Electronic funds transfer (EFT) allows for the transfer of funds between accounts by electronic means. EFT may be used:
- by a licensee to deposit monies into its designated lottery trust account, to pay for expenses or to disburse net proceeds derived from the conduct of its lotteries for programs; and
- by an HCA to deposit monies into its consolidated designated trust account (CDTA), to pay for expenses, or to distribute net charitable gaming event proceeds to its member organizations.
The provisions for licensees and HCAs that choose to implement EFT are detailed in the Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions. In general:
- Licensees must decide in accordance with their constitution whether to implement EFT.
- Each member organization of an HCA that chooses to use EFT must provide the HCA its banking information, for each designated lottery trust account to receive funds electronically.
- The licensee or HCA must ensure that its financial institution’s electronic funds transfer system has the capability of supporting electronic dual authorization as the transfer of funds must be authorized by two (2) of four (4) bona fide members that have been designated to administer EFT.
- The licensee or the HCA must obtain reports from the financial institution confirming the electronic transfer of funds and any discrepancies.
- These reports must be reviewed by the two (2) bona fide members who did not sign the original authorization for the transfer of funds. These members must also prepare a report to be presented to the licensee’s or HCA’s Board of Directors, as the case may be.
9.15.1 (A) Forms of electronic banking not permitted
The licensee and HCA must not use other forms of electronic banking such as:
- automated teller machines (ATMs);
- debit cards;
- internet banking; and
- telephone banking.
9.15.1 (B) Inappropriate uses of EFT
EFTs must not be used to pay for certain expenses including:
- reimbursement of out-of-pocket expenses for bona fide members;
- licensing or authorization fees; and
- HCA Administrator.
Please refer to the Financial Management and Administration of Non-Pooling Bingo Halls Terms and Conditions for further information.