We have an individual that wants to name an entity as a POD on an account. Are there any restrictions or any reason this customer can't do this?

Purely a question of state law. Your profile does not indicate what state you are from or a moderator would have probably moved your question to that forum.

In general: It makes no sense unless the entity is a church or charity. Doing it without sanction of state law would open your bank to a dispute with heirs or a personal representative who thought the money should have gone elsewhere.

Thanks Ken. I'm in Kentucky. I'll update my profile.

Found it.

In case you're interested.....KRS 391.300 defines POD Account and POD Payee, which seem pretty open and closed. Entity cannot be named a POD.

I would have offered the same conclusion, but it would have turned on the multiple party account statute's definition of "person" and an overall reading of the statute. There is nothing there that suggests the word "person" is intended to incorporate anything other than a human being.

In some rule sets; e.g. BSA, a "person" can be a legal entity; e.g. a corporation. This one makes no such allowance.