AR 215-1 - Soldier Support Institute - U.S. Army

. In overseas areas—
(1) NAFIs/entities will maintain a U.S. dollar account at available military banking facilities or any local branch of
any U.S. bank that meets the eligibility criteria for CONUS banks. A military banking facility, governed by DFAS–IN
Regulation 37–1, chapter 12, is a branch of a U.S. bank that operates on a U.S. controlled installation under a U.S.
Government contract. All U.S. dollar deposits at military banking facilities are FDIC insured.
(2) NAFIs/entities may maintain a local currency account in a U.S.-owned or -controlled bank, provided each
account offers a reasonable degree of liquidity and security. Amounts on deposit will be limited to the minimum
necessary for—
(a) Projected operational requirements for a period not to exceed 30 days.
(b) Severance pay and other liability reserves.
c. The primary purpose of local bank accounts is to facilitate transferring cash to the designated central bank.
Obligations will be paid from the NAFI’s/entity’s central bank account(s).
d. Local banking transactions are consistent with the following principles:
(1) Cash maintained on deposit will be limited to the level necessary to minimize or preclude service charges, or the
minimum level specified in the local banking agreement.
(2) Current obligations will be not paid from local bank accounts.
(3) Cash amounts in excess of minimum balance requirements will be transferred to the designated central bank
daily.
e. Garrison commanders may authorize supplemental mission fund managers/MWR operating entity administrators
to enter into local banking agreements for services. Local banking services will be obtained using NAF contracting
procedures unless—
(1) Only over-the-counter deposit and currency services are required, or
(2) Service is provided by a bank under contract with FMWRC or DOD.
f. Local bank accounts will be properly established to ensure full insurance protection. A letter of authorization
similar to the example provided in figure 16–1 must be on file with the bank. It will specify that withdrawals are
limited to those replenishing change funds, and transfers to the central bank. Signature cards will be kept current.
AR 215–1 • 31 July 2007
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