Looking for some feedback regarding a new situation to my institution.

We have encountered a customer that has an ATM on his premises, however he does not own it, rather he receives a rent check from the individual that services and fills the ATM.

Normally in this situation we would obtain a copy of the contract between our customer and the third party that is filling the ATM, as to do our due diligence and have the customer certify that they have nothing to do with it besides receive monthly rent for the space.

This particular customer however does not have a contract with the individual who pays him rent. Rather, they have a "handshake" agreement which is evidently common for the demographic region in which this is located, as informal business is more common for the backgrounds of the individual involved.

I'm currently drafting something to the effect of "I (business owner name) certify that I do not own, service, or fill the ATM located on my premises, rather I receive monthly rent from (third party name) in the amount of (amount)." I will have the customer sign this in order to document that we are aware of the situation and have obtained the customers signature verifying that the information is true. Would this suffice as far as EDD is concerned?

Whether it suffices will be in the eye of the beholder, but, in my book, it's about all you can do. Add a sentence that says he promises to tell you if any of the information he has supplied you changes, but get a new one once a year anyway.

In his shoes, I'd want an agreement that said I was not responsible for the machine's loss, theft, damage by fire, etc. (As far as the likelihood of "stealing" an ATM, I came on a scene in NC where two good ol' boys tried it. The rear axle of their truck was in the parking lot of the gas station chained to the ATM. The rest of their vehicle was a few feet away.)