We have a customer that wants to endorse his checks like this:

12 USC 411 - Redeemed in Lawful Money
John Doe, Beneficiary of John Doe,
Public Trust: XXX-XX-XXXX (His SSN)

Why would he want to do that and could that create any problems for us if we allow him to do this?

Sounds like a conspiracy theory nut.

I don't see any issue to worry about unless he starts putting restrictions in the endorsement section.

As long as you can identify him as the lawful payee and he endorses the check with his signature, it should be okay. Strange that he want to put his SSN out there, but nothing really surprises me anymore.

It sounds like he's possibly part of the Sovereign Citizens movement.

http://en.wikipedia.org/wiki/Sovereign_citizen_movement

I would close his account and be done with them. These people are nothing but trouble in the long run.

Thank you all for your comments. We thought he was a nut case too!

We have found this to be the best response to these requests.

...and the next step is for him to write a check out to himself or his buddies, who will then demand that you "cash" the check in the form of gold. We had a "sovereign citizen" try to come in to open an account that wanted to mark up the account disclosure in an effort to make us agree to process all of his withdrawals in the form or gold.

and after that he will ask you if you accept Iraq Dinar. After you say no he will slip you a $10.00 and say really quietly "it's ok you can tell me the truth, I won't tell anyone else"