Our bank gives night depositors the option that the bank will remove the bag from the night depository and hold the bag unopened until the depositor comes to the bank. Then the depositor opens the bag and the teller processes the deposit. One security control has been that the bank would issue all keys for the "hold bag" to the customer so that the bank had no way to open the bag until the customer arrived.

Recently the bank purchased a new series of night bags that has a master key that opens all bags in the series. The new procedure for hold bags states that these bags will be marked as "hold bags". When these are found and are removed from the night depository, the procedure will be to refrain from opening the bag until the customer arrives.

I believe that this unwisely exposes the bank to liability if the depositor states that money is missing from the deposit.

How are other bank's handling procedures for "hold bags"?

When we purchased our locked bags, we requested a set not keyed with the master lock. (We only have one customer who requested this process.) This ensures our tellers have no access to the bag. We log the bag on a seperate hold bag log, and the customer has to sign for receipt of the bag. If the bag is not cliamed the same day, it is redropped into the night drop by two individuals who are required to initial the hold bag log for that day.

Thank you, GatorGirl09.

How do others assess the risk/liability of having a key that could open a night bag that the bank should not open until the depositor is present?

Your process would have to document that the bags are removed and secured under dual control until removed (again under dual control) for processing. Sounds like a loss waiting to happen to me.

BrendaC,
Thank you for your advice. You make a good point about needing dual control.
I think that would be cumbersome, leading to exceptions and problems.

I would prefer the process mentioned where a special set of bags without a master was ordered. It removes the risk to the bank. Having the ability to open defeats the control requested by the customer.

We no longer use "key access" bags. We have the customer utilize the safety seal bags and they are inspected by two employees and kept separate until the customer collects them.

Our master control key for night deposit bags is kept in a double-custody key cabinet. Bags for safekeeping are only by special agreement, and are placed unopened in our cash vault as soon as they are removed from the ND vault. The customer usually brings their key to open the bag, and must sign for receipt of it.

Unfortuantely, keys to the key cabinet are not issued to the tellers, so two operations staff must accompany them to open the other ND bags. I like the idea of the safety seal bags!

Many banks have totally gone away from keyed bags and started utilizing the safety sealed bags. We started that at one bank that I worked at 20 years ago. It sure eliminates all hassles involving keys.

Just be sure to use one or the other - keyed bags or safety sealed bags (I prefer safety sealed bags myself). NO UNLOCKED ZIPPER BAGS.

We supplied the merchant with 2 part safety seal bags. One part held cash and coin and the other held the checks and deposit ticket. All bags were retrieved and logged under dual control and assigned to a particular teller. We would only open the part with the checks and deposit ticket. We would run the deposit total (specifying cash and check totals) that the merchant stated on the ticket. The checks and deposit tickets went into the work. The cash was sold out of the totals of the teller processing the bags and shipped to cash vault services. The deposit receipts were mailed or picked up by the merchants after the fact. The merchant signed an agreement stating that if it was discovered that the cash or check totals did not match when opened and verified they would receive an advice of credit or debit.

This prevented the merchant from having to come in and watch while the deposit was being done. They dropped it off to make sure their place of business was not holding it and so that they wouldn't have to pay a runner to wait in line while it was being counted.