05/10/2010
Does the bank have to do an OFAC check on checks that they write, or on contributions, bills, etc.?
05/10/2010
Many of our commercial clients originate ACH files and some transactions get returned for insufficient funds, etc. When an ACH transaction is returned to us, we charge it back to the client’s account, much like we do for returned checks. We have a couple of clients who have asked for an individual ID to appear on our ACH Return Notices, along with appearing on the transaction itself (though DDA and/or Online Banking history), and appearing on the DDA statement. We have a procedure in place that stops this information from printing on the original ACH transaction for consumer clients. Many of them complained, since this field may contain social security numbers. There is no regulation on what has to appear in this field. It may contain a SS number, but may also contain other information. I have seen a mix of things in this field ranging from a blank field, to a person’s name, to a string of numbers and letters that do not mean anything to me. Basically, we hide this field from consumers due to their complaints. The situation I am asking about is slightly different, but I would still like to confirm with you that there are no regulatory or privacy issues. For the custom we are getting ready to ask for, it will show the information that is in this field, it will show it on the actual return notice, it will print it on the statement, and will also appear through DDA and OLB history. The difference here though is that the client who sees this information on his return notice and on hus statement is the same client who populated that field, so I do not think it will be an issue, since it is information that the client provided to us originally, and that he already has access to it, but I wanted to double check before we get too far down this road.
04/19/2010
Our customer had checks stolen, forged, and cashed at another financial institution. Since the other financial institution made final payment, can I return the checks to them on a "without entry" basis? Is my financial institution under obligation to reimburse its customer for the items that were cashed at the other financial institution?
03/15/2010
A customer has requested the Social Security office to appoint a new representative payee for her account. This was granted. How do we handle the change, and can the new rep close the existing account?
03/15/2010
If a customer had someone make counterfeit checks with his account number on them and then that unauthorized person used these checks to purchase items from a store that processed the check electronically, what are the time frames for customer reporting and the bank returning the item as well as required paperwork? It appears we are crossing from checks to Reg E and I am not sure what applies where.
03/15/2010
We have an organization that had checks stolen. Some of the checks were brought into our bank and cashed at our teller window by the person forging the endorsement. The signers on the account are bringing us an affidavit of forgery. Where does the bank stand on the checks we cashed? I assume we are out and would need to prosecute the forger.
03/08/2010
Is it necessary to file a SAR on customers who write checks in excess of $5,000 on a closed account, when there is no loss to the bank? What about filing a SAR when a customer writes a check in excess of $5,000 and the check returns NSF? We have never heard of this, but are being told by our AML are that it is required.
03/01/2010
A check came across our non-post, and upon review it was revealed that the wife of the account holder had forged his signature and wrote the check to pay a bill. This appears to be a regular occurrence. The wife is not on the checking account. Does this constitute fraud or violate any other rules or regulations?
02/01/2010
Client "A" signs an affidavit stating his partner client "B" has forged checks to himself and deposited them into his own private account. We (the bank) close all of "B"'s accounts and give "A" the money. There is no court order to release the funds, we acted only on "A"'s claim. Have we broken any major rules/regulations?
01/18/2010
Whenever we file a SAR for check kiting, we place a message on the customer's screen, so we will not accept checks from the other bank involved. We do this instead of closing the account. Does anyone else do this? If so, what do you tell your customer? I know we cannot say anything about the SAR or that we have knowledge they are kiting, so what else can we actually tell them for an explanation?