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#1920445 - 05/06/14 05:55 PM Transfer btw customer accounts using debit memo?
CG Offline
Member
Joined: Oct 2012
Posts: 97
NY
A bank customer has a joint account and a personal account with us. She wants to transfer funds from one account to the other at teller, not through internet banking nor through ATM.

To make things worse, she didn't bring her check. In this case, what should a teller do, cash out from one account using withdrawal ticket and cash in to the other with deposit ticket? This case is triggering CTR reporting.

Can the teller use debit memo? This case was reported as an issue by internal audit long time ago, but on what ground?

What is the best way to handle the transfer at a teller station, if internet banking, ATM, check are not available.

Thank you.
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#1920524 - 05/06/14 08:46 PM Re: Transfer btw customer accounts using debit memo? CG
BurntSienna Offline
Diamond Poster
Joined: Aug 2006
Posts: 2,407
Midwest
My bank's core software has an "in person transfer" option. You would simply go to that option, enter the to and from accounts and dollar amount to be transferred and complete the transfer.

If your core software doesn't offer this option, maybe you could use a "universal debit" and "universal credit" type ticket instead of cash ins/cash outs? Since no cash exchanged hands, I would say CTR reporting is inappropriate and misleading.
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#1920712 - 05/07/14 03:07 PM Re: Transfer btw customer accounts using debit memo? CG
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
If anyone is concerned about using internal debit and credit forms for such a transfer, have the customer sign the debit just to provide evidence the customer was involved.

Ultimately, you should have a procedure to address such cases, since they are likely to come up more often than once in a lifetime. Check with the stakeholders including auditing and your BSA department to agree on a simple procedure that everyone's happy with.
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