Unit 20: Cash Movement and Payment Processing

Where This Unit Fits

Unit 20 builds on account setup and asset transfer processes to cover the actual movement of cash within client accounts. Proper handling of deposits, withdrawals, and payments ensures operational integrity and client satisfaction.

Unit Overview

This unit provides a detailed view of cash movement and payment processing workflows. Students learn how deposits, withdrawals, wire transfers, and ACH payments are executed, authorized, and reconciled, while mitigating timing and fraud risks.

Why This Matters in Wealth & Asset Operations

Cash handling is the lifeblood of client accounts. Errors in deposits, withdrawals, or payments can impact liquidity, client trust, and regulatory compliance. Professionals need a clear understanding of timing, authorization, and reconciliation processes to prevent operational failures.

What You'll Learn

Core Concepts

• Deposit processing methods and funding sources
• Withdrawal requests, authorization, and controls
• Wire transfer processes and approval workflows
• ACH and other electronic payment methods
• Payment timing, cutoff rules, and settlement schedules
• Fraud risks and controls in cash movement
• Payment reconciliation and tracking procedures

Operational Competencies

• Execute and manage deposit and withdrawal processes
• Process wire and ACH payments securely and accurately
• Monitor payment timing and settlement schedules
• Detect and mitigate fraud risks
• Reconcile cash movements across accounts
• Apply internal controls to ensure operational compliance

Institutional Questions This Unit Helps Answer

• How is cash moved efficiently and securely between accounts and clients?
• What controls and authorizations ensure secure payment execution?
• How are deposits and withdrawals tracked and reconciled?
• How do wire and ACH processes differ operationally?
• What are the operational and fraud risks in cash movement, and how are they mitigated?

Lessons in This Unit

• Lesson 20.1: Deposit Processing and Funding Methods

  Understand the different ways deposits are processed and funded within client accounts.

• Lesson 20.2: Withdrawal Requests and Controls

  Learn how withdrawal requests are handled and controlled to protect clients and firm integrity.

• Lesson 20.3: Wire Transfers and Authorization

  Examine wire transfer workflows, authorization requirements, and operational checks.

• Lesson 20.4: ACH and Electronic Payments

  Explore ACH and other electronic payment methods, including processing and timing considerations.

• Lesson 20.5: Payment Timing and Cutoffs

  Understand how payment timing and cutoff rules affect settlement and operational efficiency.

• Lesson 20.6: Fraud Risks in Cash Movement

  Identify potential fraud risks in cash handling and strategies to mitigate them.

• Lesson 20.7: Payment Validation, Reconciliation, and Cash Control

  Learn how to reconcile payments, track cash flows, and prevent accuracy failure in client accounts.

Practical Application

By the end of this unit, students will be able to execute and reconcile deposits, withdrawals, wires, and ACH payments, apply fraud controls, ensure timing compliance, and maintain accurate records for operational and regulatory integrity.

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