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BANKING OPERATION DEPARTMENT
Overview

Banking Operation Department falls under The Currency and Banking Operations Group.  It is one of the main and oldest departments established in the Central Bank of Somalia which responsible for processing of all operations and payment-related activities of the bank including clearing, payments, receipt of funds and holding for the institutions (Public Sector)  with accurately managing customer accounts including financial institutions, and other approved account holders by CBS.  

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The functions of Banking Operations Department that are mandated under the CBS act law No. (130) as follows;

  1. 5(d) formulate and implement such policies as to best promote the establishment, regulation and supervision of efficient and effective payment, clearing and settlement systems
  2. 5(e) where appropriate, administer payment, clearing and settlement systems;
  3. 5(f) acts as banker and adviser to and as fiscal agent for the government of Somalia and public entities;

The roles of the operations is not limited to the above functions, but the department undertake any activities that comes under its scope of activities in accordance with this operation policy manual and other general guidelines and regulations that the Central Bank of Somalia approves.

Currently, the Department operates fully with Temenos (T24) to maintain customer accounts that externally integrated with Ministry of Finance SFMIS in which payment instructions received through Temenos T24-SFIMS integrations that later processed to the respective customers’ accounts which either held at CBS or at Commercial Banks. Temenos is also internally integrated with ERP/Oracle operated by Financial Affairs and and Human Resources Departments. 

Soon, National Payment System (NPS) is expected to be launched in this year 2020 with installation and operationalizing its components (ACH & RTGS) with integrating with existing Temenos functions by configurating extra T24 modules to optimize the payment automations 

Upon CBS structure approval, the department took administrative actions to align the staff with their respective areas at the departmental divisions based their qualifications and experiences as a part of deepening each unit functions. 

Mission

To provide timely, accurate and excellent banking and real time payment services to the CBS clients.

Vision

The vision statement of the operation department is to be one of the top and leading CBS Department that provides the highest quality payment service to the both public and financial institutions.

  • The accounts unit is responsible for the maintaining accounts opened for the respective institutions for instance commercial banks, regional states, and other accounts administrated FGS ministry of finance. The unit is also responsible for records, report production as required by the management or other clients hold accounts at CBS 

Treasury is responsible for the quality and timeliness of treasury services. This includes, management and controlling of funds (on-budget and off-budget funds) custodied by CBS for the country as whole. It is also responsible for verifying whether these payments are genuinely streamlined to the intended beneficiaries preventing any risks of fraud, money laundering and preventing any possible criminal groups.

The division is mainly responsible for fund transferring activities under the infrastructure composed of i) Real-time Gross Settlement (RTGS) system for interbank transfers, ii) electronic and automated facilities to handle and process retail payments including an Automated Clearing House (ACH) and; iii) Central Securities Depository (CSD) for the issuance and settlement of government securities. The division also demonstrates strong commitment to serve all participants involving in clearing and settlement to preserve integrity and equal treatment to all participants and clients.

 

Banking Services Division

Banking service Division is responsible for the revenue reception generated by ministry of finance, other public institutions, cash collections/handling and safeguarding, and other cash-type payments. The division manages extended sections at air/seaports and maintains close relations the CBS state branches in Federal State members.