SLA Operations and Service Delivery

8/13/2019 SLA Operations and Service Delivery

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SSeerrvviicceeLLeevveell AAggrreeeemmeenntt bbeettwweeeenn SShhaarreeddSSeerrvviicceeCCeennttrree((SSSSCC))--NNaaiirroobbii aanndd CBA Tanzania.

22001133SSeerrvviicceeLLeevveellAAggrreeeemmeenntt

SLA version Reviewed by Date

Version 2013_1

1. Distribution list

Group Chief Operations Officer Geoffrey Githinji

CBA T Head of Operations and Service Delivery Nurdin Semnagwa

2. Introduction

The agreement will describe the process events, roles and responsibilities of all sections/persons in SSC-Nairobi and the respective delivery

timelines.

Preamble on GSSC Nairobi:

SSC Nairobi is a centralised operation unit set up in Kenya to undertake back office processing task for Kenya, Uganda and Tanzania

SSC Nairobi is part and parcel of CBA Group, Managed and guided by policies procedures and management decisions of CBA Group.

2.1 Purpose of Service Level Agreement (SLA)

The purpose of this Service Level Agreement (SLA) is to define the performance criteria against which the agreed service provision will

be both measured and monitored. The defined performance criteria will be periodically reviewed throughout the term of the Service

Level Agreement to allow for the incorporation of any revised performance levels.


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1.2 Definition of Terms

Parties to Service Level Agreement

This Service Level Agreement is concluded between the Service Provider Shared Service Centre - Nairobi (SSC) and the followingService Recipients

Definition Meaning

BIA Business Impact Analysis

BCP Business Continuity Plan

DOI Department Operating Instructions(Procedures)

DRP Disaster Recovery Plan

KRI Key Risk Indicators

Service Provider Shared Service centre Nairobi will be undertaking the centralised

operations tasks on behalf of CBA Tanzania and CBA Uganda Limited.Service recipient All branches and department of CBAT, CBAU that will be served by SSCNairobi.

Working Day A day on which Banks are ordinarily open forBusiness in [Monday to Friday excluding any advised public holiday).

SSC Shared Service Centre


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CBA Tanzania Limited

CBA Uganda Limited

3. Terms and Conditions of Service Level Agreement

The performance criteria established within this document are predicated upon the transaction volumes, market conditions and

environment, and product coverage prevailing at the time of signing. Any material change in transaction volumes or commencement

of trading in a product not currently defined in this document may necessitate a re-negotiation of the service provision under the terms

of the Agreement.

At any time during the term of the Service Level Agreement, either the service provideror the service recipientmay request an

amendment to any given performance criteria. Such a request must be raised in writing and negotiated between the signatories to the

Service Level Agreement.

During the term of the Service Level Agreement, either the service provider or the service recipient may request a temporary

amendment to any given performance Criteria in order to accommodate cases of specific or urgent business need. The duration and

acceptability of such temporary amendments will be negotiated between the signatories to the Service Level Agreement. If approved should be

communicated in form of memo to be incorporated in the SLA on annual review.

All times indicated are East Africa Time (EAT) unless otherwise indicated for a particular item/activity.


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4. Period of Service Level Agreement

This Service Level Agreement (SLA) is dated December 2013

The term of the Service Level Agreement will remain in effect until end of Dec 2013 when a new SLA is scheduled for sign off. Duringthe review period, it is assumed that the terms

Under the existing SLA shall continue to be in use until sign-off of the new SLA. Either party may request that the agreement be re-negotiated at any time.

5. Confidentiality

The service provider will protect the confidentiality and integrity of the service recipients data as outline d in the CBA Staff code of

conduct signed by all members of staff.

6. Country Regulatory compliance & Internal/ Legal and Compliance Approvals

The country shall ensure that they have obtained the Regulatory / Internal/ Legal and Compliance approvals to migrate the belowindicated processes to SSC Nairobi accordingly.

6.1 Compliance with CBA Group policies, procedure:

The SSC shall in all instances be guided by CBA group policies, procedures and management directives in collaboration with allprocedures agreed with country for all transactions processed. This includes CBA Group policy and directive on Anti-money launderingand terrorist financing. The said procedures and process flow shall be reviewed at the request of either party or during the annual SLAreview. Activities covered in SLA have been verified and validated and considered as updated in line with country operatinginstructions/approval.

7. Penalties & liabilities

The SSC Nairobi will take appropriate disciplinary action as per the Human Resource Policy under advice to the service recipient on

any of their staff who has caused direct or indirect loss to the service recipient. SSC Nairobi is a non profit making entity and all costs

are recharged to the respective countries in line with agreed recharge methodology.


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8. Performance Monitoring:

Monthly SLA review meeting will be held with all designated CBA Spoke country representative via teleconference channels. Where

Key pre- agreed metrics/measures of SSC and service recipient performance will be discussed and documented. Performance and

accuracy tracking both at SSC level and spoke country level will be done through MIS dashboard presented and discussed in monthly

SLA review meetings. The content of the dashboard will be as per agreed guidelines from Group Chief Operations Officer for SLA

review discussions.

8.1 Error rate Measurement:

The agreed error rate target for SSC is not exceeding 0.5% of the monthly volumes processed i.e. accuracy level of 99.5%. Similarly

work from spoke has to be of high quality with Minimum errors


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8.4 Surge Volume:

The SSC will endeavour to operate at the highest level of efficiency. In instances where the Capacity utilisation ratio (CUR) raises toabove 120% due to Increase in volumes received from country/branch the SLA review forum shall be used to negotiate revised TAT delivery

timelines or increased resourcing on need basis.

9. Archiving and maintenance of customer documentation:

The records and audit trails will be maintained as per SSC record retention guidelines.

10. Contingency planning: The systems employed by SSC have been designed and implemented with a high degree of resilience.Nevertheless, arrangements exist for the provision of contingency processing when required.

The need to invoke business continuity recovery plans will be done by the relevant SSC department manager in consultation with theBusiness Continuity Manager.

11. Standard Operating Hours:

The SSC Nairobi will be in operations on the days and time indicated belowMonday- Friday 8.15am to 5.00pm.In the event that Kenya will have a public holiday falling between Monday-Friday, SSC will ensure that the service for the spoke countries isnot impacted by providing resources to ensure the work for CBAT, CBAU is processed as per the agreed SLA. All applications received onSaturdays will be processed by SSC on the following working day.

12. Service Fees/Charges:

The SSC shall recharge all costs incurred in undertaking the centralised operations tasks to the countries supported. The current SSC

fee structure has not been defined and the group advised the previous charges for the products to apply.

13. Operational Losses


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In the event of an operational loss occasioned by SSC, the loss shall be booked by the respective country. SSC will institute appropriate

disciplinary measures on the staff concerned and share the same with CBAT/CBAU. The resource identified to be the root cause of the

issue to disciplined accordingly.

14. Audit Reviews/Risk Management

SSC Nairobi will be subject to reviews by both Group Internal Audit and external auditors. The purpose of this is to provide assurance to

the compliance of procedures and controls within SSC.

RCSA will also be conducted to assess the level of risks that are inherent in the unit and institute mitigation measures.

15. Escalation Process: This Escalation process will be followed in the event that the agreed service standards are not met:

1stReminderService Manager- SSC, Unit Manager- cc: Head of Department

2ndReminder - Head of Central Operations cc: Service Manager SSC

3rdReminder -Head of Operations Control cc: GCOO


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Distribution and Approval List:

The signatories below have given their agreement to this SLA so far as it impacts upon their area of responsibility.

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2.1. Recon Account Services

Service ServiceRecipientBranch/OCC

Spoke Responsibility ServiceProviderSSC

Responsibilities of Shared ServiceCentre


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1. Account OpeningCapture (DMS)

CBAT Scan properly completed &verified instructions to SSC viaDMS (Maker & Checker).

Branch to send request by

1600hrs

Requests sent after 1600hrsEAT will be treated as receiptsfor the next working day

Do a quick account openingfor both personal andcorporate accounts. Ensureaccount opening forms iscompleted and validated asper attached checklist- CBATto provide

DPU-accountmaintenanceteam

Pick request from DMS queue for alldropped before 1600hrs

Check for the completeness ofdocuments.(Ensuring that all

mandatory requirements are met ieAML part.

Check KYC

Do a long account opening- Capturethe image/signature, capture thestatic data, account maintenance

Return incomplete/defectivedocument to the Branch to fix theexceptions.

TAT- Same day


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2. Account Amendments

>Amend customerdetails

>Amend accountsignatories andmandates

>Amend customercontacts

>Amend statementcycles

>Maintenance andamendment of Agentdata

>Amendment ofposting restrictions

>Maintenance of DOI

>Maintenance of POA

>Maintenance of DAOmovements

CBAT Acknowledge receipt ofInstructions by stamping onthe instructions

Indicate on the instructions the

person who has delivered theinstructions e.g Drawer, Agent

Verify the customer signatureand annotate on the document

Carry out call-backconfirmations. This should bedone using the numbers in oursystem and from a recordedline. The number used for callback should be indicated onthe form.

Scan and forward thedocuments to the processingteam for processing throughDMS (Maker/checker) process

DPU-Accountmaintenanceteam

Pick request from DMS queue for alldropped before 1600hrs

Verify the completeness of theinstructions received. Confirm that

the Branch has done all theactivities/tasks that they aresupposed to do.


If everything is in order, processthe amendments

TAT- Same day


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3. Account Closure CBAT Receive Customer Instructionsfrom the customer

Carry out due diligence on thecustomer instructions

Interview the customer onreasons for closure

Interview the customer andestablish on how he/shewishes to be paid the balancein the account

Pay the customer thedifference and retain theaccount closure charges

Retrieve the customer file and

mark the account asCLOSED

DPU-Accountmaintenanceteam

Deletion of account signatures andphotos on T24


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Payment Services

1. Standing Orders-

Set

up/amendments

CBATReceive instructions fromcustomer.

Verify account signature/

mandate

call back customer to

Confirm the standing order

with the drawer

Scan document through

the DMS before 1600hrs

Payments team Pick request from DMS queue for alldropped before 1600hrs

Verify the completeness of the

instructions received. Confirm thatthe Branch has done all theactivities/tasks that they aresupposed to do.


If everything is in order, processthe Standing order

For manual STO preparepayment card

TAT- Same day for instructionsdelivered before 1600hrs


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2. CAU-Disbursements

CBAT Prepare FM memo signed byCAU managers. (This shouldbe as per the limits. CBAT toprovide specimen signaturesand the limits as well)

Scan the disbursementinstructions in DMS before1600hrs

Payments team Pick request from DMS queuefor all instructions droppedbefore 1600hrs


instructions received.

Confirm that they have beensigned as per mandate andauthority levels

Return incomplete/defectivedocument to the CAU to fix theexceptions.

Process in T24 as EFT, TT,or

RTGS

Route in swift for RTGS and TT

Extract the clearing file to benbank for EFT

3. Account Sweeps CBATReceive instructions fromcustomer.

Verify acct signature,

mandate


Confirm the Sweep with

the drawer

Scan document throughthe DMS before 1600hrs


Verify the completeness of theinstructions received.

Return incomplete/defectivedocument to the CAU to fix the

exceptions.

Set up, amend, close in T24 as

per customer request

Archive through DMS


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4. Foreign TTs CBATReceive instructions fromcustomer.

Verify account signature/

mandate

call back customer toConfirm the standing order

with the drawer

Scan document through

the DMS before 1600hrs

Payments team Pick request from DMS queue for alldropped before 1600hrs

Verify the completeness of theinstructions received. Confirm that

the Branch has done all theactivities/tasks that they aresupposed to do.


If everything is in order, processthe Standing order

TAT- Same day for instructions

delivered before 1600hrs


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5. RTGS CBAT Receive customer

instructions

Verify signature


Confirm the payment with

the drawer

Scan document in DMS



instructions received. Confirmthat the Branch has done all theactivities/tasks that they aresupposed to do.


Process in T24 as EFT, TT,or

RTGS

Route payment through SWIFTfor RTGS and TT

Extract the clearing file to benbank for EFT

TATsame day for instructionsdelivered before 1600hrs


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6. Incoming SWIFTmessages

CBAT Advise customers of large

payments

Negotiate rates as advisedby SSC through Email

Request for KYC

documents

TAT- Countries should

respond within the same

day

Payments team Process tracers

Process Payments

Return payments where no

sufficient documentation has

been provided

TAT- Failure to provide the

required information as

requested by SSC within 7

(seven) working days, the

payments received will be

returned to the country of

origin/sender.

SLA Operations and Service Delivery

Documents

Transcript of SLA Operations and Service Delivery