A customer is selling merchandise on Etsy and Paypal and receives deposits from them which goes into his checking account. This is not an occasional activity but a constant one. He does not want to open a commercial account...but should we force him?

That is a management decision.

It's reasonable for your management to require the customer to properly classify the account. In short, the activity is not what your due diligence information would have predicted and you need to repeat the due diligence process...

Thank you...