Acronyms

OTN Online Transaction Number

TRN Transaction reference number
LIB Lion International Bank S. C.
CBS Core Banking System
IT Information Technology

Definition
Company money transfer organization that provide the international
remittance service with LIB.
Funds the total amount of money LIB receives from the company per
transaction, made up of the transfer amount and the LIB fee.
Beneficiary a legal person, entity or natural person in Ethiopia identified by
company as authorized to receive funds from LIB in local currency.
Locations all facilities, outlets or network of branches in the territory owned and
operated by LIB through which it offers retail financial services.
money transfer the payment of transfer amounts sent electronically by company to LIB
services onto beneficiaries on behalf of company.
Transaction the confidential number assigned by the company to each wire transfer
reference number created with all necessary particulars and sent to LIB.
Transfer Amount the funds transferred from customer to the company to be paid to
beneficiary.
Mobile Money an instant international money transfer directly into LIB mobile & agent
Transfer banking system wallets.
Online Transaction the individualized and confidential identification number assigned by
Number company to each beneficiary and communicated to LIB.

Territory the geographical territory of Federal Democratic Republic of Ethiopia

where LIB and all its agents operate.
Agent an entity engaged by LIB to provide the money transfer service in the
territory.

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1. Preamble
Pursuant to the vision of Lion International Bank S.C i.e. to be the leading bank by 2035, using
the widespread of telecommunication technology throughout as a means of communication and
in recognition of its potential as a tool for financial inclusion and efficient payment system, Lion
International Bank issued this procedure for International Remittance with LIB mobile & agent
banking system.
Consequent upon depending on branches for receiving international remittances, this facilitates
more convenient and flexible payment channel through LIB agents 24 by 7 continuous service.
This procedure covers the business rules governing the operation of International Remittance
with LIB mobile & agent banking system and identify the participants and also defines their
expected roles and responsibilities in the system.

2. Objectives
The objectives of this procedure are: -
Provide minimum standard and requirements for the operation of international
remittance over LIB mobile & agent banking system, in effective manner.
Specify minimum business requirements for participants in LIB mobile & agent banking
system
Promote safety and effectiveness of LIB mobile & agent banking system and thereby
enhances user confidence.

3. Scope
To achieve the above stated objectives, this procedure covers business rule, agent network, roles
and responsibilities of participants under the scheme.

4. Governing Laws
This procedure shall be governed by: -
The related Directives of the National Bank of Ethiopia;
All related policy and procedure of the LIB;

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5. Duties and Responsibilities
5.1. Board of Directors
Ensuring that the international fund remittance over LIB mobile & agent banking system
meet all the standards of the bank.
Putting in place adequate measures to mitigate all the risk that could arise in the use of
LIB mobile & agent banking system
5.2. Policy Committee
To deliberate on strategic and policy issues that could have impact on the overall
international fund remittance over LIB mobile & agent banking system and present to the
Board of Directors endorsement;

5.3. Business Development and Corporate Planning Department

prepare the contract document and other necessary information that helps to sign the
contract between LIB and the company.
5.4. Alternative channels banking division
The deployment and delivery of the international fund remittance over LIB mobile &
agent banking system to the customer.
Facilitates international remittance to scheme recipients
Educate the customers & agents on the appropriate use of the service
Ensuring the deployment of adequate channels for enquiries and complaints.
5.5. IT Department
Implement the system interface of LIB mobile & agent banking system with
International remittance company platform.
Ensure that a secure communication channels based on the technology standard of the
banks IT security.
Manage the transaction software provided by the International remittance company.
5.6. Finance Department
Prepare Accounting Procedure Manual of International remittance.
Ensures the settlements of International remittance conducted regularly and accurately.

5.7. International Banking Department

Notify NBE & company about settlement/correspondent bank
inform in detail about the local legal requirement for prefunding to the company

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 follow-up the transmitted funds in lump-sum amount by the company
open a non-interest bearing USD account by the name of the company
5.8. Transfer procedure
LIB shall receive Agents code and ICT users code from the company, those shall be
confidential and used to access money transfer transactions.
LIB shall receive OTN for each intended beneficiary from the company.
LIB shall immediately credit the transferred amount into beneficiarys bank account, if
the company provided beneficiarys bank account number where payment to be
affected directly.
5.9. Payment Transactions
LIB shall verify the identity of the beneficiaries prior to disbursement of the transfer
amount.
LIB shall check full name and payout reference number send by the company with the
one beneficiary present in case if cash payout.
LIB shall immediately credit the transferred amount into beneficiarys bank account, if
the company provided beneficiarys bank account number where payment to be
affected directly.
LIB shall pay the transfer amount in full to specified beneficiaries in Ethiopian Birr.
LIB shall send the company everyday exchange rate applicable for the day, the
communication shall be by email every morning at 8:30AM Ethiopian time.
LIB shall keep suitable books and accounts, and records concerning identity checks
performed against beneficiaries for all transactions.
5.10. Settlements & Accounting for International Mobile Money
Remittance
This section deals with the accounting treatment for international remittance to our Mobile &
Agent Banking customers through Hello Cash (Bel-Cash `Technology Solutions). It has two major
parts: up on receiving the remittance from & returning the undrawn remittance to the
international mobile money remittance organizations.

5.10.1. Receiving the Remittance

This is to handle a lump sum of remittance from abroad through our International Mobile Money
Remittance agents/customers via our correspondent banks such as Commerz
i. With FCY (USD)

Dr. Correspondent Accounts

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 [112003-xx-xxx-xx]
Cr. International Mobile Money Remittance Accounts (at IBD)
[01210390539-64 (Transfer to Mobile Financial Services)]
[01210268383-66 (World Remit Ltd)]

Dr. International Mobile Money Remittance Accounts (at IBD)

[01210390539-64 (Transfer to Mobile Financial Services)]
[01210268383-66 (World Remit Ltd)]
Cr. Contra for MTO FCY Accounts-USD
[660009-00-001-11]

ii. With LCY (ETB)

Dr. Birr Equivalents for MTO FCY Accounts-USD (at IBD)

[660010-00-001-32]
Cr. Mobile and Agent Banking Account (at Head Office)
[221004-00-001-92]

NB:
Each remittance is exchanged at the buying rate of LIB on the date when the
remittance is credited to our accounts with correspondent banks. That means the
birr equivalent of the remittance is credited to A/C#221004-00-001-92 (Mobile and
Agent Banking Account /at Head Office/).

All the above transactions shall be performed by our International Banking

Department on same /next day working day in which the remittance is credited to
our accounts with correspondent banks.

5.10.2. Returning Undrawn Remittance

This is to return the undrawn fund /remittance to our International Mobile Money Remittance
agents/customers via our correspondent banks such as Commerz

i. With FCY (USD)

Dr. International Mobile Money Remittance Accounts (at IBD)

[01210390539-64 (Transfer to Mobile Financial Services)]
[01210268383-66 (World Remit Ltd)]
Cr. Correspondent Accounts
[112003-xx-xxx-xx]

Dr. Contra for MTO FCY Accounts-USD

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 [660009-00-001-11]
Cr. International Mobile Money Remittance Accounts (at IBD)
[01210390539-64 (Transfer to Mobile Financial Services)]
[01210268383-66 (World Remit Ltd)]

ii. With LCY (ETB)

Dr. Mobile and Agent Banking Account (at Head Office)

[221004-00-001-92]
Cr. Birr Equivalents for MTO FCY Accounts-USD (at IBD)
[660010-00-001-32]

NB:
The undrawn remittance is returned to our International Remittance Money
organizations via our correspondent accounts with the actual currency amount
(with the originally received balance)

The birr equivalent of the undrawn remittance amount (i.e the balance credited to
A/C#221004-00-001 on the receiving date of the remittance) is debited from
A/C#221004-00-001-92 (Mobile and Agent Banking Account /at Head Office/).
All loss/gain on revaluation in relation to the return of the undrawn remittance shall
be assumed by our International Banking Department.

All the above transactions shall be performed by our International Banking

Department on same /next day working day in which the remittance is credited to
our accounts with correspondent banks.
5.11. Payment Error & Refund handling
LIB is fully responsible for wrongfully disbursed either to a person other than the intended
beneficiary or where it pays out an incorrect amount. LIB shall prompt (and in any case within
one working day) notify the company of any payment error use its best endeavors to recover the
transfer amount and/or otherwise rectify the payment error, reimburse company an amount
equivalent to the payment error, and indemnify and hold company and its affiliates harmless
against all claims, losses, damages, fines and expenses which arise as a result of the payment
error.
if a company customer requests a refund of a transfer amount and LIB has yet to pay the
applicable transfer amount to the intended beneficiary, LIB shall promptly refund the transfer
amount to company. LIB shall not be entitled to any related to a refund request which arises due
to an act or omission of paying agent refund.

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 5.12. Annex
Commission