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#1720664 - 07/17/12 04:14 PM Reviewing Employee's Accounts
tango Offline
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What is the industry standard for banks/credit unions reviewing employee's deposit account activity? Does the employer have to disclose to the employees that their account activity is monitored in order to be able to do so? Do most banks review employee's account activity as a regular course of action, or only if there's a red flag? We have other mechanisms to monitor employee overdrafts that would not require reviewing account statements. Besides overdrafts or specific suspision of some sort, what would the employer be looking for?

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#1720906 - 07/17/12 09:26 PM Re: Reviewing Employee's Accounts tango
osucpa Offline
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The Bank does not have to disclose the review of employee accounts. At our Bank, I have our HR director send out an e-mail on a periodic basis informing employees Internal Audit will be reviewing their accounts and may call them with a question concerning a specific transaction. I review the account for cash transactions and other suspicious activity.
Last edited by osucpa; 07/17/12 09:26 PM.
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#1720908 - 07/17/12 09:28 PM Re: Reviewing Employee's Accounts tango
HappyGilmore Offline
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Pulling people out of the ditc...
OSU - and what type of review do you perform on those employees that don't bank at their place of employment?
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#1720913 - 07/17/12 09:43 PM Re: Reviewing Employee's Accounts tango
osucpa Offline
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I cannot perform one. All our employees are paid by direct deposit into their bank account at our bank or prepaid card. Some of our employees choose to bank elsewhere. I see their payroll coming in and a transfer for the funds leaving.

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#1720989 - 07/18/12 01:14 PM Re: Reviewing Employee's Accounts tango
tango Offline
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Just to clarify, I didn't mean diclosing to employees prior to the review. Rather, does a bank/cu have to have a policy or something in writing to indicate to the employee that these types of reviews will take place. We have policies regarding the monitoring of Internet and email activity. Nothing to indicate that employees accounts will be monitored. BTW, we have software that monitors all suspicious activity, including those of employees. We also have daily reports that show NSF activity. So I guess I'm curious, if there isn't some sort of trigger, is it commonplace for an internal auditor or security officer to be randomly reviewing employees account activity? I guess I'm just not comfortable that there's no written policy to indicate when/why such a review would take place...like maybe the auditor is bored and nosey.

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#1721011 - 07/18/12 01:50 PM Re: Reviewing Employee's Accounts tango
osucpa Offline
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If anything put it in your audit plan and have it approved by the audit committee.

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#1721428 - 07/19/12 12:19 PM Re: Reviewing Employee's Accounts osucpa
edAudit Offline
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Originally Posted By: osucpa
The Bank does not have to disclose the review of employee accounts. At our Bank, I have our HR director send out an e-mail on a periodic basis informing employees Internal Audit will be reviewing their accounts and may call them with a question concerning a specific transaction. I review the account for cash transactions and other suspicious activity.


There is no difference between reviewing a customer account and an employee account. I would note it in the employee handbook and no additional notification would be necessaru.
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#1727171 - 08/03/12 05:01 PM Re: Reviewing Employee's Accounts tango
Andy_Z Offline
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There is a difference in reviewing the two in that the employees income is being seen and this is typically confidential. So it is more sensitive as to who sees it, much like an employee loan application. Just adding my $.20.
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