IT Examiner School, Seaside, CA

Wire Transfer Basics

Adequate policies and procedures • Basic concept; however, many organizations still lack the appropriate written procedures. • Bank’s procedures should carefully specify: how incoming and outgoing wire transfers are processed, how entries are posted and balanced, and employees’ responsibilities for implementing these policies. • The procedures should state that wire transfers are not be performed for non-customers and are not be processed against uncollected funds.

Wire Transfer Basics

Ensure proper segregation of duties • All wire transfers must be processed using dual control. Acceptance and authentication of wire transfers should be segregated from the processing and approving of the transaction. Limit acceptable methods of wire transfer requests • Since all wire transfer requests are not made in person, acceptable methods should be defined. Methods such as fax, e-mail, telephone, and Internet banking requests all carry different risks which must have clearly defined procedures and compensating controls.