Thread Options
|
#1582000 - 07/22/11 06:32 PM
Re: Employee Accounts
Hobbes
|
Diamond Poster
Joined: May 2011
Posts: 1,406
|
We use a Jack Henry product for BSA purposes. The product allows us to create specific worklists for our customers. I have 3 specific worklists (wire transfers, ach activity and cash activity). These worklists include employees, directors and owners. The worklisted are reviewed on a monthly basis by a deviation rate, the program establishes.
|
Return to Top
|
|
|
|
#1582059 - 07/22/11 07:07 PM
Re: Employee Accounts
osucpa
|
Platinum Poster
Joined: Feb 2010
Posts: 835
|
I think I'm going to suggest revisions to our Employee Account Review Policy and start shopping for software in my "spare" time.
_________________________
Live Like No One Else! CRCM
Opinions expressed are my own and do not reflect the views of my employer.
|
Return to Top
|
|
|
|
#1582070 - 07/22/11 07:22 PM
Re: Employee Accounts
ACBbank
|
Diamond Poster
Joined: May 2011
Posts: 1,406
|
We are on the same page. Any issues I have with an account I first go to HR to discuss.
|
Return to Top
|
|
|
|
#1582073 - 07/22/11 07:27 PM
Re: Employee Accounts
osucpa
|
10K Club
Joined: Jul 2004
Posts: 18,989
|
To all those who currently perform an employee account review, are you in IA?
I was always under the mindset that this should be a management function (as it is a interal control) and IA audits the process.
(Although I can see the argument for IA doing this, as well)
_________________________
With the lights out, it's less dangerous.
|
Return to Top
|
|
|
|
#1582131 - 07/22/11 08:07 PM
Re: Employee Accounts
A_G
|
Platinum Poster
Joined: Feb 2007
Posts: 597
Central Texas
|
To all those who currently perform an employee account review, are you in IA?
I was always under the mindset that this should be a management function (as it is a interal control) and IA audits the process.
(Although I can see the argument for IA doing this, as well) Unfortunately it fall right smack in my lap as IA...As I stated earlier if NA would code them as they set them up or added as an authorized user...I could print out a report, but I need some software that would simplify this process for me!!!
_________________________
In my pill box counting my stash!
|
Return to Top
|
|
|
|
#1582250 - 07/22/11 10:04 PM
Re: Employee Accounts
Happy Drugs
|
Platinum Poster
Joined: Feb 2010
Posts: 835
|
We're a small bank. We don't have an IA dept. I do BSA and Compliance so, I was nominated for this particular task.
_________________________
Live Like No One Else! CRCM
Opinions expressed are my own and do not reflect the views of my employer.
|
Return to Top
|
|
|
|
#1582291 - 07/23/11 02:13 PM
Re: Employee Accounts
*W*W*
|
Power Poster
Joined: Jun 2003
Posts: 7,659
Florida
|
I believe that one other person mentioned it almost in passing - besides the payroll and other accounts that are listed as employee, do a search to ensure that you're covering accounts where the person may be an authorized signer. Also do a scan of addresses in the event that a fictitious account was opened up.
We once ran a loan report by address and found 11 consumer loans at one address (residential) - all different names. It was also the address of the branch manager/loan officer. He was making fraudulent loans to pay off the earlier ones when he realized he did not have an exit strategy for the fraud.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.
|
Return to Top
|
|
|
|
#1583789 - 07/27/11 04:20 PM
Re: Employee Accounts
Hobbes
|
New Poster
Joined: Jan 2004
Posts: 8
|
rlcarey....What do you suggest for a small institution? Examiners ask for evidence of employee account review to identify potential fraudulent activity.
Last edited by Utahn; 07/27/11 04:21 PM.
|
Return to Top
|
|
|
|
#1583935 - 07/27/11 06:35 PM
Re: Employee Accounts
Utahn
|
10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
|
How do you monitor all your other accounts for fraudulent activity? Your biggest risk is and always has been from the outside.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
|
Return to Top
|
|
|
|
#1587316 - 08/03/11 11:20 PM
Re: Employee Accounts
Hobbes
|
10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
|
I would challenge anyone to find the review of employee accounts in any of the Federal regulatory agency's examination manuals. Unless this is required by State law or your bonding company, there are many ways to develop internal controls to prevent employee fraud. Reviewing all accounts of every employee, IMHO is probably the most inefficient use of time and resources.
How many years have you been doing it and how many embezzlements or frauds have you uncovered?? And if found, were these directly found by this account review or though some other source? Dual controls and proper account reconciliation processes are probably much more important.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
|
Return to Top
|
|
|
|
#1587388 - 08/04/11 12:49 PM
Re: Employee Accounts
rlcarey
|
Diamond Poster
Joined: May 2011
Posts: 1,406
|
In the state of Oklahoma it is state banking requirement.
|
Return to Top
|
|
|
|
#1587395 - 08/04/11 01:00 PM
Re: Employee Accounts
osucpa
|
10K Club
Joined: Jul 2004
Posts: 18,989
|
While the Federal Reserve does not suggest reviewing the accounts of every employee, it has this to say in the commercial bank exam manual:
Employee Deposit Accounts Historically, examiners have discovered various irregularities and potential malfeasance through review of employee deposit accounts. As a result, bank policy should establish standards that segregate or specially encode employee accounts and should encourage periodic internal supervisory review. In light of these concerns, examiners should review related bank procedures and practices, taking appropriate measures when warranted.
If not included in the internal or external audit program, are employees’ and officers’ accounts, accounts of employees’ and officers’ business interests, and accounts controlled by employees and officers periodically reviewed for unusual or prohibited activity?
_________________________
With the lights out, it's less dangerous.
|
Return to Top
|
|
|
|
#1588045 - 08/04/11 11:59 PM
Re: Employee Accounts
IAaudit
|
10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
|
Mr. A - nice catch in the FRB exam manual - I looked in them all and missed that. But I still believe there are better ways to monitor employee accounts than reviewing each one.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
|
Return to Top
|
|
|
|
|
|