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#2178954 - 05/21/18 05:36 PM Cashier's Check purchased with funds from check
Doug Hendrickson Offline
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Doug Hendrickson
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Non-customer comes into bank. She has a large check drawn on the account of one of our customers (Law Firm). Teller records her information on the front of check (DL#, DOB). She chooses to take $8,000 in cash, and the remainder in a Cashier's Check.

The teller issued the Cashier's Check in the name of the customer (Law Firm) as remitter with her as Payee.

I'm having problems wrapping my head around this one. The customer (Law Firm) did not actually request the issuance of a Cashier's Check. So, should it be their name as the remitter or the bank's name? I can argue either way, in that by putting the custer (Law Firm) as the remitter, it makes it easier to trace the source of the funds. No cash changed hands for the purchase of the Cashier's Check, so I'm thinking that this was not purchased with cash.

Thoughts?

p.s. I'm also trying to determine if the system allows for the entry of both a Purchaser and Remitter or treating them as one and the same.
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#2178958 - 05/21/18 05:39 PM Re: Cashier's Check purchased with funds from check Doug Hendrickson
HMS Pippii Offline
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Doug - take the cash out of the equation. If she came in with a check from the law firm and received a cashiers check for the full amount, wouldn't the law firm be the remitter since she's exchanging their check for a bank check?
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#2178965 - 05/21/18 05:54 PM Re: Cashier's Check purchased with funds from check HMS Pippii
Doug Hendrickson Offline
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Doug Hendrickson
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Yes, thanks for simplifying it!
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#2178975 - 05/21/18 06:32 PM Re: Cashier's Check purchased with funds from check Doug Hendrickson
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
You sold the individual a cashiers check and allowed her to pay with an on-us check issued by your customer. Your customer's name has no place on the cashiers check.
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#2179067 - 05/22/18 01:18 PM Re: Cashier's Check purchased with funds from check Doug Hendrickson
John Burnett Offline
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I agree. The law firm issued its check payable to the individual. Once the law firm's check is paid (which happens when you exchange it for the cashier's check or for a cashier's check and cash), that's the end of the law firm's transaction. The purchaser and remitter of the cashier's check is the party that bought the check.
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#2179069 - 05/22/18 01:26 PM Re: Cashier's Check purchased with funds from check Doug Hendrickson
edAudit Offline
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edAudit
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You are here
I agree with Ken and John (no surprise there) but most FI's have a policy against issuing bank checks to non-customers so I would check you policy.
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