If a deposit is made to a business account and then asked to transfer to personal accounts can this be done

Only if a signer on the business account requests the transfer or writes a check from the business account for the transfer. (Assuming, of course, you're not suspcious of fraud.)

Is this true for all forms of business accts: ie, partnerships, corp ?

We would not allow a transfer of funds from a business account to the signer's personal account at the teller line unless it was the owner of a sole proprietorship wanting to transfer funds to their personal acount.

We just wouldn't want to be accused of helping a signer on a corporate, LLC, partnership...account to siphon funds from the business to fund their personal account.

Of course there are ways around it for the signer. They might withdraw money from the business and then say, oh by the way i would like to make a deposit into my personal account. Some FI's allow online banking transfers from any business entity to personal as well. Same net result

With our online banking set up it is the owner or officer that would set up access for additional online users. It clearly states in the resolution we have them sign that we are not responsible for the end result.

I know I am harping on this but if a business, not a sole proprietorship, makes a deposit with less cash is that ok?

Do you mean, can they get cash back from their deposit?

I've never worked for a bank that would allow "transfers" from the account for a formal business entity to a personal account. Sole proprietors could do so.

Cash back on business deposit presents one of the biggest opportunity for fraud. If a business needs cash, they need to make a deposit in whole and write a check for the cash. A less cash deposit represents the negotiation of checks for cash and most of the standard corporate resolutions do not support this activity. Hence, when banks do this and the bookkeeper is found embezzling, the bank pays.

These are two sides of the same coin. In essence, can we turn over control of funds that belong to an entity to an individual? Entities confer authority by formal resolution. If you have a resolution that says transfers from the entity can be made to accounts for an individual or that an individual can take cash back from a deposit, then the action may be justified.

Either way, it's a lousy business practice.

Before allowing this to happen, please check your fidelty bond. Many companies will not cover a loss unless you have procedures regarding call backs, pin codes, etc.

You may also run into a problem with UCC 3 and 4, depending on how your state implemented them.

Charlie