As everyone knows, there are many counterfeit cashier checks floating around. Other then calling the issuing bank for verification, how is everyone else handling cashier checks and remaining in compliance with the Reg. CC availability requirements?

Thanks

I distributed the following to all of our tellers and have incorporated into our Reg CC procedures. This was adapted from a thread contributed significantly to by John Burnett, so I definitely want to give him credit.

When it comes to cashier's checks, teller’s checks, and certified checks here are your permissible choices under Reg CC when the customer wants to deposit the item to a checking account:

 Accept the check for deposit and provide next day availability. This choice will be fine if the check is valid and legitimately negotiated. Cautious bankers will make this choice only if they are comfortable with their customer relationship and don't have any reason to doubt the validity of the check (lottery scam, Web auction scams, alterations, etc.)
 Accept the check for deposit and apply an exception hold for repeat overdrafts (in the event that your depositor is in this limited group) or an exception hold for redeposited items (if the check has been previously returned and is being redeposited).
 Accept the check for deposit and apply a "reasonable cause" exception hold. This only works if you have information that would cause a reasonable person to form a well-grounded belief that the check won't be paid. That belief can't be based on a "class" of checks (all cashier's checks, because we've had a spike in cashier's check fraud). It has to be a set of facts concerning the check in question (the drawee bank tells you it's probably a counterfeit, or hasn't issued the check in question; check matches description of identified fraudulent items reported by the drawee bank), or facts surrounding the transaction (the customer's actions or conversation lead you to believe the check is part of a scam). Since the holds in these cases normally only run 7 or 11 days, this option is not always the wisest choice, particularly if you suspect fraud. A better option may be the last one below.
 Accept the check and place an exception hold on the amount over $5,000. The reason for the hold might be that the check is being deposited to a new account, or that it's part of a large check deposit (over $5,000). This exception reason is bothersome. Isn't losing $5,000 to a check fraud only marginally more acceptable than losing the full amount of the check?
 Accept the check for deposit to a savings account and apply whatever hold is reasonable. Reg CC does not apply to savings accounts.
 Accept the check only for collection. Sure, this involves extra work and costs. But it provides the only guarantee of good funds once the deposit is finally made (if it is).

Thanks. I think I will take Mr. Burnett's Webinar on this Topic on August 2nd as well. Thanks for the reply.

For the benefit of others, info on John's webinar is here and will also be on CD for sale in the Banker Store a few weeks after the live broadcast.