... a
ANNEX 1: The Documents Required by the Various Institutions of both the Federal and Regional State
Governments .............................................................................................................................................................................................. a
ANNEX 2: Government Accounts ...................................................................................................................................................... c
ANNEX 3: The Required Documents to Open an Account for the Addis Ababa City
Government/Administration ............................................................................................................................................................. e
ANNEX 4: The Required Documents to Open Accounts for Municipalities ................................................................... e
ANNEX 5 Cheque Account Operation Directives No. SBB/64/2016 ................................................................................ f
ANNEX 6: The Opening and Operation of an ECX-Bank-Settlement Account ............................................................... q
ANNEX 7: Directive No. FXD/31/2006 Amendment to Directive No. FXD/25/2004 the Opening and
Operation of Foreign-Currency Accounts for Non-Resident Ethiopians and Non-Resident Foreign
Nationals of Ethiopian Origin .............................................................................................................................................................. z
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1. INTRODUCTION
1.1 Preamble
Commercial Bank of Ethiopia December 2016
Whereas, the Commercial Bank of Ethiopia has embarked on operational
excellence and business growth as strategic themes to achieve its vision, mission
and values;
Whereas, continuous improvement is key to reduce errors, rework, exceptions,
handoffs and complexity;
Whereas, the existing procedure served for more than three years and needs
revision in line with the prevailing dynamic and competitive business environment
and to incorporate new products introduced by the bank;
Whereas, to incorporate the lessons gained in using the integrated core banking
solution;
Whereas, there is a need to consolidate various guidelines and memoranda for ease
of reference and compliance;
Now, therefore, it becomes important to review and update the existing CATS
procedure manual in accordance with the current operational requirements in the
bank.
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1.2 Definitions
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.2.1 Terms and concepts
For the purpose of this procedure, the terms and concepts shall be defined as
follows;-
1. Accounts for Interdicted Persons: shall refer to account opened for a
person designated by a court of law as being incapable of discharging her/his
legal rights, or be interdicted.
2. Accounts for Minors: shall refer to an account opened for an under-aged
individual (minor) by the parent(s)/Tutor of the minor, or by a court order.
3. Administrative Agencies: Shall mean government entities that are
established by the Federal or regional governments in order to provide
special emphasis on some
4. Administrative Entities: shall mean all ministries established under the
federal government and all tiers of regional government.
5. Automated Teller Machine (ATM): shall refer to unattended acceptance
terminal that has electronic capacity, accepts PIN, disburses money, and may
provide balance confirmation, fund transfers between accounts and other
services.
6. Banker’s Cheque: shall refer to a type of negotiable instrument like any
cheque; However, it is prepared by banks as per customer request and is
payable upon presentation. It is endorsable to the purchaser only and valid
for six months. It is also known as Cash payment order (CPO).
7. Bio-metrics: shall refer to an electronic device used to capture a digital
image of the finger print pattern.
8. Cash Pick up service – shall mean a cash collection service provided for
premium and high value customers from their premises on pre-arranged
schedule and agreement.
9. Cashier Implant - shall mean service provided for high value customers by
assigning employee/s of the bank on the premises of high value customer on
the basis on contractual agreement between the bank and high value
customer.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
10. Charities: Shall mean associations which are established by the
proclamation for Charities and Societies (NO.621/2008) to serve the public
at large or a given social section (such as women, children, the disabled, etc.)
rather than their members.
11. Company: shall refer legal entity made up of an association of persons, be
they natural, legal, or a mixture of both, for carrying on a commercial or
industrial enterprise.
12. Contract: shall refer to financial dealings made with customers with a
maturity date that do not base any account. In all such contracts, the normal
balance (debit or credit) shall never be changed to the other balance until the
contract is cleared.
13. Contractual agreement: shall refer to an agreement signed between the
CBE and suppliers of selected goods and services; like special discount for the
Bank's women saving account holders; and shall also refer to other
agreements concluded between the CBE and customers in the context of this
procedure.
14. Cooperative Societies: Shall mean associations established by individuals
on voluntary basis to collectively solve their economic and social problems
and to democratically manage same. Cooperatives are unique in the sense
that they are user-owned, User-benefited, and user-controlled as the benefits
obtained are returned to members and democratically administered by
members themselves.
15. Core banking: shall refer to a banking service that is centralized, online and
real-time exchange which is provided by networked branches of the bank
where customers may access their bank account and perform basic
transactions from networked branches
16. Corporate customer: shall refer to a legal entity like – organization,
enterprise, associations, government office and the like which the bank is
dealing with.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
17. Customer: shall refer to legal person or natural person with whom the bank
agrees to conduct business.
18. Delinquent list: also referred as mal-operation list and shall refer to the
register held by the National Bank of Ethiopia, indicating the names of
demand deposit account holders whose cheque have been dishonored
repeatedly and whose accounts are closed by our bank.
19. Demand Deposit Account: (a current or checking account) shall refer to a
non-interest-bearing account which is operated by cheque.
20. Diaspora Accounts: Shall refer to a foreign currency accounts opened for
Ethiopians living abroad (who live more than one year abroad); and
Ethiopians by origin but with different nationalities that are referred as
eligible Ethiopians.
21. Document Authentication: shall refer to the process of checking the
genuineness of a document from the issuing organ or other reliable sources.
22. Draft: shall refer to a type of negotiable payment instrument prepared when
requested by the customer, is payable upon presentation and on the
destination specified on it. But if it is cancelled, it can be paid by the
originating branch. It is endorsable and valid for one year.
23. Earmarked Accounts: shall refer to accounts opened with other
descriptions after the name or names of the account holder or holders.
24. ECX Client pay-in: Shall refer to the account maintained by members in
behalf of their client. Similar to member pay in account it serves as
depository account, for which debit entries should be instructed by ECX.
25. ECX Client pay-out: Shall refer to the account maintained by members in
behalf of their client. Like member pay out account the account ownership
rests with the member account holder.
26. ECX Member Pay –in Account: refer to an account maintained by trading
members of ECX, which serve as payment guarantee to the buyer and
eventually will be used for payment against the sales agreement between
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
buying and selling parties (Traders).Members can only deposits in this
account.
27. ECX Member Pay-Out Account: Shall refer to the account maintained by
trading members of ECX, who trade in their own account. This account is
used to receive payment from the trading and the member account holder
has an exclusive right on the account (Can withdraw and deposit funds).
28. Education Saving Account Scholarship Fund: refer to a monetary award,
granted by the CBE, for eligible Educations savings account holders.
29. Education Saving Account Seed Fund: refer to a monetary award, granted
by the CBE, for eligible education saving account holders if they want to use
the scholarship money for Initial capital to start a small-scale business
instead of pursuing higher education.
30. Education Savings Account (ESA): shall refer to a purpose-oriented saving
account with a relatively higher interest designed to encourage parents and
anybody who aspires to pursue higher education.
31. Ethiopia Commodity Exchange (ECX): shall refer to the enterprise an
organized marketplace, where buyers and sellers come together to trade,
assured of quality, quantity, payment, and delivery.
32. Exceptions - shall refer to events that are not clearly stated on this
procedure but the nature of the event is within the spirit of this procedure.
33. Federal Autonomous Organs: Shall mean to independent entities of the
federal government which are accountable to the house of people
representatives.
34. Fixed-Time Deposit: shall refer to a type of contract in which deposit is
received for a certain period of time without movement and attracts a higher
interest rate than the prevailing savings-interest rate.
35. Foreign Exchange Retention Accounts: Shall refer to a foreign currency
account that allow exporters and recipients of foreign remittance to hold a
specified amount of their foreign earnings for a defined period and use their
Forex holdings business promotion
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
36. Foreign-Currency Accounts: shall refer to an account in which the source of
fund is overseas and can be maintained in foreign currency or in Birr.
37. Fund Transfer: Shall refer to account to account money transfer among
accounts in the CBE or money transfer, initiated by CBE customers, to other
bank customers’ accounts.
38. High value Transfer: shall refer to fund transfers forwarded from/to other
Banks or Participants and by their nature such transactions are considered
urgent or involve high value transactions.
39. Individual: Shall mean a natural person or group of natural persons that are
not formed in any form of legal person like Business Organizations, Societies,
and Cooperative Societies. Associations and Charities.
40. League: shall mean cooperative society league of Ethiopia established by
cooperative societies at the national level.
41. Mal-operation list: shall refer to the register held by the National Bank of
Ethiopia, indicating the names of demand deposit account holders whose
cheque have been dishonored repeatedly and whose accounts are closed by
our bank.
42. Minor account -shall refer to saving account opened for individuals below
the age of 18 and operated by the individual parent or legal guardians.
43. Mnemonic Shall refer to an alternative and easy means of referring the
customer by inserting the customer name first letter and telephone number.
44. Non-Resident Non-Transferable Birr Account (NRNT): Shall mean an
account maintained in birr. Its Convertibility is not automatic but must be
approved. (All sources for deposits in this account should be in foreign
currency).
45. Non-Resident Transferable Birr Account (NRT): Shall mean an account
maintained in Birr by the debit of which funds can be transferred abroad in
foreign currency without the necessity of obtaining foreign exchange permit
(all sources for deposits in this account should be in foreign currency)
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
46. Non-Resident Transferable Foreign Currency Account (NRT FCY): Shall
mean an account maintained in foreign currency by the debit of which funds
can be transferred abroad without the necessity of obtaining foreign
exchange permit
47. Other Associations: Shall mean entities which are established based on the
civil code of Ethiopia and its shall include religious organization, Idir, equb,
sectorial associations, professional associations, trade unions and political
parties;
48. Other entities: shall refer to entities that are not explicitly defined or
categorized in this procedure and shall refer to entities that operate in
Ethiopia due to bilateral or other agreement between Ethiopia and the
respective country or international organization .
49. Outgoing Local Money Transfer: Shall refer to money transfer in the name
of a designated beneficiary by collecting cash or debiting the account of the
sender.
50. Overdraft Account: shall refer to a demand deposit account from which
withdrawal of money beyond the available balance is allowed up to the
maximum approved ceiling/ limit.
51. Partnership: shall mean a type of business organization in which two or
more individuals pool money, skills and other resources and share profit and
loss in accordance with terms of the partnership agreement and it may be
established in the form of ordinary partnership, joint venture, General
partnership or limited partnership.
52. Personal Identification Number (PIN): shall refer to secret numeric
password shared between the user and the electronic payment system which
is used to access the electronic banking service.
53. Point of Sale (POS) Terminal: shall refer to an electronic device used for
authorizing and processing Bank card transactions at the point of sale.
54. Point of sale: shall refer to the place at which a retail transaction or sales is
carried out.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
55. Private Business Establishment: Shall refer to a business established as
Sole Proprietorship or Business Organization which are not owned by the
government.
56. Private Sector: Shall mean the part of a nation's economy which is not
controlled by the government.
57. Prospect customer: shall refer to a proposed (potential) customer in which
the bank assumes to deal with business. Such type of customers may be
recruited during cross selling or any other marketing activities until the
customer fulfill the eligibility criteria.
58. Public Enterprises: Shall refer to a wholly state owned enterprise
established for gain, manufacturing, distribution, service rendering or other
economic and related activities.
59. Safe Deposit Box: shall refer to a strong metal container that can be rented
on annual basis to store valuables items and retained in small compartments
in the bank vault. Each compartment has separate lock with a dual access key
to meet the need of customers and available in a variety of size.
60. Savings Account: shall refer to interest-bearing deposit account with the
CBE maintained by physical and legal persons who can fulfill the
requirements of the Bank.
61. Societies: Shall mean associations which are established, by the
proclamation for Charities and Societies (No.621/2008), to protect the
interest of their members and specific segment or group of the society
62. Sole Proprietorship: shall mean a business established by a single natural
person.
63. Special-Demand Deposit Account (SDDA): shall refer to a non-interestbearing
account that is opened to fulfill the requests of those customers who
for one reason or another do not want their deposit to accrue any interest.
64. Staff Accounts: shall refer to a bank account that is opened by the staff of
CBE.
65. Supplier: shall refer to a company which has a special agreement with the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
CBE to supply goods and services with special discount for holders of the
women saving account for a specific duration.
66. Tailored service –shall refer a special service provision extended by the
bank to High value customers; such as assigning the bank’s employees in
high value customers’ premises to perform daily banking operation based on
their working relationship and contribution to the profitability and financial
resource mobilization to the bank.
67. Teen - Youth saving account shall refer to minors saving account with a
higher interest rate opened for those individuals found between the ages of
14-17 years.
68. Till number: shall refer to identification number that identifies the staff
involves in cash related tasks on the core banking system.
69. Till to Till Transfer: shall refer to the transfer of cash from Customer
service officer-Makers (at front) to senior customer service officer-cash or
vice versa through the system.
70. Till to Vault Transfer: shall refer to the transfer of cash from the senior
customer service officer-cash to Vault through the system.
71. Union: shall mean a group composed of more than one primary cooperatives
societies that have similar objectives.
72. Vault to Till Transfer: shall refer to the transfer of cash from the Vault to
senior customer service officer-cash through the system.
73. Verification of signature: shall refer to the checking of the signature with
naked eye without sending the document/instrument to external forensic
department.
74. Women saving Account: shall refer to a type of saving account designed for
women.
75. Youth saving account: shall refer to a type of saving account designed for
those individuals aged between 18-24 years old.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.3 Objectives of the CATS Procedure
The primary objectives of this procedure are to:
a) Ensure standardization and quality in the CATS process
b) Have a single source of reference to performers;
c) Determine the duties and responsibilities of each employee under CATS
process; and
d) Provide guidance and support to all employees under CATS process and
other users, to enhance their efficiency and effectiveness so as to bring
the intended operational excellence.
1.4 Scope of the procedure
This procedure shall cover and govern operational activities of the CATS process,
including the duties and responsibilities of performers in branches as well as
districts and CATS-CPC. The procedure shall also be applicable to NR/NT and
foreign transfer sub process.
1.5 Governing rules
This procedure shall be governed by:-
i. The commercial code of Ethiopia and other related laws and regulations of
the country;
ii. The relevant Directive of the National Bank of Ethiopia;
iii. The CATS policy of the bank;
iv. The accounting policy of the bank;
v. Internal control framework of the bank.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.6 The Structure of the CATS Process
Board of Directors
President
Manager - CATS
Operations
VP - CATS
District Managers
Director - CATS CPC
Manager Bond
Reconciliation
Branch Managers
Manager - Cash Custody and Issue
Manager - ATS
Manager - Customers' Account
and Operation
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.7 General Authorities and Responsibilities
1.7.1 President
The President shall:
a) Approve the CATS procedure Manual in accordance with CATS policy;
b) Oversee the implementation of the CATS policy and procedure Manual;
c) Oversee the overall CATS operational matters and the service delivery of the
CATS process and take appropriate action if deemed necessary; and
d) Oversee the structure of the process to clearly assign the authority and
responsibility in the process operation.
1.7.2 Vice President -CATS
The Vice president – CATS shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure the proper implementation of the CATS procedure within the
process;
c) Assess the current and future skill and talent demanded by the process and
develop through training and knowledge sharing;
d) Oversee proper understanding and awareness is created on the procedure by
all performers of the CATS process;
e) Maintain efficient integration of CATS process with other core and support
processes;
f) Ensure that district managers, Director-CATS CPC and other managers under
the process owner are discharging their duties and responsibilities as
entrusted to them in this procedure;
g) Oversee appropriate risk identification, measurements and management is in
place in operational activities of the process;
h) Oversee the overall CATS operational matters and the service delivery of the
CATS process and take appropriate action if deemed necessary;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
i) Approve additional formats or changes in the exiting formats that may be
required ;and
j) Initiate the revision of this procedure considering its appropriateness to the
Bank’s business strategy:
1.7.3 District Manager
The District Manager shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure effective and efficient operation of CATS process is in place within the
branches under the district’s domain;
c) Ensure whether branch managers are properly monitoring and leading their
respective staffs for better performance;
d) Support branches and district office staffs in implementing the CATS
procedure;
e) Ensure appropriate risk identification, measurements and management is in
place in operational activities of the branches and district;
f) Support the rectification of discrepancies and comments reported by internal
audit, Ethics and Anti-Corruption office, district compliance and monitoring
team and Branch controllers, and take the necessary remedial action;
g) Assess competency gap of performers and arrange the required trainings;
h) Ensure the operational activities of the branches are meant to satisfy the
customers without compromising the Bank’s interest;
i) Oversee the overall district operational matters and the service delivery of
the district and take appropriate action if deemed necessary;
j) Approve and concluded agreement for Cash pick up service and Casher
implant service with high value customers ;and
k) Keep the cash and ATM vault combination code of all branches under the
districts domain.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.7.4 Director- CATS CPC
The CATS CPC Director shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Oversee proper supply and collection of cash to and from branches;
c) Ensure appropriate risk identification, measurements and management is in
place in operations of the sub-process;
d) Maintain the asset quality of the bank through effective monitoring of
suspense account balances; and
e) Ensure that outstanding items are timely settled and branch accounts at CPC
are also timely reconciled; and
f) Oversee the overall d operational matters and the service delivery of CATS
CPC and take appropriate action if deemed necessary;
1.7.5 Manager- CATS Operation
The CATS Operation Manager shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Assess the effectiveness of the coordination among branches, districts and
CATS CPC in performing their day to day operation , propose and execute the
necessary actions in consultation with Vice President –CATS
c) Ensure procedural compliance in branches by collaborating with districts’
compliance and monitoring team;
d) Collaborate with concerned parties to ensure that CATS process operational
risk is identified, assessed and managed;
e) Analyze the findings and rectification of discrepancies and comments
reported by internal audit, Ethics and Anti-Corruption office, district
compliance and monitoring team and propose the necessary remedial
action;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) Initiates value adding processes to improve and standardize the operation in
CATS process ;
g) Follows up the proper implementation of the complaint handling system in
CATS process and addresses critical issues related with CATS- Process;
h) Examine financial regulations ,policies and procedure of the bank ;and
propose provisions into CATS process and procedure for better compliance
and harmony;
i) Liaison with core and support process to assist districts and CATS CPC in
critical issues ;
j) Ensure technical trainings are delivered by competent internal trainers as
per the technical training manual of the process;
k) Explain and discuss CATS procedure from operational point view to
concerned internal and external parties when requested and required ;
1.7.6 Manager- District Operations
The District Operation Manager shall;
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Assess the effectiveness of the coordination among branches under the
district domain in performing their day to day operation , propose and
execute the necessary actions in consultation with district –manager ;
c) Support branches under the district domain in the implementation of
resource mobilization strategies of the bank ;
d) Collaborate with concerned parties to ensure that district operational risk
are identified, assessed and managed;
e) Follow up the proper implementation of the complaint handling and
addresses critical issues related with the district ;
f) Follow up and arrange the supply of office equipment, furniture and fittings
to the new and existing branches;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
g) Ensure effective and proper utilization of resources; and
h) Keep the cash and ATM vault reserves keys of all branches under the districts
domain
1.7.7 Branch Manager
The Branch Manager shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure that internal control framework of the bank is properly implemented
in all operational activities of the branch;
c) Ensure appropriate risk identification, measurements and management is in
place in operational activities of the Branch;
d) Ensure proper understanding and implementation of the CATS Procedure by
performers within the branch and shall give the required assistance and on
the job training;
e) Assess the overall competency gap of performers at branch and propose
need based trainings that would fill the gap for the expected competency
level;
f) Ensure the rectification of discrepancies and comments reported by internal
audit, Ethics and Anti-Corruption office, district compliance and monitoring
team and Branch controllers, and take the necessary remedial action;
g) Ensure all performers are discharging their duties and responsibilities laid in
this procedure and take appropriate measure on performers who
contravenes the CATS procedure;
h) Perform all duties and responsibilities of the Manager –Customer service in
the absence or in addition of job holder ; and
i) Ensure that daily operations and branch book of accounts are done in
accordance with this procedure as well as accounting procedure of the bank.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.7.8 Manager- Cash Custody and Issue
The Cash Custody and Issue Manager shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure the supply and collection of foreign and local currency to/from
branches of CBE/NBE;
c) Keep dual control of cash vault key of main issue;
d) Ensure the handing and taking over of the physical cash between the Cash
custody and issue, E-Payment and city branches are taken place in
accordance with cash operation activities laid in this procedure;
e) Ensure the daily cash transactions are properly managed and take corrective
action on any cash discrepancies detected;
f) Ensure appropriate risk identification, measurements and management is in
place in operational activities of the team; and
g) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption
office, and controllers, and take the necessary remedial action;
1.7.9 Manager- Customers Account and Operations (at CATS CPC)
The Customer Account and Operation Manager, at CATS CPC, shall;
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure the timely processing of credit summaries;
c) Ensure the timely reconciliation of branch accounts;
d) Ensure list of closed current accounts due to mal operation are timely
updated on the system and manually dispatched to non-networked branches;
e) Ensure delinquent list of customers is timely dispatched to branches, Trade
Service Process and Credit Service process;
f) Ensure the timely and correct process of customer account balance
confirmation ;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
g) Ensure appropriate risk identification, measurements and management is in
place in operational activities of the team;
h) Ensure the accurate and timely maintenance of ECX, Government and other
corporate customers accounts;
i) Ensure reported lost negotiable instruments are recorded for further
reference and corrective action; and
j) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption
office, and controllers, and take the necessary remedial action;
1.7.10 Manager-ATS
The ATS Manager shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure all transactions are processed accurately and efficiently; and
reconciled and settled as per the standard;
c) Monitor the position of payment and settlement account and make sure that
the balance is not overdrawn; and
d) Ensure proper prioritization of payment when the balance in the Payment
and Settlement is account not enough to cover all outstanding payment
e) Rectify audit findings reported by internal audit, Ethics and Anti-Corruption
office, and controllers, and take the necessary remedial action;
1.7.11 Head Cash Custody and Issue (LCY/ FCY)
The Head at Cash Custody and issue shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Keep dual control of cash and vault key of Cash custody and issue
c) Handover and takeover the physical cash notes to and from branches, NBE
and other banks as per the cash operation activities laid in this procedure;
d) Assign officers and coordinate required resource for efficient cash collection
and issue
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
e) Ensure the cash counting and sorting takes place in accordance with this
procedure;
f) Follow up the settlements of claims and administer the cash discrepancies
detected during cash operation; and
g) Daily monitor the cash issue account movement and reconciliation status at
branches
1.7.12 Customer Service Manager at Branch
The Customer Service Manager at branch shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Ensure that the required resources are fulfilled for daily business operation;
c) Coordinate the activities of customer service officers and/or Senior customer
service officers within the branch;
c) Facilitate the provision of efficient and high quality service to customers as
per the standard;
d) Ensure all branch transactions are processed accurately and efficiently and
no unauthorized transactions are left in the system for specific business day;
e) Facilitate on the job training experience sharing and guidance for the proper
understanding and implementation of this procedure; and
f) Keep dual control of cash and vault key.
1.7.13 Customer Service Manager at Cash Custody and Issue
The Customer Service Manager at Cash Custody and Issue shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Keep dual control of cash and vault key.
c) Handover and takeover the physical cash notes to and from branches, NBE
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
and other banks as per the cash operation activities laid in this procedure;
d) Ensure the cash operation like counting and sorting takes place in
accordance with this procedure;
e) Assign officers and coordinate the required resource for efficient cash
collection and issue; and
f) Facilitate on the job training experience sharing and guidance for the proper
understanding and implementation of this procedure
1.7.14 Customer Service Manager at Customers’ Accounts and
Operation (CATS – CPC)
The Customer Service Manager at Customers’ Accounts and Operation (CATS – CPC)
shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Manage the timely processing of credit summaries;
c) Coordinate and monitor activities for timely and accurate branch account
reconciliation;
d) Update list of closed accounts due to mal operation on the system and
manually dispatch to non-networked branches;
e) Handle the delinquent list of customers and timely dispatch to branches,
Trade Service and Credit process;
f) Handle timely customer account balance confirmation;
g) Handle the reported lost negotiable instruments are registered for future
reference;
h) Ensure the timely dispatching of new account opening instruction and
account signature specimen to branches;
i) Manage the accurate and timely account maintenance of ECX, Government
and other corporate customers; and communicate the base branch for
further processing (if any); and
j) Facilitate on the job training, experience sharing and guidance for the proper
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
understanding and implementation of this procedure.
1.7.15 Customer Service Manager at ATS
The Customer Service Manager at ATS shall:
a) Plan, direct and coordinate the activities of the team within the approved
CATS procedure, guidelines and directives of the bank;
b) Coordinate the daily activities for accurate and timely processing of all
transaction of ATS team;
c) Monitor the position of payment and settlement account;
d) Develop priority list for payment when the balance is not enough to cover all
the outstanding payments;
e) Make timely and proper authorization as per NBE system rule and the
developed priority payment list; and
f) Facilitate on the job training experience sharing and guidance for the proper
understanding and implementation of this procedure.
1.7.16 Other Performers
All other performers under the CATS process shall discharge their duties and
responsibilities as per this Procedure.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
2. CUSTOMER CLASSIFICATION
The bank shall classify its customers based on the following two dimensions;
a) Economic Ownership Dimension
b) Volume and value of transaction
2.1 Volume and value of Transaction
The Bank shall classify the customers in to the following three broad customer
segments according to their value;
i. Retail /consumer/customers -
ii. Business customer
iii. Premium customers
2.2 Economic Ownership Dimension
The Bank shall have four broad classifications by economic ownership namely:
Private, Government, Public, and Associations.
2.2.1 Private
The Private category shall have the following sub classification;
I. Individuals- Shall include single individual as well as married couples,
work colleagues, school mates and other individuals that approach the
bank for the purpose of joint account maintenance
II. Private Businesses- Shall include Sole Proprietorship, Ordinary
Partnership, Limited Partnership, General Partnership, Joint Venture,
Private Limited Companies, Share Companies in the private sector,
Private financial companies and other similar entities
III. Other Private entities shall include:
a. All forms of organization which are not formed in line with the
Ethiopian law and operate under special agreement with the Ethiopian
Government;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b. The various embassies operating in Ethiopia and International and
regional organizations working in Ethiopia like the UN, AU, EU, IGAO,
NEPAO etc; and
c. Funds collected from the community, donors, and other institution
which are not legally formed but facilitated by Government entities.
The typical entities under this stipulation include funds collected from
the community for road, water and other infrastructures
2.2.2 Government
The Government category shall have the following sub classification;
I. Federal Government Entities
a. All ministries established under the federal government state owned
higher learning institutions(including universities ,colleges and other
higher learning institutions ) ;
b. All government administrative agencies;
c. Include Federal autonomous organs which are accountable to the house
of representative including; Ethiopian human right commission, The
Ethiopian Election Board and others
II. Regional Government Entities – This classification shall include all tiers of
regional government, city administrations, state owned primary and
secondary schools and any other establishment under the regional
government.
2.2.3 Public Enterprises
The public enterprise category shall include:
a. Public enterprises established as proclamation no. 25/1992 and share
companies established by Government;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b. All government owned enterprises like Ethiopian Airlines Enterprise,
Ethiopian sugar Corporation, Ethiopian Electric utility, Ethiopian Power
cooperation and etc
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
2.2.4 Associations
The Associations category shall have the following sub classification;
I. Cooperative societies
a. Shall include–Agricultural cooperative societies, Housing cooperative
societies, industrial and artisans producers’ cooperative societies,
consumers cooperative, saving and credit cooperative societies,
fishery cooperative societies, mining cooperative societies
b. Shall also include various establishment of cooperatives i.e. unions
and league
II. Charities, societies and Associations
a. Shall include all local and foreign based charities ;
b. Other associations shall include –professional associations and clubs
sectorial associations, labor unions, trade unions, women and youth
associations ,traditional “Equb” and “Edirs”, and all religious
organizations and political parties .
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
3. TYPES AND FEATURES OF DEPOSIT PRODUCTS AND
SERVICES
3.1 Types of deposit products and services
3.1.1 CATS process shall provide the following local deposit products;
i. Savings Account: This product shall consist the basic and differentiated type
ii.
of savings account;
a. Ordinary Saving Account
b. Women Saving Account
c. Youth Saving Account
d. Teen-youth Saving Account
e. Education Saving Account
Demand deposit Account : This product shall consist the basic and
differentiated type of demand deposit account ;
a. Ordinary demand deposit account
b. Special demand deposit account
c. ECX related accounts
iii. Fixed-Time Deposit
3.1.2 The local deposit products listed herein above “3.1” may have the following
additional distinguishing features based on the purpose of the account and
the request of the customer/s;
i. Account for minors
ii.
iii.
iv.
Joint Accounts
Earmarked Accounts
Account for interdicted persons
v. Staff Accounts
vi.
vii.
Cash Indemnity Account
Overdraft Account
3.1.3 Type of Foreign Deposit Products
CATS process shall offer the following foreign deposit products in selected
branches;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
a) Non Resident Transferable foreign currency Account
b) Non Resident Transferable birr Account
c) Non Resident Non-Transferable birr Account
d) Foreign Exchange Retention accounts
I. Retention” A”
II. Retention “B”
e) Diaspora accounts
I. Diaspora Demand deposit account
II. Diaspora Fixed Time deposit
III. Diaspora Non-Repatriable A/C
3.1.4 Services
CATS process shall provide the following services:
a) Muday Bank Service
b) Fund Transfer
c) Local Money Transfer
d) Foreign Money Transfer
e) Safe deposit box
f) Agency Services
3.2 Features of deposit products and services
3.2.1 Features of local deposit products
3.2.1.1 Features of Savings Accounts
I. Ordinary Savings
a) It is interest bearing account which is compounded monthly;
b) It can be opened individually, jointly and by corporate entities.
c) It can be opened with zero balance given that there is a reasonable source
of fund that bring the balance to the minimum amount of birr 25 within a
month;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) It can be operated by cash withdrawal slip, debit card, mobile and
internet banking; and
e) A minimum amount of birr 25 has to be maintained to keep the account
operating;
II.
III.
Women Saving Account
a) It can be opened individually, jointly and by associations formed by
women like Idir or Cooperatives having above 50% women members;
b) It can be opened with zero balance given that there is a reasonable source
of fund that bring the balance to the minimum amount of birr 25 within a
month;
c) It provides higher interest rate than ordinary saving account as indicated
in the bank’s term and tariff;
d) Account holders enjoy a discount on goods and services from the
suppliers, who have agreement with CBE;
e) The customer is responsible for selecting the brand, checking the
functioning and genuineness of the goods before receiving them from the
supplier. The Bank is not liable for any defect on the goods/services;
f) It can be operated by cash withdrawal slip, mobile banking, internet
banking and debit card designed for holders of women Saving Account;
and
g) Withdrawal of cash is allowed at any time in any amount of money.
Youth saving account
a) It is provided only for individuals or group of individuals in the ages of
18-24;
b) It can be opened with zero balance given that there is a reasonable source
of fund that bring the balance to the minimum amount of birr 25 within a
month;
h) It provides higher interest rate than ordinary saving account as indicated
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
in the bank’s term and tariff;
c) It shall be converted to normal/ordinary saving account, when the
account holder reaches the age of 25 and;
d) It can be operated by cash withdrawal slip, debit card, mobile and
internet banking;
IV.
Teen youth saving account
a) It can only be opened by individuals in the ages of 14-18;
b) Self-employed/employed teens between the ages of 14-18 years can open
and operate this account by providing Letter of confirmation from the
zonal/Woreda administration and school administration. The letter shall
at least state the applicant’s name, age and source of income (whether
he/she generates their own income);
c) The parent(s) or the tutor of the teen youth can open the account for
unemployed teen or teen without own source of income. The account
should be opened in the name of the teen youth, followed by the name of
the signatory (signatories)—the relationship to the youth specified as
either “parent(s)” or “Tutor”.
d) It can be opened with zero balance given that there is a reasonable source
of fund that bring the balance to the minimum amount of birr 25 within a
month;
e) It provides higher interest rate than ordinary saving account;
f) It shall be converted to normal/ordinary saving account, when the
account holder reaches the age of 18 and;
V. Education Savings Account
a) It is designed for saving money for Higher Education (up to
undergraduate programs);
b) It can be opened for oneself or for a minor by the parent(s)/tutors of the
minor;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Parents can save for their young children's future tuition expenses right
from the birth of their children;
d) It provides higher interest rate than ordinary saving account as indicated
in the bank’s term and tariff;
e) It may grant Scholarship fund for account holders who are eligible to take
part in a special scholarship program. Winners can also use the
scholarship fund as Seed money for Initial capital to start a small-scale
business instead of pursuing higher education; and
f) Withdrawal from the Education Savings Account is allowed anytime.
However, in order to be eligible for the scholarship or seed money award
for a particular year, the customer shall deposit the minimum amount set
by her/his preference for 12 months of the calendar year and no
withdrawal in this period.
3.2.1.2 Features of demand deposit Accounts
All demand deposit accounts shall be operated by literate and able to
sign written signature i.e. Thumbprint shall not be accepted to operate
the demand deposit accounts.
I. Ordinary Demand Deposit
a) It is a non-interest bearing bank account usually operated by cheque;
b) It can also be operated by using cheques, card, Mobile and Internet
banking;
c) it can be opened with a minimum balance of 1000 and 2000 for individual
and business customers respectively;
d) Penalty is charged if the minimum account balance is below birr 500 and
has no movement for more than six months; and
e) No restrictions on the number and amount of deposits and withdrawal as
long as the account have sufficient balance;
II.
Special-Demand Deposit Account
a) It is operated by passbook that is designed for the purpose;
b) It is Non-interest bearing account;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) It has a hybrid features of saving account and demand deposit account;
d) It can be opened individually, jointly or by corporate entities.
e) It can be opened with zero balance given that there is a reasonable source
of fund that bring the balance to the minimum amount of birr 25 within a
month;
f) No restrictions on the number and amount of deposit
g) It can be operated cash withdrawal slip, debit card, mobile and internet
banking; and
h) A minimum amount of birr 25 has to be maintained to keep the account
operating.
III.
ECX related Accounts
a) The accounts are opened to facilitate commodity trading at ECX;
b) Account opening and closure process is carried out by CATS - CPC
c) These accounts include:
1. Member Pay-in
i. Used as payment guarantee to participate in the trading floor
of ECX
ii. The member is legal owner but shall empower ECX for debit
transaction
iii. It can only be debited by the CATS- CPC as per the instruction
of ECX.
2. Member Pay-out
i. Used to receive payment from ECX trading; and
ii. The member/account holder has exclusive right on the account
3. Client Pay-in
i. It is an account maintained by members on behalf of their
clients; and
ii. it can only be debited by the CATS-CPC as per the instruction
of the ECX
4. Client pay-out
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
i. an account maintained by members in behalf of their client;
ii. The member/account holder has exclusive right on the account
3.2.1.3 Features of Fixed Time deposits
a) It is opened for a particular fixed period (time) by depositing particular
amount of money;
b) The period of fixed deposit is greater than or equal to 3 months ;
c) Under normal circumstance withdrawal is not allowed prior to the
maturity date. However if customer request any withdrawal before the
maturity date , the withdrawn amount shall be entitled the normal saving
interest rate and any remaining amount shall be entitled the fixed deposit
interest rate.
d) If the customer requests for a principal and interest rollover, it can be
rolled over to the next agreed period;
e) Minimum initial deposit is birr 10,000.00 or USD 5,000.00 or its
equivalent in EURO or Pound Sterling.
3.2.1.4 Other distinguishing features deposit products
I. Muday Bank Service
a) Muday Bank service is offered by the bank to accumulate and save money
in designated box and deposited in to the respective customer account.
b) Muday Bank service shall be provided by the bank with dual control.
c) Muday Bank service is mainly designed for petty traders, semi-skilled
workers, small holding farmers, shoe polishers and other similar
individuals.
II.
Accounts for Minors
a) It is a saving account opened for individuals below the age of 18;
b) The account shall be opened and operated by parents or legally appointed
tutor;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) At time of reaching major the total balance will be transferred to an
account maintained and operated by the major.
III.
Joint accounts
a) Joints accounts shall be maintained in name of two or three individuals to
jointly operate the account; in case of joint account opening account
holders shall sign additional contract design for the purpose (refer
CBECATS001-1)
b) Joint accounts can be “And Account” and “And/or Account”.
c) The nature of “And Account” is that all the parties should be present at
the counter of the bank to give payment instruction and withdraw money.
Whereas “And/or” account type allows individual account holders to
withdraw money and give payment instruction separately.
IV.
Earmarked Accounts
a) It is an account opened, with additional description indicating the
purpose like “club account,” “business account,” “workshop account,”
“project account,” “main account,” “branch account,” etc…;
b) The customer shall explicitly request the bank in written form to add the
description;
c) It can be earmarked using the registered trade name or the business
sector indicated on the trade license; and
d) Deposit can be made in the name of either the account holder or
earmarked name.
V. Accounts for Interdicted Persons
a) It is an account opened and operated by the Tutor appointed by the court
on behalf of the interdicted person/s.
VI.
Staff Accounts
a) Opened for CBE staff members and category shall be changed to nonstaff
category codes when the staff leaves the bank; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Staffs are not allowed to process transaction of their own in the system
except in payment channels such as internet, mobile and card banking.
VII.
Cash Indemnity Account
a) Opened in the name CBE staffs, who are engaged cash related activities
and entitled for cash indemnity allowance;
b) Withdrawals is approved by the CSM for settling cash shortage reported
by the account holding staff and confirmed by the branch controller;
c) Payments may be effected to the account holding staff after one year of
leaving cash related post for which she/he was entitled the cash
indemnity.
VIII.
Overdraft account-
a) It is a demand deposit account with augmented feature that allow
customers to withdraw money beyond their credit balance; and
b) It can be withdrawn up to the approved limit;
3.2.2 Features Foreign Deposit products
(Basic features for all foreign deposit products)
a) The source of fund is overseas and in foreign currency.
b) The account can be maintained in hard currency or in Birr.
c) Persons residing abroad can open such accounts in person or by mail in their
names.
d) A foreign currency shall be credited to the account through ;
I. Direct crediting of the account from foreign sources via the banking
system
II. Foreign currency cash note;(the account holder presents a signed and
sealed foreign-currency-declaration form from the Ethiopian Customs
Authority for foreign currency notes above 3,000 USD) and
III. Cheque deposits that originate from abroad.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
e) The foreign-currency accounts are to be maintained in the following types of
currencies:
1. US Dollar,
2. Pound Sterling and
3. Euro
f) The types of foreign-currency accounts shall include the following;
I. Non-resident transferable foreign-currency accounts (NRT FCY);
II. Non-resident transferable Birr accounts (NRT);
III. Non-resident non-transferable Birr accounts (NRNT);
IV. Foreign-exchange-retention accounts for exporters and for the
recipients of inward remittances shall include ;
1) Foreign exchange retention account A
i. The account shall be used to deposit 10% of the earned foreign currency.
ii. The foreign currency deposited to the account shall be used to settle
account holder obligation through in foreign currency or converted to
local currency, when requested by the account holder;
2) Foreign exchange retention account B:
i. The account shall be used to deposit 90% of the earned foreign currency up
to 28 days after which period any balance shall automatically be converted in
the next working day into local currency.
a) Foreign-currency accounts in the names of Ethiopians and foreign nationals
of Ethiopian origin (Diaspora A/C) that comprise the following:
3.2.2.1 Features of foreign currency Fixed-time deposit;
i. It is an interest bearing account with agreed maturity date;
ii. Foreign currency is the only source of fund for the account;
iii. It cannot be opened by power of attorney. However, individuals with
power of attorney can operate the account;
iv. The minimum maturity period is three months;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
v. It is opened with an initial deposit of US Dollar 5,000 or its equivalent in
any of the eligible currencies;
vi. Interest on such accounts shall be payable only if they are maintained at
least for the minimum period; and
vii. Interest income on such accounts is tax-free
3.2.2.2 Features of foreign currency Current accounts
i. It cannot be opened by power of attorney. However, individuals with
power of attorney can operate the account;
ii. Foreign currency is the only source of fund for the account ;
iii. Withdrawals can be made at any time by writing a cheque;
iv. It can be opened with an initial deposit of US Dollar 100 or its equivalent
in any of the eligible currencies;
v. The maximum amount to be deposited shall not exceed US Dollar 50,000
or its equivalent in any of the eligible currencies; and
vi. Interest shall not be paid to this account.
3.2.2.3 Non-Repatriable Birr account (saving account)
i. This account may take the form of saving deposit, that can be used for
local payments only;
ii. Foreign currency is the only source of fund for the account ;
iii. It cannot be opened by power of attorney. However, individuals with
power of attorney can operate the account;
iv. Interest rate on such accounts shall be double of the minimum saving
deposit rate set by the National Bank of Ethiopia, currently it is 10%;
and
v. Money can neither be transferred from this account abroad nor from
the local currency to any foreign currency
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
4. ELIGIBILITY CRITERIA AND REQUIRED DOCUMENT TO
OPEN ACCOUNT
4.1 Eligibility to open local deposit accounts
I. Ordinary Saving Account, Demand Deposit Account, Fixed-Time Deposit
or Special Demand Deposit Account
The following are eligible to maintain local ordinary savings account, Demand
Deposit Account or Fixed-Time Deposit
II.
a) All natural and legal persons recognized by Ethiopian laws;
b) Minors through parents or tutors ;and interdicted persons through and
legal Guardians )
Women Saving Account
The following are eligible to maintain a women saving account
a) Individual women;
b) Various associations owned by women with more than 50% share
c) Businesses entities fully owned by women;
d) Minor women (through parents or tutors);
e) Incapacitated women (through legal guardians);
f) Women staffs of the CBE.
III.
Youth Saving Account
The following are eligible to maintain a youth saving account.
a) All Individuals whose age is greater than or equal to 18 and less than or
equal to 24 years old;
b) Individual trade operators (sole proprietorship);
c) Interdicted persons (through legal guardians)
d) Staffs of the CBE’
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
IV.
Teen-youth Saving Account
The following are eligible to maintain a teen-youth saving account.
a) Individuals whose age is greater than or equal to 14 and less than 18
years old and is generating his/her own income;
b) Minors (through the parents or Tutor)
c) Interdicted persons (through Tutor)
V. Education Saving Account
The following are eligible to maintain an educational saving account.
a) Individuals classified as teen-youth, whose age is greater than or equal
to 14 and less than 18 years old;
b) Any individual, whose age is greater than 18;
c) Minors (through the parents or Tutor);
d) Interdicted persons (through legal Guardian ) ;and
e) Staffs of the CBE’s
4.2 Eligibility to open foreign currency accounts
The following are eligible to open account in foreign currency:
1) Embassies;
2) Foreign diplomats;
3) International organizations;
4) Expatriate employees of international organizations;
5) Foreign based Charities;
6) Foreign investors;
7) Ethiopians living abroad and foreign nationals of Ethiopian
origin(Diasporas);
8) Non-resident Ethiopian Nationals living and working outside Ethiopia.
9) Non-resident foreign nationals of Ethiopian origin.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
10) Companies owned by the above-mentioned nonresidents and located
outside the Ethiopian territory for more than one year.
11) Ethiopian nationals living and working abroad or in due process of living
abroad for work for more than one year and who can produce
authenticated documents.
12) Exporters;
13) Recipients of inward remittances; and
14) Other local/international companies with the approval of NBE
4.3 Document required
4.3.1 Document required to local Currency account Opening
I. In general the bank shall accept the following identification Cards (IDs) to
open an Account;
a) Worda/Kebele ID cards;
b) Employment and pension ID cards;
c) School, college and university ID cards;
d) Driver’s/operator’s licenses;
e) Tax identification ID card;
f) Passports;
g) Work or residence permits; and
h) Foreign-nationals-of-Ethiopian-origin ID card, together with a valid
passport.
i) Ethiopian Community ID.
II. Acceptable ID cards shall at least consist the following information ;
a) The bearer full name i.e. in case of Ethiopia Citizen Person’s name,
Father’s and Grandfather’s name.
b) Person’s Photo
c) ID number
d) Issue date
e) Issuer name and issuer’s stamp
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
III. Post account opening document authentication shall be performed by the
account opening branch/CATS CPC.
IV. Authenticating the letter of request shall be enough instead of individual
IDs in case of account opening based on letter of request issued from
corporate customers of the bank or other known entities such as
universities for their students ,government entities and branch’s
corporate customers for their employees ;
V. The bank shall require the following documents to open a local-currency
deposit account;
1. Individuals
a) One valid and renewed ID card; and
b) Tax Identification Number (TIN) for demand deposit account;
c) Two recent passport-size photographs for a savings account and one for a
demand-deposit account (if there is no digital camera in the branch)
d) On the other hand, in order to open Teen-Youth Saving Account the
following documents are acceptable as Identification cards:
1) Student ID Cards;
2) Birth Certificates/Birth Notifications/Baptism Cards;
3) Letter of confirmation from the appropriate authority.
2. Individual Trade Operators (sole proprietorship)
a) One valid and renewed ID card;
b) A renewed trade license and principal registration;
c) A recently taken passport-size photograph (if there is no digital camera
in the branch); and
d) Tax Identification Number (TIN).
3. Private Limited Company
a) The company’s renewed trade license and principal registration; and an
investment certificate (for investors);
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) A Memorandum of Association and an Article of Association attested,
registered and sealed by Document Authentication and Registration
Office;
c) A letter of request to open and operate the account, which should be
signed by the authorized person mentioned in the Memorandum of
Association and in the Article of Association and bears the company’s
official stamp;
d) A valid and renewed ID card of the person authorized to operate the
account; and one passport size digital photo for saving account to be
retained by the bank (if there is no digital camera in the branch)
e) A tax identification number (TIN).
4. Organizations Legally Incorporated in the Following Forms:
I. Partnership
a) A renewed trade license and principal registration and an investment
certificate (for investors) in the name of the partnership;
b) A partnership agreement attested, registered and sealed by FDRE Document
authentication and Registration Office;
c) A letter of request to open and operate the account, which should be signed
by authorized person and to which the official stamp of the partnership must
be affixed, if any;
d) A valid and renewed ID card of the authorized person to operate the account;
and
e) A tax identification number (TIN).
II.
Share Company
a) The share company’s renewed trade license and principal registration;
b) A Memorandum of Association and an Article of Association attested,
registered and sealed FDRE Document authentication and Registration
Office;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) The minutes of the meeting of the Board of Directors held to discuss the
opening and operation of the account;
d) A letter of request to open and operate the account, which is signed by the
Chairperson of the Board and bears the company’s seal; however, the general
manager shall sign on the request letter, if it is delegated by the board.
e) A valid and renewed ID card of the person authorized to operate the account;
and
f) A tax identification number (TIN).
5. Institutions for Higher Learning
I. Colleges and Universities (State Owned)
a) A letter of authority from the federal Ministry of Education or from the
concerned university, Or
b) A letter of authority from the concerned university or from the Education
Bureau of the region, whichever is appropriate; or
c) On the strength of the institution’s letter of request, if the institution was
established by proclamation and its establishment was announced in the
Negarit Gazetta; and
d) A valid and renewed ID card of the person authorized to operate the
account.
II.
Private Schools, Colleges and Universities
a) If the private school or college was established in the form of a private
limited company, all the required documents stated under 3 (a-e) must be
produced, and the account should be opened in the name of the school or
college;
b) If the private school or college was established by an individual, all the
required documents stated under 3 (a-d) must be produced and an
earmarked demand deposit account should be opened in the name of the
person, the school or college; and
c) A valid and renewed ID card of the person authorized to operate the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
account.
6. Federal budgetary Institutions
a) Letter of instruction from Ministry of Finance and Economic
cooperation;
b) Valid and renewed ID cards and photo of the authorized signatories;
7. Regional/city/ administration budgetary Institutions
a) Letter of instruction from Regional /city Finance and economic offices;
b) To open account for the Administration of the Zone/Sub city’s and other
offices under the Zonal’s or Sub City’s supervision, a written letter of
instruction from their respective regional/city Finance and economic
development offices shall be presented;
c) To open account for the Administration of the Woreda and other offices
under the Woreda’s supervision, a written letter of instruction from
their respective Zonal or sub city Finance and economic development
office shall be presented;
d) To open account for entities/institutions under a particular Woreda’s
domain, a written letter of instruction from the respective Woreda
Finance and economic development office shall be presented;
e) Valid and renewed ID cards and digital photo of the authorized
signatories
8. Public Enterprises
a) A public enterprise shall present the Negarit Gazetta that has announced
its establishment;
b) The letter of appointment by the Board of Directors of the General
Manager;
c) A letter of request from the General Manager to open and operate the
account
d)Tax Identification Number (TIN) for demand deposit account; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
e) Valid and renewed ID cards and digital photo of the authorized signatories.
9. Cooperatives
a) A certificate of registration issued by the appropriate authority. If the
cooperative is in the process of formation, however, a letter of authority
from the organizing body shall be presented.
b) The approved and registered rules and regulations of the cooperative.
The rules and regulations will have to; nonetheless, bear the official
stamps of the registering body and of the cooperative on all their pages.
c) Minutes of the most recently held meeting of the General Assembly,
which clearly shows the members’ pertinent resolution. If the cooperative
is in the process of formation, nevertheless, a letter of intent signed by all
its members will suffice.
d) A letter of request by the Chairperson to open and operate a current
account.
e) A valid and renewed ID card and digital photo of the person authorized to
operate the account.
f) Tax Identification Number (TIN) for demand deposit account;
10. Labor Unions
a) A certificate of registration from the federal Ministry of Labor and Social
Affairs or from the region’s Bureau of Labor and Social Affairs.
b) Approved and registered rules and regulations of the labor union. Each
page of these rules and regulations shall bear the official stamp of the
registering body and of the labor union.
c) The resolution of the General Assembly that has appointed the Executive
Committee of the labor union. This document must, however, bear the
official stamp of the labor union and of the registering body.
d) Minutes of the Executive Committee.
e) A letter of request by the Chairperson to open and operate the account;
f) Valid and renewed ID cards and digital photo of the authorized
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
signatories; and
g) Tax Identification Number (TIN) for demand deposit account.
11. Associations and Clubs
a) A certificate of registration obtained from their respective organizing
authorities;
b) The rules and regulations of the association, which bear the official stamp
of the organizing authority and of the association or club;
c) Minutes of the most recently held meeting of the General Assembly at
which the members thereof resolved to form the Executive Committee—
duly sealed by the organizing authority;
d) The minutes of the pertinent meeting held by the Executive Committee and
a letter of request by the Chairperson thereof to open and operate the
account;
e) A letter of request by the Chairperson to open and operate the account;
f) Valid and renewed ID cards and digital photo of the authorized signatories;
and
g) Tax Identification Number (TIN) for demand deposit account.
12. Religious Organizations
I. The Ethiopian Orthodox Tewahido Church
a) All Ethiopian Orthodox Tewahido churches shall produce a letter of
authority either from the Patriarch or by delegated persons by him;
b) Valid and renewed ID cards of the authorized signatories; and
c) Tax Identification Number (TIN) for demand deposit account;
II.
The Ethiopian Islamic Affairs Organization
a) A letter of authority signed by the Chairman of the Ethiopian Islamic
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Affairs Supreme Council shall be presented to open and operate a bank
account;
b) Valid and renewed ID cards of the authorized signatories; and
c) Tax Identification Number (TIN) for demand deposit account.
III.
The Ethiopian Catholic Church
a) The Ethiopian Catholic Churches are required to present a letter of
authority from the Secretary General of the Ethiopian Catholic Secretariat
to open and operate a bank account; and
b) Tax Identification Number (TIN) for demand deposit account;
c) Valid and renewed ID cards of the authorized signatories.
IV.
The Ethiopian Evangelical Church Mekane Yesus
a) A church thus named will have to obtain a letter of authority from the
President of the Ethiopian Evangelical Church Mekane Yesus—that is, its
central office—to open and operate a bank account; and
b) Tax Identification Number (TIN) for demand deposit account;
c) Valid and renewed ID cards of the authorized signatories.
V. Other Religious Organizations
a) Certificate of registration and letter of authorization from the Ministry of
federal and Pastoralist development affairs to open an account.
b) Rules and Regulations of the religious organization;
c) Once the religious organization opened the initial account by the written
instruction of Ministry of federal and Pastoralist development affairs, it
can open another accounts for its branch offices by the instruction letter
of the Chairperson or President of the religious organization; and
d) Tax Identification Number (TIN) for demand deposit account;
e) Once opened, their accounts shall be operated by their respective
Chairperson or President.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) Valid and renewed ID cards of the authorized signatories are also
required.
13. Accounts for Minors, Interdicted Persons, Bankrupt Firms and Firms
that are in the Process of liquidation
I. Accounts for Minors(Teen youth)
II.
a) A proper letter of application submitted by the Parent on behalf of the
minor;
b) A ruling by a court order appointing the lawful Tutor for the minor; and
c) Valid and renewed ID card of the tutor or the parent;
d) Two recent digital photograph of the parent and the minor;
e) A church certificate or a municipality certificate or a certificate from a
hospital, etc. that gives the date of birth of the minor;
Accounts for Interdicted Persons
a) The ruling by a court of law pertaining to the interdiction;
b) An official letter from the court ordering appointment of the Tutor;
c) Two recent digital photograph of the parent and the interdicted person;
d) Valid and renewed ID cards of the Tutor and the interdicted persons.
III.
An Account for a Firm that is in the Process of being Liquidated
a) The document containing the court’s ruling with regard to the company’s
bankruptcy;
b) The court’s decision pertaining to the liquidation of the bankrupt
company;
c) An appointment of the liquidator by the court and the legal power given
to her or him for the purpose; Tax Identification Number (TIN) for
demand deposit account; and
d) The ID cards of the authorized persons
14. Account for Share companies under formation
a) A letter of authority from the licensing body will have to be presented;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
and no cheques shall be issued until the customer brings Tax
Identification Number (TIN) for demand deposit account;
b) A valid and renewed ID card of the person authorized to operate the
account;
15. Account for firms under the process of registration for Investment
or Trade license
a) A letter of authority from the licensing body will have to be presented.
b) A valid and renewed ID card of the person authorized to operate the
account. However, the account will be blocked until they are presented
the Investment license and Principal registration.
c) If their request fails, the balance should be released and refunded up on
presentation of a letter of consent from the licensing organ.
16. Account for Overseas Organizations Which Are Working in Ethiopia.
Overseas organization due to bilateral, contractual, multilateral, etc. agreement
work in Ethiopia without establishing branch office may request for account
opening for local payments. To that end, the following documents should be
produced:
i. Due to contractual agreement
a) The overseas organization shall give power of attorney to the country
representative and shall be authenticated from ministry of foreign
affairs and registered by FDRE document authentication and
registration office.
b) Shall present memorandum and article of association of the overseas
organization which is sealed by foreign affairs.
c) Contractual agreement of the organization with other local
organizations
d) Supporting letter from the local organization giving the contract.
e) A valid and renewed Id card of the person authorized to operate the
account;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) Tax Identification Number (TIN) for demand deposit account;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ii.
Due to bilateral or multilateral agreement
a) A letter from Ministry of foreign affairs that requests opening of the
account by specifying the delegated person to open and operate the
account and/or the representative of the organization.
b) The letter of Ministry of foreign affair shall be signed by the person
delegated by the Ministry to that effect and shall be verified by the
bank.
c) A valid and renewed Id card of the person authorized to operate the
account;
d) Tax Identification Number (TIN) for demand deposit account;
17. Accounts Opened to Manage and Control Project Fund
Public enterprises, government offices, universities etc… reach an agreement
with other organization to make advance payment to the organization through a
separate account opened for this purpose in the name of the organization and
control the fund by assigning a co-signatory from them.
The following
documents shall be presented up on the account opening:
a) Depending on the nature of the organization which the account shall be
opened, the organization shall present all the necessary documents
1. To open the account and operate, letter of request shall be presented
by the project funding organization
2. All necessary documents of both parties, related with their legal
establishment, shall be presented
b) Registered contractual agreement.
c) A valid and renewed Id card of the person authorized to operate the account;
and
d) Tax Identification Number (TIN) for demand deposit account;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
4.3.2 Documents required to open Foreign-Currency Accounts
I. Embassies
a) A letter of application that states the manner of operation, signed by the head
of the delegation; and
b) Diplomatic ID cards or passports of the signatories of the account.
II. Diplomats
a) A letter of application which is signed by the ambassador or her/his delegate;
and
b) A diplomatic ID card or passport.
III. International Organizations
a) A letter of application; and
b) Permit from the NBE;
c) The ID cards or passports of the signatories of the account.
IV. Foreign Investors
a) A permit from the NBE;
b) The Memorandum of Association (for companies);
c) The Article of Association (for companies);
d) Registration Certificate or investment certificate;
e) Letter from investment office;
f) A letter that states the manner of the operation, signed by the person to
whom the mandate is given by the Article of Association (for companies);
g) If the company has a parent company, Power of attorney from the parent
company shall be presented; and
h) Valid ID cards or passports of the signatories of the account shall be
presented. For foreigners, however, work permit or residence permit shall be
presented.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
V. International Charities
a) A letter of application that states the manner of the operation—from the
organization’s Head Office or regional office;
b) Tax Identification Number (TIN) for demand deposit account;
c) Permit from the NBE; and
d) ID cards or passports of the signatories of the account
VI. Expatriate Employees of International Organizations
a) A letter of application from the employee;
b) Valid and renewed ID cards from the organization that has employed them,
or driving/operating licenses, passports or trade licenses; and
c) A letter from the employer, which confirms that her or his salary is paid in a
foreign currency.
VII. Non-Resident Ethiopians and Foreign Nationals of Ethiopian Origin
a) An application form properly filled out and signed by the account holder;
b) For individual foreign nationals of Ethiopian origin, valid passports and/or
Ethiopian Origin identification cards;
c) For businesses, a certificate of ownership/entitlement for the organization
and/or the Article of Association and the Memorandum of Association;
d) For those who, for one reason or another, cannot appear in person to open
the NR account, a filled application form through E-mail, fax or courier
service and a confirmation letter from embassy, a correspondent bank or a
remittance service provider;
VIII. Exporters
a) A letter of application; and
b) Documentary evidence of legality and incorporation as per their formation,
for sole proprietorship all the documents stated under 2(a-d),for Private
limited company as stated under 3(a-e) ,for partnership as stated 4-I (a-e)
and for share company as stated 4 –II(a-f).
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
IX. Recipients of Inward Remittances
c) A letter of application;
d) A valid and renewed ID card from the employing organization, a
driver’s/operator’s license, a passport or a trade license;
e) Documentary evidence of legality and incorporation as per their formation,
for sole proprietorship all the documents stated under 2(a-d),for Private
limited company as stated under 3(a-e) ,for partnership as stated 4-I (a-e)
and for share company as stated 4 –II(a-f) and
f) Evidence that the applicant is a regular recipient of foreign exchange.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
5. OPENING OF AN ACCOUNT
5.1 Customer creation
The Customer Services Officer/Maker
a) Attends to customers’ requests at the counter; interviews them and sells
the Bank’s products and services.
b) Receives from the customer any essential information like name, another
account in the CBE (if any), address, Id number, issuance date, issued by
and any additional information which helps to know the customer.
c) Creates the customer as individual, or corporate as appropriate according
to the nature of the customer, if the customer fulfills the eligibility criteria
to open an account or enter into a contract.
d) Checks whether the customer has already maintained an account in the
Bank, through customer interviewing and mnemonic verification; and
initiate amendment/update for discrepant/incomplete customer
information before using the existing customer ID(if any ) to open the
new account.
e) Creates a new customer ID only if the customer has no account in any of
the networked branches of the CBE in order to avoid duplicated customer
ID; and
f) Incorporates the customer’s record and mnemonic that is taking the 1st
letter of the customer’s first name followed by her/his telephone number
or Tax identification number (TIN) (the last nine digits) into the system
The Customer Services Officer/Checker
a) Makes sure that the pertinent information is incorporated into the system
by looking at the documents presented by the customer.
b) Ascertains the mnemonic is given as per the standard format;
c) Authorizes the customer record.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
5.1.1 Merging Customer ID
Existing Customer IDs can be merged together for offering better service and
proper recording.
a) The customer can lodge merger of existing customer’s ID at any of the
branch he/she has an existing customer ID to be merged.
b) Customer can also lodge merger of existing customer’s ID at CATS CPC.
c) Branches /CATS CPC shall verify the request and merge the existing
customer ID;
‣ Verify the customer ID‘s to be merged together are of the same
customer (refer form CBECATS003) and ensure the customer has
confirmed same thereof.
‣ Verify the correct customer information are incorporated on the
system and adjust if necessary.
5.2 Account and Contract Maintenance
The customer can lodge account opening request either of the following
ways:
a) At any CBE branches and service outlets;
b) At CATS CPC for opening of more than one account in different branches
and opening of account to be opened on special approval like ECX and
Government accounts.
5.2.1 Opening of Account at Branch Level
I. Saving and Demand Accounts
The duties and responsibilities of each performer of the Bank involved in the
account-opening procedure are the following:-
The Customer Services Officer/Maker
a) Receives the pertinent document from the customer, based on the type of
account that she or he wants to open and the requirements set thereof,
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
and identifies her/him.
b) Activates the record by updating any additional information about the
customer, if the customer is created as prospect customer previously,
c) Ascertains that the name of the applicant requesting to open a demanddeposit
account does not appear on the mal-operation list.
d) Issues an account-opening application form (refer Form:CBECATS001 and
FORM: CBECATS002), a cash or a check deposit form (Form:CBECATS101
and FORM: CBECATS102), to be filled out by the applicant, and guides her
or him on how to fill out the opening application form.
e) Explains to the customer the e-payment channels in terms of the value
added benefits to the customer ;
f) Issues application form for VISA card, mobile banking and internet
banking(Follow the E-payment procedure for detail work flow)
g) Checks that the required documents are properly filled out and signed by
the applicant. If the customer uses thumb print, however, she or he shall
attest the thumbprint, affixing thereto a rubber stamp that reads “Signed
before me.”
h) Takes the customer thumb print in the presence of two witness one from
the bank officers and the other from the customer side, if the customer is
blind; If the customer is unable to present a witness from his side the
Customer Service Manager/Branch Manager shall sign as a witness and
the Customer Service officer affixing thereto a rubber stamp that reads
“Signed before me.”
i) Takes the customer’s finger print through the Bio-metrics device.
j) Makes the customer fill out the first cheque-requisition form in case
demand deposit account ;
k) Takes customer picture by using the digital camera configured with the
system and attach to the account details;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
l) Opens the new account in the system by using the customer ID created in
the branch or other CBE branches. Writes the system generated account
number on the deposit slip, on the application form and on the chequerequisition
slip.
m) Writes her/his name and signs on the application form on the space
provided thereof—that is, where it says “Name and signature of the
Maker”—and forwards all the documents submitted to her or him to the
Customer Services Officer/Checker for checking and co-authorization.
n) Receives the original documents from the Customer Services
Officer/Checker, and collects the cash or cheque to be deposited, counts it
physically and then compares the amount with the denominations
written on the deposit voucher and posts the transaction.
o) Subscribes mobile alert privilege to the customer by checking the validity
of the telephone number filled by the customer.
p) Delivers original documents (ID card, trade license and other relevant
received documents), the deal slip, passbook (for saving), the gift package
and the welcome note to the customer. The passbook shall be delivered to
the customer upon letting him/her sign on the passbook register book. A
separate passbook register book shall be used to record account opening
made while providing van based banking or off-branch banking services.
q) Scans the customers’ signature and relevant particulars and link with the
account.
r) Passes the voucher to the Branch Controller.
s) Balances her/his cash on a half day and end of the cash hour and hands it
over to the Senior Customer Services Officer-Cash.
The Customer Services Officer-Checker
a) Makes sure that the account-opening documents are properly prepared
and the opened accounts are authentic;
b) Makes sure that the customer’s name is not on the mal-operation list for
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
opening of current account;
c) Fills out the necessary particulars on the passbook (for a savings
account);
d) Authorizes the account opening and Co-signs on all the account-opening
documents and passbook (for a savings account);
e) Puts a stamp on the affixed photo by covering therewith the lower half of
it;
f) Returns to the Customer Services Officer/Maker the passbook, the
original documents received from the customer, the gift package that
contains the welcome note signed by the Branch Manager and the giveaway
materials, ID cards, and the deposit voucher;
g) Forwards the cheque-requisition form (refer form CBECATS009) filled
out by the applicant to the Customer Service Manager/Senior Customer
Services Officer-accounts;
h) Checks and authorizes the scanned signatures; and
i) Passes onto the Branch Controller the opening documents—that is, the
application form, a copy of the ID card and the trade license (if the
applicant is a trade operator) and all the other relevant documents (if the
applicant is an organization).
The Customer Service Manager/Branch Manager
a) Authorizes amendment on customer record initiated by the Customer
Services Officer/maker.
b) Checks the daily opened accounts list from the system and receive copy
document from the branch controller for further authentication, within
fifteen days, in the absence of the KYC Analyst. However, if the branch
manager/ Customer service Manager believes that the customer is
properly identified, she/he can authorize withdrawal from the account
before the document is authenticated or otherwise place post no debits
until the opening document is authenticated.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Receives the response from the document issuing organ or from KYC
Analyst; Place posting restriction and inform the pertinent authorities if
the document is counterfeited.
The Branch Controller
a) Collects all the documents from the Customer Services Officer-Checker
submitted for the opening of an account and makes sure that the account
is opened as per the Bank’s pertinent policy and procedure;
b) Makes sure that the name of the newly opened account holder is not in
the mal-operation list for all current accounts opened;
c) Signs on the documents to ascertain the correctness and accuracy of the
newly opened accounts;
d) Makes sure that all opening document received agree with the daily
opened account list on the system.
e) Opens a new mandate file in the name of the account holder and keeps all
relevant documents under the senior branch controller or his/her
custody.
f) Copies and forward all the relevant documents for saving accounts
opened by corporate customers, all demand deposit account and any
other suspicious new accounts to KYC Analyst/Customer Service Manager
(in the absence of KYC analyst) and follow-up the authentication within
fifteen days.
g) Collects the authenticated documents and keeps with the opening
documents.
The KYC analyst-at Branch
a) Checks daily account opened for fulfillment of customer information per
the KYC requirement of the bank
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Checks all account opened are not given multiple customer ID if the
customer do have an account at other branch(s)
c) Checks daily account opening report and all the account opening
documents; authenticate account opening documents like ID card, power
of agency, trade license, memorandum of associations… from the
concerned organ for documents issued within or nearby cities.
d) Requests in writing other branches to authenticate the genuineness of
documents issued in other cities on behalf of the base branch by sending
the required documents,
e) Follows-up accounts opened with zero balance is credited with the
minimum initial deposit amount within a month and inform the branch
manager for closure ;
f) Receives the response from the document issuing organ; and inform the
Manager or the CSM if the documents found to be counterfeited; and
g) Submits the authenticated documents to senior branch controller/branch
controller for filing.
The Senior Customer Services Officer-Accounts
a) Forwards the customer cheque request to the CATS - CPC for cheque
personalization; and
b) Ensures that cost of cheque books are collected from the customer
account.
II.
Fixed-Time Deposit Contract
The Customer Service Manager/Branch Manager
a) Deals with the customer to set the amount of money to be deposited, the
period of fixed-time/term and the interest thereon that would accrue to
her or him;
b) Requests the customer to fill out the application and contract(Refer form
CBECATS004) designed for the purpose;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Forwards the necessary documents to the Customer Service Officer
Maker at the front;
d) Checks and authorize the fixed time/term deposit contract; prepares a
certificate of deposit (Refer form CBECATS006) and co-signs with the
Customer Service Officer Maker on the certificate of deposit;
e) Requests the customer to sign on the registered copy confirming receipt
of the certificate of the time deposit;
f) Gives acknowledgement to the customer and forwards to her or him the
deposit certificate and the advice;
g) Keeps custody of the application form, the registered copy and the debit
or the credit advice in a separate mandate file;
h) Collects the old certificate and issues a new one upon request for renewal.
i) Sets the next agreed up on period on the system if the customer agrees a
principal rollover and the bank accept her/his request up on maturity
j) Collects the old certificate of deposit, issues a new certificate for the
remaining balance after signing the contract and amend the certificate
number on the system if the customer requests partial withdrawal before
maturity.
The Customer Services Officer/Maker
a) Creates a new fixed-time deposit in the system; and incorporates debit
account, principal liquidation, interest liquidation accounts that are used
at time of maturity.
b) Forwards the application form registers a copy thereof and debit advice
to Customer Service Manager.
The Branch Controller
a) Checks the name, the amount of fixed deposit, the maturity date and the
signature on the contract against the system.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
5.2.2 Opening of account at CATS-CPC
Seniors Customer Account and Operation Officer
a) Receives pertinent documents depending on the nature of the account to
be opened;
b) Receives a power of attorney/authority of the ECX member, entrusting
the sole right of debiting the pay-in account to the Exchange, prepared in
four copies, and signed by the principal authorized officials at the CATS
CPC, in front of two witnesses;
c) Verifies the signature on the request letter;
d) Creates customer Id on the system.
e) Makes sure that the customer’s name is not on the mal-operation list for
opening of current account;
f) Opens customer account by the requested branch company code
g) Scans the authorized signatories
h) Forwards the documents to customer service manager-customer account
for authorization and branch communication.
Customer Service Manager-At Customer Account and Operation
a) Receive pertinent documents depending on the nature of the account
from the senior customers’ account and operation officer for
authorization ;
b) Makes sure that the customer’s name is not on the mal-operation list for
opening of current account;
c) Checks the integration of customer information on the system and
cosign on the opening application form ;
d) Returns the original power of attorney to the principal (ECX member)
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
once the activities related to it have been undertaken at the center;
e) Authorizes customer creation, account opening, and signature capture
f) Authenticates from the issuing organs relevant opening document ;
g) Receives the response from the document issuing organ; Place posting
restriction and inform the pertinent authorities if the document is
counterfeited
h) Writes a letter to the concerned branch if the request is to open an
account in non-networked branch.
i) Communicates in writing the opening of the account to the concerned
branches or ECX for banking operation.
j) Reports to ECX if an account-holding member is reprimanded, suspended
or excluded from banking activities due to mal-operation specifying the
type and frequency
The Controller at CATS - CPC
a) Collects from the customer service manager all the documents submitted
for the opening an account and makes sure that the account is opened as
per the Bank’s pertinent policy and procedure;
b) Makes sure that the name of the newly opened account holder is not on
the mal-operation list for all current accounts opened;
c) Signs on the documents to ascertain the accuracy and completeness of the
newly opened accounts;
d) Makes sure that all opening document received agreed with the daily
opened account list on the system.
e) Copies and forwards all the relevant documents for saving accounts
opened by corporate customers, all demand deposit account and
suspicious accounts to Customer Service Manager for authentication and
make follow-up the authentication within fifteen days.
f) Opens a new mandate file in the name of the account holder and keeps all
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
the relevant accounting opening documents in her/his custody.
5.3 Account closing
I. Reasons for Closing an Account
Any account (a savings or a current account) may be closed when:
a) Requested by the customer;
b) Customer reports loss of passbook.
c) There is a court order to that effect;
d) The account holder is reported dead, bankruptcy & insanity
e) There is an inactive demand deposit account to be closed upon collection
of service charges over a period of time;
f) The account holder is on mal operation list (for Demand Deposit
account); and
g) Customer could not deposit a minimum amount of Birr 25.00 (twentyfive)
within one month after a savings account has been opened in her or
his name with a zero balance.
II.
Closure of Accounts
The Customer Services Officer/the Maker (at the front)
a) Receives a filled out form by the customer requesting the closure of the
account after the customer service manager interviewed her or him;
b) Receives the passbook (for saving Account);
c) Advices the customer to fill out the declaration form(refer form
CBECATS010), authenticates the signature and charges her or him as per
the prevailing terms & tariff for the replacement of the passbook, if the
closure is due to loss of the passbook;
d) Makes sure that there are no wrong debit/credit entries into the account,
as well as no credit/debit entries in transit;
e) Initiates the account closure process and effect payment or transfer the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
whole balance to the customer new account in case the case of loss of
passbook;
f) Effects payment as per the payment procedure if the customer wishes to
paid cash; and
g) Cancels the passbook, if any, and forwards it to the Branch Controller.
The Customer Services Officer/Checker
a) Makes sure that there are no wrong debit/credit entries in the account, as
well as, no credit/debit entries in transit;
b) Checks the entry that brings about the closure of the account with in
her/his limit and authorizes the transaction; and
c) Makes sure that the passbook is collected from the customer;
The Customer Service Manager/Branch Manager
a) Interviews the customer before closing the account. If the customer is
dissatisfied with the service further corrective measure should be taken
immediately and notes the causes of dissatisfaction for management
further action.
b) Collects the unused cheque(s) along with the letter indicating the range of
unused cheques from the customer and writes the word “Void” on each
cheque leaf;
c) Checks and authorizes the transaction with in her/his limit;
d) Registers the unused cheques returned into the system.
The Branch Controller
a) Receives the unused cheque or the passbook and ticket and cheques the
presentation and accuracy thereof;
b) Places the documents (account-opening application form, unused
cheques/passbook) in the “closed account” file in order;
c) Registers the unused cheques and destroys them in the presence of
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Customer Service Manager and the Customer Service officer Maker within
fifteen days of the account closure; and
d) Files the minute held for the destroying the unused cheques signed by all
presented in the specified venue and time to destroy the unused cheques.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
6. COLLECTION
6.1 Collection of Cash for Deposit
The duties and responsibilities of each staff of the Bank involved in the collection
of cash consist of the following:
The Customer Services Officer/Maker
a) Receives the cash, the deposit slip signed by the depositor and the
passbook (if any) from the depositor.
b) Makes sure that the amount of money given in both words and figures is
the same as that given on the deposit voucher;
c) Counts the cash by comparing it with the denominations written on the
deposit slip, and cheques the name and account number on the deposit
slip against the system.
d) Identifies and inputs the detail information of the depositor on system, if
the amount is greater than the amount set by Ethiopian Financial
Intelligence Center; currently it is 300,000.00 birr.
e) Credits the customer’s account by specifying the depositor full name in
the narrative box, if the deposit to be made is within her/his
discretionary limit otherwise, dual authorization shall be requested from
the concerned Customer Service Officer Checker/Customer Service
Manager; and updates the passbook balance, if any;
f) Forwards the referral to Customer Service Manager, if the deposit is to be
made to the inactive account;
g) Prints the deal slip and hands over to the customer the deal slip as a
receipt and keeps the deposit voucher for further balancing and
recording; If the depositor require additional deal slip for whatever
reason , the additional deal slip or deposit advice should be marked as “
duplicate “ or “Copy “ .
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
h) Balances her/his cash against the pertinent data on the system at the
half-day and the day-end closing,
i) Hands over the deposit voucher to the Branch Controller, as soon as the
transaction is completed , and
j) Hands over the cash beyond her/his holding limit during the day’s
operation, and the whole cash except the petty-cash (each note cash
denominations less than a bundle) at the half-day and the day-end closing
to the Senior Customer Service Officer- Cash.
The Customer Service Officer-Checker
a) Checks the completeness of the deposit slip, name and account number
against the system and authorizes the transaction with in her/his
authorization limit.
The Customer Service Manager
a) Checks the completeness of the deposit slip, name and account number
against the system and authorizes the transaction, if the deposit is to be
made to inactive account and/or transaction amount is above the
authorization limit of the Customer Service Officer-Checker.
The Branch Controller
a) Receives the deposit voucher and checks the completeness; and
b) Confirms the proper posting of the transaction using the system
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
6.2 Collection for Money Transfer
6.2.1 General Conditions for Money Transfers
A. The bank accepts transfer request of customers either in cash or by
instruction to debit customers’ account
B. Customers can transfer money from their account maintained in CBE into
another account or to be paid in cash. In addition to using internet, mobile
and ATM channels, account holders can use the following modalities to
transfer money from their account;
1. Using Cheque Transfer: Account holders’ can transfer money to their
customers’ account without the presence of the payee .In this scenario ,the
following shall be followed ;using cheques by the following procedure (this
procedure shall only apply when the drawer wishes to deposit or transfer the
proceeds of the cheque without the presence of the payee/in case of the
payee’s presence, the normal cheque deposit procedure shall be followed);
i. Writes the account number on the face of the cheque along with
payee’s name
ii. Writes transverse line across the face of the cheque “payable in
account “ or to restrict the transferability of the cheque put “ payee
only “as in the case of payment to suppliers of government budgetary
account ;
iii. Puts drawer stamp at the back of the cheque for corporate entities ;
In case of the payee’s presence, the normal cheque deposit procedure shall be
followed.
2. Using Account to Account format: individual customers can transfer money
using the format (refer format CBECATS103) designed for the purpose after
proper identification and verification is completed ;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
3. Letter of Payment Instruction:
3.1 Corporate Customers can transfer money using letter of payment instruction
to effect payment through bankers’ cheque/fund transfer/local money
transfer. However, the transfer initiated through payment letter of
instruction should only be allowed for the following purpose of payment
stated hereunder;
i. To any government/public enterprise account ;
ii. To their own, subsidiary/branch or company accounts;
iii. To employee salary accounts ;
iv. To place standing instruction (when the account holder place
the instruction in person)
v. Irrespective of the purpose of payment stated from i-iv, the
branch manager can authorize letter of payment instruction of
corporate customers based on the strength of the KYC made on
the customer and following the delegation procedure
hereunder.
3.2 Any letter of payment instruction /request for collection or receiving of
advice, of cheque books and returned cheques originated from corporate
customers shall be presented to the branch by duly delegated person in
writing. The following procedure shall be followed to handle letter of
delegation from corporate customers;
Customer Service Manager
a) Receives letter of delegation, verifies the signature and confirms the
genuineness of the document by communicating the
owners/signatories of the corporate entities ;
b) Receives delegated person’s photo, ID card as well as signature
specimen and open mandate file for the future reference; The
mandate file shall be maintained electronically as and when ,the
system for the purpose is implemented . In case manually treated
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
,forwards the letter of delegation to Senior branch controller for
maintaining it in the mandate file and send copy to Senior Customer
Service officer–Accounts for future reference ;and
c) Verifies the delegated person signature against the signature
specimen and identifies the delegated person ID card at the back of
the letter at the time of receiving letter of payment instruction; and
d) Forwards letter of payment instruction to Customer Service officer for
further processing.
Senior Customer Service Office –Accounts
a) Receives the approved letter of delegation for the future reference;
and
b) Verify and identify the delegated customer before handing cheque
books, advice and statement of accounts;
6.2.2 Outgoing Local Money Transfer
The Customer Services Officer/Maker
a) Receives the money transfer application form/Letter of payment
instruction (Refer FORM: CBECATS104) from the customer. If the
remitter is corporate customer, a stamped application should be
presented.
b) Authenticates the signature of the account holder/authorized signatory, if
the transfer is made from account;
c) Receives the application/letter of payment instruction from the person
who has been lawfully delegated for the purpose if the remitter is
Corporate customer and the transfer is requested from customer’s
account ;
d) Interviews the customer to compare the details therein and inputs into
the system the beneficiary name, remitter name, test question and
answer, and amount;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
e) Collects the amount of money to be transferred, including bank charges;
f) Debits the customer’s account if the amount of money to be debited is
within her/his payment-authorization limit, otherwise requests dual
authorization from the concerned Customer Service Officer
Checker/Customer Service Manager;
g) Forwards the application form to the Customer Service Officer Checker/
Customer Service Manager, so as to check and authorize the transaction ;
h) Hands over the deal slip (customer advice) to the remitter by keeping its
confidentiality; and informs the customer to tell the security number, test
question and answer to the beneficiary;
i) Balances her/his cash at the end of the cash hour against the system
balance and delivers the application form/letter of instruction to the
Branch Controller and the cash to the Senior Customer Services Officercash.
The Customer Services Officer-Checker/ the Customer Services
Manager
a) Checks the correctness of the application form submitted;
b) Authorizes the transfer within her/his authorization-limit ; and
c) Produces the deal slips after confirming that the cash has been received
or the appropriate account has been debited.
The Branch controller
a) Receives the application form and checks the proper posting in the
system;
The Senior Customer Services Officer-Accounts
a) Follows-up the daily balance of LMTS payable account against the system
tracer;
b) Forwards long outstanding items for write back approval (refer to the
bank’s suspense management procedure):and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Transfers to income by the system, when the write back request is
approved.
6.2.3 Bankers’ Cheque /Casher Payment Order
The Customer Services Officer/Maker
a) Receives the money transfer application from the customer, checks the
particulars therein including the stamp for corporate customers and
inputs the details into the system;
b) Authenticates the signature of the account holder/authorized signatory, if
the transfer is made from account;
c) Receives the application/letter of payment instruction from the person
who has been lawfully delegated for the purpose if the remitter is
Corporate customer and the transfer is requested from customer’s
account ;
d) Receives cash/ debit from the customer account, including the
commission, and forwards to the Checker the letter of application,
together with the Bankers’ Cheque;
e) Requests dual authorization if the amount beyond her/his authorization
limit from the concerned Customer Service officer Checker/Customer
Service Manager;
f) Receives the Bankers’ cheque /CPO/from the Checker, co-signs on the
prepared Bankers’ cheque /CPO/makes the remitter sign on the back of
the application confirming the receipt of the original instrument and
gives the instrument to the customer; and
g) Balances her/his cash at the end of the cash hour against the system
balance and delivers the application form/letter to the Branch Controller,
and the cash to the Senior Customer Services Officer-Cash.
The Customer Services Officer/Checker
a) Receives the blank Bankers’ cheque /CPO/from Customer Service
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Manager;
b) Makes sure that the particulars on the Bankers’ cheque /CPO/is the same
as that of the customer’s application;
c) Prints the Bankers’ cheque /CPO/after confirming that the cash has been
received or the appropriate account has been debited;
d) Signs on the Bankers’ cheque /CPO/and forwards same to the Customer
Services Officer/Maker; and
e) Makes sure that the serial numbers of the Bankers’ cheque /CPO/used on
that particular day follow the serial numbers of the remaining unused
Bankers’ cheque /CPO/form.
The Customer Services Manager
a) Receives and Checks the correctness of the letter of application
submitted;
b) Authorizes the transaction within her/his authorization-limit.
c) Prints the Bankers’ cheque /CPO/after confirming that the cash has been
received or the appropriate account has been debited; and
d) Signs on the Bankers’ cheque /CPO/and forwards same to the Customer
Services Officer/Maker.
The Senior Customer Services officer-accounts
a) Follows-up the daily balance of Bankers’ cheque /CPO/account
against the system tracer;
b) Forwards long outstanding items for write back approval ;(refer to
the bank’s suspense management procedure) and
c) Transfers to income by the system when the write back request is
approved,
The Branch controller
a) Receives the application form and check proper posting of transaction in
the system; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Checks the serial number of the Bankers’ cheque /CPO/ used on that
particular day and follow the serial numbers of the remaining unused
demand draft/ Bankers’ cheque /CPO/form.
6.2.4 Account to Account Transfer (Fund Transfer)
Customer Service officer Maker
a) Receives the cheque /money transfer application/letter of payment
instruction from the customer, checks the particulars therein including
the stamp for corporate customers ;
b) Checks the proper presentation, authenticity and completeness of the
amount of money in both words and figures and the signature of the
beneficiary appear on the cheque /money transfer application/letter of
payment instruction;
c) Authenticates the signature of the account holder/authorized signatory;
d) Receives the application/letter of payment instruction from the person
who has been lawfully delegated for the purpose if the remitter is
Corporate customer and the transfer is requested from customer’s
account ;
e) Authenticates the signature, and posts both the debit and credit entries, if
the limit is within her/his discretionary limit; otherwise forwards the
cheque /money transfer application/letter of payment instruction for
dual authorization; and
f) Affixes Customer Service officer - stamp on the back of the cheque or
mark “posted” on the letter of payment instruction/ transfer form and
post on the system by specifying the cheque type, cheque number for
cheques or reference and other description for letter of payment
instructions/transfer form and print the deal slip (Debit and credit
advise) and hands over to the customer;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
The Customer Services Officer/Checker
a) Authorizes the referral request after checking the genuineness of the
document and correctness of the transaction in her/his authorization
limit.
The Customer Service Manager
a) Authorizes the referral request after checking the completeness of the
document and correctness of the transaction in her/his authorization
limit.
Branch controller
a) Receives the cheque/ money transfer application /letter of payment
instruction from the customer service officer- maker;
b) Checks the proper presentation, authenticity and completeness of the
transfer documents
c) Checks for proper posting of transactions in the system; and
d) Keeps such instruments under her/his custody.
6.2.5 Foreign Money Transfer
Foreign money transfer shall be made for Education, correspondence fee, seminar,
Training, Symposium, workshop, conference, Membership fee, Medical fee and
others in line with the pertinent directive of the NBE and the direction of the bank. If
and when the branch is permitted to process foreign money transfers the following
procedure shall be followed;
6.2.6 Foreign currency Demand Draft and SWIFT Transfers
The Customer Services Officer/Maker
a) Receives the letter of application for foreign exchange or the duly
completed remittance form, together with the other required documents
against the check list;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Writes the system generated permit reference number on the application
and forward to manager customer service for approval.
c) Receives the approved permit from Customer Service Manager;
d) Assigns the correspondent bank on which the draft should be drawn;
e) Authenticates the signature (if the balance is to be debited from the
customer’s account), does preliminary checking and forwards it to the
Checker for further scrutiny;
f) Receives back the application/permit, including the name of the
correspondent bank, and inputs the details into the system;
g) Receives the local currency equivalent in cash/debit from the customer’s
account for the preparation of the draft and forwards it to the Checker;
h) Signs on the draft and forwards it to the Customer Service Manager;
i) Receives the draft from Customer Service Manager, makes the remitter
sign on the back of the file copy and gives it to the customer;
h) Input the MT-103 detail into the system and forwards it to the Customer
Services Officer/Checker if the transfer is made via SWIFT; and
j) Balances her/his cash at the end of the cash hour against the system
balance and deliver the application form/instruction letter to the Branch
Controller, and the cash to the Senior Customer Services Officer.
The Customer Services Officer/Checker
a) Receives the letter of application for foreign exchange from the Customer
service officer-Maker and compares the contents of the document against
the checklist;
b) Checks the letter of application against the prepared document, the
conversion of the counter value of the requested foreign currency,
including related charges, for amounts in her/his discretionary limit;
c) Checks the filled-out MT-103 form, then sign on it for transfers to be
made via SWIFT,
d) Forwards the permit to the Senior Customers Officer-Accounts, together
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with a copy of the exchange control; and
e) Sorts and attaches therewith the appropriate documents and files them.
The Customer Service Manager
a) Approves the permit and forward to customer service officer-maker if the
application fulfills the NBE requirement
b) Checks the availability of sufficient fund in our correspondent bank
account, in accordance with the internationally accepted finance process,
if necessary; and
c) Co-signs on the draft;
The Branch controller
a) Receives the letter of application/application form and checks the proper
posting in the system.
The Senior Customer Services Officer – Accounts
a) Sends the permit to Management Information Service (MIS), together
with a copy of the exchange control, as per NBE report submission
schedule
6.2.7 Purchase of Foreign-Currency Notes
The Customer Services Officer/Maker
a) Receives and identifies the types of foreign-currency notes and makes
sure that they are authentic; moreover, torn out, dog-eared notes, etc.
shall not be purchased.
b) Posts the currency, amount, name of the customer and phone number on
the system, prints a deal slip in two copy make the customer sign on the
deal slip.
c) Pays to the customer in Birr and give one copy to the customer as receipt,
if it is within her or his payment-authorization limit, or sends a referral, if
it is above her or his payment-authorization limit; and
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d) Surrenders the foreign-currency notes to the Senior Customer Services
Officer-cash after balancing the day’s cash transaction, and the signed
deal slip to the Branch Controller.
The Customer Services Officer/Checker
a) Accepts the signed deal slip authorizes the transaction with in her/his
authorization limit.
The Customer Service Manager
a) Accepts the signed deal slip money transfer application / the Customer
service office-Maker, authorizes the transaction with in her/his
authorization limit; and
b) Makes sure that the foreign currency notes are timely lodged to the issue
branches/center for proper utilization of the resource at the bank level.
The Senior Customer Services Officer-cash
a) Collects the foreign-currency notes from customer service officer-maker
after checking the genuineness of the note.
The Branch Controller
a) Checks and balances the day’s cash transaction against the system; and
b) Checks and does follow-up on the local-currency and foreign-currencycash-holding
positions of the branch.
6.2.8 Issuance of Travelers’ Cheques and Money Notes
Foreign currency in the form of cash or travelers’ cheques shall be issued in line
with the pertinent directive of the NBE.
The Customer Services Officer/Maker
a) Receives travel documents (passport and air ticket), authenticates the
letter of application and does preliminary checking thereof and forwards
it to the Checker for further scrutiny;
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b) Enters the data, and collects the local currency equivalent in cash or
debits it from the customer’s account;
c) Requests the Senior Customer Services Officer-cash to send her or him
the travelers’ checks and receives same;
d) Makes the customer fill in the blanks on the purchase agreement and
signs on it;
e) Delivers the travelers’ cheque to the customer, makes her or him sign on
the face of each cheque;
f) Pays the balance in foreign-currency notes to the customer, in accordance
with the provisions of the pertinent directive of the NBE; and
g) Surrenders the foreign and local-currency notes to the Senior Customer
Services Officer-Cash after balancing the day’s cash transaction, and the
tickets to the Branch Controller.
The Customer Services Officer-Checker
a) Receives and examines the travel document and the application form
against the checklist, then makes sure that they are complete;
b) Writes the permit-reference number generated by the system on the
letter of application for the issuance of travelers’ cheques and money
notes;
c) Forwards the travel document and application to Customer Service
Manager for permit approval;
d) Authorizes the transaction if payment is in her/his authorization limit;
and
e) Writes the amount sold and the air ticket number on the pass port and
put the banks stamp.
The Customer Service Manager
a) Receives and examines the travel document and the application form and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
approves the permit; and
b) Authorizes the transaction if payment is in her/his authorization limit.
The Branch Controller
a) Checks and balances the day’s cash transaction on the system.
6.3 Collection of Negotiable Instruments for Deposit
6.3.1 Local Cheques
6.3.1.1 A cheque drawn on CBE Branches
The Customer Services Officer/Maker
a) Collects the cheque from the depositor;
b) Checks the proper presentation, authenticity and completeness of the
cheque—that is, makes sure that the date on which the cheque was
issued, the name of the beneficiary thereof, its endorsement (account
number and name of account to be deposited), the amount of money in
both words and figures and the signature of the beneficiary appear on it.
c) Verifies the signature, and posts both the debit and credit entries, if the
limit is within her/his discretionary limit; otherwise forwards the cheque
for dual authorization.
d) Affixes Customer Service officer - stamp on the back of the cheque and
post on the system by specifying the cheque type, cheque number on the
menu and print the deal slip(credit advise)and hands over to the
customer;
e) Forwards the posted cheque to the Branch Controller after balancing
them.
The Customer Services Officer/Checker
a) Authorizes the referral request after checking the genuineness of the
document and correctness of the transaction in her/his authorization
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
limit.
The Customer Service Manager
a) Authorizes the referral request after checking the genuineness of the
document and correctness of the transaction in her/his authorization
limit.
Branch controller
a) Receives the cheque from the customer service officer- maker;
b) Checks the proper presentation, authenticity and completeness of the
cheque—that is, makes sure that the date on which the cheque was
issued, the name of the beneficiary thereof, its endorsement, the amount
of money in both words and figures and the signature of the beneficiary
appear on it;
c) Checks for proper posting of transactions in the system;
d) Keeps such instruments under her/his custody.
6.3.1.2 Clearance of Other Banks’ Cheques (including Bankers’
Cheque)
Other bank cheques or bankers’ cheques can be accepted for deposit to one’s
demand deposit account or savings account on collection basis, so long as they
are drawn on their respective branches and included in the cheque clearance
system.
A) Branches having a scanner which is compatible with the EATS
The Customer Services Officer/Maker-at the front
a) Collects the cheque and Bankers’ cheque /CPO/ from the depositor,
together with the filled-in deposit slip;
b) Checks the completeness of the cheque and the Bankers’ cheque;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Makes sure that the particulars filled in the deposit slip are identical with
those on the check and the Bankers’ cheque /CPO/ received for deposit,
that is, the name and account number of the account holder or
beneficiary/payee thereof, the check’s/Bankers’ cheque /CPO/ number
and the amount of money involved have been written on it and that it has
been signed by the depositor;
d) Affixes a crossing stamp to the face of the cheque and the Bankers’
cheque /CPO/ , the stamp of the accepted for deposit/pending clearance
on the back of the instrument and on both the original and the receipt of
the deposit slip and then puts her or his initials on all the documents;
e) Hands over the receipt/advice to the depositor after putting thereon
her/his initials; and
f) Forwards the cheque and the Bankers’ cheque /CPO/ and the deposit slip
to the Customer Services Officer/Maker (at the back) for the EATS
process.
The Customer Services Officer/Maker (at the back)
a) Accepts the cheques and Bankers’ cheques from the Customer Services
Officer/Maker (at the front), together with the deposit slip, and ascertains
that the proper formalities have been fulfilled;
b) Sorts the cheques and Bankers’ cheques by bank;
c) Takes the run-up of the cheques and Bankers’ cheques and cross-checks it
against the total run-up of the deposit slips;
d) Scans the checks and Bankers’ cheques and captures its images in the
scanner interface system or the Cheque Truncation system.
e) Fills all the required data in the fields; like the drawer Bank Identification
Code (BIC), name of branch, the drawee account number, account name,
Cheque number and amount and then the payee account number, account
name etc.
f) Forwards the scanned payment instruments to customer service
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
officer/checker(at the back);
The Customer Services Officer/Checker (at the back)
a) Makes sure that the Cheque and Bankers’ cheque /CPO/ is scanned and
the data entered are correct;
b) Exports the image from the scanner interface System/cheque truncation
system to Core banking system of the bank;
c) Authorize the Cheques/Bankers’ cheque /CPO/ to be sent for clearance
with her/his limit;
d) Produces a report from the system for those Cheques/Bankers’ cheques
that are ready to be sent for clearance;
e) Check the total of the run-up taken by the customer service officer-Maker
(at the back) of the Cheques/Bankers’ cheque /CPO/ and compares with
the report;
f) Dispatches the cheques to ATS team at CATS- CPC for delivery to the
representative of each drawee bank until the physical movement of the
cheque stopped by NBE (until full truncation is implemented).
g) Receives a returned Cheque/Bankers’ cheque /CPO/ from ATS team and
register on returned dispatch book;
h) Affixes cleared stamp on the cheque deposit slips for cheques accepted by
other banks and forwards to the branch controller;
i) For returned Cheque/Bankers’ cheque /CPO/ call the customer and
dispatch it after the customer signs on the register.
The Customer Service Manager
a) Makes sure that the Cheque and Bankers’ cheque /CPO/ is scanned and
the data entered are correct;
b) Authorizes the Cheques/Bankers’ cheque /CPO/ to be sent for clearance
with her/his limit;
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The Senior Customer Service officer– Accounts -at branch
a) Receives the cheque deposit slip from the Customer Service officer–
maker and cheque against the transaction; and
b) Keeps the cheque deposit slip and the list/report of submitted cheques to
ATS until credited to customer account or returned cheques are received;
c) keeps the cheque and cheque deposit slip until credited to customer
account or rejected by the system in the case of cheque truncation
system,
d) Balances the outstanding customer cheque deposit slips with the internal
account opened for the purpose on daily basis;
e) Submits the cheque deposit slip which are credited to customer account
to branch controller and returned cheques to back office maker to be
subsequently delivered to the customer;
f) Submits the cheque and cheque deposit slip which are credited to
customer account to branch controller and rejected cheques to back office
maker to be subsequently delivered to the customer in the case of cheque
truncation system,
The Branch Controller-at the branch
a) Checks the exported image and the authorized transactions for clearing
on the system;
b) Receives the cheque deposit slip from the Senior Customer Service
officer– Accounts and check against the transaction for agreement; and
c) Receives the cheque and cheque deposit slip from the Senior Customer
Service officer– Accounts and check against the transaction for agreement
in the case of cheque truncation system;
d) Files the documents in her or his custody.
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The Customers’ Account and Operation Officer at ATS
a) Receives and balance the Cheques/Bankers’ cheque /CPO/ with report
send from the branch and NR /NT account and Foreign Money Transfer;
b) Verifies the physical cheques against the figures on the system;
c) Sort the physical cheque by bank and balance with EATS and submit to
Senior Customers’ Accounts and Operation Officer;
d) Prepare “Form – A” (list of total cheques value by CBE branches and NR
NT account and Foreign Money Transfer per other bank) in two copies
and generate “Form – B” (list of total number of cheques and amount for
each other bank);
e) Prepares a list of returned cheques/Bankers’ cheque /CPO/for respective
branch and NR NT account and Foreign Money Transfer and dispatch to
them.
The Senior Customers’ Account and Operation at ATS
a) Appears, after forty eight hours, at the clearing house of NBE to collect
any returned Cheques/Bankers’ cheque;
b) Delivers or accept the Cheques/Bankers’ cheque /CPO/ from the
representative of each bank;
B) Branches that do not have a scanner which is compatible with ATS
system.
The Customer Services Officer/Maker – at front office
a) Collects the cheque and Bankers’ cheque /CPO/from the depositor,
together with the filled-in deposit slip;
b) Checks the completeness of the cheque and the Bankers’ cheque;
c) Makes sure that the particulars filled in the deposit slip are identical with
those on the cheque and the Bankers’ cheque /CPO/ received for deposit,
that is, the name and account number of the account holder or
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
beneficiary/payee thereof, the cheques/Bankers’ cheque /CPO/number
and the amount of money involved have been written on it and that it has
been signed by the depositor;
d) Affixes a crossing stamp to the face of the cheque and the Bankers’
cheque /CPO/, the stamp of the accepted for deposit/pending clearance
on the back of the instrument and on both the original and the receipt of
the deposit slip and then puts her or his initials on all the documents;
e) Hands over the receipt/advice to the depositor after putting thereon
her/his initials; and
f) Forwards the cheque and the Bankers’ cheque /CPO/and the deposit slip
to the Customer Services Officer/Maker (at the back) for the EATS
process.
The Customer Services Officer/Maker (at the back)
a) Prepares the summary sheet in two copies for each bank, signs on them
and forwards them to the Customer Services Officer-checker at the back
for co-signing; and
b) Sends one copy of the summary sheet to ATS team at CATS-CPC together
with the cheques/Bankers’ cheques
The Customer Services Officer/Checker (at the back)
a) Makes sure that the Cheques/Bankers’ cheques are in order and that the
appropriate clearance tickets have been prepared, co-signs on the
summary ticket and passes it on to the Customer Service officer -Maker
(at the back office);
b) Keeps one copy of the summary sheet, together with the deposit slip, until
the customer account automatically credited or the cheque is returned for
follow up;
c) Receives a returned cheques from the ATS and registers on returned
dispatch book;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) Affixes cleared stamp on the cheque deposit slips for cheques accepted by
other banks and forwards to the branch controller; and
e) Calls the customer and dispatch it after the customer signs on the
register; for returned Cheque/Bankers’ cheque
The Senior Customer Services Officer – Accounts (at branch)
a) Receives the cheque deposit slip from the Customer Service officer–
maker;
b) Keeps the cheque deposit slip and the list/report of submitted cheques to
ATS until credited to customer account or returned cheques are received;
c) Balances the outstanding customer cheque deposit slips with
memorandum account on daily basis; and
d) Submits the cheque deposit slip which are credited to customer account
to branch controller and returned cheques to back office maker to be
subsequently delivered to the customer;
The Branch Controller
a) Receives the cleared cheque deposit slips from the Customer Services
Officer/Checker and checks for the correctness of the transaction on the
system; and
b) Files the documents in her or his custody;
The Customers’ Account and Operation Officer - Maker at ATS
a) Accepts cheques from the branches of the CBE and from the foreign
transfer NR/NT accounts and Foreign Transfer for clearance with
summary sheet;
b) Makes sure that the authorized signatures have been affixed to the
summary sheet and check the sum of all cheques against the total value
on the claim ;
c) Scans the cheque, Bankers’ cheque /CPO/and capture its images in the
scanner interface;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) Fills all the required data in the fields; like the drawer Bank Identification
Code (BIC), name of branch, the drawee account number, account name,
Cheque number and amount and then the payee account number, account
name etc.;
e) Exports the image from the Scanner Interface System/Cheque Truncation
System to the CORE banking system;
f) Sorts each cheque together with claim ticket by the concerned bank;
g) Posts the value of each cheque by bank and balance the total value of the
postings against the total of the claim ticket and ATS report;
h) Prepare “Form – A” (list of total cheques value by CBE branches and NR
NT account and Foreign Money Transfer per other bank) in two copies
and generate “Form – B” (list of total number of cheques and amount for
each other bank);
i) Takes the run-up of the debit and credit of the claim ticket;
j) Post the total value of the cheques to be dispatched to the clearing house
to payable account;
k) Dispatches the cheques together with “Form A” and “Form B” to the
cheque clearance office at the NBE; and
l) Delivers the cheques to the representative of each drawee bank until
movement of physical cheque stopped by NBE.
Customers’ Account and Operation Officer - Checker at ATS / Customer
Service Manager at ATS
a) Checks that the data entered are correct and approve the cheque to be
sent for clearance. If the data are not correctly filled out return to repair
status for modification;
b) Approves after the necessary modification made by the customers’
account and operation officer- Maker;
c) Makes sure that the Cheque and Bankers’ cheque /CPO/is scanned and
the data entered are correct; and
d) Authorize the Cheques/Bankers’ cheque /CPO/to be sent for clearance
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
with her/his limit;
The Senior Customers’ Account and Operation officer at ATS
a) Produces a report from the system for those cheques that are ready to be
sent for clearance;
b) Forwards the report to Customer Account And Operation Officer to be
dispatched until the cheque truncation system begins;
c) Represent the bank at the clearance house and collect any returned
cheques;
d) Forwards the returned Cheque/Bankers’ cheque /CPO/to customer
account and operation officer for the dispatch to the respective branch;
e) Forwards all accepted cheques to the respective CBE Branch in order to
be filed on the date of posting with their daily Ticket until the cheque
truncation system begins.
Controller-at ATS
a) Checks the exported image and the authorized transactions for clearing
on the system;
b) Checks the correctness each approved cheques transaction whether it is
credited to the correct account;
c) Checks the high value transaction (Real Time Gross Settlement) and all
other outgoing instruction
6.4 High Value collection
I. Incoming MT103
Incoming MT103 SWIFT messages are transactions forwarded to our bank
customer’s account from other banks or participants. This message types includes
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Electronic Fund transfers (EFTs) or cheque cleared under special clearance with
value greater than Birr 200,000.00. In this case, the following procedure shall be
adhered.
II.
Fund transfer request form other bank customer account to CBE
customer account
Customer Service Officer-Maker/checker/CSM at branch
a) Checks the name and account number on MT103 message with that of the
system if it agrees, authorize the MT103, or take appropriate action as the
case may be. The MT 103 message shall be used as a source document to
authorize the transaction and no additional document is required;
b) Amends the transaction if the discrepancy is minor and the branch has
prior knowledge of the incoming transfer.
III.
Collection of other bank cheque through Special clearance with value
greater than birr 200,000.00
The Customer Services Officer Front Office Maker
a) Collects the cheque and Bankers’ cheque /CPO/from the depositor,
together with the filled-in deposit slip;
b) Checks the completeness of the cheque and the Bankers’ cheque;
c) Makes sure that the particulars filled in the deposit slip are identical with
those on the cheque and the Bankers’ cheque /CPO/ received for deposit,
that is, the name and account number of the account holder or
beneficiary/payee thereof, the Cheques/Bankers’ cheque /CPO/number
and the amount of money involved have been written on it and that it has
been signed by the depositor;
d) Affixes a crossing stamp to the face of the cheque and the Bankers’
cheque /CPO/, the stamp of the accepted for deposit/pending clearance
on the back of the instrument and on both the original and the receipt of
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
the deposit slip and then puts her or his initials on all the documents;
e) Hands over the receipt/advice to the depositor after putting thereon
her/his initials; and
f) Forwards the cheque and the Bankers’ cheque /CPO/and the deposit slip
to the Customer Services Officer/Maker (at the back) for further
processing.
Customer Service Officer-Back Maker
a) Receives the other bank cheque and prepare MT-103 attachment
designed for Special cheque clearance and sign on it.
b) Forwards to the checker/CSM for co-signing.
c) Sends for clearance by messenger to the respective bank branch.
d) Keeps the originating bank copy signed by other bank for
acknowledgment of receipt for follow up.
e) Authorizes incoming MT-103 message on system when they respond if
the message is correct, or amend the message and authorize.
Customer Service officer-back checker
a) Co-signs on the MT-103 attachment designed for special check clearance.
b) Authorizes incoming MT-103 message on system when they respond if
the message is correct in her/his authorization limit by checking with
originating bank copy or inform the maker to amend the message for any
error and authorize.
Customer Service Manager
a) Authorizes incoming MT-103 message on system when they respond if
the message is correct in her/his authorization limit by checking with
originating bank copy or inform the maker to amend the message for any
error and authorize.
The Branch Controller
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
a) Receives the cleared cheque deposit slips and acknowledgment from the
Customer Services Officer/back office Maker and checks for the
correctness of the transaction on the system; and
b) Files the documents in her or his custody;
6.5 Foreign Cheques
i. Outward Bills Purchased (OBP)
The Customer Services Officer/Maker
a) Receives cheques issued by correspondent banks or money-transfer and
exchange companies that have accounts with the CBE and other foreign
bank cheques depending on the regularity the cheque, so long as the
beneficiaries can produce customers’ ID cards;
b) Checks the name of the beneficiary/payee, the period of the cheques
validity (five months from the date on which it was issued), the issuing
bank and the bank where the cheque is to be drawn and sends it (the
cheque) to Customer Service Manager;
c) Refers to the list of the stop-payment orders; if the cheque/travelers
cheque presented to branches use online access to cheque for any stop
payment order if not, it shall be referred to foreign transfer and NRNT
account;
d) Advices the customer to fill in the blanks on the deposit voucher, cheques
the voucher, puts her or his initials on the voucher, writes thereon
“Accepted for collection”;
e) Advices the customer sign on the travelers’ cheques again at the counter
and thereby makes her or him endorse the cheques and then compares
the signature with that affixed earlier;
f) Checks the office stamp ,if the deposit is made to the account of an
organization and the proper endorsement ;
g) Affixes a crossing stamp to the cheque/travelers’ cheque and perforates it
to forestall any future double negotiations;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
h) Registers the details—that is, the date on which the cheque was received,
the name of the beneficiary/payee, the cheque number, the name of the
bank on which it is to be drawn, the type of the currency and the amount
of the check in both currencies (foreign and local), the date on which the
cheque/travelers’ cheque was settled and incorporated into the system;
i) Credits the amount of money on the cheque to the customer’s account,
pays cash if it is within her/his payment-authorization limit, or sends the
referral to the Customer Services Officer-checker/Customer Service
Manager and makes the necessary entries to reflect the transaction and
gives the copy of the deposit slip to the customer; and
j) Forwards the cheque—together with a covering letter and the exchange
control copy to the Senior Customer Services Officer-accounts for further
checking and dispatching thereof to the Foreign Transfer NRNT.
The Senior Customer Services Officer -Account
a) Receives the cheque with the deposit slip, authenticates the cheque,
registers it and assigns to it a reference number, retains a digital
photocopy thereof and co-signs the instrument and returns it to the
Maker for processing;
b) Makes sure that the cheque has a crossing stamp, perforated, and then
retains photocopies of all the cheques;
c) Dispatches the cheque to the Foreign Transfer NRNT , so that it will send
it to the concerned correspondent bank for collection;
d) Follows-up on the settlement of the outward bill purchased/the outward
bill collections;
i. If the items sent for collection are not settled within 20 days from the
date of dispatch, the first tracer should be sent by using a copy of the
form, or of SWIFT. Thereafter, tracers should be followed up every 20
days. Before sending any tracer to the Accounts and reconciliation
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ii.
sub-process, however, the Department must be contacted, as
proceeds might be already credited to the account. If the items remain
outstanding for more than three months, nonetheless, the
correspondent bank to which the cheque was dispatched should be
requested to return the uncollected items.
When an uncollected -scanned cheque is returned, the concerned
customer should be asked to refund the proceeds of the Cheque and
all out-of-pocket expenses such as SWIFT, postage, correspondent
charges, etc., and the cheque has to be handed over against its
presenter’s signature.
e) Upon receipt of the settlement advice from any one of our correspondent
banks, settles the OBP on the system.
The Customer Services Officer/Checker
a) Checks the completeness of all the pertinent documents, signs on them
and responds to the referral and forwards them (the documents) to the
Customer Services Officer/Maker.
The Customer Service Manager
a) Determines whether the received cheque should be paid in OBP or on an
OBC basis, and forwards it (the cheque) to the Customer Services
Officer/Maker for processing.
iii. Outward Bills for Collection (OBC)
Checks specified under OBC are not purchased at the bank’s counter. Instead,
they are accepted on a collection basis under OBC-foreign. Payments for the
presenter will be effected only after confirmation is received from the
concerned correspondent bank for the credit of the proceeds and advice of
credit is received.
The Customer Services Officer/Maker
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
a) Accepts the instrument with a valid ID card and checks the particulars
written on the bills;
b) Makes the customer fill out the deposit voucher, puts her or his initials on
the voucher marking it “Accepted for collection” and affixing thereto a
Customer Service Officer stamp;
c) Makes the customer endorse the cheque by having her or him affix
thereto her/his signature;
d) Passes the cheque on to the Customer Service Officer Maker at the back
office, together with the deposit voucher, for the preparation of the OBC
ticket-foreign and for affixing thereto the endorsing signature and the
crossing stamp, etc.; and
e) Signs on the OBC ticket and forwards it to the Senior Customer Services
Officer for co-signing.
The Senior Customer Services Officer-Accounts
1 Follows the procedure stated under OBP a-d herein above;
2 Prepares a single credit OBC-foreign entry in reversal of the original
single-debit entry ,upon receipt of the settlement advice from any one of
our correspondent banks; and
3 Marks “Settled” in the appropriate column in the OBC register, or post it
into the system.
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7. PAYMENT
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
The duties and responsibilities of each staff of the Bank involved in the payment
process are listed as follows:
7.1 Payment from a Current Account
7.1.1 Local Cheques
7.1.1.1 Payment in cash
The Customer Services Officer/Maker
a) Accepts the cheque and ID card from the payee/beneficiary;
b) Checks the genuineness and completeness of the cheque—that is, makes
sure that the date on which it was written and the amount of money in
both words and figures appear on it and that the cheque has been signed
by the account holder and endorsed;
c) Makes the transaction in the presence of two witnesses one of whom
should be the Customer Services Officer/Maker or the Customer Services
Officer/Checker who is not processing the payment, and the other should
be the customer service manager/Branch Manager.
d) Identifies (write name of the payee, the ID number, address, telephone
number, issue date of the ID and ID issued by) on the back of the cheque;
if the bearer is other than the account holder; otherwise, marks “Account
holder” on the back of the cheque;
e) Authenticates the signature on the cheque and debits the appropriate
customer’s account; the transaction shall be passed using the “withcheque”
menu on the system);
f) Identifies and inputs the detail information of the payee on system, if the
amount is greater than the amount set by Ethiopian Financial Intelligence
Center; currently it is 300,000.00 birr.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
g) Posts the transaction and if the amount to be paid is above her/his
payment-authorization limit, forwards the document to the concerned
Customer Services Officer-Checker/Customer Service Manager;
h) Pays the specified amount of money on the cheque to the payee by the
denominations depending on the customer’s preference if possible after
the transaction authorized;
i) Asks the customer what type of denominations she/he requires to pay
the available mix of denomination; and Writes them in to the system and
pays the customer accordingly;
j) Affixes the stamp of the Customer Services Officer-maker and puts her or
his initials on the back of the cheque;
k) Balances the cash on hand against the balance on the system; and
l) Hands over the cheque to the Branch Controller after initialing it.
The Customer Services Officer-Checker
a) Verifies the correctness and completeness of the document and checks
before payment is effected ; and
b) Responds to the referral, based on her or his payment-authorization limit.
The Customer Service Manager
a) Verifies the correctness and completeness of the document and checks
before payment is effected ; and
b) Responds to the referral, based on her or his payment-authorization limit.
Branch Controller
a) Collects the cheque from the Customer Services Officer-Maker, and
checks the transaction on the system;
b) Checks the completeness of the cheque and that it has been paid based on
the pertinent discretionary limit;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Checks that it bears the stamp of the Customer Services Officer-maker
and that she or he has put her/his initials on the face of the cheque ,if the
cheque is meant to be paid in cash,
d) Makes sure that the cheques have been endorsed by the beneficiaries
thereof; and
e) Files and Keeps the payment instrument and the relevant documents;
7.1.1.2 CBE Cheques/Bankers’ cheques collected by other banks
(Incoming Cheques or Bankers’ cheque /CPO/s)
When CBE cheques/Bankers’ cheques deposited in other banks, the other
bank sends the cheques/Bankers’ cheques on collection basis for clearance
by scanning the image on the EATS. The original instrument for clearance in
should be sent with along with image and transaction in the absence of the
Cheque truncation system.
Senior Customer Account and Operation Officer at ATS
a) Produces a report from the system for cheques to be received from other
banks;
b) Appears at the clearing house of the NBE with a list of cheques that CBE
representative should receive from other banks;
c) Collects the cheques drawn on CBE branches and prepared by each bank,
together with “Form A”;
d) Balances the total value of the received cheques against the total balance
shown in form A and ‘Outgoing ATS report’;
e) Submits the collected cheques from other banks to Customer account and
Operation team for further processing; and
f) Delivers all the returned cheques to other banks at the clearing house.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Customer Account and Operation Officer at ATS
a) Receives CBE cheques collected from other banks from Senior Customer
account and Operation officer;
b) Sorts the cheques in the drawer branches and prepared summary report
in two copies for each branch and sign on it;
c) Dispatches the summary report with the cheques and retain the other
copy as a tracer;
d) Receives the returned cheques from Senior customer account and
Operation officer after rejection is done on the system , prepares “Form
A” for each bank for those cheques returned by the branches;
e) Submits all the returned cheques of other banks along with relevant
documents to Senior Customer Account and Operation Officer
The Senior Customer Services Officer – Accounts
The role of The Senior Customer Services Officer – Accounts in the absence of
cheque truncation system is presented hereunder:
a) Receives the cheques/Bankers’ cheques dispatched from ATS team after
checking against the summary report;
b) Balance the received cheques against the summary total and forward to
Customer Services Officer/Maker –Back Office
The Customer Services Officer/back office Maker at branch
a) Receives the cheques/Bankers’ cheques from the Senior Customer
Services Officer – Accounts for further processing (in the absence of
cheque truncation system);
b) Checks the genuineness and completeness of the cheque—that is, makes
sure that the date on which it was written and the amount of money in
both words and figures appear on it and that the cheque has been signed
by the account holder and endorsed;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Verifies the signature and authorize the transaction on the EATS; and
d) Rejects the transaction on the system and returns the rejected cheques
by specifying the valid reason before the standard time is elapsed to ATS
(the physical cheque should be returned in the absence of the Cheque
Truncation System);
The Customer Services Officer/back office -checker at branch
a) Approves the transaction on the system by verifying the signature and
the genuineness and completeness of the check up to his/her approving
limit;
The Customer Service Manager at branch
a) Approves the transaction on the system by verifying the signature and the
genuineness and completeness of the cheque;
The branch controller
a) Checks the transaction for completeness and accuracy;
7.1.2 High Value Payments
I. Fund transfer request form CBE customer account to Other bank
customer account
Fund transfer request from CBE to other banks shall be handled when the
conditions hereunder are fulfilled
Customer Service Manager
a) Receives instruction from the customer to transfer the fund from her/his
account maintained with the branch to other bank branch;
b) Checks all the particulars in the letter of application or the format
designed for the purpose (Refer form CBECATS108);
c) Verifies the customer signature and forward to Customer Service officer–
back maker.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) Receives the letter of instruction after posted by the customer service
officer-back maker, check all the particulars inserted correctly on the
transaction and Authorize the transaction on the EATS Menu amount in
her/his authorization limit.
e) Forwards the letter of request to branch controller
Customer Service officer-Back Maker
a) Receives a letter of instruction from Customer Service Manager
b) Inputs the particulars on ‘Input MT103 Outward Remittance’ menu.
mandatory fields i.e. debit account, Ordering Customer, Beneficiary name
and account number, Account with institution, amount etc.) And if needed
additional fields like remittance information.
c) Makes sure about the inputted transaction details, he/she may hold it in
order to check for the 2nd time then commit.
d) Forwards the instruction letter after writing ‘posted’ on the face and sing
on it to the checker or to Branch controller if the amount is with her/his
desecration limit.
Customer service officer- back checker
a) Receives the letter of instruction after posted by the customer service
officer-back maker, check all the particulars inserted correctly on the
transaction and Authorize the transaction on the EATS Menu amount in
her/his authorization limit.
b) Forwards the letter of request to branch controller.
Branch controller
a) Checks the instruction letter against the transaction on the system.
b) Keeps the document under her/his custody.
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II.
Effect payment presented through Special clearance with value greater
than birr 200,000.00
Customer Service Officer-Back Maker
a) Receives the CBE cheque with MT-103 attachment designed for Special
cheque clearance;
b) Verifies the other banks signature signed and authenticate the cheque
presented and post the cheque in “Input MT103 Outward Remittances -
Cheques “menu;
c) Checks the genuineness and completeness of the cheque—that is, makes
sure that the date on which it was written and the amount of money in
both words and figures appear on it and that the cheque has been signed
by the account holder and endorsed;
d) Forwards the document and the cheque after writing ‘posted’ on the face
of the cheque and sing on it, Sign on attachment by writing the time
received;
e) Forwards the document and the cheque to the checker for co-signing
and/or authorization
Customer Service Officer-Back Checker/Customer Service Manager
a) Receives the Document and the cheque after posted by the customer
service officer-back maker, cheque all the particulars inserted correctly
on the transaction and Authorize the transaction on the EATS Menu
amount in her/his authorization limit.
b) Gives the originating bank copy to the other bank messenger.
c) Forward the remaining document and the cheque to branch controller
Branch Controller
a) Receives the document and the cheque from Customer Service officer
back maker and cheque against the transaction on the system.
b) Keeps the document and the cheque under her/his custody.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Customer Service Manager at ATS
a) Approves outgoing MT 103 originated from branches and other organs of
the CBE by prioritizing outstanding payments;
7.1.3 FCY Cheques (NR and NT)
The Customer Services Officer/Maker
a) Accepts the cheque and the ID card from the payee/the beneficiary;
b) Checks the genuineness and completeness of the cheque—that is, makes
sure that the date on which it was written and the amount of money in
both words and figures appear on it and that the cheque has been signed
by the account holder and endorsed;
c) Identifies the customer on the back of the cheque;
d) Authenticates the signature on the cheque and debits the appropriate
customer’s account;
e) Identifies and inputs the payee information , on system, if the amount is
greater than the amount set by Ethiopian Financial Intelligence Center;
currently it is 15,000 US Dollar or its equivalent currencies.
f) Sends the referral to the Customer Services Officer-Checker/CSM for
cheque values above his / her payment-authorization limit and pays the
customer in cash after authorization;
g) Affixes the stamp of the Customer Services Officer and puts her or his
initials on the face of the cheque;
h) Cross-checks the balance on the system against the cash on hand; and
i) Hands over the cheque to the Branch Controller as soon as the
transaction is completed.
The Customer Services Officer/Checker/Customer Service Manager
a) Checks the endorsement, the date that the cheque was drawn on, the
amount of money in both words and figures, the signature of the person
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
who drawn the check, the account number and the name of the
beneficiary/payee thereof; if the amount is within the authorization limit,
b) Verifies the data related with Anti-Money Laundry is properly inputted in
the system before authorization;
c) Checks the correctness of the exchange-rate conversion and responds to
the referral request through the system.
The Branch Controller
a) Collects the cheque from the Customer Services Officer-Maker, and checks
the transaction on the system;
b) Checks the completeness of the cheque and that it has been paid based on
the pertinent discretionary limit;
c) Checks that it bears the stamp of the Customer Services Officer and that
she or he has put her/his initials on the face of the cheque;
d) Makes sure that the cheques have been authenticated by the concerned
staff of the Bank and endorsed by the beneficiaries thereof, if the cheque
is meant to be paid in cash,
e) Makes sure that it has been posted to the right customer’s account;
f) Checks in the system—that is, against the account number—checks the
numbers and the amounts of money involved and the initials on the
checks;
g) Files all the daily tickets (payment instruments) in accordance with the
classification on the general ledger and keeps it in her/his custody.
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7.2 Withdrawal from Savings Accounts
The Customer Services Officer/Maker
a) Receives the passbook and withdrawal voucher from the customer and
checks that the withdrawal voucher (refer form CBECATS110) is properly
filled out—that is, the date on which it was withdrawn, the name of the
account holder, the amount of money in both words and figures, the
account number and the signature of the account holder appear on it;
b) Assists the customer to put his /her thumb print on the Bio-Metric device
for system verification; If the branch has the device
c) Receives withdrawal voucher together with his/her ID from the
customer and checks all particulars as stated above in “a“ in case the
customer did not present his/her passbook and make the customer write
the word “I have withdrawn without pass book” on the back of the
voucher and make her/him sign on it, after the customer Service manager
approved the withdrawal by writing the word “ok without passbook” on
the face of the voucher;
d) Makes the transaction in the presence of two witnesses one of whom
should be the Customer Services Officer/Maker or the Customer Services
Officer/Checker who is not processing the payment, and the other should
be the customer service manager/Branch Manager.
e) Attests the thumb print by either hand writing “Signed before me” or
using the rubber stamp stating Same and puts her/his name and initials
next to the thump print if the specimen for the account is received by
thumb print;
f) Counterchecks the name and account number written on the voucher
against the passbook and the system;
g) Identifies the customer against the scanned digital photo and
authenticates the signature of the customer on the voucher against the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
scanned signature;
h) Verifies the data related with Anti-Money Laundry is properly inputted in
the system before authorization;
i)
j) Forwards the documents for referral to the concerned Customer Services
Officer-Checker/Customer Service Manager if the amount of money to be
paid is above her/his payment-authorization limit;
k) Posts the transaction and pays the specified amount of money on the
withdrawal voucher to the account holder by recording the
denominations into the system, depending on the customer’s preference
after the transaction authorized.
l) Affixes the stamp of the Customer Services Officer on the face of the
withdrawal voucher and initials on both the voucher and the passbook;
m) Delivers the passbook to the customer, together with the requested cash;
n) Passes the voucher to the Branch Controller, immediately after the
transaction has been completed ;
o) Balances her/his cash at half day and end of day closing against the
pertinent data on the system and surrenders it to the Senior Customer
Services Officer-cash.
The Customer Services Officer-Checker
a) Checks the correctness and genuineness of the transaction and responds
to the referral based on the payment-authorization limit given to
him/her;
b) Verifies the data related with Anti-Money Laundry is properly inputted in
the system before authorization;
The Customer service Manager/Branch Manager
a) Checks the correctness and genuineness of the transaction and responds
to the referral based on the payment-authorization limit given to him/her
b) Approves customers’ request to withdraw without passbook;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Acts as witness when blind customers unable to present a witness;
d) Receives payment request of customers who are unable to physically
come to branches due health problem and other difficulty; Assign
Customer Service officer maker, branch controller and Customer Service
officer checker/ Customer Service Manager per the approving limit; and
advise the assigned team to make sure that the customer is conscious,
able to sign in front of witnesses from the customer’s side, and follow the
normal payment procedure thereof expect that of the venue and the
sequence activities.
The Branch Controller
e) Receives the withdrawal voucher from the Customer Services Officer-
Maker as soon as the transaction completed;
f) Ascertains the proper completion of the voucher—that is, makes sure
that the date on which it was written, the name of the account holder, the
account number, the amount of money in both words and figures and the
signature of the account holder appear on it;
g) Makes sure entries are passed on to the appropriate account, that the
initials and the stamp of the Customer Services Officer/Maker are put on
the withdrawal voucher;
h) Files the withdrawal voucher after ascertaining their correctness and
keeps
7.3 Payment against Local Money Transfer
LMTS payment originated by any branch or through E-banking channels shall be
paid to the beneficiary at any networked branch even within the same city.
The Customer Services Officer/Maker (at the front office)
a) Receives the filled out LMTS payment form (refer FORM CBECATS107)
and Beneficiary’s ID from the customer;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Log in to the system using the Security Number and cross check the
beneficiaries’ name, Remitter name, Test question and answer, and
amount against the system data and the beneficiary’s ID card;
c) Enters the customer’s address, the ID card’s number, the name of the
issuing organization or office, the date on which it was issued and
generate the ticket from the system and makes the customer signs on it
(the ticket);
d) Cross sell deposit products to the beneficiary to retain the customer and
the whole and part of the transfer ;
e) Takes the customer thumb print in the presence of two witness one from
the bank officers and the other from the customer side, if the customer is
blind; If the customer is unable to present a witness from his side the
Customer Service Manager/Branch Manager shall sign as a witness and
the Customer Service Officer affixing thereto a rubber stamp that reads
“Signed before me.”
f) Effects payment to the beneficiary/payee after authorization; otherwise,
the transaction should be directed to the Customer Service officer–
Checker or customer service Manager, based on her or his authorization
limit; f the amount to be paid is within her/his payment-authorization
limit,
The Customer Services Officer-Checker/Customer Service Manager
a) Receive customer ID, LMTS payment application, Print out and makes
sure that the transaction is correct and authorize, co-signs on the cashpayment
ticket with in her/his authorization limit.
The Branch controller
a) Receives the LMTS payment ticket from the Customer Service Officer-
Maker;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Ascertains all the particulars on the LMTS-application form and LMTS
payment ticket are identical and check the customer sign on the LMTS
payment ticket and application; and check the transaction on the system.
c) File and Keeps the payment ticket under her/his custody.
7.4 Payment Foreign Remittance Transfer
Foreign Remittance transfers originated by various money transfer organization
(MTO) shall processed per the payment guideline of each MTO and the following
procedure
The Customer Services Officer/Maker (at the front office)
a) Receives the filled our customer’s application form (use the standard
format designed for specific MTO or use FORM CBECATS112) and
Beneficiary’s ID from the customer;
b) Log into the MTO’s application using the Security Number and cross
check the beneficiaries’ name, Remitter name, Test question and
answer(if any), and amount against the system data and the beneficiary’s
ID card;
c) Enters the customer’s address, the ID card’s number, the name of the
issuing organization or office, the date on which it was issued and
generate the ticket from the system and makes the customer signs on it
(the ticket);
d) Cross sell deposit products to the beneficiary to retain the customer and
the whole and part of the transfer ;
e) Takes the customer thumb print in the presence of two witness one from
the bank officers and the other from the customer side, if the customer is
blind; If the customer is unable to present a witness from his side the
Customer Service Manager/Branch Manager shall sign as a witness and
the Customer Service Officer affixing thereto a rubber stamp that reads
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
“Signed before me.”
f) Effects payment to the beneficiary/payee after authorization; otherwise,
the transaction should be directed to the Customer Service officer–
Checker or customer service Manager, based on her or his authorization
limit; the amount to be paid is within her/his payment-authorization
limit,
The Customer Services Officer-Checker/Customer Service Manager
a) Receive customer ID, Foreign remittance application, Print out and makes
sure that the transaction is correct and authorize, co-signs on the cashpayment
ticket with in her/his authorization limit.
The Branch controller
a) Receives the Foreign remittance application and print out from the
Customer Service Officer-Maker;
b) Ascertains all the particulars on the foreign remittance application and
print out are identical and check the customer sign on the foreign
remittance application and print out; and check the transaction on the
system.
c) File and Keeps the payment ticket under her/his custody.
7.5 Bankers’ cheque (Cashier Payment Order (CPO))
7.5.1 Bankers’ cheque /CPO/payment to the beneficiary or to the
Purchaser
The Customer Services Officer/Maker
a) Receives the Bankers’ cheque /CPO/ and the ID card from the customer
and makes sure that the Bankers’ cheque /CPO/ properly presented—
that is, the date on which it was issued, the name of the originating
branch, the full name of the beneficiary/payee or to the purchaser (if the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Bankers’ cheque /CPO/ returned by the beneficiary and endorsed) , the
amount of money in both words and figures are shown and that the
Bankers’ cheque /CPO/ has been signed by two authorized signatories;
b) Identifies the beneficiary/payee on the back of the Bankers’ cheque
/CPO/ and attaches therewith a digital photocopy thereof at the expense
of the branch and authenticates the signatures on the Bankers’ cheque
/CPO/;
c) Verifies the signature on the Bankers’ cheque /CPO/against CBE’s
Signature management system;
d) Takes the customer thumb print in the presence of two witness one from
the bank officers and the other from the customer side, if the customer is
blind; If the customer is unable to present a witness from his side the
Customer Service Manager/Branch Manager shall sign as a witness and
the Customer Service Officer affixing thereto a rubber stamp that reads
“Signed before me.”
e) Effects payment if the amount to be paid is within her/his paymentauthorization
limit and puts a stamp marked “Customer Services Officer”
and her or his initials on the back side of the Bankers’ cheque /CPO/; and
f) Passes the Bankers’ cheque /CPO/to the concerned Checker or to
Customer Service Manager for authorization ,for any amount of money
over and above her/his payment-authorization limit,
The Customer Services Officer-Checker/Customer Service Manager
a) Makes sure that the Bankers’ cheque /CPO/ is properly presented—that
is, that the date on which it was issued, the name of the issuing branch,
the full name of the beneficiary/payee and the amount of money (in both
words and figures) are correct and gives authorization for the payment
thereof based on the limit set thereof; and
b) 0
c) Makes sure that a copy of the customer’s ID card is attached to the back of
the Bankers’ cheque.
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The Branch controller
a) Receives the Bankers’ cheque /CPO/ from the Customer Service Officer-
Maker;
b) Ascertains all the particulars on the Bankers’ cheque /CPO/against the
system, the proper endorsement of the Bankers’ cheque /CPO/and Check
the transaction is passed the correct Bankers’ cheque /CPO/Number.
c) Files and Keeps the payment ticket under her/his custody.
7.5.2 Payment of Expired Bankers’ cheque
Bankers’ cheque /CPO/may be presented after the expiry date by the purchaser or
the beneficiary due to various reasons. Request for refund of the Bankers’ cheque
/CPO/kept in the hand of the purchaser shall be entertained. However, the
presenter shall additional letter of requesting stating valid reason for the delay.
During this time the following procedure shall be adhered by the originating branch
only:
Customer Service Manager
a) Interviews the customer for the reasons of the delay of the Bankers’
cheque /CPO/for more than six months and check the proper
presentation and genuineness of the Bankers’ cheque /CPO/for refund
and make her/him to sign on the back of the Bankers’ cheque;
b) Checks whether the Bankers’ cheque /CPO/is Outstanding or Not. If the
Bankers’ cheque /CPO/is outstanding, make the customer fill out the
undertaking letter and sign on it;
c) Forwards to Customer Service officer for the credit of her/his account or
for refund in cash.
d) Authorizes the payment transaction;
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Customer Service Officer-Maker
a) Receive the endorsed and approved Bankers’ cheque /CPO/ and
undertaking form from the Customer Service Manager;
b) Identify the customer and post on the system by using the proper menu
and Pay to the purchaser or payee whichever is applicable;
c) Forward to the branch Controller for checking;
The Branch controller
a) Receives the Bankers’ cheque /CPO/ from the Customer Service Officer-
Maker;
b) Ascertains all the particulars on the Bankers’ cheque /CPO/against on the
system, the proper endorsement of the Bankers’ cheque /CPO/and Check
the transaction is passed using the correct Bankers’ cheque
/CPO/number.
c) Files and Keeps the payment ticket under her/his custody.
7.5.3 Payment of a Lost Bankers’ cheque
a) When a Bankers’ cheque /CPO/is lost, the customer shall report in writing
to the issuing or paying branch in which the customer maintains an account;
7.5.3.1. For lost but not expired Bankers’ cheque
The Customer Service Manager (at the issuing or paying Branch in
which the customer maintains an account)
a) Receives application request from the payee or the purchaser in writing;
that the request has been signed by her or him, or sealed with an official
stamp, if the request was lodged by an organization;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Informs in writing the issuing branch to stop the Bankers’ cheque, if the
request is lodged to the paying branch ;
c) the issuing branch in any case shall stops the instrument when receiving
the request either from the branch or the customer by waving stop
payment charge in the system; However the service charge shall be
collected separately per the term and tariff of the bank ;
d) Receives consent from the payee to safeguard its interest; and also
receive undertaking from the purchaser in case of any future
eventualities, if the applicant is the purchaser.
e) Receives undertaking to safeguard the interest of the Bank in case of any
future eventualities if the applicant is the payee,
f) Encloses any other additional supporting documents as and when
necessary;
g) Keeps the photocopy of the entire document at the branch and forwards
the letter of the request for refund and the original documents to the
pertinent approving organs, if it is beyond the branch’s limit of approval;
h) Forwards the approved customer’s request to Customer Service officer–
Maker for payment if a request is received by the branch for the refund of
expired but not lost instruments, the customer has to fill an undertaking
format prepared for this purpose.
i) Cosigns the payment ticket and approve the transaction on the system
j) Inform Customer Accounts and Operation Manager in writing the loss of
the Bankers’ cheque /CPO/for future reference.
The Customer Service officer– Maker
a) Receives the approved customer’s request from customer service
manager and originate the necessary ticket for payment:
b) Collects the service charge as per the terms and tariffs of the bank before
effecting payment
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Identifies the customer and let the customer sign on the back of the
ticket, if the customer is an individual and requested payment in cash
;sign and send the document for cosign and approval;
d) Sign ,Post the transaction and sends the document for approval and
cosigning
e) Pays the customer in cash or in case of corporate customer /organization
,the proceeds of the Bankers’ cheque /CPO/shall be credited to an
account ;
Branch Controller
a) Receives and Checks the documents for completeness and accuracy:
b) Checks the transaction on the system;
c) Files and keeps the document in her/his custody
7.5.3.2. For lost and expired Bankers’ cheque
The Customer Service Manager (at the issuing or paying Branch in
which the customer maintains an account)
a) Receives application request from the payee or the purchaser in writing;
that the request has been signed by her or him, or sealed with an official
stamp, if the request was lodged by an organization;
b) the paying branch shall Inform in writing the issuing branch to stop the
Bankers’ cheque /CPO/If the request is lodged to the paying branch;
c) the issuing branch in any case shall stop the instrument when receiving
the request either from the branch or the customer by waving stop
payment charge in the system;
d) Receives explicit consent from the purchaser and undertaking from the
payee to safeguard the interest of the Bank as well as the purchaser’s in
case of any future eventualities if the applicant is the payee,
e) Receives undertaking and consent from the payee to safeguard it’s
interest in case of any future eventualities ,if the applicant is the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
purchaser,
f) Encloses any other additional supporting documents as and when
necessary;
g) Keeps the digital photocopy of the entire document at the branch and
forwards the letter of the request for refund and the original documents
to the pertinent approving organs, if it is beyond the branch’s limit of
approval;
h) Forwards the approved customer’s request to Customer Service officer–
Maker for payment if a request is received by the branch for the refund of
expired but not lost instruments, the customer has to fill an undertaking
format prepared for this purpose.
i) Cosigns the payment ticket and approve the transaction on the system
j) Inform Customer Accounts and Operation Manager in writing the loss of
the Bankers’ cheque /CPO/for future reference.
The Customer Service officer– Maker
a) Receives the approved customer’s request from customer service
manager and originate the necessary ticket for payment:
b) Collects the service charge as per the terms and tariffs of the bank before
effecting payment
c) Identifies the customer and let the customer sign on the back of the ticket,
if the customer is an individual and requested payment in cash; sign and
send the document for cosign and approval;
d) Sign, Post the transaction and sends the document for approval and
cosigning
e) Pays the customer in cash or in case of corporate customer/organization,
the proceeds of the Bankers’ cheque /CPO/shall be credited to an
account;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Branch Controller
a) Receives and Checks the documents for completeness and accuracy:
b) Checks the transaction on the system;
c) Files and keeps the document in her/his custody
7.6 Handling of Retention Account
The Customer Services Officer/Maker
a) Receives a foreign-exchange-utilization letter of request, authenticates
the signatures thereon, and makes sure that sufficient balance is available
and forwards the request to the Customer Services Officer/Checker;
b) Checks against the checklist to make sure that the request for foreign
exchange has been lodged in line with the provisions of the pertinent
directive of the NBE;
c) Determines whether the request is intended for the credit of the
customer’s own local-currency account, or to make payment to another
party, or to transfer the money in foreign exchange abroad for payment of
imports or other services;
d) Debits the foreign exchange account and credits the counter value in local
currency, applying the prevailing exchange rate, or debits the foreign
exchange account by the requested amount of money in the case of a
foreign-currency request; and
e) Makes reversal entries for the unutilized balance left over in the
Retention account as per the directive of the NBE.
The Customer Services Officer-Checker/Manager customer service
a) Receives and checks the correctness of the foreign-exchange-utilization
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
letter of request from the retention account;
b) Makes sure that the foreign currency has been properly converted to Birr
and that the exchange rate has been properly applied and;
c) Follows-up on the customer’s foreign-exchange retention account and
converts to Birr and credits her/his local-currency account for the
unutilized balance left over in the “Retention account B” after 28 days
have elapsed as per the directive of the NBE; and
d) Authorizes the reversal entry, if the customer fails to utilize the fund
within the prescribed date;
The Branch Controller
a) Receives the letter of application from the Maker and checks the
transaction on the system and the pertinent directives to make sure that
it does not contravene any of their provisions; and
b) Ensures unutilized balance left over in the “Retention account B”
converted to birr and credited to local currency account after 28 days;
c) Files the document in her or his custody.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8. TRANSACTION-AUTHORIZATION LIMIT
8.1 For saving accounts, Current accounts, LMTS and BANKERS’
CHEQUE /CPO/Deposit
Authorization Limit(AL)
No
Authorized
Person
Savings
Account
Current
Account/
Foreign
Payments
Incoming
Transfers
LMTS
Incoming
Bankers’
cheque
Deposit
Collection
for LMTS
1
Customer Services
Officer/Maker
Up to Birr
40,000
Up to
Birr
100,000
Up to birr
10,000
Up to
100,000
Up to
200,000
N/A
2
Customer Services
Officer/Maker,
together with
Customer Services
Officer/checker
Above birr
40,000 and
up to
80,000
Above birr
100,000
And up to
200,000
Above
birr
10,000
And up to
20,000
Above birr
100,000
And up to
200,000
Above birr
200,000
And up to
400,000
Up to birr10,
000
3
Customer Services
Officer/Maker,
together with the
Customer Service
Manager
birr 80,000
And above
birr
200,000
And above
birr
20,000
And above
birr
200,000
And above
birr
400,000
And above
birr 10,000
And above
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8.2 Authorization limit when the networked branch becomes
Offline
The customer may request branch services even when the branch becomes offline,
due to failure in connection. Thus, the branch may entertain the request of the
customer considering the availability of nearby and connected branch in the area by
examining the trustworthiness of the customer, the branch shall serve the
customer’s withdrawal request as per the following offline payment and collection
limit;
No. Authorized person Saving Current
1.
Customer Service Officer-
Marker with Customer Service
Manager
account
account
Up to 6,000.00 Up to 10,000.00
8.3 Authorization limit for Account receivable and expense
For any amount of transaction passed to Account receivable and expense
the referral shall be authorized on the system by Branch
Manager/Customer service Manager. However, those transactions require
approval from the concerned organ, when the approving limit is beyond
the Branch Manager.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8.4 Approval limit at CATS-CPC (ATS) to credit Customers’
Account
No
Authorized person
Authorized
limit
1 Customers Account & Operation Officer/Maker/ Up to 30,000.00
2 Customers Account & Operation Officer/Maker/
together with Customers Account & Operation
Officer/Checker
3 Customers Account & Operation Officer Together
with Customers Service Manager/ATS Manager
30,001- 60,000.00
60,001 and above
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8.5 For Lost Bankers’ Cheque
Approving Organ
For Lost But Not
Expired
Bankers’ cheque
/CPO/
For Lost And
Expired
Bankers’ cheque
/CPO/
For Expired But
Not Lost
Bankers’ cheque
/CPO
The Branch Manager or
Customer Service
Manager
Up to Br. 10,000 Up to Br. 20,000 Face Value of
Bankers
Cheque/CPO/
District Manager Above Br. 10,001 Above Br. 20,001
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
9. OTHER ISSUES RELATED TO OPENING, COLLECTION AND
PAYMENT
9.1 Handling of Inactive Accounts
i. Current and savings accounts, which remain idle or dormant with no
movement for a period of six and twelve consecutive months
respectively, shall be changed by the system to “Inactive accounts,”
regardless of their balances;
ii. Inactive current accounts with a balance of less than Birr 500.00 are
subject to service charges as per the terms and tariff semi-annually;
iii. Accounts that carry balances of below the amount of the charge will be
closed as part of the collection of the service charges thereon;
iv. The customer service manager at the account holding branch can change
the status from inactive to active when all the following requirement are
fulfilled;
a) The customer presents renewed and valid ID and requests for
activation of his/her account;
b) The customer adequately explains about the previous transactions
;and
c) Minimum of four transactions in the last half six months are
conducted, excluding interest transactions.
v. Withdrawal from Inactive saving account can be effected at any online
branch whereas withdrawal from inactive demand deposit account shall
only be entertained at the account holding branch only. When
entertaining withdrawal from inactive saving account, the following
conditions shall be fulfilled;
a) The customer service manager should interview the customer in
person;
b) Retain the photocopy of the customer’s ID; and
c) The customer presents his/her passbook;
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9.1.1 Payment from Inactive saving accounts
Customer Service Office – Front Maker
a) Receives the passbook and withdrawal voucher from the customer and
checks if the account is inactive, forward the customers and pertinent
documents to the customer Service Manager
b) Checks the account is properly filled out—that is, the date on which it
was withdrawn, the name of the account holder, the amount of money in
both words and figures, the account number and the signature of the
account holder appear on it; and shall make the customer to put her/his
thumb print on the Bio-Metric device for system verification;
c) Checks the word ‘ok being inactive’ and signature of the customer service
manager appear on the face of the withdrawal voucher;
d) Requests the customer to present a renewed ID and retain the photo
copy, and identify the customer at the back of the withdrawal voucher;
e) Identifies the customer against the scanned photo and authenticates the
signature of the customer on the voucher against the scanned signature
and posts the transaction, recording the denomination on the system,
and put his Customer Service Officer stamp at the face of the withdrawal
voucher;
f) Forwards the documents to customer service manager for authorization
regardless of the amount;
g) Returns the passbook , ID Card and pay the amount to the customer; and
h) Forward the documents to the branch controller.
Customer Service Manager/Branch Manager
a) Receives a withdrawal voucher and passbook with ID cards, interviews
the customer and approves the withdrawal by writing the word ‘ok for
being inactive’ on the face of the withdrawal voucher and forward the
document to customer service officer; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Receives the deposit/withdrawal voucher with passbook from customer
service officer and authorize the transaction regardless of the amount.
Branch Controller
a) Receives the withdrawal voucher from the Customer Services Officer-
Maker as soon as the transaction committed;
b) Ascertains the proper completion of the voucher—that is, makes sure
that the date on which it was written, the name of the account holder, the
account number, the amount of money in both words and figures and the
signature of the account holder appear on it;
c) Makes sure that entries are passed on to the appropriate account, that the
initials and the stamp of the Customer Services Officer/Maker are put on
the withdrawal voucher;
d) Files the withdrawal voucher after ascertaining their correctness and
keeps the files in her/his custody.
9.2 Handling of Cash Indemnity Account
This account shall be debited:
a) To recover a shortage when a staff, entitled for cash indemnity, performing a
cash transaction and evidenced by Audit report,
b) To effect payment after one year for a staff entitled for cash indemnity
transferred into another post or terminated his/her employment contract.
9.2.1 Cash indemnity account opening
The Customer Services Officer/Maker
a) Receives instruction from Customer Service Manager/Branch Manager to
open Cash indemnity account in the name the staff entitled for cash
indemnity.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Advices the staff, entitled for cash indemnity, to fill the account opening
form and Checks whether it is properly filled out and signed;
c) Takes the customer’s finger print through the Bio-metrics device.
d) Opens the account in the system by using the customer Id created in the
branch or other CBE branches and appropriate product code.
e) Writes the system generated account number on the application form.
f) Writes her/his name and signs on the application form on the space
provided thereof—that is, where it says “Name and signature of the
Maker”—and forwards all the documents submitted to her or him to the
Customer Services Officer/Checker for checking and co-authorization.
The Customer Services Officer/Checker
a) Makes sure that the account-opening documents are properly prepared
and the opened accounts are authentic;
b) Authorizes the account opening and Co-signs on all the account-opening
documents;
c) Returns to the Customer Services Officer/Maker the opening application
form; and
d) Checks and authorizes the scanned signatures; and Passes onto the
Branch Controller the opening documents—that is, the application form.
The Customer Service Manager/Branch Manager
a) Checks the account opening documents against the system and ensure the
account is appropriately opened, the product code and the account has a
posting restriction and inform the Senior Customer service officer-
Account the account number for payroll updating.
b) Receives a request of cash withdrawal from Customer Service Officer
Maker/Senior Customer Service Officer – Cash when cash shortage is
evidenced by audit report;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Requests the staff to fill the withdrawal voucher by the shortage amount;
d) Approves the withdrawal from cash indemnity account by writing “Ok for
withdrawal” on the face of the voucher; and
e) Authorize the transaction on the system.
The Branch Controller
a) Collects from the Customer Services Officer-Checker all the documents
submitted for the opening of an account and makes sure that the account
is opened as per this procedure;
The Senior Customer Services Officer-Accounts
a) Inserts the account number into the payroll system to manage monthly
deduction amount to be credited to this account.
b) Follows-up the balance of cash indemnity account whenever the balance
is below minimum balance set by the bank, credit the whole cash
indemnity amount after tax until it reaches the minimum balance set by
the bank.
9.3 Handling and Issuing of Cheque books
The Customer Services Officer/Maker
a) Receives the Cheque-requisition form from the customer; authenticates
the signature thereon and puts her/his initials on the space provided
thereof;
b) Forwards the Cheque-requisition form to Customer Service
Manager/Senior Customer Services Officer for further action.
Customer Service Manager/Senior Customer Services Officer-Accounts
a) Accepts the Cheque-requisition form from the Customer Services Officer/
Maker;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Checks the proper presentation and completion of the Cheque-requisition
form—that is, makes sure that the title of the account, the number of the
account and the forms of the Cheque books required appear on it;
c) Makes sure that the signature of the account holder on the Cheque -
requisition form has been authenticated;
d) Sends the Cheque -requisition form through system to CATS-CPC for
cheque personalization;
e) Collects the personalized Cheque s from CATS – CPC or the concerned
organ and registers personalized cheque in cheque deliver register book
and then informs the customer to collect them (the personalized checks);
f) Hands over the personalized Cheque s to the customer, upon registration
on the system and makes the customer sign cheque delivery book and
advice the customer to count the cheque leaves received; and
g) Registers the Cheque range and Cheque type in to the system account
when the customer received the Cheques
h) Receive and Register the personalized/blank bankers’ cheques(CPO) and
issue to the respective Customer’s service officer/maker against
customer’s application .
9.4 Features of a Cheque
a) A Cheque bears the following elements across its face:
i. The name and emblem of the issuing bank;
ii. The name of the issuing branch;
iii. The date on which the Cheque was issued;
iv. The name of the account holder and the account number;
v. The name of the beneficiary/payee;
vi. The amount of money shown in both words and figures;
vii. The Cheque ’s number; and
viii. The signature of the account holder.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Any deletion on the Cheque s shall not be accepted and the Cheque has to
be changed.
c) There should be no discrepancy between the amount of money given in
words and that given in figures.
d) Remind the customer of the need for sticking to the calendar of the
language in which the Cheque is written.
e) A Cheque is valid for only six months beginning from the date of its
issuance.
9.5 Negotiability and Endorsement of Cheque
9.5.1 Endorsement of Cheques
A Cheque should be endorsed on the reverse side thereof. The number of
endorsements on a Cheque has no limit as per the Commercial Code of Ethiopia,
Article 844 (1).
The following are the types of endorsement that are applicable in the CBE:
a) Self: if the cheque is issued for “self,” the Maker should ascertain that the
Cheque has been endorsed by the drawer.
b) Cash or bearer: if a cheque is drawn to the bearer or cash, the Maker should
make sure that the cheque has been endorsed by the presenter.
c) Specified person: the beneficiary/payee of the cheque has to be identified
and told to endorse the cheque.
d) If the cheque is issued to the order of the specified person followed by the
word “only,” or if the word “payee only” is written on the top left corner of
the face of the Cheque, only the payee/beneficiary thus indicated is allowed
to cash the Cheque.
e) If the cheque is issued in the name of organization, corporation, a
cooperative, an association, or a government body, it will not be paid in cash,
but will be credited to the beneficiary’s/payee’s account. To be endorsed, the
Cheque s must bear a seal of the beneficiary and signature of the depositor.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) If the Cheque is issued to the order of two individuals, both
beneficiaries/payees will have to be identified and told to endorse the
cheque drawn in their favor.
g) If a Cheque is issued in the name of alternative individuals, either of the
individuals must be identified and told to endorse the Cheque.
h) Crossed Cheques are not at all paid in cash, but deposited into the accounts of
the beneficiaries/payees thereof.
9.5.2 The Use and Transferability (Negotiability) of Cheques
a) Crossed Cheques
Such Cheques bear two transverse lines across their faces. They can be paid
by crediting the amount of money on the Cheque to the account. Such
Cheques are transferable by endorsement only if they are to be credited to an
account.
b) The Restricted Negotiability of Cheques
Cheques bearing phrases such as “Payable to account,” “Account payee only,”
in addition to general crossing, can be credited to her or his account.
c) Cheques Issued in the Names of Organizations or Legal Entities
Unless they are restricted by the conditions explained under items a and b
herein above, Cheques issued in the names of organizations are transferable
to other organizations or individuals like any other Cheques, if they have
been sealed and endorsed. If the Cheque is endorsed to an individual,
however, she/he should bring a confirmation letter from the last endorsing
organization and should be credited to customer account only.
N.B. Cheque issued in the name of organization or legal entities should not be
paid in cash.
9.5.3 A Stop-Payment Order
A stop-payment order on the Cheque can be placed for various reasons as might be
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
given by the account holder.
a) At the time a stop-payment order is placed, there must be sufficient fund
in the account that covers the value of the Cheque requested to stop
payment;
b) The amount of money on the Cheque under the stop-payment order will
not be withdrawn until the account holder gives, in writing, an order to
cancel the stop-payment order, however, the placement of stop payment
order shall be cancelled upon the expiry date of the Cheque or by the
court order
c) The stop payment sanction shall be released if the drawer fails to produce
police evidence within 15 working days that show the stop-chequepayment
order was in fact requested as the cheque was lost or stolen.
d) In the case of an overdraft account, the branch shall first “Stop” the
Cheque on the system and send written request to credit CPC at head
office/district stating the reason, the amount and other particulars to
deduct the amount from the approved limit; The credit CPC in its part
shall respond by deducting the limit or state the reason if otherwise to
the requesting branch as soon as possible.
e) When a blank Cheque is reported to have been lost, the account holder is
not obligated to deposit money to her/his account when she or he
presents the stop-payment order. However, the customer shall be advised
that if the reported Cheque is not blank or issued Cheque to customer
shall make her/him liable.
I. Request for a Stop-Payment Order
The Customer Service Manager
a) Receives a letter of application (refer form CBECATS013 )that indicates
the reason that the account holder found it necessary to give the stoppayment
order;
b) Makes sure that the stop-payment order is placed by authorized person
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
with clearly stated reason;
c) Makes sure that the Cheque on which the stop-payment order is placed is
not withdrawn from the account prior to receipt of the stop-payment
order;
d) Gives the standard stop-payment-order form to the account holder and
Make her/him to complete the form and sign on it. The standard stoppayment-order
form shall only be used;
e) Authenticates the signature on the form;
f) Inputs into the system such relevant particulars as the Cheques number,
the amount of money involved, the date on which it was issued and the
name of the payee/beneficiary; and keeps the record until the account
holder revoke his request and collect the service charge;
g) Forwards the stop-payment-order form to the branch controller.
The Senior Customer Services Officer-Accounts
a) Co-signs on the ‘stop payment order’ form;
The Branch Controller
a) Receives the documents from Customer Service Manager;
b) Checks the restriction made in the system to make sure that they comply
with the pertinent rules and regulations of the Bank before she or he files
them properly.
II.
Cancellation of a Stop-Payment Order
The Customer Service Manager
a) Receives a written application form for the cancellation of the stoppayment
order from the account holder or authorized signatory;
b) Makes the customer sign on the space provided on the stop-payment
order form for the cancellation of the order;
c) Authenticates the signature on the application form against the pertinent
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
system; and
d) Incorporate into the system the necessary particulars from the cancelled
stop-payment order form to cancel the stop-payment order placed
previously; then signs and passes the documents on to the senior
customer service officer-accounts for co-signing.
The Senior Customer Services Officer-accounts
a) Co-signs on the letter of request for cancellation of the stop-payment
order;
The Branch Controller
a) Receives the documents from the CSM and checks them to make sure that
they comply with the rules and regulations of the Bank and then files
them.
9.5.4 Insufficient Fund Cheques
There are instances where a customer could make an honest error in her/his
bookkeeping. Such a customer could have Cheque(s) that is/are deposited in
her/his account and not cleared or returned. She or he could also have local or
foreign transfers, or an approved loan not credited to her/his account due to the
incompleteness of various internal operations, the pertinent procedures of the Bank,
etc. These instances could be considered to be acceptable excuses for the customer
for issuing insufficient fund Cheque s. In general, however, it is quite easy to
determine if a customer is knowingly issuing insufficient fund Cheque s.
To properly control insufficient fund Cheques;
i. The branch shall take the following action as appropriate (as per the NBE
Directive No SBB/64/2016 );
1. record the incident for the first time in the Dishonored Cheque Register;
and restricted all debit (outgoing) transactions against this account until
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
the dishonored cheque is fully paid to the payee or equivalent amount is
blocked pending the payment to the payee
2. record the incident for the second time in the Dishonored Cheque
register, restricted all debit (outgoing) transactions against this account
until all the cheques which have been dishonored & registered
hereinabove are fully paid or equivalent amount is blocked pending the
payment to the payee(s); and levy a fine of 3% of the amount appearing
on the cheque dishonored for the second time but not exceeding Birr
25,000 (twenty five thousand Birr)
2.1 If there is no sufficient fund in the account even to cover the charges,
nonetheless, leaves Birr.1.00 in the account balance, debits the
customer’s account with the remaining amount and does close followup
on the customer’s account to recover the unpaid charges.
3. Record the incident for the third time in the dishonored Cheque register,
close the account, levy a fine of 5% of the amount appearing on the
cheque dishonored for the third time but not exceeding Birr 50,000 (fifty
thousand Birr) and make every effort possible to collect all unused
cheque leaves & pads from the drawer and report same to CATS CPC to
close such persons demand deposit account in all CBE branches and
inform NBE.
4. Notwithstanding provisions under i(1) and i(2) debit charges like legal,
insurance, advertisement, such other non-cash transactions, accrue
interest against overdraft accounts against a blocked account; and the
bank may unblock the account and make the fund available to the drawer
;
i. If the drawer presents the dishonored cheques to the bank or the
payee(s) may appear in person to the bank and confirm in writing
that the dishonored cheques have been fully settled in the form
prescribed (refer form CBECATS202) ; or
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ii.
If the payee(s) fails to appear to receive a full payment after lapse of
six months of presenting the dishonored cheque.
5. Those account holder who fulfill their obligation shall be deleted from
the dishonored cheque register per the following table ;
Description Status Action
1 st time incident Full settlement of the claim or
blocking of equivalent amount and
has not drawn other dishonored
cheques for the second time at
least for 12 consecutive
2 nd time incident Full settlement of the claims or
blocking of equivalent amount and
has not drawn other dishonored
cheques for the third time at least
for 24 consecutive months
following.
Shall be canceled
from dishonored
cheque register
Shall be canceled
from dishonored
cheque register and
be considered as
clean
I. At account holding branch
The Customer Services Officer/Maker
a) Checks the completeness of the Cheque and the balance of the account in
the system;
b) Forwards the cheque to the customer service manager for further action,
if the Cheque is found to insufficient to cover the value or the cheque is
incomplete for various reasons like difference in signature, amount and
figure in addition to not having sufficient balance to cover the presented
Cheque value.
The Customer Services Manager
a) Checks all the possible credit entries that might have not been posted to
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
the customer’s account—that is, from cash/Cheque clearance, loan,
foreign and local transfers etc… Upon receipt of the Cheque from the
Maker unpaid due to insufficient fund,
b) Fills in all the discrepancies on the Cheque including the insufficient
balance status on the Cheque returned form and affixes thereto the
official stamp of the branch and retain photocopy of the Cheque for
further action; However if the drawer has already stopped the cheque
due to loss of cheque or theft, the branch does not need to state the
balance or take action thereof.
c) Affixes the returned slip to the Cheque and registers the Cheque for
insufficient fund in the system;
d) Ascertains whether the name of the account holder whose Cheque is
returned for insufficient fund does have a prior record in the system for
insufficient fund Cheques;
e) Takes appropriate action as stipulated in the NBE Directive No
SBB/64/2016
f) If two or more Cheques are presented on a given demand deposit account
for payment at the same time and if there is no sufficient fund to cover
the amount of the Cheques, takes appropriate action, as stated above, for
each Cheque—in accordance with the sequential order of Cheques even if
the reminder is not received by the customer.
g) Informs the CATS CPC, in writing, about the returned cheque due to
insufficient cheque or the closure of the demand deposit account in the
case of drawer writing insufficient cheque for the 3 rd time by the fastest
available means within 6 working hour(refer annex 5)
The Senior Customer Services Officer-Accounts
a) Maintains a separate register on the system for registering Cheques
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
returned unpaid due to insufficient fund. The register on the system
should contain the following headings in each column:
i. The date and time when the Cheque was presented at the branch
for payment;
ii. The name of the account holder, including her or his
grandfather’s name;
iii. The account number;
iv. Her or his address and/or telephone number;
v. The date on which the Cheque was issued;
vi. The Cheques number;
vii. The name of the payee/beneficiary;
viii. The amount of money specified on the Cheque;
ix. The balance in the account at the time the Cheque was presented
at the branch for payment;
x. The action taken by the branch, which could be any of the
following three as per the pertinent directive of the NBE:
1. First warning letter served on ………
2. Second warning letter served on. ……and charged Birr…
on...
3. Account closed on………..
The Branch Controller
a) Receives the documents from the customer service manager and checks
them for compliance with this procedure and relevant directive of the
NBE and then files on the customer mandate file.
II. Insufficient fund Cheque presented to other branch
(Located in other city other than the account holding branch)
When a Cheque presented in other CBE branch from account holding branch, which
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is located in another city, the following procedure shall be adhered. However, if the
account holding branch and the branch where the Cheque is presented for payment
is located within the same city, the insufficient Cheque return slip shall be issued by
the account holding branch.
Customer Service Managers at the Account Holding Branch and Paying
Branch
a) The branch that received the Cheque for payment shall scan and send
through the bank’s internal email or any other available ways to the
account holding branch;
b) When the account holding branch receives the message shall follow the
steps stated above for insufficient Cheque handling.
c) The account holding branch shall write a letter that confirms the balance
is insufficient to cover the Cheque to the branch (that received the
Cheque for payment) signed by the CSM/Branch Manager, by putting the
branch round stamp and scan and then replies by branch outlook.
d) The branch that receives the Cheque for payment upon receiving the
confirmation from the account holding branch will give to the payee the
“Cheque returned slip” (by stating insufficient fund and by affixing a
round stamp).
Customer Service Manager- at Customer Account and Operation (CATS-
CPC)
a) Shall maintain the Dishonored Cheque Register.
b) Dishonored Cheque Register shall at a minimum include the following
particulars:
i. name and address of the bank and its branch dishonoring a cheque
ii. name, tax identification number and address of an account holder
who issued a
iii. Dishonored cheque
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iv. date on which the cheque was dishonored and frequency of
؛cheque drawing dishonored
v. amount of money stated in the dishonored cheque
vi. reference number of dishonored cheque
vii. name of beneficiary and
viii. the action taken by the bank.
c) Receive from the NBE or from CBE branches list of closed account due to
mal-operation.
d) Updates the mal operation database on the system.
e) Scans the delinquent list and send to districts by email in order to
forward to non-networked branches under the district.
f) Requests from Management Information Service (MIS) whether the
names reported as delinquent by NBE or CBE branches have account in
CBE Branches.
g) Communicates the concerned branches maintaining the account in the
name of the delinquent customer to close the account and report to CATS-
CPC based on the reply of MIS.
9.6 Customers’ Standing Instructions
It is a cardinal principle of the banking industry that all customers’
instructions must be given in writing and signed by the account holder
/signatories. Once a standing instruction has been received from a customer,
it will remain valid for an indefinite period of time unless the customer, or
the account holder, gives an instruction, in writing, for the cancellation
thereof.
The customer has to pay the service charge set for each transaction of a
standing instruction as stipulated in the terms and tariff, if it is paid in cash.
The Customer Service Manager
a) Receives a signed letter of standing instruction from the account holder
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and reviews its proper presentation and content carefully (Refer
Form:CBECATS106)
b) Interviews the account holder who has expressed her or his desire to give
a standing instruction and forwards the instruction to customer service
officer maker for signature authentication; and
c) Forwards the standing instruction to the Senior Customer Services
Officer-accounts for further action.
The Senior Customer Services Officer-Accounts
a) Enters all the relevant information of the standing instruction into the
system prepared for the purpose and keeps same under a box file with
her/him, so as to take the appropriate action thereon on the specified
date; and forward the standing order form to the branch controller;
b) Notifies the account holder about it immediately if there is no sufficient
funds in her/his account to cover the amount.
The Branch Controller
1 Receives and Cheques the relevant information in the standing order
form is properly incorporated in to the system.
9.7 Issuance of Bank Statement
Senior Customer Service Officer – Accounts
a) Issues a bank statement upon the request of account holders in the form
of either soft (PDF form) or hard copy by collecting the service charge as
per the terms and tariffs of the bank. The account holding branch or any
other networked branch shall issue bank statement to account holders/
signatories.
b) In case of the standing order in provision of periodic bank statement
through customer’s email ,the customer shall fill application format
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designed for the purpose (refer form CBECATS011)
9.8 Customer account Balance Confirmation
Customer account Balance confirmation shall be requested by the account holder or
by court order, or where such authority vested to any organ by proclamation.
i. When the customer authorize to give a balance for their external auditors
the account maintaining branch Senior Branch Controller will check the
balance and communicate the Customer Service Manager/Branch
manager to confirm the balance.
ii. When a customer requests to write a balance confirmation to a third
party, the previous day ending balance shall be confirmed by any
networked branch by stating in their letter the account number and the
account holding branch. The current date balance however shall exceed
or equal to the previous day balance; and the letter shall state the word
‘the balance can be withdrawn any time’; and
iii. When the balance confirmation is requested by person other than by
account holder or signatory, it should be treated by the account holding
branch.
9.9 Blocking
An amount could be blocked from a particular account or the account itself could be
fully blocked if and when the customer lodges a request for blocking, or based on a
court’s ruling to that end, or any other organs having a power to block account by
law, or as collateral of a loan to be extended to her or him.
i. When blocking request is lodged to specific branch
The following steps shall be followed:
The Customer Service Manager (at branch)
a) Receives a letter of instruction from the customer/ legally authorized
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organs/Court order;
b) Sets aside the fund as security under “locked” status by specifying the
reason on description box on the system; writes the locking transaction
number and the word ‘locked by system’ on the instruction letter. if the
blocking instruction entails the partial blocking of the amount;
c) Places a “Post No-debit” restriction and lock the entire amount by placing
a “locked” status on the system by the specifying the reason if the
blocking instruction entails the blocking of the account;
d) Informs the customer that the blocking of specified amount from her/his
account, indicating the reason(s) for blocking.
e) Requests the customer to indicate the account number, the amount of
money extended as a loan and the due date for it to be repaid if the
blocking is made as a deposit of collateral for a loan,;
f) When the customer repays the loan in full, which is confirmed by the
concerned organ of the bank, release the locked amount;
g) Replies to the concerned organ and notifies same to the customer and
maintains the blocking document until it is released.
h) Checks the locked amount list on the system against the document at the
end of the month; and
i) Passes the instruction letter to the Branch Controller after releasing the
amount.
The Branch Controller
a) Checks the blocking instruction is properly locked, restricted or released
in the system by generating “locked amount report” as the case may be;
b) Receives pertinent documents from the Customer Service Manager
ii. When a blocked account request is lodged to the bank (At Head office.-
Center).
When such a request is received by the bank, the request shall be forwarded
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to the Director-Management Information Services (MIS) and shall be handled
in the following manner;
The Customer Service Manager- (at Customers’ Accounts and
Operation)
a) Receives the letter of request from Director-CATS-CPC;
b) Requests MIS to search the account to be blocked on the system and
identify account maintaining branch for online branch and circularizes
the letter of request to branches for further action for non-networked
branches;
c) Instructs the specific branch(s) to lock the amount and informs the
customer that her/his account has been blocked by indicating the
reason(s);
The Customer Service Manager- (at Branch)
a) Follows the procedure stated under specific branch Upon receiving the
request from CATS-CPC (a-f except c and d);
9.10 Ticket and Mandate file documentation
Senior Branch Controller or Branch Controller
a) Files the tickets in an arrangement that can be referred easily.
b) Files opening documents and mandate file by account number.
c) Ensures the documents are requested by the standard request form
(refer form CBECATS204) designed for this purpose when ticket or files
are needed for reference
d) Hands over the documents against signature of the customer service
manager/Branch manager on the register.
e) Follows-up on the return of the document as early as possible.
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f) Senior branch controller should maintain the records of archive
documents and update it timely.
9.11 Handling of Safe Deposit Box
9.11.1 Opening Safe Deposit Box
Safe Deposit boxes are available to any person or group that would require one
for safekeeping.
9.11.1.1 General condition of renting safe deposit box
i. To rent a Safe Deposit Box, the customer must complete and sign a Safe
deposit box agreement(Refer form CBECATS007)
ii.
This agreement contains the date, customer name, customer account
number, and the Safe Deposit Box Number, the annual rental fee, renewal
date, terms and conditions of the agreement, customer signature and
authorized signature by the bank.
iii. When the first annual rent and a safe Deposit box key guarantee collected
from her/his account, the bank issue two keys which fit only her/his safe
Deposit box lock.
iv. The minimum period of accepting a safe deposit box shall be one year.
v. The maximum period for safe deposit box rental agreement is nine years,
but the rent shall be collected annually (one year rent only).For any change
on the rent amount the customer shall not be charged or refunded for the
difference on the charge until the prepaid period elapsed.
vi. When the safe deposit box needs to be broken and opened by the bank due
to the reasons stated on the safe deposit box agreement, The Box will be
opened in the presence of a safe deposit custodian (customer service
Manager), Branch Manager and Court official as per commercial code Art
923(2) who will make an inventory of the contents of the Box, and the
contents will be kept in a vault or safe of the Bank until final a ruling by the
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court is made.
9.11.3 Safe deposit box rental commencement
Whenever a customer wishes to have a Safe Deposit Box, the customer
should maintain an account in the Branch. She/he should be interviewed by
Customer Service Manager and should be requested to complete the
standard agreement designed for this purpose (refer Form CBECATS007);
The Customer Service Manager
a) Deals with the customer and assists on the preferred size of the safe
deposit box and advice the customer about the agreement and how to
use the box, such as to:
i. Put a checklist inside the box listing all its contents.
ii. Keep a copy of this list at home and update it as needed.
iii. Clarifies about items prohibited for deposit in the safe Deposit box
as stated in safe deposit box agreement.
iv. Assure the closure of the safe deposit box and retrieval of its
content after each visit.
v. Inform that unpaid rent for one year will be listed as unclaimed by
the bank. They can be broken, opened and the contents removed
and sold;
b) Requests the customer to fill out the application form and to sign the
contract designed for the purpose and retain the photocopy of the ID;
c) Forwards the necessary documents to the Customer Service Officer
Maker at the back;
d) Signs on the safe deposit box contract.
e) Prepares the Safe deposit box customer ID.
f) Registers the safe deposit ID and particulars on the register book.
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g) Gives the safe deposit box keys and Customer safe deposit box ID against
her/his signature.
h) Keeps the contract, the debit advice for rent collected and the credit
advice for deposit for Safe Deposit Box guarantee in a separate mandate
file and Customer visit sheet;
i) Identifies the customer by her/his Safe Deposit box customer ID and his
personal ID When the customer visits his/her Safe Deposit box;
j) Ensures the customer signs on Visit form and open the dual lock by the
bank key and leave to the customer to open her/his box by her/his key;
k) Locks the safe deposit box from the bank side when the customer’s visit
ends; and
l) Takes action as per the contract agreement if the annual rent not
collected inform the customer by the address
The Customer Services Officer/back Maker
a) Debits of the applicant’s account, then signs and forwards same to
Customer Service Manager the annual rent and deposit for Safe deposit
box key guarantee as per the terms and tariff of the bank;
b) Forwards the advices to Customer Service Manager.
The Senior Customer Services Officer-account
a) Sets a standing instruction in the system for collecting safe box rent
annually;
b) Follows-up monthly unexecuted standing instructions due to insufficient
fund in connection with safe box rent and informs the Customer Service
Manager to take action as per the contract agreement.
The Branch Controller
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a) Checks the contract is filled complete, signed by the customer, by the
bank signatory and two witnesses.
b) Signs on the contract and forwards to Customer Service Manager for
custody
9.11.3 Safe deposit box visiting
The Customer Service Manager
a) Receives the customer and identifies him/her against the mandate file
kept for the purpose;
b) Issues visiting format to be filled by the customer and verify the customer
against his signature and details ;
c) Checks whether the customer have the appropriate key to open the safe
deposit box ;
d) Ensures the customer have concluded rental payment and if otherwise
collect the rental payment from the customer account ;
e) Escorts the customer to the safe deposit box and leave her/him for an
average of 15 minutes with safe deposit box ;and
f) Signs and file the vising sheet in the mandate file
9.12 Request for Changing Signature
Frequent changes of signature must, whenever possible, be discouraged. At
times, however, customers have valid reasons to change their signatures. The
Bank will have to, therefore, attend to their requests. To that end,
nonetheless, a customer should be required to fill out the standard
application form prepared for this purpose (refer form CBECATS008).
An account holder may request for changing her or his signature for either of
the following two reasons:
a) When there is a difference in her/his signature from that of the one
she/he had signed at the time of opening her/his account and feels that
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she/he can no longer reproduce it; and
b) When a non-literate account holder becomes literate and, therefore,
desires to replace her/his thumb print with a written signature.
A service charge as per the terms and tariff of the bank shall be collected
when a customer changes her/his signature.
The following steps shall be followed;
The Customer Services Officer/Maker
a) Identifies the applicant/account holder;
b) Requests the customer to fill out the application form for a change of
signature;
c) identifies her/him on the application form in the presence of two
witnesses If the customer is not in a position to accurately reproduce
her/his previous signature;
d) Advices the customer to put on the space provided in the application
form three specimens of her/his new signature and a specimen of her/his
old signature in the presence of two witnesses;
e) Receives from Customer Service Manager the application form for a
change of signature, together with an ID card, after it has been approved
and sends it to the Checker for checking;
f) Receives the application form for a change of signature, together with an
ID card, from the Checker, after checking it;
g) Attaches the application form for a change of signature with the letter of
application for opening the account and sends them to the Customer
Services Officer/Checker; and
h) Replaces the old signature that has been entered into the system by
scanning the new signature given by the customer, based on the
application form for a change of signature.
The Customer Services Manager
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a) Interviews the customer in order to find out her or his reason(s) for
deciding to change her/his signature;
b) Scrutinizes the application form for a change of signature against the
customer’s ID card and her/his old and new signatures;
c) Co-signs, if everything is in order, on the space provided thereof on the
application form for a change of signature; and
d) Sends the application form for a change of signature to the Branch
Controller.
The Branch Controller
a) Receives the application form for a change of signature, after it has been
signed and co-signed by both the Maker and Customer Service Manager;
and
b) Checks all particulars filled in the application form for a change of
signature against the copy of the customer’s ID card and the previous
pertinent documents.
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9.13 Amendment /Cancellation on LMTS
The amendment shall require the cancellation of the original message and
security number by paying the money back to the remitter and transfer new
message against the expense of the customer, if amendment is initiated by the
customer. Otherwise, the second transfer should be free of charge (refer form
CBECATS109)
If the error is made by the remitter, the originating branch shall follow the
following procedure.
The Customer Services Officer/Maker
a) Receives a letter of application and original customer advice (deal
slip) from the remitter and forwards it to the Customer Services
Officer/Checker for further checking;
b) Collects the required commission for amendment and give the deal
slip to the customer;
c) Upon receiving the verified letter of application from the Checker,
d) Writes ‘commission collected’ on the face of the customer application
form and signs on it;
e) Changes the status to ‘paid’ by using the security number (like a
payment in cash) and prepare a new LMTS message; and
f) Advises the customer to tell the new security number, test question
and answer to the beneficiary with confidentiality;
The Customer Services Manager
a) Checks the letter of application to make sure that it contains the
required information necessary to request an amendment on the
message;
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b) Gets the customer’s letter of application/form, which has already been
filed, from the Branch Controller and authenticates the applicant’s
signature against the previously maintained signature on the moneytransfer
application form or identifies the customer on the application
form;
c) Authorizes the payment with in her/his authorization limit and the
new LMTS; and
d) Attaches the amendment application with the pay deal slip.
Branch Controller
a) Receives the amendment request from the Customer Service Manager;
and
b) Checks the transaction on the system.
9.14 Cancellation of Local Money Transfer
The originating branch that received the cancellation request (‘the remitting
branch’) shall follow the following procedure:
The Customer Services Officer-Maker (at the originating branch only)
a) Receives the customer’s letter of application(refer form CBECATS109),
together with the former original advice for remittance, and forwards it
to Customer Service Manager for approval;
b) Collects the commission charge once she or he has received the approved
letter of application; and
c) Pays the local money transfer to the remitter after identifying the
applicant by using the security number and ID card(s).
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The Customer Service Manager
a) Makes sure that the letter of application has the information required to
request for retransfer/cancellation and approve the payment to be
processed;
If the beneficiary does not collect her/his money transfer,
The Senior Customer Services Officer-accounts /Maker (at the back
office)
a) Generates a list of matured transactions from the System;
b) Forward the long outstanding item for write back to the branch manager.
c) When the write back proposal approved by the concerned organ transfer
to income by the system.
9.15 Handling of Lost LMTS Security number
When the remitter lost the LMTS Security number and reports the case to the
Branch for return or payment to the beneficiary, such request shall only be
presented to the originating branch.
The originating branch shall follow the following steps:
The Customer Services Officer-Maker (at the originating branch only)
a) Receives the customer’s letter of application form (referCBECATS105),
and forwards it to Customer Service Manager for processing;
b) Collects the service charge and provide the advice/the deal slip to the
customer; and
c) After getting the security number and approval of Customer Service
Manager, he/she will then pay to the remitter.
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The Customer Service Manager
a) Makes sure that the letter of application form has the required
information;
b) Finds the transaction reference number and the remitter name from the
‘outstanding LMTS payable list’;
c) Sends the request to Customer Service Manager at Customers’ Accounts’
and Operations for LMTS security number by indicating the transaction
reference number and remitter’s name by stating his/her Outlook
address of the bank;
d) Places a ‘stop flag’ for payment restriction in the system until security
number is received from Customer Service Manager at Customers’
Accounts’ and Operations for;
e) Receives the security number from Customer Service Manager at
Customers’ Accounts’ and Operations for through CBE’s internal email
and communicate the customer; and
f) Releases the ‘Stop payment’ and approves the payment upon presence of
the customer.
The Customer Service Manager (at CATS-CPC)
a) Receives the request from Customer service Manager at originating
branch;
b) Searches the remittance by the reference number on the system and
check the particulars against the branch request and take the security
number.
c) Forwards the security number to customer service Manager at branch by
keeping its confidentiality through CBE internal email
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9.16 Handling Power of Attorney
Customers may give power of attorney to take care of their financial
transactions need.
Customer Service Manager
a) Receives original and one copy of power of attorney letter from the
agent/principal;
b) Interviews the customer the service he/she and checks the power of
attorney that gives the power to act the agent for the requested service by
referring court and court execution guide line of the bank;
c) Returns the original to the customer and forward the copy documents to
KYC Analyst for authentication. If she/he is satisfied that the power of
attorney shall have the power to get the service. However, if she/he is not
satisfied advice the customer to adjust her/his power of attorney or
forward the case to legal service for further advice;
d) Receives the authentication and forward the case to the concerned officer
to give the service if the power of attorney requested for a single
transaction;
e) Forwards the power of attorney to customer service officer-maker to
receive a signature, scan and attach to the account if the power of
attorney request for account operation; and
f) Receives the cancellation power of attorney from the principal and delete
the signature of the agent and cancel all accesses of the signatory, i.e. E-
Banking products in the case of power of attorney cancellation.
KYC Analyst
a) Receives the power of attorney from the Customer Service Manager;
b) Send the document to the issuing organ (Document authentication and
registration office or other organ having a power to that end) for
authentication; and
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c) Receives the response from the issuing organ and inform same to the
Customer Service Manager for further processing ;
The Customer Services Officer-Maker
a) Receives the authenticated power of attorney from customer service
manager;
b) Receives from the customer identification card, two or one digital photo
for saving and demand deposit account respectively, and customer
signature;
c) Scans the signature and digital photo(take a digital photo using the digital
camera ) and then attach with the account by writing the word “power of
attorney”
The Customer Services Officer/Checker
a) Ensures that the pertinent information is incorporated into the system by
looking at the documents presented by the customer.
b) Authorizes the signatory record;
9.17 Handling of Government Bond Coupon /the Grand Ethiopian
Renaissance Dam Bond
9.17.1 Features of the Grand Ethiopian Renaissance Dam Bond (GERD)
a) Shall have either interest bearing or non- interest bearing ;
a) Denomination starting from Birr 25 to 1million and has Serial number;
b) Shall have Buyer Name and Signature;
c) The GERD bond maturity is from 1-5 years and above 5 years. The bond
can be redeemed from 1 to 5 years and above 5 years, which shall be on
yearly basis;
d) Interests earned from the GERD bond is tax-free;
e) The GERD bond is transferable to third party;
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f) For Bonds mature from 1-5 years, the Bond buyer can redeem bond value
at least after one year from the issuance date, i.e. the GERD bond buyers
cannot redeem the principal value before one year. Furthermore, the
GERD bonds which are redeemed after one year but before maturity date
are subject to penalty charge on the accrued interest.
g) For the GERD bonds maturing above 5 years, the bond buyer can redeem
bond value at least after three years from the issuance date, i.e. bond
buyers cannot redeem the principal value before three years.
Furthermore, the GERD bonds which are redeemed after three years but
before maturity date are subject to penalty charge on the accrued
interest;
h) Shall have Stamp of the Ministry of Finance and Economic Cooperation
(MoFEC) and signature of the Minster (MoFEC);
9.17.2 General issues and Conditions in GERD bond operation
a) The minimum value of bond to be purchased is birr 50 in Ethiopia and
birr 500 outside Ethiopia. However there is no maximum purchasing
limit.
b) Lost and Mutilated bond coupons after their sale should not to be
replaced with other coupons; but the bond buyer shall be provided with
equivalent evidence/certificate after verifying the authenticity of the loss
or mutilation by bond selling branch..
c) Interest shall be calculated starting from the issue date and paid semiannually
on June 30, and December 31.
d) A bond holder can redeem the principal amount and collect the interest
earned on the bond from the selling CBE branch.
e) Principal redemption date is at the end of agreed maturity date and shall
be redeemed by the selling Branch.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) If the GERD bond buyer wants to be redeemed before maturity date, the
request shall be lodged to DBE ;
g) Tears, water-wash, fire-burn, or partial/complete damage during
stamping, packing, or transportation before its sale and mistakes made
when writing on the blank spaces of the coupons during the sale lead to
voidance of the bond coupons. Such bond coupons should be stamped or
written on them “Void”. Voided coupon must be reported regularly and
with the voided coupon(s) sent to the Head Office of DBE in the same way
as the other activities of the bond sales.
9.17.3 Eligibility to Buy the GERD Bond
a) All Ethiopians – rural and urban communities, micro enterprises,
cooperatives, public and private enterprises, organizations,
individuals and other sections of the general public;
b) Foreign nationals of Ethiopian origin and non-Ethiopian origin
with residence permission;
c) Required documents for those 18 and older are – Kebele ID or
employment ID, for minors birth certificate, for student school or Kebele
ID; and
d) All Ethiopians and foreign nationals of Ethiopian origin living abroad;
9.17.4 Duties and Responsibilities of Performers’ Involved In GERD Bond
Operation
Manager –Bond Reconciliation
a) Receives the bond coupons by denomination and sales receipts from DBE
head office and forward the bond coupons to Bond Management Officer;
b) Receives bond coupons request from Addis Ababa city District offices;
approve and forward to Bond Management Officer;
c) Makes sure the stock is balance;
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d) ensures reports in relation to sales performance of bond coupons are
collected, consolidated and forwarded to the concerned organs
Bond Reconciliation Officer at Bond Reconciliation
a) Collects from district offices and consolidate the overall sales
performance of bond coupon;
b) Prepares periodic reports that show the issued/distributed and stock of
bond coupon.
Bond Management Officer at Bond Reconciliation
a) Receives bond coupons by denomination and sales receipts from
Manager – Bond Operation Management
b) registers on stock registration book and hold under his/her custody;
c) hands over bond coupons by denomination and sales receipts to Addis
Ababa district offices bond reconciliation officer by letting the officer sign
on the bond coupon delivery register;
d) balances the physical bond stock against the balance in the system or
register book
Bond Reconciliation Officer at District Offices
a) Receives, for Addis Ababa city districts, the bond coupons by
denomination and sales receipts from the bond operation management
team and for outlying districts receives the coupons and sales receipts
from DBE regional offices;
b) Registers on stock registration book and hold under his custody;
c) Receives bond request letter from Branches and hand over the bond
coupons to the branch delegated person by the denomination requested
and sales receipt and sign on the bond delivery format;
d) Balances the stock and reports quarterly.
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Customer Service Manager at Branch
a) Receives the bond coupons by denomination and sales receipts from
District office, register on stock registration book and hold under her/his
custody.
b) Assigns customer service officer - maker back office to handle bond
operation.
c) Delivers the bond coupons and sales receipt to customer service officer –
maker back office on customer request base.
d) Co-signs the bond sales receipt and puts stamp on the sales receipt form
e) Approves “bond coupon’s equivalent evidence/certificate” in customer
name for lost and mutilated coupons of the original bond (if any).
f) Approves the redemption for the right claimant’s as per the guide line.
g) Follows up the bond operation and the stock is balance
Customer Service Officer – Maker Back Office at Branch
a) Interviews the customer;
b) Advices the customer to deposit in cash or to fill the fund transfer form to
deduct from her/his account;
c) Receives the bond coupons by denomination & sales receipt form from
customer service manager;
d) Fills all appropriate data’s to the bond coupons & sales receipt form
e) Requests the customer to sign on bond coupon’s & sales receipt form and
sign on the sales receipt;
f) Forwards customer advice, bond coupon’s & sales receipt’s form for
customer service manager for co-signing;
g) Receives bond coupon’s & sales receipts from Customer Service Manager
after signed , Insert in to the system;
h) Delivers customer advice, bond coupon’s & customer copy of sales
receipt’s to the customer;
i) Balance bond sales and bond coupon issued;
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j) Compile reports and report to Branch Manager;
k) Receives bond coupon and sales receipt for matured bond coupon
presented for redemption;
l) Prepares payment ticket and forward to customer service manager for
approval.
m) Retain photo copy of the bond coupon.
Senior Branch Controller
a) Checks the completeness of the deposit voucher/account to account form
and it has been credited to bond account;
b) Keeps the Branch copies of issued bond sales receipt by pad under
her/his custody;
c) Checks stock balance against Bond coupon register monthly.
d) Checks calculated interest on sample base.
e) Checks the principal bond coupon amount and the payment transaction.
f) Files and Keep the bond coupon after crossed, written the word ‘paid’ and
payment date and the payment ticket on her/his custody.
9.18 Un-issued Passbook Stocks on Hand
a) All savings passbooks received from supplying organ, as per the requisition
thereof, should be registered numerically in the savings passbook stock
register and kept in the custody of Customer Service Manager;
b) At the time that the passbook is issued, it should be recorded on the register
on the system and delivered to the Customer Services Officer/Checker by
dispatch book for daily use against her/his signature;
c) Before any subsequent supplies of passbooks are issued, the Customer
Services Officer/Checker must account for all the passbooks she/he has
received; and
d) Customer Service Manager should daily check the passbooks handed over to
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the Customer Services Officer/Checker.
9.19 Rubber Stamps
A wide variety of rubber stamps are being used in the Bank. The types of rubber
stamps used must be recorded in the register book prepared for the purpose.
As stamps are sensitive by nature, the staffs who keep custody of rubber stamps
should bear in mind that they must be kept under lock when not in use. The
following are the steps to be taken in this regard.
The Branch Manager/ Customer Service Manager
a) Submits a stamp-requisition letter to the Facilities Management, clearly
indicating the type thereof—that is, either a new one or a replacement;
b) Registers all stamps received from their respective supply offices into the
registered book prepared for this purpose;
c) Issues the stamp to the staff who uses it against her/his signature by
registering it register book prepared for this purpose;
d) Ensures that the designated staffs of the Bank properly handle the stamps
in their custody and always keep them (the stamps) locked up after office
hours;
e) Collects the old rubber stamps whenever they are replaced by new ones;
f) Detaches the rubber part of old rubber stamp and destroy in the presence
of Branch controller and one officer.
g) Ensures that when a staff is transferred from the branch, the staff who
takes her or his place takes over the rubber stamp against her/his
signature in the register system; and
h) Reviews the register in the system and ensures that it is properly
updated.
Staffs Holding the Bank’s Rubber Stamps
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a) Receives the rubber stamps from Branch Manager/Customer Service
Manager;
b) Takes responsibility for all the stamps received against ones signatures;
c) Ensures that at the end of the day, every rubber stamp is kept locked;
and
d) Ensures that the registered book for rubber stamps has been updated
accordingly and that the rubber stamps do exist when the staff is assigned
to hold the bank’s rubber stamps.
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9.20 Key management
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
9.20.1 Custody of keys
a. The following keys shall be recorded on the Bank’s Official Key – Register
Book and Signed for by the Respective Persons responsible to handle the key
I. Keys for strong room doors and large safes used as cash vaults,
II. Keys for petty cash safes and grill doors for petty cash;
III. Keys for server rooms:
IV. Keys for safes or fire-proof cabinets containing valuable documents or
instruments;
V. Keys for regular filing cabinets and desks;
VI. Keys for Gates and Offices;
VII. Transfer of keys from person-to-person needs to be duly recorded in
the register, against signature of holder, and needs to be updated
regularly.
b. Holders of cash vault room and cash safe keys should not leave behind their
keys in the Bank premises after office hour.
9.20.2 Duplicate Keys
a. Duplicate keys of strong room doors and safes of branches must be held by
the respective District under the dual control of the Manager-district
operations and the manager of the nearby branch to the District. These
duplicate keys must be kept in a safe custody at cash vault room of the
nearby branch to ensure immediate supply in case of emergency.
b. “Combination-Code” of cash vault doors/safes should be sent to the
respective district manager (refer form CBECATS203) being in a sealed
envelope, for a precautionary measure. upon sending this confidential
information shall ensure that:
I. Double envelope is used.
II. The outer envelope is properly sealed and marked “confidential”; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
III. The inner envelope is also properly sealed, stamped with stamp of the
respective organ and marked “combination-code”
c. Code numbers for Tellers’ Cash box or duplicate keys must be with the
Branch Manager; and the sealed envelopes should bear the names of the user
branch and person clearly and marked with phrase “Combination codeconfidential”
on the envelopes.
9.20.3 Loss, replacement
a. The individual key holders should immediately report the loss of keys in
writing to their immediate supervisors ;
b. Those in custody of duplicate keys upon receipt of loss reports-must
immediately supply the duplicates to the concerned Branch /individual ;
c. All costs and expenses that are incurred as a result of a key or keys
replacement or the change of a locking-device will be paid by the employee
who lost the key or keys.
d. Lost strong room door or large safe key must be totally replaced by a new
one at the expense of those responsible.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
10. CASH OPERATIONS
10.1 Cash handling between NBE and Cash custody and issue
The account held for NBE should be known as “cash held for the Currency
Management of the National Bank of Ethiopia.” This is maintained by various CBE
branches authorized to hold cash for the NBE. The account is:
a) Debit for any amount of money lodged to it, and credit for any amount of
money withdrawn there from and transferred to a bank.
b) Furthermore, these branches have been authorized to withdraw from the
CBE any amount of cash that is unfit for re-issuance or that is in excess of the
amount considered adequate for their respective requirements.
c) Both the withdrawals and lodgings of cash from these accounts ought to be in
components of Birr 50,000.00. It is, nonetheless, imperative to post the
transaction on NBE system by specifying amount and the denominations of
the Birr notes lodged into, or withdrawn.
d) To make sure that requests are lodged accordingly and promptly to the NBE,
CBE’s branches are required to make a thorough assessment of their cash
position well ahead of time and thereby know when the amount of the cash
in their possession will decrease or increase.
10.1.1 Cash Withdrawal from NBE
a) Cash withdrawn from the "cash held for the National Bank of Ethiopia"
for starting the day’s operations should be recorded in the bound book
and a signature must appear on the space provided for that purpose. The
denominations of the cash withdrawn should also be clearly disclosed in
the bound book.
b) Each withdrawal should be shown on the stock card kept for the purpose.
c) Pass the necessary entry in the NBE system.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) The branch that withdrew or Debit cash from its "cash held for the
National Bank of Ethiopia" will credit Issue Account with NBE with contra
cash.
e) CATS –CPC shall make up-to-date reconciliation and follow ups.
10.1.2 Cash Lodging to NBE
a) Any lodging of cash should be recorded in the stock card kept for each
denomination. Then, after it has been recorded, the personnel who did the
lodging thereof must put her or his initials on the stock card.
b) The branch that lodges cash to the "cash held for the National Bank of
Ethiopia" should inform the NBE through NBE’s cash management system
about the amount of the money lodged and the denominations thereof.
c) Issue holding branches and Cash custody and issue will debit the Issue
Account with NBE of the CBE and credit the branch Cash account that lodged
the money.
d) Maximum care must be taken to “Cash in Transit," to ensure the safety of the
cash being transported from one place to another.
10.2 Cash handling between Cash custody and issue and branches
10.2.1 Cash collection from Cash custody and issue/ the NBE Issue Account-
Holding Branch
10.2.1.1. Responsibility of the branch
I. City Branches
Customer Service Manager/Branch Manager
a) Prepares a letter of request to Cash custody and issue;
b) The outlying branches of city districts Sends the tested message to cash
custody & distribution by telephone or prepares a message on the system
and send it by secured CBE’s internal e-mail by disclosing the total
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
amount of the local currency or of the foreign currency requested for,
together with a breakdown thereof in denominations;
c) CBE’s branches in the cities are supposed to lodge their requests in
writing, indicating the following:
i. The total amount of the money requested for, together with a
breakdown thereof in denominations;
ii. The letter of request should be signed by the Senior Customer
Services Officer-Cash and by Customer Service Manager/Branch
Manager;
iii. The letter of request should bear the seal of the branch; and
iv. The letter of request should be sent to the Cash custody and issue in a
sealed envelope or by CBE internal e-mail intranet.
d) Authorizes the transaction if it is on her/his authorization limit;
The Senior Customer Services Officer-Cash (at a branch)
a) Counts the cash, in collaboration with the Customer Services Officer at the
table, ascertains the correctness of the amount and the denominations
thereof by comparing it with Handing and taking over format (refer
FORMCBECATS202),When receiving cash from the senior customer
services officer-Cash (Cash custody and issue) in front of the Senior
Customer Services Officer from the Cash custody and issue
b) Signs on the Handing and taking over format and gets the Customer
Services Officer/Maker co-sign on it, affixes a stamp and hands it over to
the Senior Customer Services Officer of the Cash custody and issue at the
Cash custody and issue as an acknowledgement of receipt of the cash;
c) Passes one copy of Handing and taking over format to one of the
Customer Services Officers/Makers for posting the cash received; and
d) Registers the denominations of the cash in her/his cash position book
and posts the total amount thereof into his computer as cash received.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
The Customer Services Officer-Maker
a) Receives one copy of Handing and taking over format from Senior
customer service officer-cash;
b) Posts the transactions.
The Branch controller
a) Receives the handing and taking over form from the Customer Service
Officer-Maker;
b) Checks the transaction on the system;
II.
Outlying Branches
Customer Service Manager/Branch Manager
a) The outlying branches Sends tested message to Customer Service
Manager at the Issue Account-Holding Branch for urgent delivery of cash;
b) The Head of Insurance and Risk should be notified once a month, through
a report, of the cash shipment to, or from, the branches, so that she or he
will provide the necessary insurance coverage;
c) Authorizes the transaction.
The Senior Customer Services Officer-Cash (at a branch)
a) Follows the same procedure discussed herein above under the senior
customer service officer –cash for city Branches.
The Customer Services Officer/Maker
a) Follows the same procedure discussed herein above under the senior
customer service officer for city Branches.
The Branch controller
a) Receives the handing and taking over form from the Senior Customer
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Service Officer-Cash;
b) Checks the transaction on the system; and
c) File and keeps the appropriate document
10.2.1.2. Responsibility of Cash custody and issue/ the NBE Issue Account-
Holding Branch
i. City Branches
The Head Cash custody and issue
a) Upon receipt of the tested message from the branches, ascertains and
decodes the message and forwards it to manager customer Services at
Cash custody and issue that she or he will keep it in her/his custody; and
b) Provides a van for transporting the cash, as well as the security guards
who will escort it (the cash).
The Manager Customer service- Cash custody and issue
a) Prepares cash Handing and taking over format for the total amount of
money to be supplied to the branch, disclosing the breakdown of the
denominations thereof;
b) Arranges the date, the time and the Senior Customer Services Officer-cash
who will provide the cash to the branch; and
c) Arranges the cash requested for, in accordance with the preferred
denominations, and hands it over to the concerned Senior Customer
Services Officer-cash, together with Handing and taking over form.
The Senior Customer Services Officer-Cash (at Cash custody and issue)
a) Counts the bundled-up cash, which has subsequently been stashed up
in bricks, so as to ascertain the correctness of the amount thereof, in
line with the lodged request, and signs one copy of Handing and taking
over format which will be retained by the Manager Cash custody and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
issue acknowledgement receipt of the cash;
b) Takes the cash to the branch, having it escorted by the assigned
security guards; and
c) Hands over the cash to the Senior Customer Services Officer-Cash (at
the branch), together with two copy of Handing and taking over format.
ii. Outlying branches
The Customer Service Manager (at the NBE Issue Account-Holding
Branch)
a) Follows the same procedure discussed herein above under the Head of
the Cash custody and issue.
The Senior Customer Services Officer-Cash (at the NBE Issue Account-
Holding Branch)
a) Follows the same procedure discussed herein above under the Customer
Service Manager of the Cash custody and issue.
The Customer Services Officer-Cash (at the NBE Issue Account-Holding
Branch)
a) Is responsible for taking the cash requested for by following the same
procedure discussed above under the Senior Customer Services Officer-
Cash (at the Cash custody and issue);
The Branch controller
a) Receives the handing and taking over form from the Senior Customer
Service Officer-Cash;
b) Checks the transaction on the system; and
c) File and keeps the appropriate document
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10.2.2 Cash surrender to Cash custody and issue/ the NBE Issue Account-
Holding Branch
10.2.2.1. Responsibility of the branch
i. City Branches
The Customer Service Manager
a) Requests the Cash custody and issue for the collection the excess cash
through letter. the following issues must fulfilled:
i. The total amount of the money to be dispatched to the Cash Issue
ii.
iii.
and Custody and the breakdown of the denominations thereof;
The letter should be signed by Customer Service Manager/Branch
Manager; and
The letter should bear the stamp of the branch.
The Senior Customer Services Officer-Cash (at the branch)
a) Requests for the ID card of the Senior Customer Services Officer-Cash and
ascertains that its number is similar with the one that appears in the
letter;
b) Prepares Handing and taking over format for the total cash to be sent to
the NBE issue account-holding branch or Cash custody and issue,
indicating the breakdown of the denominations and signs on it;
c) Prepares the cash to be sent from the vault to Cash custody and issue, in
collaboration with Customer Service Manager;
d) Identifies the Senior Customer Services Officer-Cash (at the Cash custody
and issue) in charge on the file copy of the Handing and taking over
format which will be retained by the branch and makes her or him sign
on it to acknowledge receipt of the cash; and
e) Transfers the amount and denomination of cash to be dispatched to the
customer service officer-maker through the system together with a copy
of the handing & taking over format for posting.
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The Customer Services Officer-Cash (at the branch)
a) Accepts the money through the system and posts it into the system as
payment.
The Customer Service Manager at branch
a) Authorizes the transaction; and
b) Jointly prepares, with the Senior Customer Services Officer-Cash, the cash
to be sent from the vault to the Cash custody and issue.
The Branch controller
a) Receives the handing and taking over form from the Senior Customer
Service Officer-Cash;
b) Checks the transaction on the system; and
c) File and keeps the appropriate document
ii.
Outlying Branches
An outlying branch having excess cash shall first inform, in writing the branch
holding cash for the "National Bank of Ethiopia Issue Account" as follows:
a) Sends tested messages by telephone or prepares a message on the system
send by CBE’s internal e-mail;
b) Discloses the total amount of the money to be dispatched and the breakdown
thereof in denominations;
c) Gets the letter signed by Customer Service Manager/the Branch Manager;
d) Ensures that the letter has the seal of the branch. By a copy of the same letter,
the Director-Account and Reconciliation shall be informed by mail of the
need for an insurance coverage. The dispatching branch should also make
ready the cash prior to the date of collection;
e) Separates the good Birr notes from the mutilated and damaged Birr notes;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) Wraps up, in accordance with their denominations all Birr notes that are in
good condition as well as those that are mutilated and dog-eared, and the
signatures of the pertinent staff must then be affixed to the wrappers;
g) Arranges Wrapped-up bundles of Birr notes in bricks;
h) Prepares Handing and taking over format the total amount of money to be
dispatched, indicating the breakdown thereof in denominations;
i) Surrenders the cash to the Senior Customer Services Officer-cash upon its
arrival at the "NBE Issue Account-Holding Branch," together with Handing
and taking over format.
j) The Senior Customer Services Officer-Cash, for her or his part, accepts the
cash and counts it, with the help from the Customer Services Officers, and
thereby ascertains the correctness of its amount as per the Handing and
taking over format thereof.
10.2.2.2. Responsibility of Cash custody and issue/ the NBE Issue Account-
Holding Branch at the time of cash collection from branches
i) City branch
The Head - Cash custody and issue
a) Upon receipt of the letter of request from the city branches and the tested
message from the outlying branches, ascertains and decodes the message
and arranges a van for collecting the cash, together with the security
guards who would escort the cash; and
b) Prepares the introduction letter that specifies the persons carrying the
cash, the security guards, the driver, etc. and signs on it.
The Customer Service Manager - Cash custody and issue
a) Arranges the date, the time and the Senior Customer Services Officer(s)
who will collect the cash from the branch;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Sends the introduction letter to the branch, disclosing therein the name of
the Senior Customer Services Officer and her/his ID No.; and
c) Assigns a team leader to the van and entrusts her/him with the
responsibility of coordinating the work of the assigned senior officers.
The Senior Customer Services Officer-Cash (at Cash custody and issue)
a) Takes the letter to the branch and hands it over to the Senior
Customer Services Officer-Cash;
b) Receives the cash, counts it as well as the denominations thereof, and
ascertains that its amount and the breakdown of its denominations
agree with what is written on the handing and taking format , and
meticulously counts especially notes of Birr 50 and Birr 100—besides
carefully checking to make sure that the bundles made of Birr notes
that are below 50 are arranged in bricks; and
c) Takes the cash, escorted by the security guards assigned to escort it.
ii) Outlying branches
Upon receipt of the letter of request from the cash-dispatching branch, the NBE
Issue Account-Holding Branch shall do the following:
Customer Service Manager (At NBE Issue account holding branch)
a) Arranges a van that will transport the cash and the security guards who
will escort it;
b) Assigns a staff that will collect the cash;
c) Prepares a letter to the dispatching branch, disclosing therein the name of
the staff to whom the cash is to be surrendered—as well as her or his ID
No.;
d) All the letters that are to be written in connection therewith shall be
signed by Customer Service Manager/the Branch Manager and must bear
the seal of the branch;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
e) The staff assigned to collect the cash and hands over the letter to the
Branch Manager/Customer Service Manager who will have to then direct
it (the letter) to the Senior Customer Services Officer-Cash;
f) The Senior Customer Services Officer at branch arranges the cash to be
dispatched, in accordance with the handing and taking over form thereon;
The Senior Customer Services Officer-Cash (At NBE Issue account
holding branch)
a) Counts especially Birr 50 and Birr 100 notes carefully;
b) Makes sure that bundled-up Birr notes that value less than Birr 50 each
are wrapped up and that the signatures of the pertinent personnel have
been affixed to their wrappers;
c) Makes sure that the bundles have been rearranged in bricks;
d) Compares the total amount of the cash with that on the handing and
taking format and thereby ascertains the correctness thereof;
e) Signs on the handing and taking format and affixes thereto a teller stamp
to acknowledge receipt of the cash; and
f) Puts the cash in a safe box and locks it up or nails it shut and does the
necessary arrangement for transporting it safely, by having it escorted by
the security guards assigned for the purpose.
10.3 Security Precautions
a) Cash consignment from one branch to another and from the Issue Accounts
to the branches shall always be escorted by security guards, if a branch has
no security guard of its own;
b) If the distance to be covered requires an over-night stay on the way, it shall
be planned in such a way that the town where the night is to be passed shall
be preferred for the safety of the cash.
c) Whenever possible, a trip with cash after sunset or before sunrise shall be
avoided.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) If there is a branch of the CBE in that town, the vehicle carrying the cash shall
be made to stay for the night in the compound of the branch, vigilantly
watched by its escorts. In the absence of a branch, however, the vehicle shall
be parked either in the compound of a nearby police station or in a military
camp, accompanied by its escorts.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
10.4 Cash Handling within a Branch
10.4.1 Cash Limit for Customer Service Officers
The Customer Service Manager and Senior Customer Service Officer-Cash shall
distribute cash to customer service officers as per the cash limit indicated
hereunder for starting the day’s operation and during the day’s operation. However,
the limit set by the branch should not exceed the amount stated hereunder:
Branch Grade
Maximum cash Limit of front Customer Service Officer
Makers
Cash for the start
of the day
Cash in the hand of Customer Service
Officer during the day’s operation
Grade III and IV 150,000 300,000
Grade I and II 150,000 200,000
10.4.2 The Procedure for Opening and Starting the Day’s Operations
The Senior Customer Services Officer-Cash
a) Opens the vault and withdraws there from the cash that will be needed
for the day’s Operations jointly, with Customer Service Manager,;
b) Transfer the amount of cash withdrawn from vault against the
denomination through ‘Vault to till’ transfer.
c) Distributes adequate physical cash in all kinds of denominations to the
Customer Services Officers/Makers;
d) Transfers through the system to the concerned Customer Services
Officer/Maker the required-cash and the petty-cash balance held in each
of the Customer Service officer cash boxes;
e) Hands over the cash box that was kept locked in the vault to each
Customer Services Officer/Maker; and
f) Transfers the closing balance of the cash book of the previous day and the
balance of the day to the cash book as balance brought forward (BBF).
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The Customer Service Manager
a) Opens the vault and withdraws there from the cash that will be needed
for the day’s operations jointly, with the Senior Customer Services
Officer-cash,;
b) Writes the cash withdrawn from Vault by denomination on the bound
book and make the senior customer service officer-cash put his signature
on it as acknowledgment of receiving the cash.
c) Authorize vault to Till Transfer;
d) Assigns Customer Services Officers/Makers who will assist and facilitate
the cash operation at the counter and at the master table (where the
Senior Customer Services Officer-Cash is working) ;
The Customer Services Officer/Maker
a) Collects the cash box from the vault when it is opened in the
morning;
b) Opens the cash box in front of the Senior Customer Services Officer-
Cash to confirm the existence of petty cash (the cash leftover in the
box from the previous day), together with the personal cash
brand/stamp;
c) Takes the cash box to its cage, and verifies the amount of the petty
cash transferred through the system against the previous day’s
record and accept/authorize;
d) Collects the cash from the Senior Customer Services Officer-cash and
checks all the complete bricks to ascertain that each one of them
contains 10 bundles and that all of them have been wrapped;
e) Makes sure that the signatures or the initials of the Cash Counter and
the Verifier have been affixed to the bundle. Notes of Birr 50 and Birr
100 are to be accepted only by carefully counting each one of them;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) check the amount of cash transfer through the system, authorize the
‘Till transfer’ as acknowledgment of receipt of cash for the daily
operation; and
g) Adjusts the date of the stamps (brands) before starting the day’s
operations.
10.4.3 During the Day’s Operations
i. Request for Additional Cash
The Customer Services Officer/Maker
a) Requests the Senior Customer Services Officer-cash the required
additional cash.
b) Collects the money, counts and ascertains the correctness of the amount
and of the denominations thereof, by comparing it with what was
requested; and
c) Confirms to acknowledge receipt of the money by authorizing the cash
transfer through the system.
The Senior Customer Services Officer-Cash
a) Coordinates, support and controls the activities of the Customer
Services Officers/Makers and does follow-up on the balance still in
their possession through her/his computer as well as physically;
b) Receives the message from the Customer Services Officers/Makers
when they need additional cash;
c) Prepares the amount of cash requested by them after ascertaining
actual need for big amount ;
d) Sends the required physical cash, and transfer the same amount of
Cash though the system.
e) Ensures the Customer service officer-Maker has authorized
(accepted) through the system immediately.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ii.
Transfer of Excess Cash in the Middle of the Cash Operations
The Customer Services Officer/Maker
a) Sorts the cash at hand into bundles, in accordance with the
denominations and balances thereof;
b) Hand over the cash to the Senior Customer Services Officer, and transfer
the amount of cash through the system(Till to Till transfer); and
c) Ensures the Senior Customer service officer-Cash has authorized
(accepted) by the system immediately.
The Senior Customer Services Officer-Cash
a) Receives the cash and counts it with help of the Table Master;
b) Ascertains the correctness of the money received, in accordance with
the denominations written down;
c) Acknowledge receipt of the amount of money by authorizing the ‘till
transfer’ through the system;
d) Receives the money at the table by carefully counting each bundle and
brick and after checking the correctness of its amount by comparing it
with that in the system (‘till balance by denomination’) of the
Customer Service Officer Maker (at the table) ,whenever the money at
the table becomes twice the size of the front officer limit .
iii.
Receiving Cash Deposit at the Table
The Customer Services Officer/Maker (at the table)
a) Collects the money from the customer in excess of 15-bundle cash.
b) Counts the Birr notes against each denomination in the bundles and
ascertains the correctness thereof by comparing it with that of the
voucher filled in.
c) Posts the amount of money to the customer’s account using her/his user
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ID, affixes a stamp to the voucher/s, signs on it and prints a deal slip;
d) Makes the cash office attendant wrap the bundles of the Birr notes
according to their denominations and affixes a stamp to the wrapping
paper;
e) Signs on the wrapped Birr notes to confirm the correctness of the amount
of money in each bundle (two signatures are required on wrapped notes
of Birr ten and above, and one signature on wrapped notes of Birr one
and five); and
e) Balances the money according to its denominations and hands it over to
the Senior Customer Services Officer-cash, and transfer the cash through
the system, whenever the money at the table becomes twice the size of
the front officer limit.
f) During lunch time in the absence of the senior customer service officer –
cash; she/he shall handle till to till transfer.
10.4.4 Closing Activities
i. At lunch time
The Customer Services Officer/Makers
a) Hand over all the Birr notes in bundles, except the loose ones, to the
Senior Customer Services Officer-cash and make a ‘till transfer’ through
the system;
b) Hands over to the Branch Controller the remaining vouchers in her or his
possession,
c) Balances the overall physical cash against the system and the format
designed for the purpose (Refer form CBECATS201).
d) Keeps the cash in her or his hands (the petty cash) in the box, together
with the stamp, lock the cash box and hands it over box to the Senior
Customer Services Officer-cash.
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The Senior Customer Services Officer-Cash
a) Accepts the cash surrendered by the Makers, ascertains the correctness of
the denominations of the total cash and acknowledges receipt of the cash
by authorizing the ‘till transfer’ on the system;
b) Ascertains the correctness of the cash balance of the maker in the system
above the petty cash left in the maker box against the till transfer to
her/him; (i.e. the customer service offices shall not keep a till balance
more than birr 20,000.00)
ii.
The Day-End Closing
The Customer Services Officer/Maker
a) Amalgamates the cash in her or his hands in bundles and loose notes,
sorting it by its denominations, and balances the overall cash as follows:
(Refer form CBECATS201)
Beginning balance + cash received from customers + cash received from
the vault (the Senior Customer Services Officer-Cash) - cash paid to the
customers – cash sent to the vault = cash on hand/ Petty Cash
b) Transfers to the Branch Controller the remaining deposit and payment
vouchers in her or his hands,;
c) Balances and transfers to the Senior Customer Services Officer-cash in
two steps first the total amount, which will be transferred to the table,
and secondly the petty cash balance, which will have to be kept in the
cash box overnight and make a ‘Till transfer’;
d) Submits to the Senior Customer Services Officer the cash box and locks up
the cash box in the vault.
The Customer Services Officer/Maker (at the cash table)
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a) Accepts the remaining bundles at end of day from the Customer Services
Officers sent to her or him;
b) Checks against the system the correctness of the amount of the cash
received from the table and of that surrendered to the table by each
Customer Services Officer during the day; and
c) Checks the correctness of the amounts of money in each brick and loose
bundle and surrenders them to the Senior Customer Services Officercash.
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The Customer Services Officer/Maker (at the coin-exchange window)
a) Balances the money and coins she/he received from the Senior Customer
Services Officer-cash, the money and the coin still in her or his hands
against ‘Till balance by denomination’ on the system; and
b) Submits to the Senior Customer Services Officer-cash the cash and the
coins still in her or his hands and make a ‘Till transfer’.
The Senior Customer Services Officer-cash
a) Accepts the cash from the Customer Service officer Maker at the table,
after checking against the system;
b) Receives cash from the Customer Services Officers/Makers against the
balance shown in the system;
c) Receives the total amount of cash from the Customer Services Officers by
authorizing the ‘Till transfer’ as acknowledgment of receipt of Cash.
d) Makes sure that the bricks contain 10 bundles of 100 Birr notes each and
that the packet bears the initials of the Counter and of the Verifier in the
cases of notes of Birr ten and above, and also count each FCY currency;
e) Balances the total cash (Both local and foreign currency) transaction
against the Customer Services Officers’ balance in the system;
f) Records the breakdown of all Customer Services Officers’ petty cash on a
register for the next day’s transfer;
g) Writes the balance of the daily debits and credits on the cash book;
h) Fills the amount of money withdrawn from the vault during the day and
the amount of money lodged to the vault on the cash book;
i) Balances the cash books of local and FCY against the Vault account
balance and signs on the space provided for that purpose;
j) Posts the cash lodged to the vault on the system under the file ’Till to
Vault transfer’; and
k) Transfers the cash lodgment to the vault, together with the petty-cash
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box Jointly, with Customer Service Manager.
The Customer Service Manager
a) Checks the correctness of the amount of the cash balanced by the Senior
Customer Services Officer-cash against ‘vault Till balance by
denomination’, in the system;
b) Makes sure that each brick contains 10 bundles and counts all the loose
Birr notes and count each FCY;
c) Authorize the ‘Till to Vault transfer’ made by Senior customer service
officer-cash;
d) Transfers the physical cash lodgment to the vault, together with the pettycash
box jointly, with the Senior Customer Services Officer.
The Branch Controller
a) Receives and balance all makers’ cash closing sheet against the general
ledger balance of system
10.4.5 Cash Difference
a) Although, for control purposes only, a difference of Birr 100.00 or of any
amount in excess thereof, needs to be reported separately to the branch
manager and district office, it is important to note that any difference should
be treated as being equally serious—regardless of its amount.
b) A cash discrepancy (shortage and excess) involving Birr 100.00 and above be
reported to the Branch Manager or to Customer Service Manager
immediately.
c) A cash discrepancy involving a shortage of Birr 1,000.00 (one thousand) or
more must be immediately reported by phone to the District Office. A letter
should follow, indicating the effort made to trace the difference. The letter
should contain the following:
i. The amount of money involved;
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ii. The name of the Customer Services Officer;
iii. The effort made to trace the discrepancy;
iv. The action taken to settle the discrepancy; and
v. Any other relevant facts.
d) The Branch Manager, or Customer Service Manager, should arrange the
whole cash, including the vault cash, to be checked and for a proper
investigation to be done thereon. And, whenever the cash indemnity account
of the concerned Customer Services Officer is insufficient to cover the loss
involved, appropriate action must be taken to balance the cash position.
e) All branches are required to send to the Customer Services Officer in their
respective District offices their cash-discrepancy reports (shortage or excess)
at the end of each quarter, regardless of the amount of money involved.
10.4.6 Refund of Excess Cash
a) A cash excess of up to Birr 10,000.00 has to be refunded to the rightful
claimant so long as the refund has been jointly approved by the Branch
Manager and Customer Service Manager.
b) The refund of an excess cash of over Birr 10,000.00, but less than Birr
50,000.00, has to be jointly approved by the concerned Branch Manager and
the District Manager.
c) The refund of an excess cash of over Birr 50,000.00 has to be jointly
approved by the process owner with the concerned District Manager.
d) At the time of approval, the following, among others, should be considered:
i. The Application of the Claimant
A request for such a refund should normally be lodged instantly. Unless a valid
reason has been given for the delay, such claims should not be entertained 15
days after the money was deposited. The claimant’s application must contain
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such pertinent information as to how the excess occurred as well as the
denominations and the other factors. This information should be
counterchecked against the statement of the concerned Customer Services
Officer.
ii. A Written Statement of the Customer Services Officer
The Customer Services Officer may recall the circumstance under which the
excess occurred and she/he may even recognize the claimant. This must be
included in the Customer Services Officer’s report, which should be critically
looked into.
iii. Receipt or a Payment Voucher in which the Excess is claimed to have occurred
If the denominations reflect the error made, the refund could be approved easily.
Besides, the document is essential to determine how much money was involved
at the time of the deposit or withdrawal in order for the excess to occur.
iv. Other Pertinent Circumstantial Evidence
All other factors that corroborate the claim may be considered, although it is
difficult to enumerate all of them here.
The Branch Controller and the Branch Manager should work out the
denominations of the excess. Deposit will be added on to the beginning cash
balance by denomination and withdrawals will be deducted in the same manner
to arrive at the denominations of the closing cash balance. This should be
performed without fail, and those who approve the refund of excesses will
consider such reports in their decisions.
v. Undertaking or Guarantee
If and when it cannot be completely proved that the excess belongs to the
claimant, but there are some reasons to support the claim, an undertaking or
guarantee should be obtained for paying back the money with interest thereon,
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in case another claimant appears later on.
vi. Reporting Excess Refund
The Branch Controller should report to the concerned district office on the
excess refund approved by the branch. The district office should then
communicate the approval of the excess cash to the Internal Audit.
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10.4.7 Forged (Counterfeit) Notes
a) Counterfeit Birr notes shall be marked “COUNTERFIET” in front of the presenter.
Otherwise, she or he shall have a ground on which to lodge a complaint as having
been unduly expropriated of her/his property.
b) If a rubber stamp is used for marking, it should not be heavily inked or cover the
numbers, the portrait, the signature or any other feature that makes the note
clearly different from that of a genuine Birr note.
c) If a counterfeit money note is noticed after it has been accepted and mixed with
the overall cash of the Bank and there is no way to pinpoint the presenter of the
note, the Customer Services Officer who has received the counterfeit is liable for
making the value of the Birr note as good as it should be. In addition to that, she
or he will have to discover the Birr note and mark it accordingly and then
withdraw it from circulation.
d) Whenever a counterfeit Birr note is intercepted by the Bank, the Federal Police
/nearest police station has to be informed about it immediately. In fact, the note
itself should be sent to the nearest police station, after a stamp indicating that it
is counterfeit has been affixed to it, together with a written report thereon. The
report should clearly show the address of the customer and her/his statement as
to how she/he acquired the note. A copy of this report along with the physical
counterfeit note must then be sent to the Manager-Customers’ Account and
Operation at CATS-CPC, Risk and compliance Management and the District
Office.
e) The Bank has no authority to detain the possessor of the note. Still, it will have to
notify the police on the phone while preparing the report.
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10.4.8 Cash Custody
i. Good Coins
a) If the branch has a coin-counting machine, the counting of the coins should
be done by Cash Office attendant. The numbering of the machine should,
however, be attended by the Customer Services Officer. In a branch where
there is no such machine, however, the counting of the coins should be done
by hand, by Cash Office attendant. In the event that the workload of the cash
work is too heavy for Cash Office attendant to do the counting, nevertheless,
the customer may be requested to assist in stacking up the coins. If she or he
is willing to assist, he should, however, be provided with the coin tray of the
Bank.
b) Coins of all denominations that are hand-counted should be arranged in a
pile of twenty coins each and be put in a tray in rows. A tray of coins should
contain 100 piles of coins—that is, ten piles wide by ten piles long (10 X 10).
Before the coins are put in a bag, the Customer Services Officer should check
the accuracy of the counting of the coins arranged in the tray.
c) After the counterfeit money has been counted, a small card that shows the
amount, the initials of the Counter and of the Verifier as well as the date on
which the counting was done should be put in the bag. Then the bag must be
sealed.
d) A coin bag that is full should either be sealed or tied with a string. Thereafter,
a tag with the appropriate color should be attached at the end of it, showing
the denominations, the amount of money, the date on which it was sealed
and the initials of the persons by whom it was counted and verified as well as
the name of the branch.
e) In the vault, or in the cash held for the National Bank of Ethiopia (NBE), the
coin bags should be kept separately, according to the types of coins they
contain. In other words, coins of one denomination should be kept in one bag
as indicated above.
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f) Dilapidated coins should be kept separated from the coins that are in good
condition, with a note in the bag showing the amount thereof and the initials
of the two custodians.
ii.
Good Money Notes
a) Except notes of Birr one, all other money notes should be counted by one
person and then verified by another. Both the Counter and the Verifier of the
notes should sign at the two corners of the bundles containing the first
money notes. The money so counted should then be wrapped. It must also
bear the initials of the Counter and of the Verifier and the date on which it
was wrapped and the name of the branch where the wrapping of the bundles
was done.
b) A bundle should contain 100 notes, and a brick 1,000 notes. In other words,
the Birr notes have to come in ten bundles, a rubber string strapped around
them, with a label on one side of the brick showing the following:
i. The amount of the money in Birr;
ii. The date on which it was strapped;
iii. The name of the branch; and
iv. The initials of the Counter and of the Verifier.
c) No amount of money that comprises less than 100 notes should be wrapped.
And loose Birr notes should be strapped with a rubber band.
d) Birr notes of one denomination must be kept in the same place, whether it is
in the petty cash, the vault or in the vault marked “Cash Held for the National
Bank of Ethiopia.” They should be issued in the order of first-in, first-out and
should not be kept for more than one year after they have been strapped into
bricks.
e) All the initials or signatures on the bundles of the Birr notes must be visible.
f) An incoming or outgoing consignment of cash should always be opened in
the presence of the Senior Customer Services Officer-cash and Customer
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Service Manager.
g) Cash Office attendant Office boys/girls should never be left alone to wrap the
Birr notes without the supervision of either the Customer Services Officer or
the Senior Customer Services Officer.
h) All Customer Services Officers should be occasionally requested to deposit
fresh specimens of their respective signatures and initials in duplicate. The
original must be kept by the Senior Customer Services Officer/Cashier and
the duplicate should be passed on to the Branch controller/Checker so that
she or he will keep it in her/his custody. The frequency for obtaining such
specimens is left to the discretion of the Senior Customer Services Officer/the
Branch Manager.
iii.
Birr Notes that are in Bad Conditions
a) Birr notes that are in bad physical conditions should be kept separately,
according to their denominations, segregated from the Birr notes that are
still in good condition. Any mutilated or damaged Birr note should be
withdrawn from circulation and kept together with the other Birr notes that
are like it so that it may not be re-issued by mistake. However old, every time
a Birr note of a certain denomination reaches 100 in number, it should be
counted, verified and wrapped and treated like all other bundles of new Birr
notes. After all the counting, wrapping and signing is completed, however, a
stamp should be affixed to each bundle, to both sides thereof, with a large
rubber stamp marked “DETERIORATED” with bold letters, so that the
stamping appears on the full length of the bundle. Once a bundle is
obliterated with such a stamp, it is highly improbable that it could be issued
again by mistake for circulation.
b) The damaged or mutilated Birr notes presented at the counter of the
Commercial Bank of Ethiopia for redemption of their value shall be treated
by the guide line of NBE.
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c) The shapes and sizes that these remnant Birr notes take on from some fire,
rodents and other blights are varied and numerous. Not many patterns may
be devised and shaped to illustrate each of them. The NBE has, however,
devised eleven patterns against which we should try to compare and
determine the values of the mutilated and damaged Birr notes presented for
redemption. Their samples are forwarded to all CBE’s branches under a
separate cover. If a branch, nonetheless, happens to come across Birr notes
whose shapes do not have any semblance to any of the eleven patterns
referred to above, they are requested to refer them to the NBE.
10.4.9 Exchange of Birr Notes
a) For the exchange of Birr notes, the Customer Services Officer will receive
from the Senior Customer Services Officer a fixed amount of physical cash in
different denominations, preferably small denominations, and through the
system.
b) The Customer Services Officer shall count the cash she or he is provided with
in front of the Senior Customer Services Officer. If an additional amount of
money is needed for exchange, the Senior Customer Services Officer shall
provide the cash against through the system.
c) The customer service officer shall authorize the ‘Till transfer’ on the system
as acknowledgment of the receipt of cash.
d) The Customer Services Officer will exchange big Birr notes received from the
public into Birr notes of smaller denominations and vice versa and posts on
the system.
c) At the end of the cash operations, during lunchtime and at the day-end
closing, the Customer Services Officer will have to surrender the cash in her
or his hands to the Senior Customer Services Officer-cash in different
denominations and shall make a ‘Till to Till transfer’ .
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10.4.10 Exchange of Coins
a) For the exchange of coins, the Customer Services Officer will receive in the
morning coins in bags with different denominations from the Senior
Customer Services Officer and authorize the till transfer for acceptance.
b) The Customer Services Officer shall examine the tag on the coin bags and the
lead used for packing the coin and counts the coins with a coin-counting
machine to ascertain the correctness of the amount thereof.
c) The Customer Services Officer should balance the coins during lunchtime and
at the day-end closing and hand over to the Supervisor the equivalent thereof
in Birr notes.
10.4.11 Sorting Table
a) A detailed record must be kept by the Senior Customer Services Officer for
recording cash denominations received from the Customer Services Officers.
b) Regardless of their denominations, all Birr notes must be sorted, counted and
wrapped, in collaboration with the Customer Services Officers and Cash
Office attendant;
c) Wrapped Birr notes should be impressed by a cash stamp and signed by both
the Counter and the Verifier or by the Senior Customer Services Officers.
d) The Table Master (customer service officer) should make sure that the total
of the cash surrendered by the Senior Customer Services Officer-cash, as
recorded in the ‘Till to Till Transfer’, agrees with that of the cash sorted and
held in the Table.
e) After balancing, the Table Master (Customer Service Officer) in charge will
have to deliver the cash, according to its denominations, to the Senior
Customer Services Officer and shall make a ‘Till to till transfer’.
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10.4.12 Cash Consolidation
a) It is the responsibility of the Senior Customer Services Officer to combine all
the cash surrendered to her/him, including any balance of cash, which is kept
in the cash room, with help from the Customer Services Officer/Maker (at the
table).
b) The Senior Customer Services Officer prepares the cashbook and balances
the overall cash in her or his hands with that of the ‘Till transaction today’
and denomination by till.
c) While amalgamating and consolidating cash, the Senior Customer Services
Officer-cash must make sure that the following steps are strictly followed.
i. A brick should contain 10 bundles, and each bundle 100 Birr notes;
ii. Bundles must be properly wrapped, sealed and bear the signatures of
the Counter and of the Verifier—that is, of the Maker and the Checker;
and
iii. Birr 50 and Birr 100 notes will have to be carefully counted either by
herself/himself or by the Table Master in charge.
10.4.13 Cash Lodgment to the Vault In the middle of the operation
In the middle of the daily operation when excess cash received from the
customer or cash consignment received, the Customer Service Manager with the
Senior Customer officer-cash shall lodge the excess cash to the Vault by writing
the amount and the denomination on the bound book and make the customer
service manager Sign on it.
The Senior Customer service officer-cash transfers the cash through ‘Till to
Vault’ menu and the Customer Service Manager authorizes it.
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I. At the day end closing
After handling of the cash is secured and the final closing in the cashbook is
recorded according to the denominations, Customer Service Manager shall
undertake the following:
a) Verifies the correctness of the cashbook filled out by the Senior Customer
Services Officer against the ‘Teller Transaction today’ report and ‘till
balance by denomination’ on the system;
b) Verifies that each brick contains 10 bundles, before transferring the cash
to the vault;
c) Balances the vault cash with that of the ‘till to vault’ transfer made by
Senior customer service officer –cash; and
d) Authorize the ‘Till to Vault transfer’ for amount lodged.
10.4.14 Cash Box and Stamp management
The duties and responsibilities that the operators involved in handling the cash
box and brand are the following:
a) The cash box that is given to one Customer Services Officer shall be
transferred to another Customer Services Officers by changing the key; as
far as handing and taking over is properly undertaken in writing ;
b) The Customer Service Officer stamp shall be transferred to, or exchanged
with, other Customer Services Officers, as far as handing and taking over
is properly undertaken in writing;
The Branch Manager
a) Receives from the Customer Service officers at front office makers with a
sealed envelope that contain the combination code and/or duplicate key;
b) Keeps the sealed envelopes that contain the combination codes and/ or
duplicate key of each cash box held in the branch;
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c) Provides the Customer Services Officer with a sealed envelope that
contains her or his personal combination code, which she/he must
commit to memory and replace in an envelope before she/he begins
working in the branch; and holds the duplicate key of the cash box for
safekeeping.
The Customer Service Manager
a) Sets the cash limit of the branch before the cash operation starts;
b) Registers the cash stamp into a register book, affixes the stamp to the
register book and keeps it (the register book) in her or his custody; and
c) Provides the Customer Services Officer-front maker with a cash stamp
and a cash box individually with by letting her/him signing on the
stamp handing over and taking over stamp register book.
The Senior Customer Services Officer-cash
a) Makes sure that the leftover cash (petty cash) physically exists in the box
before placing the cash box in the vault; and
b) Counts—when least expected—the cash reported on the Petty cash sheet
(refer CBECATS201) by the Customer Services Officer, in order to verify
the correctness thereof.
The Customer Services Officer-Maker
a) Seals, signs and hands over the envelope that contain duplicate key
and/or combination code to the Branch Manager for safe-keeping;
b) Surrenders the cash box that contains the petty-cash balance to the
Senior Customer Services Officer for safe-keeping in the vault before she
or he goes out for lunch and at the end of the day;
c) Starts the cash operation with the petty-cash balance in the cash box—in
the morning as well as in the afternoon—and requests for additional cash
when necessary;
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d) Ensures that the cash stamp/brand is kept together with the petty cash in
the box and that the cash box is locked with a key; and she or he was
provided with and/or that its combination code has been locked and
transferred to the vault.
10.4.15 Handling of Branch cash vault and ATM safe key and
Combination
The Customer Service Manager and the Senior Customer Services Officer-cash of
the branch are responsible for keeping the dual lock keys of the ATM safe and
Cash Vault.
In case of, the dual lock is a combination and a key; the combination shall be
handled by the Customer Service manager and the physical key by senior
customer service officer-cash.
Customer service Manager
a) Receives opened Vault or ATM Safe and make change the combination by
himself and keep confidential for himself;
b) Writes combination code, vault type and other particulars on
Combination code reporting format and sealed in White envelope sign on
the sealed part.
c) Inserts the envelope on a small size kaki envelope, sealed the kaki
envelope, stamp on the sealed part and write ‘Private and confidential’
and send to the respective district manager.
d) He/she shall not hand over the combination code instead make the taking
over person to change to her/his own combination code by giving opened
vault or ATM safe when hand over her/his duty.
e) Changes the vault combination code to mitigate unforeseen events
periodically.
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In case of the dual lock is two physical keys the procedure stated above shall
apply for senior customer service officer –cash, too.
Senior Customer Service Officer-Cash
a) Receives the vault key against her/his signature on the Key register. If the
vault is a new one the duplicate key must be submitted to district
operation manager as a reserve;
b) Transfer of Key from one customer service Manager to another must be
handled by handing and taking key registration and signing on it.
10.4.16 Handing and Taking over vault cash
When one of the custodian of branch’s vault temporarily rotates or permanently
replaced i.e. The Manager Customer service or the senior customer service
officer, the following should be performed;
a) Vault Cash counting shall involve the concerned taking over and handing
over staff member/s in addition to the remaining dual custodian/if any
b) Cash working paper sheet which display all the cash in vault shall be filled
and signed by the taking and handing over staff members
c) The senior branch controller /branch controller shall witness the counting
and proper handing and taking over cash as per this procedure ;and
d) Combination keys shall be changed and proper handing and taking over
strong room keys shall be performed per the procedure.
10.4.17 ATM Cash handling within a branch
The Customer Service Manager
a) Monitors ATM cash status, and ensures timely cash lodgment to the
ATMs.
b) Ensures cash replenishments on holidays, weekends and working hours.
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c) Opens the ATM door and return the switch to out-off service mode
(supervisory mode)Jointly with The Senior Customer Service Officer-
Cash;
d) Loads the pre-counted cash on each cassette type, in accordance with a
breakdown thereof in denominations, and ensures that the correct
denominations are in the correct cassette and then return the cassette to
its proper position Jointly with Senior Customer Service Officer-Cash.
e) Inputs the correct loading for each cassette in the ATM (monitor)
f) Checks and monitors ATM cash balance from the ATM cash Account to
replenish it before it gets totally depleted.
g) Arranges and schedules for cash reloading in weekend and holiday.
h) Balances the Cash in the ATMs before reloading.
i) Checks the status of the rejected cassette/purge bin and take appropriate
action and exits from the supervisory mode.
j) Puts the ATM into its normal position—that is, where it says ―ATM in
Service.
k) Ensures whether all the keys are locked before leaving the area.
l) Posts the cash loading amount by front in SYSTEM, if loading falls on
weekends or holyday the transaction shall be posted on the next working
day, but the loading ticket shall be kept in the vault until posting.
The Senior Customer Service Officer-Cash
a) Withdraws cash from vault in the presence of the Customer Services
Manager.
b) Open the ATM door and return the switch to out-off service mode
(supervisory mode) with the Customer service manager.
c) load the pre-counted cash on each cassette type, in accordance with a
breakdown thereof in denominations, and ensures that the correct
denominations are in the correct cassette and then return the cassette to
its proper position jointly with Customer Service Officer;
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d) input the correct loading for each cassette in the ATM (monitor),
e) Ensure the status of the rejected cassette/purge bin and exit from the
supervisory mode.
f) Put the ATM in to its normal position—that is, where it says ―ATM in
Service.
g) Ensures whether all the keys are locked before leaving the area.
h) Ensures the customer service officer-maker posts the cash loading
amount in System, if loading falls on weekends or holyday the transaction
shall be posted on the next working day, but the loading ticket shall be
kept in the vault until posting.
N.B. other issues related to ATM operation management shall be adhered as
per E-payment procedure.
Senior Branch Controller
a) Makes a surprise check the balance of ATM Cash and the balance on ATM
account.
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10.5 Cash Related Internal Control Issues
10.5.1 Cash Basic concepts and Principles
Senior customer service officer-cash/ Customer Service officer-maker
a) Shall give due care to accuracy in keeping and controlling cash;
b) Shall Keep adequate cash in the Cash Office, so as to be able to meet
immediate requirements and to avoid opening the vault more often than
necessary;
c) Shall Keep sufficient coins to meet the moderate requirements of CBE’s
customers;
d) Shall Make sure that the cash limit is always kept to a minimum;
e) Shall Inform the branch’s Management whenever unusual transactions take
place;
f) Shall duly keep the specimens of the signatures and of the initials of the
branch’s authorized personnel;
g) Shall forge good working relations with customers of the branch, and the
transactions of their accounts;
h) Shall make sure that all the blank spaces that appear before and after the
amount of the money to be deposited when using the offline deposit form,
which is written on both the original and the copy, have been closed;
i) Shall show gratitude to customer after rendering the service to the customer;
j) Shall ensure handing and taking over of cash has to be evidenced by an
authorization on the system;
k) Shall ensure that cash is promptly transferred to the Senior Customer
Services Officer, so as to avoid an unnecessary accumulation thereof;
l) Shall regularly keep cash notes inside the cash drawers—out of public
view—not at the counter;
m) Shall avoid huge build-up of surplus cash in the Cash Office by promptly
transferring it to the vault, even if it has not yet been sorted for security
purposes;
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n) Shall avoid frequent opening of the vault by working with all those
concerned in a more concerted manner so as to be able to determine the cash
requirement for the day’s operations.
10.5.2 Concentration and Security
Customer Service officer-maker
a) Make it a point to always concentrate only on what you are doing while
counting, receiving and paying cash;
b) Be fully aware of security requirements at the branch level and make it a
point to strictly comply with all the security-related regulations;
c) You should always keep cash and cashed items only in lockable
drawers—not in shelves or elsewhere;
d) Do away with the practice of recording cash denominations after the
payment has been effected;
e) You must always keep in mind that cash-related items such as vouchers,
cheques, payments and receipt instruments are almost as good as cash;
f) Avoid putting initials/signing on notes’ wrappers before the cash has
been wrapped, and shred all wrappers that bear the initials of the
Customer Services Officer, whenever you find them;
g) Never forget to lock the drawers wherein you stash up cash whenever
you have to leave the cash area and after office hours;
h) Before you leave the premises for lunch, balance your cash, ascertain the
correctness of the amount thereof and hand it (the cash in your
possession) over to the Senior Customer Services Officer and lock the
drawers;
i) Count all the cash taken from the Senior Customer Services Officer
(mandatory especially in the case of Birr 50 and Birr 100 notes) before
delivering it to the customers of the Bank;
j) One should always give slit/opened wrapped notes—especially Birr
notes of big denominations to the customers of the Bank;
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k) Remind customers of the need for carefully counting the cash given to
them before leaving the cash counter;
l) Avoid talking while counting cash, so as to prevent making any errors;
l) If and when the customer changes her/his mind regarding the cash
denominations during payment, do not try to attend to her or his request
up until you have given her/him the cash as per her/his earlier
preference;
m) While exchanging money notes (from one currency to another), do not
remove the cash presented by the customer from the counter until you
have made sure that she or he has fully agreed to proceed with the
exchange;
n) Before effecting payment thereof, always make sure that the value of the
check has been debited from the appropriate account.
o) When crediting customer account make sure that the amount is collected
and the appropriate account credited.
p) Exchange of birr notes between Customer service officers is not
permitted.
Senior Customer Service Officer-Cash
a) Whenever possible, undertake all your cash-related activities on
relatively quiet time;
b) Avoid putting coins in a money bag set aside for other denominations;
c) Never forget to lock the drawers wherein you stash up cash whenever
you have to leave the cash area;
d) Avoid talking while counting cash, so as to prevent making any errors;
e) Customer Services Officers are not allowed to keep items like bags, pieces
of luggage, lunch boxes, laptop etc. in the cash area.
f) No one should be admitted into the cash area, other than those employees
whose work involves some type of cash-handling. Even such employees
should not be allowed to roam around the cash area or to cause
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unnecessary commotion.
h) While on duty, Customer Services Officers are not allowed to leave their
windows under any circumstances or to be engaged in long conversations
with other Customer Services Officers or with the customers of the Bank
across their partitions.
i) Nobody should be admitted into the windows of the Customer Services
Officers. And no unauthorized person should be allowed to enter the Cash
Office at any time. Since all cash-related work requires maximum care
and accuracy, nothing that could disrupt the attention of the Customer
Services Officers should be tolerated in the cash area.
j) All staffs working in the cash area must be polite, courteous, attentive and
respectful toward the customers of the Bank. Proper information must be
given out in response to the inquiries coming from customers. If the
Customer Services Officer is uncertain about the inquiry forwarded to her
or him by a customer, she or he should direct the customer to the
pertinent person or Supervisor.
k) Since there is no insurance coverage for the excess cash over and above
the approved limit, Customer Service Manager and the Senior Customer
Services Officer should make sure that the branch’s cash-holding limit is
within the approved limit.
The Branch Manager/Customer service Manager
The branch manager shall create awareness to customer service officers
before assigning them as a front office Maker.
a) To change the date on the cash stamp of the branch on a daily basis;
b) To concentrate on the work at hand even on relatively quiet days;
c) To check properly signatures, ID cards, posting, approval and the
sameness of the amount of money given in both words and figures;
d) To accurately write the denominations of the cash paid to the customers
of the Bank on the cash-payment instruments and to verify the
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correctness of the denominations written on the cash deposit vouchers;
e) To retain the original of a deposit voucher and handing over only the deal
slip to the depositor;
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10.5.3 Attendance and Conduct
a) The Senior Customer Services Officer-cash, the Customer Services Officers
and the Cash Office attendant should always be in the cash area before
starting of working hour to make the necessary arrangements for the cash
operations of the day and start rendering the services to the customers of the
Bank as soon as the branch is open to its customers. Furthermore, since they
are the staffs whom the customers of the Bank come into contact with more
often, they should, as much as possible, be presentable in their appearances
and thereby reflect a positive image of the Bank.
b) The Senior Customer Services Officer, the Customer Services Officers and the
Cash Office attendant are not normally allowed to leave the cash area. If they
are compelled to do so, due to an unexpected circumstance that is beyond
their control, they have to at first get the go-ahead of the concerned higher
authorities.
c) Telephone calls should, as much as possible, be avoided during cash hours.
Customer Services Officers who are in their windows should not be disturbed
by outside calls. In the event that the telephone call has to do with an
important and urgent message, nevertheless, it should be received by the
Customer Services Officer/Checker and communicated to the Maker after
she/he has been cleared off her or his cash responsibility. Should the
message turn out to be urgent and thus calls for an immediate attention, the
Customer Services Officer must at first be relieved of the cash still in her/his
hands and then informed of the message.
d) As soon as the Customer Services Officer/Maker starts work, she or he must
switch off her/his mobile (cell) phone.
e) The Customer Services Officer should never be reprimanded either in writing
or otherwise while she/he is in the middle of a cash operation.
f) No brawls or exchange of strong words between the staffs of the Bank
working in the cash area will be tolerated. The same is true about all acts that
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
are considered to be contributing factors to making errors.
g) It goes without saying that idleness is one of the underlying causes for errors
and for other unacceptable acts. The Customer Services Officers are,
therefore, expected to keep themselves always busy— doing what they are
supposed to do. Even if they have completed their share of work, they should
assist the other staffs who have not yet completed their work. No one should
leave the cash area until the daily cash has been balanced. Also, no mail
should be delivered to the Customer Services Officers during cash hours, as it
might contain some shocking news that could interfere with the efficiency of
its recipient.
h) Whenever a customer of the Bank has a complaint to lodge against a
Customer Services Officer and the complaint has something to do with either
the shortage or excess of cash, the Senior Customer Services Officer will have
to report thereon to Customer Service Manager or to the Branch Manager.
The Branch Manager should then see to it that the window of the concerned
Customer Services Officer is closed and balance all the cash still in the hands
of that particular Customer Services Officer, with a view to fully satisfying the
customer who has lodged the complaint against her or him. In a branch
where there is a Branch Controller, nonetheless, the checking must be done
in her or his presence.
i) All Customer Services Officers should be left alone and extra care must be
taken not to disturb them while they are on duty, as any disturbance or
conversation with them could result in a serious error on their part,
including a shortage of cash.
j) If and when a Customer Services Officer unexpectedly falls ill, she or he will
have to be given permission to seek medical attention during cash hours. No
matter what happens to her or him, she or he should not, nevertheless, be
allowed to leave the premises of the bank without balancing and
surrendering the cash in her/his hands.
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11. OPERATIONS AT THE FOREIGN TRANSFER AND NRNT
ACCOUNT
11.1 Foreign OBP and OBC Check Clearance
The Customer service officer /Maker
a) Accepts checks from branches and foreign transfer and NRNT accounts
for clearance, together with OBP/OBC ticket;
b) Makes sure that the check has been properly presented—that is, makes
sure that the date on which the check was issued and the name of the
payee/beneficiary appear on it and that it was properly endorsed and
that the amount of money given in words agrees with that given in
figures;
c) Segregates the checks by the drawee bank and/or by currency and sends
them to the Checker so that she or he will in turn send them to the
correspondent banks with an instruction for settlement;
d) Receives back the check from the Senior Customers’ Accounts and
Operations Officer and creates the transaction to post to the concerned
branches/foreign transfer and NRNT accounts through the online system;
and
e) Prepares signs and makes settlement and single entries.
The Customer service Officer/Checker
a) Receives from the Maker the checks with an instruction for settlement
and co-signs on the tickets;
b) Rechecks the full particulars of the check and the preparation of the
instruction for settlement and sends the check to the correspondent
bank;
c) Checks and sends the transaction to the concerned branch so that it will
credit, through the online system, to the customer’s account; and
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d) Transmits the message to the concerned branch.
The Senior Customer service Officer
a) Encodes the message to be transferred to the offline branches;
b) Receives the instruction for settlement and the returned checks from the
correspondent banks;
c) Ascertains that the credit entry and the transactions related to it are
proper in the concerned correspondent accounts and forwards the
ascertainment to the Maker; and
d) Does follow-up on the timely settlement of the OBP/OBC.
11.2 Foreign Incoming Money Transfer
Inward-money-transfer messages are usually received via SWIFT or through money
transfer agents i.e. Western Union, Money Gram,,Dahabshii, Xpress, Golden money
Transfer, Blue Nile, World Remit, African Exchange, Rahel Money Transfer, T & Y
money transfer, Alante Micro finance, Atlantic international, Air Speed, PACO
Service, LARY Exchange, etc. Occasionally, however, payment instructions could be
received through Fax message or e-mail, or by browsing through the system
depending on the arrangement made earlier between the Bank and the sending
party.
While receiving foreign-incoming-money-transfer messages, the following
procedure shall be followed;
11.2.1 Foreign incoming transfer received through SWIFT
The Customer Service officer /Maker-(at foreign message transfer)
a) Logs on to T-24, enter in to Fund transfer Menu and opens incoming MT-
103 (SWIFT Message) ‘Hold menu’;
b) Posts the transaction to the proper account by referring the MT-103
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message from the screen;
c) In the event that she or he detects a discrepancy, communicates same to
the Manager-Foreign transfer for further action.
The Manager Foreign Message Transfer
a) Authorizes the transaction;
b) In the event if there is any discrepancy, communicates same to the
sending bank;
11.3. Outgoing Money Transfer through SWIFT
(This shall also be applicable to branches)
The Customer Service Officer/Maker
a) Open the money transfer application form and then makes sure that the
data or information has been entered into the system properly—from the
source document (i.e., checks the message on SWIFT); and
b) Forwards the source document and the standard SWIFT message format
to the Checker for authorization.
Customer Service Manager
a) Receives the source document from the Maker, together with the
standard SWIFT-message format, and then makes sure that the data or
information has been entered into the system properly—from the source
document; and
b) Authorizes the message to be sent via SWIFT to the correspondent bank.
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12. INTER-BRANCH TRANSACTIONS
Upon processing inter-branch transactions through the CORE banking online
System, the following procedure shall be followed;
12.1 Transactions Allowed to be processed through the Online
System
a) Cash received to the deposit of demand deposit account or saving, and
loan repayment;
b) Cash withdrawals from savings and active current accounts;
c) CBE Cheque/Bankers’ cheque /CPO/deposited to account by debiting
from one CBE Branch and credited to any other CBE Branch regardless of
where the cheque is deposited;
d) When Bankers’ cheque /CPO/ordered by application in favor/beneficiary
of Government office shall be prepared by any branch of CBE regardless
of the account holding branch.
e) Any transfer request lodged in person by individual saving or demand
deposit account holders against proper identification.
f) Fund transfer request between two accounts of the same owner from two
deferent branches.
g) When an organization account and its employees’ salary account
maintained in different branches, the employees’ salary account holding
branch can debit the organization account by letter of instruction for the
credit of its employees’ account.
h) Inter-branch transactions initiated by the Central-Processing Centers of
Trade Services, CATS and Credit— that is, TS’s CPC, Finance and Accounts
team, CATS’s CPCs and Credit’s CPC—which affect the accounts of CBE’s
customers in one of the online branches and which are related to the
transactions that take place between internal accounts; and
i) Transactions related to the accounts of the Ethiopian Commodity
Exchange (ECX) where the debit/credit transactions originate as per the
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agreement reached with the ECX.
j) Transactions from savings or current accounts held with the CBE which
is operated through the power of attorney ; by verifying the signature
and identifying the agent against the scanned signature and photo on the
system;
k) Withdrawals of money from inactive savings, however, the Customer
service Manager shall request the customer to present a Renewed ID and
retain the photo copy of the ID, for saving account presenting passbook is
mandatory, interview the customer in person, and approve the
withdrawal by writing the word ‘ok for being inactive’ on the face of the
withdrawal voucher.
12.2 Transactions Not Allowed To Be Processed Through the
Online System
a) Withdrawal from inactive demand deposit account;
b) Withdrawals of money from customers’ accounts that take place as per the
customers’ standing instructions;
c) Court order instructing payment by debiting ones account should not
entertained by other branches except the account holding branch.
d) Fund transfer or outgoing LMTS ordered by letter of application (LMTS or
account transfer forms) from corporate customers’ demand deposit and
saving accounts except Bankers’ cheque (C.P.O) transfer to government
entities.
e) Account to account transfers from Local currency accounts to foreign
currency accounts.
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12.3 The Limit to Inter-Branch Transactions
a) Authorization limit mentioned above under sub article 8.1 of this procedure
shall be applicable to all transactions allowed to be processed through inter
branch transaction using the network system.
12.4 Additional duties and responsibilities for Inter branch
transactions
Customer Relationship Officer
a) Checks the genuineness of every transaction initiated by TS-CPC that
affects the branch account.
Senior Customer Service Officer- Accounts
a) Makes sure that the accounting entries affect the proper account and take
the necessary corrective action;
b) Ensures that there is no abnormal balance in the branch’s General
Ledger; and
c) Reconciles the Branch account against Head office account.
12.5 Custody of Inter-Branch Transaction Documents
All documents pertaining to inter branch transactions shall be kept by the
branch controller of the branch that carried out the transaction.
12.6 Head Office Account Reconciliation
Senior Customer Service Officer-Accounts (at the branch)
The senior customer service officer-accounts shall, on a daily basis, oversee
‘transaction to day report’ of the branch account maintained by the branch
against branch account maintained in Finance process. To show the
settlement of the transactions that has taken place by inter-branch
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transactions. And, in order to check and thereby make sure that the interbranch
accounts have been reconciled to each other.
12.7 Transaction handling when Networked branch becomes
offline
Sometimes online branch may become offline for some reason, during this
time;
a) Deposit to customer account and foreign currency purchase (by a form
designed for this purpose having a serial no. which will be kept by the
Customer Service Manager), payment of own branch Bankers’ cheque
/CPO/ , account to account transfer within the same branch, and cheque
deposit within the same branch shall be allowed without restriction;
b) Authorization limit stated under 8.1 shall be applied for transactions
stated under ‘a’.
c) For withdrawal the customer shall be advised to withdraw from the
nearby branch, if any. However, if the nearby branch is far from the
offline branch and The Branch manager/Customer Service Manager
approved by stating the word ‘ok for withdrawal’ in the face of the
withdrawal voucher or cheque, the limit set 8.2
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13. PROCEDURE FOR CASH PICK AND CASHER IMPLANT
SERVICES
13.1 Procedure for cashier implant service
13.1.1 General Principle of Casher Implant Service
a) Collection service from client’s customer of the high valued customers’ of the
particular site could be in the following forms;
1. In the form of cash;
2. Cheque deposit;
3. Account to account transfer; and
4. Through POS machine.
b) Collection services are given at clients selected location as indicated on
Contractual agreement;
c) Cash withdrawal shall not be entertained on high valued customer sites;
d) At least two customer service officers’ shall be assigned in high valued
customer site to implement proper control on cash collection ;
e) If there is a need to collect Cash and other depository items from the
assigned customer service officers at high valued customers site during the
day ,at least roving customer service office or senior customer officer –cash
and roving controller or senior controller shall be assigned to collect the
cash and related tickets and instruments.
f) The District manager shall approve and concluded an agreement for casher
implant service for a particular customer to ensure the overall service
provision and internal control;
g) The district operation manager/district manager shall avail the necessary
vehicle and escort for the cash pick up; and follow-up the service per the
contractual agreement.
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h) The district shall select the appropriate branch to provide the service
considering the proximity to high value customer’s premises, human and
other resources ;
i) The service shall be provided for high value customer requesting the service
by considering the customer’s strategic relationship with bank, volume of
sales &foreign currency earning .
j) When there is need for cross-district integration to provide cash pick up
service the request of client and the recommendations of the district shall
submitted to V/P CATS for approval, communication and coordination
13.1.2 Collections in the form of Cash
The Customer Services Officer/Maker at client’s site
a) Receives the cash along with the bank deposit slip signed by the
passenger/client/customer of the high value customer and other
supplementary client document prescribed by high valued customer and
agreed with bank.
b) Ensures that the amount of money given in both words and figures is the
same as that are filled on the deposit voucher by the passengers;
c) Counts the cash by comparing it with the denominations written on the
bank deposit slip;
d) Credits the high valued customer’s account by integrating the name of the
depositor and other reference prescribed by high valued customer, if the
collection of cash to be deposited is within her/his discretionary limit.
Otherwise, dual authorization shall be requested from the concerned
CSO-checker
e) Collects service charge as per the bank’s terms and tariff;
f) Prints the deal slip and provide a receipt to the passenger/client’s
customer affixing the “Customer Service officer -Maker” stamp as an
acknowledgement of cash receipt. And credit advice to the client as a
bank deposit.
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g) Hands over to the passenger/client customer the deal slip as a receipt
and keeps the deposit voucher for further balancing and recording;
h) Balances her/his cash against the pertinent data on the system with the
CSO-checker at the half-day and the day-end closing,;
i) Hands over the deposit voucher to the branch Senior Branch controller ,
or Roving Branch Controller assigned to collect the tickets ;
j) hands over the cash beyond her/his holding limit during the day’s
operation, and the whole cash at the end of the day to the Senior
Customer Service Officer – Cash or to the roving customer service officer
assigned to collect the cash;
The Customer Services Officer – Maker (assigned as Checker)
a) Authorizes the transaction within her/his authorization limit;
b) Counts the cash and balances the transaction with the CSO-Maker;
c) Makes sure that all the transactions are done properly.
The Senior Branch Controller Branch /Roving Controller assigned on
high valued customers’ site
a) Receives the deposit voucher from CSO-Maker at client’s site by counting
the number of tickets and the total amount the ticket represent;
b) Checks the proper posting in the system;
c) Checks the correctness of the daily operation made by Customer service
officer at clients office;
The Senior Customer Services Officer - Cash /Roving Customer Service
officer assigned on high valued customers’ site
a) Monitor the overall cash balance on Customers Service officers till and
take appropriate action to always maintain cash limit;
b) Ascertains the correctness of the cash balance and collects cash from the
Customer Service Officer - Maker at client’s site by authorizing on the
system as confirmation of receiving ;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) Ensures no cash shall left in the safe of Customer Service officer –Maker
at clients office except Sunday’s and holidays;
13.1.3 Collections in the form of cheques
The Customer Services Officer/Maker at client’s site
a) Collects the cheques from the passenger/client’s customer; together with
the filled-in deposit slip; other supplementary client document
prescribed by high valued customer.(only CBE cheques are accepted for
deposit and they shall instantly be credited to high value customer
account )
b) Ensures that the particulars filled in the deposit slip are identical with
those on the cheques received for deposit;
c) Checks the proper presentation, authenticity and completeness of the
cheque—that is, makes sure that the date on which the cheque was
issued, the name of the beneficiary thereof, its endorsement, the amount
of money in both words and figures and the signature of the beneficiary
appear on it.
d) Authenticates the signature, and posts both the debit and credit entries
by integrating the cheque number, the name of the depositor and other
reference prescribed by high valued customer , if the limit is within
her/his discretionary limit; otherwise forwards the cheques for dual
authorization to CSO-checker;
e) Collects service charge as per the bank’s terms and tariff;
f) Affixes the crossing stamp to the face of the cheque both the original and
the receipt of the deposit slip and then puts her or his initials on all the
documents and posts on the system;
g) Hands over the deal slip/advice to the passenger/client’s customer after
putting thereon her/his initials;
h) Forwards the posted cheque to the Senior Branch Controller after
balancing them.
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The Customer Services Officer – Maker (assigned as Checker)
a) Authorizes the referral request after checking the genuineness of the
document and correctness of the transaction in her/his authorization
limit;
b) Ensures that all the transactions are done properly;
The Senior Branch Controller at Branch/Roving Controller assigned on
high valued customers’ site
a) Receives the cheques and the tickets from the Customer Service Officers
at client’s site by counting the number of tickets and the total amount the
ticket represent;
b) Checks the proper presentation, authenticity and completeness of the
check that is, makes sure that the date on which the cheque was issued,
the name of the beneficiary thereof, its endorsement, the amount of
money in both words and figures and the signature of the beneficiary
appear on it;
c) Checks for proper posting of transactions in the system;
d) Keeps such instruments and tickets under her/his custody
13.1.4 Account to Account transfer
The Customer Services Officer/Maker at client’s site
a) Receives written and signed letter of instruction by the client’s customer
to debit his/her account;
b) Authenticates the signature of the account holder/authorized signatory;
c) Receives the application from the person who has been lawfully
delegated for the purpose if the remitter is Corporate customer;
d) Debits the client’s customer account and credit the High valued
customer’s account by integrating the cheque number, the name of the
depositor and other reference prescribed by high valued customer, dual
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
authorization shall be requested from the Customer Service Officer
checker if the amount is above the customer service officer limit If the
amount of money to be debited is within her/his payment-authorization
limit;
a. Collect service charge as per the bank term and tariff
b. Hands over the deal slip (Client’s customer debit advice);
c. Forwards the passenger’s application form to the Customer
Service officer -checker so as to cheque and authorize the
transaction;
d. Delivers the application form/letter of instruction to the Senior
Branch.
The Customer Services Officer – Maker (assigned as Checker)
a) Checks the correctness of the application form submitted by the
passenger/client’s customer; and
b) Authorizes the transaction within her/his authorization limit.
The Senior Branch Controller
a) Receives the letter of instruction /application and checks the proper
postings in the system.
13.1.5 Collection through POS Machine
The Customer Services Officer/Maker at client’s site
a) Inserts or swipes the passenger/ client customer card to the chip slot or
reader slot of the POS;
b) Selects the services and enter the amount of cash;
c) Requests the passenger/ client customer to enter her/his PIN (Personal
Identification Number) for validation if the POS requests PIN otherwise,
take the card as PIN less;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) Prints the transaction receipts in two copies one for customer advice and
the other as source document, after getting the authorization for the
transactions;
e) Requests the customer to put her/his signature on the receipts produced
by the POS terminal;
f) Checks the signature on the card with the signature on the transaction
receipt;
g) Gives one receipt to the passenger/ client customer as evidence of the
transaction.
End of Day Process
a) Prints the daily summary and detail report using POS terminal;
b) Processes end of day tasks (data capture) using POS terminal on or before
the client closing hour every day, to ensure settlement for transactions and
balance of daily cash transaction
13.1.6 Internal Control
a) The correctness cash accepted for sales of tickets of passengers shall be
reconciled with the relevant documents and the agreement with the cash
collected at hand shall be ascertained before returning to the branch
b) The branch senior branch Controller shall ascertain the correctness of
posting carried out by Customer Service Officer Maker at client’s sites with
the overall daily transactions of the branch in line with this procedure.
c) Deposit slip, cheque deposit slip and other evidence of collections made at
client’s site shall be kept under the custody of the Senior Branch Controller
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
13.1.7 Transaction Authorization and Staff Establishment
1. The customer service officer-maker and the customer service officer –
checker with equivalent position assigned shall be assigned for dual
authorization, cash counting, balancing and reconciliation ;
2. The Customer Services Officer –Maker shall pass deposits transactions made
through collection of cash and transfer from passengers’/client’s customers’
account to client’s account up to birr 100,000 ;
3. The customer service office –maker assigned on the high value customer
premises shall only process credit entries intended for the high value
customer account.
4. Collection of cash and transfer of passenger’s/customers account to client’s
account exceeding birr 100,000.00 shall be referred to CSO-checker and
authorized.
5. Two Customer Service Officers shall be assigned permanently at the client’s
sites. The respective Branch Managers shall assign the staffs from the
branches considering the staff’s skill and integrity.
6. All cash transportation from the client’s site to the nearby branch shall be
carried out by the branch /district vehicles accompanied by a security guard.
7. Cash should be surrendered to the base branch /nearby branch at day end
closing and when cash holding limit by Customer Service Officer – Makers at
clients site reaches birr 500,000 and above;
13.2 Procedure for Cash pick up service
13.2.1 General principle of Cash pick up service
a) Cash pick up services shall be given to selected premium customers ;and
contractual agreement shall be concluded with the premium to that effect ;
b) Collection in the form of cash and other negotiable instrument is accepted
from the customers’ site ;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) The District manager shall approve and concluded an agreement for cash
pick up service of a particular customer to ensure the overall service
provision and internal control;
d) The district operation manager /district manager shall avail the necessary
vehicle and escort for the cash pick up services; and follow-up the service per
the contractual agreement.
e) The district shall select the appropriate branch to provide the service
considering the proximity to high value customer’s premises ,human and
other resources ;
f) The service shall be provided for high value customer requesting the service
by considering the customer’s strategic relationship with bank, volume of
sales &foreign currency earning .
g) When there is need for cross-district integration to provide cash pick up
service the request of client and the recommendations of the district shall
submitted to V/P CATS for approval, communication and coordination.
13.2.2 Duties and Responsibilities of person involved in cash pick up
operation
Customer service officer –maker
The Customer Services Officer/Maker at client’s site
a) Receives the cash along with the bank deposit slip designed for off-branch
cash collection (refer CBECATS111) signed by the representative of the
customer ;
b) Ensures that the amount of money given in both words and figures is the
same as that are filled on the deposit voucher and the cash deposit ;
c) Counts the cash by comparing it with the denominations written on the
bank deposit slip;
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
d) Provide customer advice by affixing the “Customer Service Officer Maker”
stamp as an acknowledgement of cash receipt until the provision of
computer generated deal slip ;
e) Credits the premium customer’s account by integrating the name of the
depositor and other reference prescribed the customer as soon as return
to the branch ;
f) Hands over the deposit voucher to the branch Senior Branch controller
and cash to senior customer service officer –cash ;
The Customer Services Officer – Maker (assigned as Checker)
a. Authorizes the transaction with in her/his authorization limit;
The Manager Customer Service
a) Authorizes the transaction with in her/his authorization limit;
b) Ensures all cash deposit forms designed for off branch cash collection
are accounted for.
The Senior Customer Services Officer - Cash
a) Ascertains the correctness of the cash balance against the system and
collects cash from the customer service officers;
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14. REPEAL
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
The CATS procedure approved on April 2012 and other procedures,
recommendation and communication that contravene with issues and process
included in this procedures are repealed and replaced by this procedure.
15. REVISION OF THE PROCEDURE
This procedure manual will be revised every three years. However, it shall be
revised as and when necessary, based on the initiation from the CATS process
owner.
16. EXCEPTIONS
This procedure manual shall cover the majority of all activities, duties and
responsibilities of all staffs in the CATS process. There may be, however, in rare
circumstances activities may not conform to this procedure manual. Therefore, such
related activities to be made by exceptions shall be approved by the next higher
authority level by writing the word ‘OK’ and signature.
17. EFFECTIVE DATE
This procedure manual shall come into force up on the approval by the president.
Bekalu Zeleke
______________________________
December 2016
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEXES
ANNEX 1: The Documents Required by the Various Institutions
of both the Federal and Regional State Governments
(Extracted from The Ministry of Finance and Economic Development, procedures in
opening and operating government accounts under Guidelines No. 16/1996)
The Federal Government
1. Ministries, bureaus and other departments of the federal Government can open
and operate bank accounts as per the instruction and authorization letter of the
Federal Ministry of Finance and Economic Development.
5. The bank account of any federal government institution can be operated only by
the top official of the institution, of the department, etc., or by her or his
delegate.
6. Any withdrawal of money from the federal Government account shall be made
by two signatures of the authorized or delegated persons.
7. Federal Government Ministries, bureaus and other departments may open the
under-listed bank account as per the authorization of the federal Ministry of
Finance and Economic Development either at the NBE or at other banks
designated by it (the NBE) for the purpose.
Accounts of the Regional State Governments
1) The authority to open and operate accounts of the regional state governments
derives from the federal Ministry of Finance and Economic Development, or
from one of its finance bureaus.
2) Although these accounts may be operated by the officials of these organs, the
balance remains subject to recall by the federal Ministry of Finance and
Economic Development, or by any of its finance bureaus.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
3) The regional state governments will have, or may open, the following account
Accounts for Regional Finance Bureaus
1) A ‘C’ account—an account in which subsidy from the federal Government and
revenues collected from the regions is deposited and an order is given on fixedand
capital-budget payments. This account may be opened in the capital city of
each region if and when requested by the Ministry of Finance.
2) A ‘C’ account—in which regional revenues collected from woredas and zones
and fixed budgets allotted to them are deposited.
3) A ‘B’ account—in which a fixed budget is allotted to the regional finance bureaus,
so that it will be re-allotted to the budgetary offices in the region.
Accounts for other Regional Bureaus
1) A ‘B’ account—wherein their fixed budget is deposited to and withdrawn from.
2) One or more ‘B’ accounts—for bureaus that are entitled to a capital budget, to
which the budget paid to each project is deposited and withdrawn from.
3) A ‘C’ account—for bureaus with capital projects undertaken within zones. The
account is to be opened in the name of zonal finance offices, and payments are to
be made through these offices.
4) A special account ‘A’—for those with projects whose expenses are covered by
foreign aid and loan, in order to deposit or withdraw from the loan and the aid
sent for each project. The Amount is to be opened for the loan as well as for the
aid and, if necessary, for each project.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEX 2: Government Accounts
TYPE ‘A’ ACCOUNTS
It is a type of account, which may be opened for the projects whose activities are
carried out financed by foreign or international aid. Such an account is also opened
when the aid agreement dictates the opening of a bank account.
TYPE ‘B’ ACCOUNTS
It is a type of account, which may be opened for allocation of budgets from the central
Treasury for the purpose of fixed and capital expenditure.
TYPE ‘C’ ACCOUNTS
It is a type of account, which may be opened in the name of the central Treasury of the
federal Ministry of Finance and Economic Development.
TYPE ‘D’ ACCOUNTS
It is a type of account, which may be opened by a court order or as per the instruction
of the concerned federal government institution as deposit.
TYPE ‘F’ ACCOUNTS
It is a type of account, which may be opened for the purpose of funds established by
proclamation outside the general funds legally authorized.
TYPE ‘L’ ACCOUNTS
It is a type of account, which may be opened for projects whose activities are carried
out financed by a foreign loan, on the strength of the loan agreement.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
TYPE ‘S1’ or TYPE ‘S2’ ACCOUNTS
It is a type of account, which may be opened in a foreign currency, if the aid given or
the loan advanced is in a foreign currency and requires the opening of a special
account.
If the aid given or the loan advanced is in USD, a special foreign-currency account, S1,
shall be opened. If the aid given or the loan advanced is in other currencies, however, a
special foreign-currency account, S2, shall be opened.
The federal government institutions, departments, etc., shall present to the CBE a
written request and the following documents for the opening of the accounts described
herein above either in their own names or in the names of others like them.
The applicants must, nonetheless, fulfill the following:
1. State in the letter of request the reason for opening a bank account;
2. State clearly in Amharic and English the name of the account, the name of the
branch where the account is to be opened and the names of the persons who
are authorized to operate the account;
3. State clearly the duration of the project, if the newly opened account is for a
project whose activities are carried out or undertaken financed by aid or a loan;
and
4. Produce/present to the branch a digital photocopy of the loan contract or of the
aid agreement, if the newly opened account has any connection with aid or loan.
The letter of request for opening a new account shall be signed by the top
officials of the federal Government or by their delegates.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEX 3: The Required Documents to Open an Account for the
Addis Ababa City Government/Administration
The City Government/Administration
The order of the Mayor or of the Deputy Mayor of the Administration is required.
Sub-City Administrations
A letter that discloses the names of the persons authorized to operate the account
and signed by the officials as stated above has to be submitted.
Kebele Administrations
A joint instruction from the Chief Executive Officer and the Head of Economic
Services of the sub-City in which the concerned Kebele administration is found is
required.
ANNEX 4: The Required Documents to Open Accounts for
Municipalities
The Addis Ababa City and sub-City Municipalities
Only the Mayor of Addis Ababa has the power to decide who should be authorized to
operate the accounts of the sub-City Administrations. So her/his instructions are
required in this regard.
The Municipalities of the Regional States
The authority to open and operate an account in the names of these municipalities is
derived from the Mayor of the capital of the regional state or from the Head of its
Urban Development and Housing Office. In either case, the regulation that
established them should be carefully and closely consulted before any account is
opened.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEX 5
Cheque Account Operation Directives No. SBB/64/2016
WHEREAS, proper use of a cheque as payment instrument is crucial in facilitating
؛services smooth and cashless exchange of goods and
WHEREAS, cheque as a negotiable instrument is recognized and given legal
؛laws protection under Ethiopian
WHEREAS, the National Bank of Ethiopia is entrusted with the responsibility of
؛systems creating and maintaining efficient, safe and sound payment
WHEREAS, there is a need to determine the manner of proper operation of cheque
of a bank and thereby to ensure its safety and credibility as the payment
؛instrument
NOW, THEREFORE, the National Bank of Ethiopia has issued these Directives
pursuant to the authority vested in it by Article 27(2) of National Bank of Ethiopia
Establishment Proclamation (as amended) No. 591/2008.
1. Short Title
These Directives may be cited as "Cheque Account Operation Directives No.
SBB/64/2016”.
2. Definition
For the purpose of these Directives:
2.1 “bank” means a company licensed by the National Bank to undertake
؛Government banking business or a bank owned by the
2.2 “cheque” means the meaning ascribed to it under the Ethiopian
Commercial Code
؛cheque “cheque account” means any account operated by 2.3
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
2.4 “close an account” means terminating operation (debiting and crediting)
of a cheque account or deactivating a cheque account;
2.5 “delinquent list” means a record maintained at the National Bank and
each bank Containing detail information about a cheque dishonored for the
third time reported by the drawee;
2.6 “dishonored cheque” means a cheque drawn without sufficient fund cover
in the account and is rejected by paying bank for this reason;
2.7 “dishonored cheque register” means a register maintained by a bank in
which؛particulars stipulated under sub-article 7.2 of these directives are
recorded;
2.8 “drawer” means a cheque account holder who signs on a cheque giving an
order to his bank to pay the amount specified therein to a payee using finds
in his cheque account maintained in the bank;
2.9 “National Bank” means the National Bank of Ethiopia٠
2.10“person” means any natural or juridical person
2.11 “stop-cheque-payment order” means an instruction issued by a cheque
account (holder to its bank to cancel cheque payment(s);
2.12 Any expression in the masculine gender includes feminine.
3. Scope of the Directives
The Provisions of these directives shall be applicable to all banks operating in
Ethiopia
4. General Requirements
4.1 Upon opening of a cheque account, a bank shall:
4.1.1 verify that the name of a person requesting to open the cheque account
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
4.1.2 request the person to produce at a minimum taxpayer registration
؛certificate/TIN
4.1.3 inform its customer about the use and purpose of cheque account,
cheque, and the consequences of misusing ؛them and
4.1.4 Include in the cheque account opening agreement a clause about the
measures that shall be taken when there is misuse of cheque in
accordance with these directives and the bank’s internal policies and
procedures.
4.2 If a person has multiple cheque accounts in various branches of a bank, the
bank shall aggregate all the cheque accounts in its branches and treat them
as a single account for purpose of closing the cheque account.
4.3 A bank shall request existing customers to produce tax identification
numb.er (TIN) within six months from effective date of these directives, after
which the bank shall not issue new cheque book unless the account holders
produce the number.
4.4 Without prejudice to the generality of sub-article 4.1 of this article, a bank
shall develop and put in place its own internal policies and procedures on
proper operation of cheque.
5. Action to be Taken by a Bank Upon Dishonoring a Cheque
5.1 Dishonoring a Cheque for the First Time
5.1.1 Upon dishonoring a cheque drawn by a drawer for the first time any
period after opening of a cheque account in line with article 4 of these
directives, the bank shall:
a) record the incident for the first time in the Dishonored Cheque Register;
and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) block all debit (outgoing) transactions against this account until the
dishonored cheque is fully paid to the payee or equivalent amount is
blocked pending the payment to the payee.
5.1.2 An account holder whose incident has been recorded in the Dishonored
Cheque Register in line with 5.1.1(a) hereinabove but who has fulfilled all
obligations related to dishonored cheque which includes full settlement
of the claim or blocking of equivalent amount and has not drawn other
dishonored cheques for the second time at least for 12 consecutive
months following such registration, may be deleted from such register
and be considered as clean.
5.1.3 All dishonored cheques presented to a bank before deleting the name of a
drawer from the Dishonored Cheque Register in line with 5.1.2
hereinabove shall be treated as the second and third time dishonored
cheques, even if two or more cheques have been presented at a time or
simultaneously by the same payee.
5.2 Dishonoring a Cheque for the Second Time
5.2.1 Upon dishonoring a cheque drawn by a drawer for the second time within
12 consecutive months following the date of presentation' of the
dishonored cheque to the bank for the first time under 5.1.1 hereinabove,
the bank shall:
a) record the incident for the second time in the Dishonored Cheque
؛Register
b) block all debit (outgoing) transactions against this account until all
the cheques which have been dishonored & registered under 5.1.1(a)
5.2.1(a) hereinabove are hilly paid or equivalent amount is blocked
pending the payment to the payee(s); and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) levy a fine of 3% of the amount appearing on the cheque dishonored
for the second time but not exceeding Birr 25,000 (twenty five
thousand Bin.).
5.2.2 An account holder whose incident has been recorded in the Dishonored
Cheque Register in line with 5.2.1(a) hereinabove but who has fulfilled all
obligations related to dishonored cheques which includes full settlement of
the claims or blocking of equivalent amount and has not drawn other
dishonored cheques for the third time at least for 24 consecutive months
following the date of presentation of the first dishonored cheque to the bank,
may be deleted from such register and be considered as clean.
5.2.3 A dishonored cheque presented to the bank before deleting the name of the
drawer from the Dishonored Cheque Register in line with 5.2.2 hereinabove
shall be treated as the third time dishonored cheque.
5.3. Dishonoring a Cheque for the Third Time
5.3.1. Upon dishonoring a cheque drawn by a drawer for the third time within
24 consecutive months following the date of presentation of the
dishonored cheque to the bank for the first time under 5.1.1 hereinabove,
the bank shall:
a) record the incident for the third time in the Dishonored Cheque
؛Register
b) close the account, levy a fine of 5% of the amount appearing on the
cheque dishonored for the third time but not exceeding Birr 50,000
(fifty thousand Birr) and make every effort possible to collect all
unused cheque leaves & pads from the drawer and report same to the
National ؛Bank and
c) keep the cheque account of such person closed at all its branches.
5.3.2. A bank shall deny service of cheque account operation using a cheque to a
customer whose name has been circulated by the National Bank in line
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
with sub-article 10.2 of these ؛directives or may allow such customer to
operate his cheque account in line with restrictions stipulated under 5.3.3
and maintain the. List in line with sub-article 7.3 of these directives.
5.3.3. A bank may, after deducting its own receivables from the account, allow a
person whose cheque account has been closed in line with 5.3.1
hereinabove to obtain banking services other than those that involve
drawing a cheque against cheque account such as payable or other
accounts, like saving or fixed deposits until the National bank deletes
such drawer’s name from the delinquent list in line with sub article 8.1 of
these directives;
5.4. Notwithstanding provisions under 5.1.1(b) and 5.2.1(b) hereinabove upon
fulfillment of the condition set under sub-article 5.2.1(c), the bank may unblock
the account and make the fund available to the drawer:
5.4.1. if the drawer presents the dishonored cheques to the bank or the
payee(s) may appear in person to the bank and confirm in writing that
the dishonored cheques have been fully settled in the form prescribed
under Annex-I of these ؛directives or
5.4.2. if the payee(s) fails to appear to receive a full payment after lapse of six
months of presenting the dishonored cheque.
5.5. Notwithstanding provisions under 5.1.1, 5.2.1 and 5.3.1 hereinabove, a bank
may:
5.5.1 debit charges like legal, insurance, advertisement and such other noncash
transactions against a blocked ؛account and
5.5.2 accrue interest against overdraft accounts.
5.6. Deletion of a drawer’s name from Dishonored Cheque Register in line with subarticles
5.1.2 and 5.2.2 of this article shall be subject to quarterly internal audit
of the bank.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
5.7. Cheques dishonored before the effective date of these directives shall be treated
as first, second and third time dishonored cheques, as the case may be, and
fulfill all requirements set in these directives, respectively.
6. Prohibiting Cases of Stop-cheque-payment Order
6.1 A bank may not accept a stop-cheque-payment order request of a drawer with a
mere purpose of evading the punishments stipulated under article 5
hereinabove of these directives.
6.2 For the purpose of sub-article 6.1 hereinabove, a stop-cheque-payment order
request shall be presumed to have been made with a mere purpose of evading
the punishments stipulated under article 5 hereinabove of these directives if:
6.2.1 the request was made at the moment when the cheque account of the
drawer was not covered with sufficient funds to satisfy the claim of a payee
as was written on a specific cheque at the issuing and/or presenting dates
for ؛payment and
6.2.2 the drawer fails to produce police evidence within 15 working days
following the date the cheque was presented for payment to prove the
stop-cheque-payment order was in fact requested as the cheque was lost or
stolen.
6.3 Except as established otherwise under sub-article 6.2 hereinabove, a bank may
not consider whatsoever reason as valid autonomous ground to accept or reject
cheque-payment order of the drawer
Maintenance of Dishonored Cheques Register and Delinquent List
6.4. A bank shall maintain the Dishonored Cheque Register.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
6.5. Without prejudice to the generality of sub-article 7.1 hereinabove, the
Dishonored Cheque Register shall at a minimum include the following
particulars:
6.5.1. name and address of the bank and its branch dishonoring a cheque
6.5.2. name, tax identification number and address of an account holder who
issued a
Dishonored cheque
6.5.3. date on which the cheque was dishonored and frequency of drawing
dishonored
؛cheque
6.5.4. amount of money stated in the dishonored cheque
6.5.5. reference number of dishonored cheque
6.5.6. name of beneficiary and
6.5.7. the action taken by the bank.
6.6. The National Bank and all other banks shall maintain the delinquent list
name of a cheque account holder which has been circulated by the National
Bank to the banking industry when a cheque which has been drawn by a
drawer is dishonored for third time.
7. Conditions for Deleting the Name of a Drawer from Delinquent List and
Reinstatement
Of Closed Cheque Account
7.1. Without prejudice to the discretion of a bank under sub-article 5.3.2
hereinabove, the National Bank may lift the restriction set on the cheque
account operation upon fulfillment of the following conditions:
7.1.1. the drawer is suspended from use of cheque account for a minimum
of 12 consecutive months effective from the date of closure of the
؛bank account by the
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
7.1.2. the drawer shall present satisfactory evidences that all cheques which
have been, dishonored& registered under sub-articles .5.1.1(a),
5.2.1(a) and .5.3.1(a) of these directives are fully settled or produce a
letter from the bank which indicates equivalent amount of funds have
been blocked pending the payment to the payee(s). Under such
circumstance, a call to collect the stated money within the specified
date and bank shall be made by the drawer ,as his own cost ,to the
payee in widely circulating newspaper at least once per week for
three consecutive weeks; or if the drawer is unable to trace the
whereabouts of the dishonored cheque/s which have been registered
under sub-articles 5.1.1(a), 5.2.1(a) and 5.3.1(a) of these directives
after full settlement of the cheque value to the payee(s), the payee(s)
may appear in person to the National Bank and confirm in writing
that the dishonored cheque have been fully settled in the form
prescribed under Annex -I of these ؛directives or keep equivalent
amount in a blocked account pending a call to collect the stated money
within specified date and bank to be made by the drawer, at his own
cost, to the payee in widely circulating newspaper at least once per
؛weeks week for three consecutive
7.1.3. the drawer shall produce a letter from his bank that amount of
penalties charged in line with article 5 of these directives have been
fully settled;
7.1.4. the drawer shall file a written application with the National Bank,
with a copy to the Federal Police Commission, attested by an oath to
indicate his intention and commitment to use a cheque in operating
his cheque account honestly and carefully in the ؛future and
7.1.5. the drawer shall present an undertaking in a duly completed and
؛directives signed letter as specified under Annex-11 to these
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
7.2. A bank shall provide cheque account service to the person whose name
has been deleted from the delinquent list in line with the preceding subarticles
of this article.
7.3. The National Bank and each other bank shall maintain a separate register
for the names of persons deleted from delinquent list.
7.4. If the payee fails to appear and collect the funds blocked under 8.1.2 or
8.1.3 hereinabove after specific date stated in a newspaper call made in
line with the same sub-articles, the bank may unblock the account and
make the funds available to the drawer.
8 Conditions for Allowing New Cheque Account Opening to a Person
Prohibited Because of Similar Name in the Delinquent List
8.1 Notwithstanding provisions under sub-article 8.1 hereinabove, the National
Bank may allow a person, who has been prohibited from opening new cheque
account because of similar name in the delinquent list, upon fulfillment of the
following conditions:
8.1.1 the person shall file a written application with the bank that initially closed
the cheque account in the form prescribed under Annex-111 of these
directives, with a copy to the National Bank, Banking Supervision
؛Directorate
8.1.2 within 10 calendar days of receiving the written application under 9.1.1
hereinabove, the bank shall produce satisfactory evidences that assure
whether the closed account is of the person or not to the National Bank,
؛Directorate Banking Supervision
8.1.3 the National Bank, upon receiving satisfactory evidences in line with 9.1.2
hereinabove, shall allow a bank to open new cheque account if the closed
account is not of the person and circulate same to the banking industry,
with a copy to the ؛applicant and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8.1.4 A bank may open a cheque account in line with sub-article 4.1 of these
directives to a customer whose name. Has been circulated by the National
Bank in line with sub-article 9.1.3 hereinabove.
9 Reporting and Information Sharing
9.1 A bank shall send a report to the National Bank, Banking Supervision
Directorate, regarding customers whose cheque accounts are closed in line
with sub-article 5.3.1(b) of these directives in the form prescribed under
Annex-IV, on the following five working days from the date of such closure.
9.2 The National Bank shall compile the reports received from banks in line with
the preceding sub-article of this article and circulate same in the banking
industry, with a copy to the Federal Police Commission.
9.3 The National Bank shall also circulate to the banking industry the name of
cheque account holder deleted from the delinquent list in line with subarticle
8.1 of these directives.
9.4 A bank shall circulate reports received from the National Bank in line with
sub-articles 10.2 and 10.3 hereinabove to all its branches within three
working days from the date of receiving such reports with a copy to the
National Bank, Banking Supervision Directorate.
9.5 A bank shall also circulate name of a drawer who has been recorded in the
Dishonored cheque Register in line with sub-articles 5.1.1(a), 5.2.1(a) and
5.3.1(a) of these directives at the end of every month to all its branches in the
form prescribed under Annex-V to update respective branches database.
10 Repeal
Directive No. SBB/31/2002 is hereby repealed and replaced by these directives.
11 Effective Date
These Directives shall enter into force as of the 1 st day of December 2016
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
TEKLEWOLD ATNAFU
GOVERNOR
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General
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEX 6: The Opening and Operation of an ECX-Bank-
Settlement Account
• CATS’s CPC shall be the single point of contact for the ECX to open an account. An
Account-Clearing and Settlement Team will, therefore, be formed at a branch of
the CBE where the ECX settlement account is maintained. The Team will
comprise as its members a Maker and a Checker and be responsible for handling
the day-to-day operations and transactional instructions of the ECX.
• The account shall be opened for any member of the ECX who is not barred from
owning and operating bank accounts by the National Bank of Ethiopia due to
mal-operation.
• The ECX-related accounts to be opened are the following:
a. An ECX-settlement account;
b. Member pay-in;
c. Member pay-out (this could be an existing account);
d. Member clearing pay-in (if a member clears pay-ins for a non-clearing
member)
e. Client pay-in (if a member acts as an intermediary to other clients);
f. Client pay-out (if a member acts as an intermediary to other clients);
g. Member clearing pay-out (if a member clears for others);
h. Limited member pay-out (this can be an existing account);
i. Limited member client pay-out ( if a limited member acts as an
intermediary); and
j. Correspondent settlement bank accounts for the ECX (for inter-bank
transfers):
1. Correspondent
2. Mirror (mirror of own account in a correspondent bank).
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
• The accounts mentioned above shall be created in any branch of the CBE that is
electronically networked to its (CBE’s) core banking database, except the limited
member pay-out account and the limited member client pay-out account, which
can be created even in a non-networked branch. The member and member client
accounts can be opened in branches other than where the ECX-settlement
account is opened.
1. Opening an ECX-Bank-Settlement Account
1. The ECX-settlement accounts, member pay-in and pay-out accounts and
client pay-in and pay-out accounts and clearing pay-in accounts must be
opened in an electronically networked branch.
2. The limited member pay-out account and the limited member client pay-out
account can be operated from either an electronically networked branch or a
non-networked branch.
3. After the account is opened, if an account holder member is reprimanded,
suspended or excluded from banking activities due to mal-operation, the
settlement branch shall immediately report to the CATS’s CPC, specifying the
type and frequency of the subsequent reporting to the ECX.
4. An account-opening order shall be forwarded by the ECX account-opening
facilitation letter to CATS’s CPC, which clearly specifies the following:
o The type of ECX membership;
o The required ECX bank account; and
o The networked branch that the member has selected for the new
account.
5. CATS’s CPC instructs the selected branch to open the ECX-member type
account.
6. The member shall present a power of attorney, giving the sole right of
debiting the pay-in account, prepared in four copies, to the Exchange, which
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
must be signed by the principal authorized official at the counter of the
account-opening branch, in front of two witnesses, one of whom must be the
Branch Manager.
7. The account-opening branch shall immediately send, through fax, a copy of
the signed (completed) power of attorney, together with the number of the
account opened with the CATS’s CPC for further communication to the ECX
and for maintaining the ECX-settlement account at the branch.
8. The original power of attorney shall be delivered to the principal (or to the
ECX member) once it has been ascertained that all the required documents
have been submitted to the branch.
9. The account-opening branch shall subsequently send to the CATS’s CPC a
copy of the customer’s trade license, a copy of the power of attorney and
copies of the Article of Association and of the Memorandum of Association.
2. The Operation of an ECX-Bank-Settlement Account
1. The Settlement Team shall accept instructions, process them and send its
responses thereto electronically every working day—that is, Monday
through Friday—in the following manner:
1) Pay-in transaction:
2) Balance enquires:
14:00–16:00 (+1 hour extension for
Exceptions)
17:00 –19:00 (+1 hour extension for
Exceptions)
(Could be ECX gateway serve, not core banking)
3) Pay-out transactions: 08:00 –10:00 (
4) The times given herein above are likely to change in
the future when the ECX begins trading commodities futures and the
banks complete full automated integration with their core banking
systems.
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2. The Settlement Team shall accept the electronic data that constitutes the
instruction given by the Exchange, via the primary and backup delivery
channels as follows:
a. Primary via dial-up point to point—that is, electronic data secure
electronic delivery; and
b. Backup via USB biometric disk—that is, secure electronic data,
manual delivery.
The Team shall, however, accept the data in any other form, if the ICT
system fails.
3. The instruction given by the Exchange shall be applicable to the following
accounts:
a) Members’ pay-in and pay-out accounts opened by members who are
trade operators;
b) Members’ and clients’ pay-in and pay-out accounts opened by
intermediary members;
c) Clearing pay-in accounts opened by intermediary members;
d) Limited members pay-out accounts operated by limited members;
e) Limited member client pay-out accounts opened by limited intermediary
members; and
f) The settlement account opened by the Exchange.
4. The Settlement Team shall accept no payment instruction from the Exchange
unless it has been issued by authorized personnel thereof and the
authorization has been authenticated against the pertinent documents.
5. Under no circumstances should the Team stop or delay the process of daily
pay-in or pay-out settlements covered by the deposits in the pay-in accounts
or in the Exchange-settlement account, respectively.
6. The Team shall immediately report to the Exchange if it comes across any
account that does not hold sufficient funds to cover the amount it was
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
instructed to settle.
7. Under no circumstances may the Team refuse to process a debit instruction
on a member, client or on a clearing pay-in account, if the branch had by
10.00 AM the previous working day given the Exchange a balance greater
than or equal to the amount of money in the debit instruction so that the
amount of funds in the pay-in account would not be less than the balance that
the Bank had confirmed to the Exchange.
8. Every month, the Team shall send electronic bank-account statements for
member pay-in and clearing pay-in and member client pay-in and client payout
accounts.
9. If the Exchange requests for an additional account statement, nonetheless,
the Exchange shall be charged as per CBE’s Terms and Tariffs.
3. ECX-Related Accounts
3.1 The Conditions that must be Met to Open Accounts
a) For ECX-Level Accounts
An ECX-Settlement Account:
1) The ECX is the legal owner of this account;
2) The ECX has an exclusive right to all debits and credits;
3) The ECX will send electronic debit instructions for this account;
4) The ECX will send electronic credit instructions for this account;
5) No checkbooks may be issued on this account;
6) No payment cards may be issued on this account; and
7) All settlement transactions will take place via ECX’s electronic
instructions.
b) For Member-Level Accounts
i. Member Pay-in (to the ECX)—mandatory for members to trade on their
own accounts:
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1) The member is the legal owner of this account;
2) The member may give the ECX power of attorney and thereby
empower it to request for debits;
3) No member may withdraw money from this account;
4) The ECX will send electronic balance enquires for this account;
5) The ECX will send electronic debit instructions for this account;
6) No checkbook may be issued on this account; and
7) No payment cards may be issued on this account.
ii. Member for Client Pay-in (to ECX) –Optional for trading on behalf of
clients
1) Member is the legal owner of this account;
2) Member signs Power of attorney giving ECX sole right to request
debits;
3) No Member withdrawals allowed on this account;
4) ECX will send electronic balance enquiries for this account;
5) ECX will send electronic debit instructions for this account;
6) No cheque book issued on this account;
7) No visa card issued on this account.
iii.
Member pay-out (from the ECX)—mandatory for members to
trade on their accounts:
1) The member is the legal owner of this account;
2) Cheque books may be issued if required;
3) The ECX will send electronic credit instructions to this account;
4) The member has an exclusive right to request debits; and
5) This can be an existing customer account.
iv.
Member for Client Pay-out (from ECX)- Optional for trading on
behalf of clients
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1. Member is the legal owner;
2. Cheque book can be issued if required;
3. ECX will send electronic credit instructions to this account;
4. Member has sole right to request debits.
v. Member clearing pay-in (to the ECX)—mandatory for clearing on
behalf of other members:
1) The member is the legal owner of this account;
2) The member gives the ECX power of attorney and thereby
empowers it to request for debits;
3) No member may withdraw money from this account; and
4) The ECX will send electronic balance enquiries for this account;
5) The ECX will send electronic debit instructions for this account;
6) No cheque book may be issued on this account; and
7) No payment card may be issued on this account.
iv client pay-in (to the ECX)—mandatory for the member to trade on
behalf of the clients:
1) The member is the legal owner of this account;
2) The member gives the ECX power of attorney and there by
empowers it to request for debits;
3) No member may withdraw from this account;
4) The ECX will send electronic balance enquiries for this account;
5) The ECX will send electronic debit instructions for this account;
6) No cheque book may be issued on this account; and
7) No visa card may be issued on this account.
v Client pay-out (from the ECX)—mandatory for members to trade on
behalf of Clients:
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1) The member is the legal owner of this account;
2) Cheque books may be issued on this account, if required;
3) The ECX will send electronic credit instruction to this account; and
4) The member has an exclusive right to request for debit.
vi. Limited member client pay-out (from the ECX)—mandatory for a limited
member to trade on behalf of clients:
1) The limited member is the legal owner of this account;
2) Cheque books may be issued on this account, if required;
3) The ECX will send electronic or TT credit instructions to this
account; and
4) The limited member has an exclusive right to request for debits.
vii. Member clearing pay-out (from the ECX)—mandatory for processing
withdrawals on behalf of other members:
1) The member is the legal owner of this account:
2) Checkbooks may be issued on this account, if required;
3) The ECX will send electronic credit instructions to this account;
4) The member has an exclusive right to request for debits; and
5) This account must be a new one.
c) For Bank-Level Accounts
i) The ECX’s Correspondent Settlement Bank Account
1) The correspondent bank is the legal owner of this
Account;
2) The account must be used when the ECX needs to transfer funds
from its ECX-settlement account in one bank to its ECX-settlement
account in another bank in order to meet its pay-out obligations to
its members in a timely and efficient manner;
3) The ECX will send electronic credit instructions for this account
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
while processing the pay-in;
4) The ECX will send electronic debit instructions for this account
while processing the pay-out;
5) Any ECX debit will be covered by a corresponding ECX credit (at
the time the pay-out is processed) to the correspondent bank
account in the owning bank; and
6) The responsibility of accounting for these transactions and
repatriating the funds from other banks as and when required
rests with the CBE.
The Pay-In Emergency Process
The ECX transfer from the Deposit Fund (the Settlement Guarantee Fund) to the
ECX-Settlement Account will take place when the ECX lodges a request thereof, in
writing, signed by two of the signatories of the ECX-Settlement-Guarantee-Fund
account. The Bank, for its part, must immediately process the request and confirm to
the Manager of the Clearing House when this has been completed, but no later than
10:30 AM.
The Bank should, on a daily basis, inform the ECX of the balance of the Settlement-
Guarantee-Fund account via the electronic network that connects the ECX with the
data center of the Bank.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
ANNEX 7: Directive No. FXD/31/2006 Amendment to Directive
No. FXD/25/2004 the Opening and Operation of Foreign-
Currency Accounts for Non-Resident Ethiopians and Non-
Resident Foreign Nationals of Ethiopian Origin
Whereas, it is necessary to create incentives for Ethiopians in the diaspora to
maintain foreign-currency accounts in their home country so as to encourage
domestic investment;
Whereas, the operation of foreign-currency accounts by non-resident Ethiopians
can support the international foreign-exchange reserve and ease the balance-ofpayments
problem of the country;
Whereas, allowing Ethiopians who reside abroad to open foreign-currency
accounts could encourage foreign direct investment;
Now, therefore, in accordance with Articles 6 and 61 of the Monetary and Banking
Proclamation No. 83/1994, the National Bank of Ethiopia hereby amends Directive
No. FXD/25/2004 issued for the opening and operation of foreign-currency
accounts for non-resident Ethiopians in domestic commercial banks.
Article 1
Definitions
For the purpose of this directive, unless the context provides otherwise, 1.1 “Non-
Resident Ethiopians” shall mean:
a) All Ethiopian nationals who have lived abroad for more than one year;
b) Business entities owned by non-resident Ethiopians and located outside the
Ethiopian territory for more than one year;
c) Ethiopian nationals living and working abroad, or are in the process of leaving
Ethiopia to live and work abroad for more than one year, and can produce
authenticated documents to that effect.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
1.2 “Non-Resident (NR) Foreign National of Ethiopian Origin” shall mean
(1) A non-resident and holder of a valid identification card, obtained pursuant to
Proclamation 270/94, attesting that h/she is a foreign national of Ethiopian
origin.
(2) A business entity owned by non-resident foreign nationals of Ethiopian
origin and located outside the Ethiopian territory.
1.3 “Non-Resident (NR) Foreign-Currency Account” refers to the two types of
accounts stated under Article 4 of this directive and maintained in foreign
currency by the debit of which funds can be transferred abroad and/or used
locally without any permit from the Bank.
1.4 “Opening Banks” are authorized commercial banks in Ethiopia;
1.5 “The Bank” is the National Bank of Ethiopia,
1.6 “The Account” is a foreign-currency account opened by non-resident
Ethiopians or foreign nationals of Ethiopian origin.
1.7 “Certificate” means commercial banks’ deposit certificate issued to the
depositor in recognition of her/his ownership of the deposited sum of money;
1.8 “Foreign Currencies” refers to the three types of currency indicated under
Article 5 of this directive and which the Bank accepts for purposes of foreign
exchange.
1.9 “Deposits” shall mean foreign-currency deposits received by the opening
bank. They shall also include cash certificate, cheque or other deposits of a
similar nature.
Article 2
Eligibility Criteria
2.1 The following individuals and/or enterprises may open a foreign-currency
account in any of the authorized commercial banks in Ethiopia.
a) Non-resident Ethiopians; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
b) Non-resident foreign nationals of Ethiopian origin.
2.2 Non-resident Ethiopians/foreign nationals of Ethiopian origin shall present the
following documents to open an NR foreign-currency account in domestic
banks:
a) Application forms properly filled out and signed by the account holder;
b) For individuals, a valid passport and/or an identification card showing that
the applicant is a foreign national of Ethiopian origin; and
c) For businesses, a certificate of ownership or entitlement, and for an
organization, an Article of Association and a Memorandum of Association.
2.3 Applicants who could not be physically present to open the NR account in the
domestic banks shall use the Ethiopian embassies, correspondent banks or
nearby remittance-service providers to validate their identities.
Article 3
Opening Foreign Currency Accounts
3.1 A foreign-currency account may be opened for individuals and/or enterprises
that fulfill the eligibility criteria set under Article 2 (2.1) of this directive.
3.2 Persons residing abroad can open such accounts in person or by post in their
names. The banks may also establish contact with potential account openers
using e-mail, fax, telex and/or other electronic media authorized by the Bank.
Subsequently, however, the bank should receive authenticated documents to
open the accounts.
3.3 A request for opening an account for deposit in foreign currency shall be
accompanied by a letter of application and a specimen signature.
3.4 An individual and/or enterprise may open all or one of the foreign-currency
accounts enumerated under Article 4(4.1) of this directive.
3.5 Power-of-attorney holders are not allowed to open foreign-currency accounts
or to credit the account on behalf of non-residents and/or foreign nationals of
Ethiopian origin. Power-of-attorney holders are, nonetheless, allowed to
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
withdraw from these accounts for the purposes enumerated in Article 7.1 of
this directive, in addition to investment purposes, provided that the document
explicitly empowers them to operate the accounts.
3.6 The minimum amount required for an initial deposit to open a demand deposit
account shall be USD 100.00 (one hundred) or its equivalent in any of the
eligible currencies mentioned under Article 5(5.1) of this directive.
3.7 The minimum amount required in an initial deposit to open a fixed deposit
foreign-currency account shall be USD 5,000.00 (five thousand) or its
equivalent in any of the eligible currencies mentioned under Article 5(5.1) of
this directive.
3.8 The maximum amount to be deposited in current accounts shall be USD
50,000.00 (fifty thousand).
3.9 Two or more eligible joint depositors may, together, open a single account.
3.10 An individual may open a demand deposit account in only one of the
domestic banks, whereas she/he may open fixed deposit accounts in more
than one bank.
Article 4
Types of Permitted Accounts
Commercial banks may open the following types of non-resident foreign currency
accounts:
a) Fixed-time deposit accounts, which take the form of a deposit certificate, issued
in the name of the depositor. The maturity period may vary, based on the
agreement reached between the depositor and the opening bank. The minimum
maturity period for such an account shall, nevertheless, be three months.
b) A current account, which takes the form of a current deposit where withdrawals
may be made at any time upon demand by writing a cheque and/or by following
a pre-arranged procedure adopted by the opening bank.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
c) A non-Repatriable Birr account, which may take the form of a savings deposit
that can be used for local payments only.
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Article 5
Types of Currency
5.1 Banks are required to maintain foreign-currency accounts only in the following
types of currency:
a) The US dollar;
b) Pound Sterling; and
c) Euro.
5.2 Banks may accept deposits in other convertible currencies that include the
Canadian dollar, the Saudi riyal, the Japanese Yen, the Australian dollar and
UAE’s dirham. These currencies shall then be converted to any of the three
currencies enumerated herein above under Article 5.1 at the spot exchange rate,
based on the preference of the account opener.
Article 6
Crediting the Account
6.1 A foreign-currency account opened by non-resident Ethiopians shall be
credited only with resources transferred or originated from abroad in one or a
combination of the following ways:
a) Direct crediting of the account from foreign sources through the banking
system;
b) Travelers’ cheques brought by the account holder from abroad;
c) Money notes, provided that the account holder presents a signed and sealed
foreign-currency declaration form if it is above 3,000.00 US dollar from the
Ethiopian Customs Authority;
d) Cheque deposits that originate abroad;
e) A transfer from another type of non-resident foreign-currency account
owned by individuals and/or enterprises; and
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
f) Receipts through international payment cards/credit cards.
Article 7
Use of the Account
7.1 The foreign-currency accounts may be used as follows:
a) To make local payments in Birr;
b) To transfer to other foreign-currency accounts, which may include transfer
to other foreign-currency accounts in any of the authorized commercial
banks in Ethiopia;
c) To make such foreign payments as imports and other foreign-service
payments, provided the account holder has the required business license to
do so;
d) To effect the transfer of money to another country;
e) To convert into a Birr account at the ruling exchange rate;
f) Payments for bank charges levied by the opening bank, if any; and
g) To serve as collateral or guarantee for loans or bids.
7.2 Current accounts may be withdrawn against a cheque written and a withdrawal
slip, or according to any other pre-arranged procedure.
7.3 The bank maintaining these accounts shall allow repatriation abroad of the
deposits opened in any of the accounts mentioned under Article 4 a and b of
this directive upon request by the account holder.
7.4 Repatriation of the deposits shall not exceed the initial balance plus any interest
receipt on the deposit amount.
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Article 8
Closure of the Account
COMMERCIAL BANK OF ETHIOPIA December 1, 2016
8.1 A fixed-time deposit foreign-currency account mentioned under Article 4 of
this directive can be closed upon request by the depositor with a notification of
not less than five working days. Withdrawal of the fund prior to its maturity is
subject to a penalty, which could be the forgoing of interest thereon.
8.2 If a fixed-time deposit is not closed upon maturity, the opening bank may renew
it, in consultation with the depositor.
8.3 A fixed-time deposit account may be withdrawn against the deposit certificate
and the specimen signature previously left with the bank, or according to the
prearranged procedure.
8.4 A foreign-currency account will not be opened, if there is sufficient proof that
the money was acquired through money laundering or from the financing
services of a terrorist organization.
Article 9
Interest Rates
9.1 No interest shall be paid on a non-resident foreign-currency current account.
9.2 Commercial banks are allowed to set their own interest rates on non-resident
fixed-time foreign-currency accounts, provided that the interest rate does not
exceed the prevailing LIBOR rate.
9.3 Interest on a non-resident fixed-time foreign-currency deposit shall be payable
only if the foreign currency was kept for a minimum period of three months.
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[COMMERCIAL BANK OF ETHIOPIA] December 1, 2016
9.4 The payment of interest on fixed-time deposits maturing on Saturdays, Sundays,
holidays and non-business working days shall be determined based on the
succeeding working day. The interest-rate payment on non-Repatriable Birr
accounts shall be double the minimum savings-deposit rate set by the NBE.
Article 10
Issuance of Certificates
10.1 The opening bank shall issue to the depositor a fixed-time deposit certificate in
her or his name, if the account opened is a fixed-time deposit account.
10.2 The interest rate that the opening bank agrees to pay shall be clearly stated on
the deposit certificate.
10.3 For a current account, the opening bank shall issue to the depositor a cheque
book or advice notifying of the opening of the account.
10.4 In the case of Article 3.2., the certificate of deposit (CD) or cheque book may be
kept in the custody of the opening bank, whereas a certificate of custody shall
be issued to the depositor or the deposit book may be mailed to the depositor, if
she/he wishes so.
Article 11
Conversion of Non-Resident Foreign-Currency Accounts To
Resident Birr Accounts
11.1 When non-resident Ethiopians change their permanent residence to Ethiopia,
their non-resident foreign-exchange accounts shall be
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[COMMERCIAL BANK OF ETHIOPIA] December 1, 2016
Converted to residents’ Birr accounts by the bank that maintains them (the
accounts) at the prevailing inter-bank exchange rate; or
11.2 In the case of a fixed-time deposit, the account may remain as a non-resident
foreign-currency account, if the account holder returns to Ethiopia to settle
permanently before the maturity date of the account. Upon maturity of the
account, however, such accounts should be converted to resident Birr
accounts.
11.3 The provision of Article 7.1 (e) of this directive shall be applicable, if the
account holder requests that it be made applicable.
Article 12
Prohibitions
12.1 Foreign exchange acquired either from foreign-exchange bureaus or any
other local sources or foreign exchange shall not be used to credit and/or
open a foreign-currency account.
12.2 Banks shall not honor a cheque drawn or endorsed by a non-resident foreigncurrency
account holder in favor of a resident who does not hold a similar
non-resident foreign-currency account.
Article 13
Obligations of the Opening Bank
13.1 The bank where a foreign-currency account has been opened has the
following obligations:
a) It shall be responsible for maintaining the confidentiality of the account of the
depositor;
b) It shall, within 20 days after the end of each month, send a report to the Banking
and Foreign Exchange Directorate and to the Economic
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Research and Monetary Policy Directorate of the Bank based on the pertinent
format; and
c) At the close of each business day, the foreign-currency position of all such
accounts opened in a bank shall not exceed 15% (fifteen percent) of its total
capital as per the provisions of Directive No. SBB/23/97.
Article 14
Provision of Incentives
14.1 The deposit account can serve as collateral to get credit in local currency
from domestic banks, in line with the credit policy of the bank where the
account is opened.
14.2 The interest income from non-resident foreign-currency fixed-time deposit
accounts shall be free from income tax.
14.3 In addition to the above incentives, banks shall create an environment that is
conducive to the holders of such accounts as follows:
14.3.1 Banks shall provide the account holder with a statement of the account
every month;
14.3.2 Banks shall create a test-key so that the account holder can order
withdrawals and/or any local payments;
14.3.3 Banks shall credit interest to such accounts at least on a quarterly basis;
14.3.4 Banks shall create a mechanism whereby the account holder can give a
standing authorization to the opening bank for permanent payments; and
14.3.5 Banks shall clearly list out their correspondent banks or agents in various
overseas centers, which are in operation of foreign-currency accounts, so
as to enable non-resident Ethiopians to easily contact them.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Article 15
Inspection
The Bank may inspect any of the banks where such accounts are opened at any time
and thereby make sure that the provisions of this directive are being complied to.
Article 16
Penalties
16.1 A bank that violates any of the provisions of this directive shall be penalized,
in accordance with the Licensing and Supervision of the Banking Business
Directive non.SBB/27/2001.
16.2 Any bank that fails to comply with the reporting requirement specified under
Article 13.1 (b) shall pay a penalty of Birr 1,000.00 (one thousand) per day of
delay. The penalty so assessed will be automatically deducted from the
bank’s account maintained with the NBE.
16.3 Where an account holder violates the provisions of this directive, the bank
where the account is opened may suspend the account and immediately
report the case to the Bank.
Article 17
Repeal
The regulation related to the opening and operation of foreign-currency accounts
for non-resident Ethiopians and non-resident foreign nationals of Ethiopian origin
issued under directive No. FXD/25/2004 is hereby repealed and replaced by
Directive No. FXD/31/2006.
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COMMERCIAL BANK OF ETHIOPIA December 1, 2016
Article 18 Miscellaneous Provisions
This directive shall enter into force as of the 28th day of August 2006.
Number and Balance of Accounts Opened by Non-Resident Ethiopians
Name of Bank: ---------------------
Month: ------------------------------
Type of Account
Number of Accounts Opened Total Account Balance Current Account
USD
Euro
Pound
Fixed-Time Deposit Account USD
Euro
Pound
Non-Repatriable Birr Account.
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