MANAGE TRANSFER OF RECOVERIES FROM AMCON OBLIGORS TO TSA

Process Objective (Purpose):

To transfer recoveries from Eligible Bank Assets (EBAs) purchased by the Asset
Management Corporation of Nigeria (AMCON) to the Treasury Single Account (TSA)

Under the guidelines directed both by the Central Bank of Nigeria (CBN) and the Asset
Management Corporation of Nigeria (AMCON).

Benefits to the Customer:

 It facilitates customer satisfaction

Benefits to the Bank

 It facilitates efficient audit trail of transactions between AMCON and Access Bank
 It facilitates ease of cash management for both CBN and AMCON
 It protects the Bank from possible sanctions / penalties from the Regulators due to
non-remittance of repayments / recoveries from AMCON Obligors to the TSA
 It facilitates operational efficiency
 It facilitates efficient risk management

KEY RISKS KEY CONTROLS

 There may be delays in transferring  The Team Lead, Access Bank AMCON will
Recoveries to the TSA which may lead ensure the daily review of the accounts of
to regulatory penalties/infractions AMCON obligors to ascertain accounts with
available balances meant to be transferred to
TSA
 Lodgments into AMCON Obligor  The Team Member, Access Bank AMCON will
accounts may be wrongly swept to ensure that Sweep out instructions from the
AMCON collection account and may current accounts and collection accounts of
be omitted from balances being AMCON Obligors have been deactivated.
transferred to TSA.
 Recoveries from AMCON Obligors  The Team Member, Access Bank AMCON will
may be erroneously omitted from review schedule of balances for transfer to the
transfer to TSA TSA on a daily basis and ensure completeness
and accuracy of the schedule

 Errors may be made in posting the  The Team Member, Access Bank AMCON will
recoveries from AMCON EBAs / review postings to be made to the TSA and
Obligors to the TSA confirm balances before advising Corporate
Operations of the entries to the TSA

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 MANAGE TRANSFER OF RECOVERIES FROM AMCON OBLIGORS TO TSA
Process Owner: Group Head, Credit Administration and Portfolio Management

Frequency: Daily

Number of persons involved: 2+

CRITICAL SUCCESS FACTORS KEY PERFORMANCE INDICATORS

 Good understanding of the AMCON  Percentage error rate
Guidelines by the Officers in the  Process Turnaround Time
AMCON Unit involved in the process  Customer Satisfaction Index
 Understanding of the CBN circular on 
TSA
 Good understanding of TSA / Remita
transactions
 Clearly communicated guidelines for
analyzing transfer of recoveries from
AMCON Obligors to TSA
 Good understanding of the AMCON
Act, Guidelines and other
Publications by other Stakeholders
including legal, FINCON, Conduct &
Compliance, TROP etc
INPUT OUTPUT
 Schedule of Balances to be  Entries on Flexcube to recognize the
transferred to TSA repayments / recoveries transferred to
TSA
 CBN receipt of funds received into the
TSA

Background to Proposed Process:

The CBN has directed all Deposit Money Banks to close all revenue accounts belonging
to Ministries, Departments and Agencies (MDAs) of the Federal Government. This
directive heralded the commencement of Federal Government's independent revenue e-
collection scheme under the TSA. Revenues from MDAs now flow directly into the Federal
Government's Consolidated Revenue Fund (CRF) account at the CBN through the
Remita e-collection platform. Recoveries / repayments from AMCON obligors are now to
be remitted individually to the TSA by Head Office Corporate Operations with AMCON
Unit providing transaction details such as name and address of obligor, email address
and phone number of obligor and transfer amount.

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 MANAGE TRANSFER OF RECOVERIES FROM AMCON OBLIGORS TO TSA
Related Documents
 AMCON Act and Guidelines
 Loan Purchase and Limited Service Agreement
 RMG. Transfer Eligible Bank Asset to AMCON

Stakeholders
 Credit Risk Management
 Remedial Asset Management
 Corporate Operations

ACTIVITIES
Responsibility Task Step
Team Member, 1 Create list of AS THE NEED ARISES, PERFORM THE
Access Bank balances to be FOLLOWING TO TRANSFER FUNDS
AMCON transferred to FROM THE AMCON AVAILABLE
TSA BALANCES TO THE TREASURY SINGLE
ACCOUNT

1.1 Daily spool of the list of AMCON obligor

accounts from the Credit Operation portal Commented [OA{1]: Please document in details how this is
done
1.2 Ascertain the accounts that have available
balances to be forwarded to the TSA

ENSURE THE BALANCES COMPRISE

ONLY LODGMENTS MADE POST SALE
OF THE OBLIGORS’ INDEBTEDNESS TO
AMCON AS ONLY LODGMENTS AFTER
AMCON PURCHASE OF THE EBA WILL
QUALIFY AS RECOVERIES FOR
TRANSFER TO THE TSA

1.3 Review the list of AMCON obligor’s with

balances and exclude the following balances
which do not qualify for transfer to TSA.
 Balances from obligors’ with retrieved
exposures done at the instance of the
Bank
 AMCON Obligors’ whose
indebtedness’s were clawed back
 Obligors’ that have restructured their
obligations with AMCON

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 MANAGE TRANSFER OF RECOVERIES FROM AMCON OBLIGORS TO TSA
Responsibility Task Step
 AMCON Obligors that have paid down
and fully settled their obligations to
AMCON
1.4 Prepare the final schedule of balances to be
forwarded to AMCON
1.5 Forward the final schedule of balances in
AMCON Obligor accounts for transfer to TSA
to the Team Member, Access Bank
AMCON Team or review and concurrence
Team Lead, 2 Review and 2.1 Review the schedule of balances in AMCON
Access Bank approval of Obligor accounts for transfer to TSA for
AMCON Team schedule of completeness and accuracy.
balances to be 2.2 Review to ensure balances outlined in step
transferred to 1.4 were duly excluded from the final list of
TSA balances to be transferred to TSA
2.3 If satisfied, advise Team Member, Corporate
Operations to transfer the balances on the
obligors’ to the TSA
2.4 Ensure that TSA guidelines that balances are
transferred individually per obligor is adhered
to.
2.5 Propose entry for transfer of balances by
advising Head Office Corporate Operations
of the obligors’ current / collection account
with inflows that is to be debited. Also forward
the below listed obligors’ details which will
serve as part of the posting narration for the
transfer to the TSA;
 AMCON Loan Agreement ID
 Name of the Obligor
 Obligor e-mail and Phone number
2.6 Forward relevant AMCON TSA number to be
credited with recovery proceeds
Head, Head 3 Posting of 3.1 Receive schedule of proposed postings for
Office entries to balances to be transferred to TSA from
Corporate transfer Head, AMCON Unit
Operations balances to 3.2 Initiator logs on to Flexcube portal
TSA 3.3 Initiator debits the customer’s account and
credits the Remita till account
3.4 Authoriser logs on to Flexcube portal and
authorizes the transaction

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 MANAGE TRANSFER OF RECOVERIES FROM AMCON OBLIGORS TO TSA
Responsibility Task Step
3.5 Initiator logs on to Remita e-payment
platform
3.6 Click “Pay FGN’s and State TSA”
3.7 Select Pay Federal Government of Nigeria
3.8 Select Asset Management Corporation of
Nigeria in “Name of MDA” field
3.9 Select Debt Recoveries in “Name of
Service/Purpose” field
3.10 Input the amount to be transferred, EBA’s full
name, email and phone number as advised
by AMCON Unit
3.11 Click on Proceed to Payment to generate
RRR (Remita Retrieval Reference Number)
3.12 Authoriser logs on to Remita e-payment
platform and authorizes the transaction
3.13 If transaction is above Ten million naira,
Payment and Collections unit authorizes the
transaction
3.14 Receive confirmation of successful transfer
of balances to TSA and advise AMCON Unit
within 48 hours by sending via e-mail, CBN
receipts of funds credited to TSA per
individual obligor Commented [OA{2]: Via mail or what
Commented [AA3]: This is done via e-mail

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