Oklahoma Bankers Association We make bankers better!
The OBA has received questions from bankers recently related to the mandatory annual five consecutive days of leave rule, particularly in how it relates to holiday days, such as this week’s July Fourth.
Here is the response from the OBA’s legal team:
10-5-3. Minimum control elements for bank internal control program
All internal control programs adopted by banks shall contain as a minimum the following:
(1) A requirement that each officer and employee, when eligible for vacation, be absent from the institution at least five consecutive business days each calendar year, unless otherwise approved in writing by the bank’s bonding company for bank officers and employees generally and then each officer and employee who may be excepted from this requirement must be specifically approved by the bank’s board of directors and it shall be recorded in the board of directors minutes, that the officer or the employee may be absent less than the five consecutive banking days. During the absence of an officer or employee, the duties of the absent officer or employee must be performed by other bank officers and employees…
(This week) Wednesday is NOT a business day.
The FDIC’s recommendation is two weeks, but offers alternatives. (See link below.)
https://www.fdic.gov/news/news/financial/1995/fil9552.html
The objective is that employee shall not have direct nor indirect have control (i.e., the substitute should call or email) over his/her duties for a consecutive period as a matter of internal control to ferret out wrong-doing such as embezzlement and the like, including an employee who was putting loan applications into his/her drawer without processing. I applaud cross-training since I get a ton of calls when the employee in charge of garnishments, subpoenas, CTRs, etc. is off, and the employee filling the gap has little or no training.
If you have any further questions, please feel free to contact the OBA legal team at compliance@oba.com.