Module 3 Processing Transactions

Section 1 Checking Accounts It is important for tellers to follow procedures with every transaction they complete. The examples in the Handbook may not match banks’ forms exactly, but all deposit slips contain the same basic information. Once your work has been complete, make sure you "stack" your work appropriately. For example, the check might be on the top of the stack, the cash-in ticket in the middle, and the deposit slip on the bottom. Banks have different ways of stacking and separating the teller work. You will be instructed on how to stack your work during your teller training. Read Section 1 Checking Account pg

Availability of Funds: Regulation CC Even though tellers may not be responsible for placing holds, they are still expected to know the basics about Regulation CC. Regulation CC Provisions Each bank will have its own funds availability policy. Reg CC establishes hold periods, requires disclosures, gives authority to the Federal Reserve Board to improve check collection and return systems. Disclosures Required by Regulation CC Requires financial institutions to reveal certain policy information in a consistent, prescribed format.

Availability of Funds: Regulation CC Endorsement Requirements of Regulation CC As part of the efforts to decrease the time it takes for checks to clear the drawee bank, Reg CC also includes specific guidelines about the placement of endorsements on checks. Terms Relating to Regulation CC (define the following for your notes) Next day availability Local Checks Nonlocal Checks Exceptions Read Section 2 Availability of Funds: Regulation CC pg,48-52

Section 2 Savings Accounts Deposits to Savings Accounts Always follow bank procedures (counting cash, verifying identification, and so forth) when accepting deposits. Withdrawals from Savings Accounts Always follow bank procedures (counting cash, verifying identification, and so forth) when withdrawing funds from a savings account. Because federal law and some state laws limit withdrawals from savings accounts (generally money market savings accounts) by check, A customer who has check-writing privileges on his savings account use a withdrawal slip instead of a check to withdraw cash. Where Does the Work Go? The Teller position is a very vital role to the success of the bank and other departments. Everything begins with the Teller so mistakes that you make can cause mistakes in other areas.

Savings Accounts Check 21 The details of Check 21 relate more specifically to bank operations.Check 21 provides a new option: legal acceptance of digital images of original checks and printouts of those images. This reproduction is called substitute check. How Check 21 Affects Customers Check 21 affects customers in several ways such as increased possibility that some checks may be returned NSF if the customer does not have funds in the account when the substitute check is presented for clearing. Branch Capture Branch Capture enables Tellers to capture and transmit transactions electronically which has almost eliminated the need for the proof system

SECTION 3: PROCESSING LARGE CASH TRANSACTIONS Currency Transaction Report (CTR) A form required by the federal government for large transactions. All information on the form is required. CTR Terminology (define the following for your notes) Large Transactions Multiple Transactions Exempt Transactions Record of purchase of monetary instruments

PROCESSING LARGE CASH TRANSACTIONS Completing a CTR Form Any cash transaction or multiple transaction by your customer that exceeds $10,000 MUST be reported. Structuring a transaction to avoid reporting is the most common type of suspicious transaction. You should NEVER advise a customer on how to avoid having a CTR completed. This could lead to serious legal and other consequences..

PROCESSING LARGE CASH TRANSACTIONS Suspicious Activity Report (SAR) Generally, tellers are not responsible for completing SARs, but they must ensure that the person in the bank who is responsible has the appropriate information. Therefore, it is important for tellers to understand what type of activity would be considered suspicious. An example of a completed SAR is included in the Handbook. SARs are confidential and should never be discussed with the customer. Also, if the teller believes that the activity is suspicious, the teller should report it and not allow another employee to talk him or her out of making the report. In fact, whether to submit a SAR is not something that should be discussed with other employees. A teller who knows a customer and understands banking transactions will recognize when a particular transaction or a series of transactions is suspicious. When Both a CTR and SAR Must Be Completed If a currency transaction exceeds $10,000 and is suspicious, the bank must file both a CTR and a SAR.

SECTION 4: SECURITY WHEN PROCESSING TRANSACTIONS New Accounts A new account must be treated carefully because the new customer does not have a history with the bank and therefore must establish one. Split Deposits Occur when customers want to divide the use of a check. Possible security risk

SECURITY WHEN PROCESSING TRANSACTIONS Check Kiting Designed to obtain cash from bank checking accounts that appear to have funda available but in fact do not. Commonly used by con artist.

Section 5 Other Rules and Regulations Office of Foreign Assets Control (OFAC) Administers and enforces economic sanctions programs against certain countries and individuals. Regulation DD: Truth in Savings Act Implements the Truth in Savings Act that was enacted in December Requires depository institutions to disclose fees, interests rates, and other terms.