We have an account holder who deposited a check via mobile deposit on 04/09/2018. They then deposited the physical check at a different bank.

The bank the check is drawn on is now requesting the funds be returned due to the duplicate deposit. .

Since this was a mobile deposit typically within normal time frames we’d be required to return the funds if the request was submitted through the fed. However the request was in writing from the other institution.

My opinion is, no we do not accept the check and refuse the claim as a late return. The check was deposited in April 2018 and it is now January 2019. We had no way of knowing this check was deposited again after it was mobile deposited here. Since our institution had to be the first bank the check was deposited at, we should not have to suffer a loss. The second bank that took the physical check for deposit should be the one responsible for the return. But, that’s my opinion as I am not 100% sure of the mobile banking regulations.

Any opinions would be appreciated.

Was the check endorsed "For mobile deposit only at ABC Bank" (ABC Bank being yours)?

Don't raise that issue, Monster. That rule became effective July 1, 2018, after the check was mobile deposited. And it only addresses an indemnity between two depositary banks, with no involvement by the paying bank.

In this case, I agree with TWMJ. The paying bank should try to collect from the second depositary bank.

I wasn't even paying attention to the dates, my mistake! Thanks for the reminder.

Was this second deposit made intentionally? What was the dollar amount of the check?

Would this be a good example for a SAR? Seems like if this was intentional, this would be a member I would keep a close eye on, and question all of their check deposits.