How do large firms prevent a CFO from stealing money? One way I’ve heard involves using dual signature bank accounts. However, I only see banks offering dual signature checks. Are there banks that offer dual signature on ACH transfers as well?*
Companies generally implement a Maker-Checker process to ensure that a payment is seen by at least 2 people, hence Four Eyes process. Some companies even follow a Six Eyes process.
The process is implemented in one of the following systems:
- Checks with dual signatories, as you have mentioned. (I have not seen triple signatories on a check yet)
- Print letter used by company to submit payment data to Bank.
- Email used by company to submit payment file to Bank.
- Bank Website on which company uploads payment file.
- Bank Website on which company initiates payment manually.
- AP or ERP system from which the company initiates payment.
- The intermediate “Corporate to Bank” or C2B system that connects a company’s AP / ERP system to Bank’s System.
*: This is the original question I answered. I’m repeating it to help me make sense of my answer in case it’s moved to / merged with some other question that I didn’t answer.