Revised CATS Procedure Dec.20161

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
CATS Procedure | 70