The USA PATRIOT Act & the Irate Customer

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Question:

My understanding is that the USA PATRIOT Act forbids the negotiation of government checks by anyone other than the payee or payees. Do you know where I can find this in print as I have an irate customer that wants me to "prove it" when I told him I was unable to accept a government check made payable to someone else because of the second endorsement required.

Answer:

Answer by Jim Bedsole:I'm not aware of anything in the USA PATRIOT Act stipulating what you state regarding negotiation of government checks. It's all a matter of the degree of confidence you are able to establish regarding the geniuneness and legitimacy of the endorsement.

Answer:

Answer by Ken Golliher:Jim is correct, the USA PATRIOT Act's changes to BSA had no impact on this issue. However, I want to add that federal regulations do not obligate you to cash a government check for anyone, including the payee. That eliminates any intelligent response to a "show me where it says that" request.

First published on BankersOnline.com 8/14/06