- 20 Marks
LPB – APR 2016 – L3 – Q4 – Bank’s Position on Partial Cash Deposit During Robbery
Scenario involving a cash deposit partially counted before a robbery; determine bank's liability for crediting only the checked amount and if unchanged if no check occurred.
Question
Yesterday, as the Director of the Retail Banking Division of your bank, your secretary informed you that, two gentlemen from the KYC Restaurant called to have an appointment and you agreed a meeting at 1000hours today.
At 09:45 hours Mr Eric Tagoe and Mr Bright Quarter introduced themselves as KFC’s Legal Advisor and Director of Compliance & Anti-Money Laundering Reporting Officer respectively. Discussions indicated that, the KFC Restaurant presented a Cash Deposit transaction for GHS150 00000 to the East Legion Branch yesterday, but their account has been credited with GHS100,00000 only. You excused these gentlemen and called the East Legion Branch Manager who notified you of the following
- That a KFC Teller presented Cash of GHS150,00000 and a Cash Deposit slip for same to the bank’s Teller and that this transaction was one of the lots which were affected to the armed robber attack on the Branch.
- That Genevieve, your bank’s Teller received the lot and the Cash Deposit subject to check and subsequent credit to the KFC Restaurant account.
- That just after checking the GHS150,00 and GHS20000 denominations making a total of GHS100,00000 and indicating same on the cash deposit slip, 3 armed men attacked the Branch and made away with nearly all the cash at the BOC.
- The Teller referred the matter to the Branch Manager, who directed that because the Teller had checked only GHS100,00000 will square a credit of GHS100,00000 only to the account. a) What is the bank’s position in this matter? b) Will this position change if the Teller had not checked the cash at all
Find Related Questions by Tags, levels, etc.
Report an error
