Comments due on Fiscal Service proposed amendment to regs on payment of U.S. Treasury checks
The Treasury Department's Bureau of the Fiscal Service has published [88 FR 6674, 2/1/2023] a proposal to amend its regulations governing the payment of checks drawn on the United States Treasury at 31 C.F.R. Part 240. Specifically, to prevent Treasury checks from being negotiated after cancellation by Treasury or a payment certifying agency—also known as payments over cancellation (POCs)—Fiscal Service is proposing amendments that would require financial institutions to use the Treasury Check Verification System (TCVS), or other similar authorized system, to verify that Treasury checks are both authentic and valid. This proposal also contains conforming amendments, including the addition of a definition of “cancellation” or “canceled.”
Comments on the proposal are due by April 3, 2023.