We have a customer who passed away recently, which we know because one of our employees knows her family personally, not because we have received official notification. She had a checking account with only her name and a savings account in only her name but with a POD beneficiary named. There is a recurring transfer from the checking to the savings that happens monthly. Should this be stopped or do we let it continue to process? Is this covered by a regulation or just best practice?

Until you are officially notified of the death, I would let sleeping dogs lie. Once you are notified, then the amount of funds in the savings account on the date of death would be released to the POD and the additional monies could then be placed back into the checking account for the executor to deal with.