text: Chapter 3
  mission requirements. As a theater matures and operations allow, FM officers should
  transition the theater to a near cashless environment. An inverse relationship exists
  between the duration of a conflict and the usage of physical cash. It is incumbent on
  FM officers to continuously leverage technology and national providers to reduce
  cash on the battlefield.
  SECTION I – BANKING SUPPORT
  3-1. As a core competency of financial management banking support has become an integral part of
  financial management operations. The successful and rapid implementation of e-Commerce into
  contracting and financial management operations will assuredly enable the warfighter to protect the force
  and bring stability to a host nation by strengthening that nation’s banking system, legitimizing the
  government by increasing the confidence on the host nation’s economy.
  BANKING AND HOST NATION SUPPORT
  3-2. In order to ensure banking success, a partnering of national providers such as the DOD, the Treasury,
  the DOS, USAID, the Federal Reserve Bank (FRB) and DFAS should occur. These institutions are the
  cornerstones for providing the instrument of economic power during military operations. The interagency
  partnership among these agencies yields the synchronization of banking and E-commerce initiatives across
  the range of military operations. These agencies must be integrated early in the planning process and given
  the opportunity to deploy assets forward early in support of unified land operations and to plan for the
  establishment of a national banking system. In the early stages of operations financial managers play an
  important role in the integration of national providers.
  3-3. The FMSC Director, working in consultation with the Theater G-8, will develop an assessment of the
  theater and host nation banking requirements. The FMSC assessment will consider infrastructure
  requirements necessary to increase stability of the host nation financial systems, to include central and
  wholesale banking processes and procedures, and correspondent banking relationships. The assessment
  centers on identifying and understanding the impact on the affected host nation’s economy and of the U.S.
  presence in the diplomatic, informational, military, and economic domains. The host nation’s banking laws,
  the Status of Forces Agreement, or other host nation agreements require review to determine what the
  banking rules are for foreign customers and which banking entities are permitted to operate within the
  country; a foreign bank, U.S. bank, Credit Union (CU) or a military banking facility (MBF). Additionally,
  if the establishment of any type of bank on a DOD Installation (e.g., contingency operating base, forward
  operating base (FOB) is required, the FMSC will facilitate the process; however the base commander is the
  signing authority for the operating agreement of a bank is the area. Follow the rules set forth in DODFMR
  Volume 5, Chapter 34 and DODI 1000.11 for DOD banking policy.
  3-4. The U.S. Embassy of the host nation (a subset of the DOS) may be able to provide significant
  support to FM operations through its economic officer, finance officer and Treasury attaché. U.S.
  embassies maintain LDA with host nation banks to facilitate procurement of funds. The FMSC analyzes the
  host nation banking sector in order to leverage the U.S. country team’s expertise and determines where to
  open an LDA. Until the establishment of an LDA, FM units can procure funds from U.S. embassies
  through its already established LDA. Additionally, the DOS, in coordination with Treasury, is able to
  provide detailed information about a country’s banking sector, which will assist FM units in the
  development of a banking plan/initiative early in the operation. Where there is not an established U.S.
  Embassy, the FMSC Banking section procures funds until the theater matures, and an LDA is established.
  3-5. Banking and disbursing support are complementary. A sound banking system promotes economic
  growth and development, as well as employment opportunities for the local populace in an immature
  theater. Therefore, reestablishing or improving the host nation banking infrastructure is critical to the
  transition from a U.S. dollar-based operation to one backed on local currency. FM disbursing operations
  serve as the catalyst for such a transition with an ultimate goal of leveraging technology to make payments
  electronically. This system promotes efficiency and decreases the opportunities for fraud and corruption.
  This essential process also promotes a healthy relationship between the Army and the host nation.