Under what circumstances should you ask for "use of funds"?

if you have credit balances on several nostro accounts and have to use these balances to cover your outstanding payment orders
if your nostro A shows a debit whereas your nostro B shows a credit balance, you allow correspondent B to use your credit balance to work with, in order to receive credit interests to partially or totally cover the overdraft interests on nostro A.
if at the end of a month, you want to collect the credit balances and to ask for credit interest
if the net balance on a nostro account is higher than the amount agreed upon with your counterparty

Answer(s): B

What documents and/or information should you hold in order to start an investigation?

From the counterparty: the trade confirmation. In-house: the trade confirmation, nostro reconciliation details, the dealing ticket and eventually dealing-system conversation printout
From the counterparty: the dealers name and phone number. In-house: dealers name as well as the exact time the deal was processed
From the counterparty: the trade confirmation. In-house: the open item list, nostro reconciliation details and the dealing ticket
From counterparty: the balance report and the trade confirmation; In-house: the dealing-system conversation printout

Answer(s): A

Due to an error by your dealers, your bank is 5 days late in paying EUR 10,000,000.00. Your correspondent bank says it will charge you 12% p.

plus reserve costs of Euro 1.00 per thousand. How much will your account be charged for this overdraft?
EUR 16,666.67
EUR 16,438.36
EUR 1,200,000.00
EUR 26,666.67

Answer(s): D

Which of the following steps describes the correct sequence for running an investigation?

1. gather all the required documentation; 2. reach an agreement with your dealer; 3. send a claim to the counterparty
1. inform the compliance officer; 2. gather all required documentation; 3. contact the counterpartys dealer; 4. reach an agreement with the counterpartys dealer
1. contact the banks' attorney; 2. ask your dealer to amend or to cancel the deal; 3. ask the accounting department to the adjust value date
1. gather all required documentation; 2. determine the origin of any discrepancy 3. get in contact with the counterparty and submit the facts 4. reach an agreement with the counterparty

Answer(s): D

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