What does the term 'dual control' refer to in a banking environment?

In a banking environment, the term 'dual control' refers to a process in which two individuals are required to be involved in counting and balancing cash. This practice is designed to enhance security and accountability within the bank's operations. By having two people participate in the cash handling process, the risk of theft, errors, or fraud is significantly reduced. The presence of two individuals ensures that there is oversight and verification of cash movements, which adds a level of integrity to the transactions being made.

Implementing dual control helps maintain accurate records and provides a safeguard against potential discrepancies. It is a standard practice in the banking industry to ensure that sensitive financial processes are properly monitored and that no single individual has sole control over cash resources. This practice is essential for maintaining trust with customers and ensuring compliance with regulatory requirements.