/bank-reconciliation

name: bank-reconciliation
description: >
  Activate for: bank reconciliation, nostro reconciliation, suspense account,
  GL reconciliation, provision reconciliation, inter-company reconciliation,
  nostro break, unmatched item, reconciling item, MT940, MT950, MT942,
  aged items, reconciliation certificate, suspense clearing, four-way
  reconciliation, IFRS 9 provision reconciliation, settlement break,
  trade reconciliation, position break, GL-to-risk reconciliation.
  NOT for: IFRS 9 ECL model calculation (use ifrs9-ecl), capital adequacy
  reporting (use basel-capital), AML transaction monitoring (use aml-typologies).
metadata:
  version: "1.0"
  author: "Panaversity — The AI Agent Factory"

RECONCILIATION TYPES — LOAD THE RIGHT CONTEXT

| Task Description | Use This Context | | ------------------------------ | ------------------------------------------------ | | Nostro / correspondent account | sections: NOSTRO, AGEING SLA, MATCHING HIERARCHY | | IFRS 9 provision GL tie-out | sections: FOUR-WAY RECON, P&L TIE-OUT | | Suspense account clearance | sections: SUSPENSE, AGEING SLA, WRITE-OFF | | Inter-company / inter-branch | sections: INTERCO, AGEING SLA | | Trade / securities settlement | sections: TRADE SETTLEMENT, AGEING SLA | | Full financial close | ALL sections |

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MATCHING HIERARCHY — APPLY IN THIS EXACT ORDER

Step 1 — EXACT MATCH Criteria: amount = amount AND value date = value date AND reference = reference Action: Auto-clear. No human review required. Log as matched.

Step 2 — FUZZY MATCH Criteria: amount = amount AND value date = value date AND reference partially matches (truncated, reformatted, leading zeros stripped, SWIFT truncation applied) Action: Auto-clear with exception note. Flag for daily exception report review.

Step 3 — DATE TOLERANCE MATCH Criteria: amount = amount AND reference matches AND value date within ±2 business days Action: Auto-clear with timing difference notation. Post value date correction if needed.

Step 4 — PARTIAL SUM POOL Criteria: Multiple items on one side aggregate to a single item on the other side (common in retail settlement aggregation, netting arrangements) Action: Group items into pool. Present to human analyst for confirmation before clearing.

Step 5 — UNMATCHED RESIDUAL Criteria: No rule above is satisfied Action: Generate investigation hypothesis (see BREAK INVESTIGATION below). Queue for analyst with hypothesis, probability estimate, and recommended action.

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BREAK CLASSIFICATION

Mirror item only (no external statement item): → TIMING DIFFERENCE: Payment sent / instructed but not yet appearing on statement Probability: High for items ≤ 2 business days Action: Monitor for settlement; query counterparty if aged > 3 days → PAYMENT FAILURE / REJECTION: Payment rejected by correspondent, no credit applied Probability: Rises sharply after 2 days with no statement match Action: Check SWIFT gpi tracker; request SWIFT MT199 status query

Statement item only (no internal mirror item): → UNBOOKED RECEIPT: Inbound credit not yet identified and posted in internal systems Action: Move to Payment Suspense immediately; search expected inbound payment pipeline → UNEXPECTED DEBIT: Correspondent fee, charge, or debit not anticipated in mirror Action: Verify legitimacy of charge; post to bank charges or dispute

Amount mismatch (reference and date match, amounts differ): → CORRESPONDENT FEE: Correspondent deducted charges from payment amount (SHA/OUR confusion) Action: Post difference to bank charges; close break → FX ROUNDING: Currency conversion rounding difference (typically < USD 5) Action: Post to FX rounding account; close break → PARTIAL PAYMENT: Counterparty paid less than full amount Action: Post partial receipt; raise query for remainder; assess credit risk impact

Duplicate: → SYSTEMS PROCESSING ERROR: Same instruction processed twice Action: Reverse the duplicate posting; investigate root cause; log as operational risk event

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AGEING SLA ENFORCEMENT

Apply to ALL reconciliation types. Escalation is automatic — do not wait to be asked.

| Age | Action | Escalation Recipient | | --------- | -------------------------------------------------------------------------------------- | ------------------------ | | 0–2 days | Auto-match window. Monitor only. | None | | 3–5 days | Notify account owner. Initiate investigation. | Account owner | | 6–15 days | Formal counterparty query. Head of Operations alert. | Head of Operations | | > 15 days | Finance Controller alert. P&L provision assessment. | Finance Controller / CFO | | > 30 days | Write-off assessment. Operational risk event log. Regulatory notification if material. | CFO + Head of Compliance |

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NOSTRO-SPECIFIC RULES

1. Every open nostro break must appear on the daily nostro break report with:

• Break type classification
• Age in business days
• Investigation status and next action
• Owner name and date assigned

2. Unidentified credits must be moved to a named suspense account within 24 hours. Never leave an unidentified credit sitting unallocated in the nostro mirror.

3. SWIFT gpi (global payments innovation) tracker should be checked for all mirror-only items before raising a formal query. The gpi tracker shows real-time payment status and eliminates the majority of correspondent queries for recent payments.

4. Large nostro breaks (above materialiy threshold, typically > USD 500,000 equivalent): notify the Treasurer and Head of Correspondent Banking regardless of age.

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IFRS 9 PROV