Flag, Lock or Place Accounts On Hold

Target release16.09
Epic
Document statusDRAFT
Document owner 
Designer
Developers
QA

Feature Name

Add support to flag, lock, block, or hold accounts. 

Overview

Feature Summary

  • There are times when account (client, loan, or savings) need to be locked or put on hold - the support for flagging/locking/holding an account needs to be provided. The reasons for the need to flag or place the hold the account will vary but the ability to do so should be provided - flagging an account can have different purposes and consequences - informational/notification, blocking an account, restricting transactions, etc. 

Background and strategic fit

This a useful feature that is needed for general client management, monitoring risk, preventing fraud, and for compliance with regulations for accounting, KYC/AML, etc. Other software systems provide the capability and we need to do the same. 

Business Need

Possible scenarios for when an account could need to be flagged or put on hold include:

  • Blacklisting a client
  • Flagging a savings account as dormant/inactive (currently being implemented)
  • Flagging an account if there are suspicious activities like illegal entries or fraud
  • Guaranteeing a loan (implemented)
  • Compulsory Savings (i.e. 20% of loan amount) 
  • Holding an account for passbook loss
  • Death of an accountholder
  • Inactive/dormant accounts and rules for escheatment
  • Emergency or natural disaster
  • Portfolio being transferred or bought by another institution
  • Locking after X days in arrears 
  • Bankruptcy/financial distress (

Flagging of the account could have different intended results:

  • Flagging of the account could simply be for notification and informational purposes
  • Flagging could be used to block transactions or place funds on hold.

See Also

Feature Requirements

Requirements/User Stories

#TitleUser StoryImportanceNotes
1Define
 

Define Savings Account Flags

As an operations manager or system administrator I want to be able to create a new status of On Hold or Flagged for Savings Accounts  
 Define Loan Account FlagsAs an operations manager or system administrator I want to be able to create a new status of On Hold or Flagged for Loan Accounts  
 Define Reason for Account Flag

As an operations manager, I want to specify the reasons for why an account is On Hold or Flagged

  
 Flag Account or Move into On HoldAs a field officer/employee I want to move an account into On Hold or Flagged Status  
 Types of Account FlagsAs an operations manager I want to define different types of account flags 

Some account flags could be for expected and regularly-occurring reasons (i.e. compulsory savings/guarantee) and some could be for unexpected events (fraud, loss, death, etc.)

This could be handled by the reason or you could have flag type dictate if it's for notification only, blocking a whole account, blocking a portion of funds, etc.

 Restrict Savings TransactionsAs an operations manager, I want to restrict transactions from being made to a savings account that is On Hold or Flagged 

Need to specify what transactions are permitted if any (i.e no withdrawals but fees, etc.)

 Restrict Loan TransactionsAs an operations manager, I want to restrict transactions from being made to a loan account that is On Hold or Flagged Need to specify what transactions are permitted if any (interest, penalties posting, etc.) Are repayments allowed, transfers from other accounts)
 Automatically Remove Account FlagAs an operations manager I want the account to automatically be moved out of On Hold status for certain transactions Should this be allowed to automatically remove an account flag or is it manual?
 Blacklist Client AccountAs an operations manager I want to blacklist a client account so transactions can't be made and staff are notified.  
 Restrict Closing Flagged AccountsAs an operations manager, I want to limit an On Hold or Flagged account from being closed  
 Remove Account FlagAs an operations manager I want to move an On Hold or Flagged Account to a Specific Status Need to define what permitted state changes are - active, closed/blacklisted/etc.
 Client NotificationAs an operations manager, I want to notify a client when their account has been flagged This might become more common with self-service channels. Also have to be sensitive in not notifying them and providing too much information (i.e. if someone is trying compromise an account by responding and notifying them and providing account #)
 Staff NotificationAs an operations manager, I want myself and other staff notified when their account has been flagged  
 View Flag HistoryAs an operations manager I want to see a historical view of when and why an account has been flagged.  
 See Flagged AccountsAs an operations manager I want to generate a report showing all flagged accounts by reason  
 Flag Inactive/Dormant AccountsAs an operations manager I want to flag inactive/dormant accounts Inactive Savings Accounts (aka Dormant Savings)
 Compulsory SavingsAs an operations manager I want to put a percentage of funds on hold as compulsory savings Should this be separate as the account as a whole isn't flagged but just part of the balance
 Define Different General Ledger Accounts for Interest for Locked/Unlocked Accounts.As an accountant I want to define which general ledger accounts interest or fees get accrued to because central bank requirements for non-performing assets/etc.  

Business Rules

Attributes

AttributeDescriptionNotes
   
   
   

Security and Permissions

Mifos Functionality Enhancements

New Screens

Changes to Existing Screens

Changes/Enhancements to Batch Jobs

Changes/Enhancements to Accounting Entries

User interaction and design

Exception Handling

Reporting

APIs

Notes

Questions

Below is a list of questions to be addressed as a result of this requirements document:

QuestionOutcome
How should this relate to the functionality being built out for inactive/dormant savings accounts?Ed: My initial thinking is that as we design the inactive/dormant accounts, we should think about account flags as over-arching umbrella that a dormant/inactive account flag falls under.
How should this relate to functionality in place for blocking portions of accounts as guaranteeEd: My initial thinking is that this might be separate.

Out of Scope