Cash Management Policy

This policy applies to all employees, agents, contractors, and third parties acting on behalf of Easyterms who are involved in the receipt, disbursement, reconciliation, storage, and transportation of physical cash across all business lines and operational activities.

1. Purpose

This Cash Management Policy outlines Easyterms's commitment to the secure, efficient, and effective management of all physical cash. Its purpose is to establish clear guidelines and controls to minimize risks associated with cash handling (e.g., theft, fraud, errors), ensure accurate accounting, maintain optimal liquidity, and comply with all relevant internal controls and regulatory requirements.

2. Scope

This policy applies to all employees, agents, contractors, and third parties acting on behalf of Easyterms who are involved in the receipt, disbursement, reconciliation, storage, and transportation of physical cash across all business lines and operational activities.

3. Policy Statements

3.1 Legal and Regulatory Compliance

Easyterms is committed to full compliance with all applicable national and international laws, regulations, and guidelines pertaining to cash management, financial reporting, and anti-money laundering, including but not limited to [mention specific local laws, e.g., Banking Act, Financial Reporting Standards, relevant central bank guidelines].

3.2 Risk-Based Approach

The company shall adopt a risk-based approach to cash management, identifying, assessing, and mitigating risks related to cash handling, storage, and movement. Controls will be implemented commensurate with the identified risk levels.

3.3 Segregation of Duties

Critical cash handling functions shall be segregated among different individuals to ensure proper internal controls and reduce the risk of fraud or error. This includes separating duties such as cash receipt, cash disbursement, cash reconciliation, and record-keeping.

3.4 Cash Holding Limits

Maximum cash holding limits shall be established for each branch, safe, and individual cashier. Any cash exceeding these limits must be promptly deposited into the company's designated bank accounts.

3.5 Secure Storage and Transportation

Physical cash, when not in active use, must be stored in secure, locked safes or vaults. Access to these storage facilities shall be strictly controlled and monitored. Cash transportation between branches, to/from banks, or other locations must follow secure protocols, which may include dual control, armored car services, or other risk-mitigating measures.

3.6 Daily Reconciliation

All cash transactions (receipts and disbursements) must be reconciled daily with physical cash counts and system records (e.g., Loan Management System, Cash Book). Any discrepancies must be investigated and reported immediately to the Branch Manager and Finance Department.

3.7 Transaction Documentation

All cash transactions must be fully documented with pre-numbered receipts, disbursement vouchers, and proper authorization. Records must be clear, accurate, and retained for the period required by law and internal policy.

3.8 Reporting of Suspicious Activities

Employees involved in cash handling must be vigilant in identifying and reporting any unusual or suspicious cash transactions to the Money Laundering Reporting Officer (MLRO) in accordance with the AML Policy.

3.9 Internal Controls and Audit

Effective internal controls shall be established and maintained over all cash management processes. The cash management program shall be subject to regular internal and external audits to assess its effectiveness and compliance.

3.10 Employee Training

All employees involved in cash handling shall receive regular and comprehensive training on this Cash Management Policy, related procedures, security protocols, fraud prevention, and their roles and responsibilities.

4. Roles and Responsibilities

5. Policy Review and Revision

This policy will be reviewed at least annually, or more frequently if there are significant changes in laws, regulations, business operations, cash handling risks, or internal control requirements.

Published with Nuclino