Establishing and Maintaining Overseas Bank Accounts at Financial Institutions

Overview

This procedure establishes controls and administrative requirements for opening and maintaining overseas bank accounts to ensure proper stewardship of University financial assets.

Two types of bank accounts exist within the University’s banking structure:

• Accounts established and maintained by central administration, domestically or internationally, to support university-wide financial activities. Individual units may not establish separate domestic bank accounts.
• Accounts established by central administration for specific international activities and maintained on a day-to-day basis by a unit. Overseas account requests for individual units are evaluated case by case.

All accounts holding University funds must be titled in the name of “Regents of the University of Minnesota” or the applicable University subsidiary entity, and must include all required legal identification numbers.

Procedures

Overseas Account Request

Step One:

The unit completes the overseas bank account request form and submits it to the Office of Investments and Banking (OIB) at [email protected].

Step Two:

OIB reviews the request, evaluating the business need and any viable alternatives. If approved, OIB notifies the unit and initiates the account opening process. Because each request is unique, subsequent steps are situation-specific; OIB will direct the unit on its role as the process proceeds.

Account Maintenance

The account custodian:

• Notifies OIB via email to request signatory changes. The University’s Treasurer or designee approves all signatory changes. If approved, OIB notifies the unit and provides instructions based on the specific situation.
• Notifies OIB of any personnel changes affecting the custodian role.
• Submits monthly bank statements to Accounting Services at [email protected].

Account Closure

The account custodian:

• Submits a closure request to OIB via email. OIB coordinates with the unit to facilitate closure based on the specific situation.
• If applicable, initiates a wire transfer of remaining funds to a domestic University bank account. OIB provides wire instructions.
• Provides OIB and Accounting Services with a final bank statement showing a zero balance and a reconciliation report.

Restrictions

Use of an account for purposes not authorized in the original request, failure to comply with applicable University policies and procedures, or non-compliance with relevant in-country legal requirements, may result in immediate account closure.