IT Examiner School, Palm Springs, CA

Wire Transfer Basics

Adequate Policies and  Procedures 

Basic concept; however, many organizations still lack  the appropriate written procedures.

Bank’s procedures should state that wire transfers are not  performed for non‐customers and are not processed against  uncollected funds.  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.

Wire Transfer Basics Ensure proper  segregation of  duties 

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

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.