Post Office Ltd — Strictly Confidential
RISK AND COMPLIANCE COMMITTEE
05 January 2005 — Meeting Ref 03
Members:
Sir Mike Hodgkinson (Chair)
Peter Corbett
lan Anderson
In Attendance
Tony Utting
Keith Woollard
Michael Dadra
Apologies
Rod Ismay
SUMMARY ACTION POINTS
POL00021416
POL00021416
ITEM ACTION LEAD
0301 Investigate how Subpostmasters appointment I and I PC/IA
suspension/reappointment process can be improved to reduce
tisk - lessons learnt from Sandbach case. To include developing
our own internal pool of interim branch managers.
0302 Tony Utting to supply an update to the forum on Turners Hill I TU.
case.
0303 Tumers Hill case details to be sent to Bob Wigley. PC
0304 Ensure that the remaining key controls are checked by year- I MD/RI
end.
0305 To confirm what action the Retail line manager for Sevenoaks I MD
has taken in response to the audit findings and that a
1.
MINUTES FROM LAST MEETING
Meeting Ref 02 - minutes approved.
POL00021416
POL00021416
Post Office Ltd - Strictly Confidential
2. STATUS OF ACTIONS FROM THE PREVIOUS MEETING f~
0208 Date of incident, fraud type, total loss and POL exposure to be I Ongoing
added to sheet for future meetings
0209 Tony Utting to attend next forum to discuss potential fraud PO I Completed
Card Account
q Irrelevant .
0211 I Future minutes to be copied to Bob Wigley [I Ongoing
3. MATTERS DISCUSSED AT THE MEETING. AND NEW ACTIONS
REQUESTED .
The issues discussed included the following items (which are expanded on as shown):
3.4 Branch Control
3.2 Key controls
3.3. Team updates
3:4 DVLA report
3.4 Branch Control - Major Issues
Updates received from old cases: Sandbach, Blackwood and Sevenoaks.
Letter sent to Bob Wigley about Sandbach was discussed and issues relating to
interim Sub postmasters. Fao
New cases discussed: Turners Hill and Corbylands Road.
Action 0301
Investigate how Subpostmasters appointment and suspension/reappointment
process can be improved to reduce risk - lessons learnt from Sandbach case. To
include developing our own internal pool of interim branch managers.
Action 0302 . .
Tony Utting to supply an update to the forum on Turners Hill case.
Action 0303
Turners Hill case details to be sent to Bob Wigley.
POL00021416
POL00021416
Post Office Ltd - Strictly Confidential
Irrelevant —
3.3. Team Updates
3.3.1__Audit_and Inspections Michael Dadra reported that Sevenoaks was
recently re-visited as part of the annual certification of compliance process and
given the major loss at this branch it is of significant concern that the Branch
manger had signed false declarations stating that supervisory controls were in
place when they clearly were not. To date there has been no response from the: é
retail line manager.
Action 0305 .
To confirm what action the Retail line manager for Sevenoaks has taken in
response to the audit findings and that a programme of supervisory checks of
stocks is deployed
3.3.2__Anti_ Money Laundering (AML) and FSA Keith Woollard updated the
forum on current initiatives in the team. The Financial Services Compliance
report Nov 2004 was discussed. No current major issues of concern but
continued close monitoring required.
Action 0306
Confirm that the value of transaction where identification is required for
purchasing foreign currency has been uniformly communicated and understood.
Irrelevant
3.3.3 Internal Crime Tony Utting gave a broad overview of the team dynamics
for. Internal Crime.
There are over 600 cases at present spread over 39 investigators.
Financial investigations (freezing proceéds of crime) were discussed and issues
around Home Office training. £1.2 M recovered so far this year.
An overview of the security features for Post Office Card account was discussed.
DWP cash cheques and liabilities were discussed.
New risk model for profiling Subpostmasters was discussed.
Action 0308
POL00021416
POL00021416
Post Office Ltd — Strictly Confidential
Inform Sir Mike of the Home Office contact if support is required to speed up oo
training process for financial investigators.
+
co
POL00021416
POL00021416
5. DATE OF NEXT MEETING
6" April 05
10:00 - 11:30
Sir Mike's office
Future agenda Item
How. we cover Post Office Ltd liabilities for Cash Cheques to be discussed at next forum.