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#1259029 - 09/30/09 12:43 PM Monetary Instruments sold to non clients?
Msunset Offline
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Msunset
Joined: Jan 2008
Posts: 145
From time to time, we come across with clients that write a check to a non client, and this non client comes to the bank to exchange said check for a cashier's check. My question is, would the fact that I am exchanging the check and giving a cashier's check to the non client be consider selling monetary instruments to non clients?

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#1259291 - 09/30/09 04:27 PM Re: Monetary Instruments sold to non clients? Msunset
devsfan Offline
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Joined: Jun 2004
Posts: 1,927
NYC
I would think that it would be considered as a sale to a non-client. That being said, our policy prohibits the sale of MIs to non account-holders but we have a few accounts of attorneys and we have agreed to exchange their checks to their clients for cashier's checks. This activity is rather limited and there is no cash involved.

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#1260188 - 10/01/09 05:53 PM Re: Monetary Instruments sold to non clients? devsfan
nemsi Offline
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Joined: Nov 2005
Posts: 383
Our policy states that we will not sell monetary instruments to non customers "for cash". We do allow exchange of on us checks for official checks. official check must show same remitter and same payee.

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#1261415 - 10/04/09 12:21 PM Re: Monetary Instruments sold to non clients? Msunset
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
There is no law or regulation that suggests you cannot sell monetary instruments to non clients. There are record retention requirements that kick in if you sell them for cash between $3,000 and $10,000 inclusive regardless of who the purchaser is.

Nemsi has focused the issue on restrictions your bank might impose voluntarily; e.g. a self imposed prohibition on sales for cash to non depositors or non customers in general. That is common.

In effect, if there is a restriction it is self imposed and whether the "exchange" of an on-us customer check for a cashiers check violates that restriction depends entirely on the language your bank chose when it penned the restriction.
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