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#2261875 - 11/01/21 12:39 PM Foreign check and Reg CC
Anonymous Offline
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Joined: Jun 2021
Posts: 178
Reg. CC does not apply to foreign checks correct?

We have a customer trying to deposit a Canadian check for $6500, then was asked to turn around and buy gift cards with the money. Their account has a balance of $19 so we have no recourse.

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Deposits and Payments
#2261876 - 11/01/21 01:10 PM Re: Foreign check and Reg CC Anonymous
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
You know your customer is being scammed. Why accept the deposit?
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#2261877 - 11/01/21 01:11 PM Re: Foreign check and Reg CC Anonymous
Anonymous Offline
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Joined: Jun 2021
Posts: 178
Can we actually deny it? I didn't know that was an option?!?

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#2261880 - 11/01/21 01:43 PM Re: Foreign check and Reg CC Anonymous
Alison Offline
New Poster
Joined: Jul 2018
Posts: 8
Correct, assuming the Canadian Check is not drawn on a US Bank (sometimes they are), they are not subject to Regulation CC. Yes, you can deny to accept the check for deposit, which would be the safest course of action for the Bank because Canadian bank's may not be subject to the same return guidelines as US Banks.

Official Interpretation

K. 229.2(k) Check
1. Check is defined in section 602(7) of the EFA Act as a negotiable demand draft drawn on or payable through an office of a depository institution located in the United States, excluding noncash items. The regulation includes six categories of instruments within the definition of check.
10. The definition of check does not include an instrument payable in a foreign currency (i.e., other than in United States money as defined in 31 U.S.C. 5101) or a credit card draft (i.e., a sales draft used by a merchant or a draft generated by a bank as a result of a cash advance), or an ACH debit transfer.

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#2261883 - 11/01/21 01:52 PM Re: Foreign check and Reg CC Anonymous
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
You are never required to take a deposit. Or you could send it for collection and your customer wouldn't receive credit until you did.
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#2261890 - 11/01/21 02:08 PM Re: Foreign check and Reg CC Anonymous
Anonymous Offline
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Joined: Jun 2021
Posts: 178
Thank you so much!!

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#2265719 - 02/03/22 04:05 PM Re: Foreign check and Reg CC Anonymous
TeamComply Offline
Gold Star
Joined: Aug 2016
Posts: 459
Does anyone have language included in their Fund Availability disclosure that addresses Foreign Checks?

Such language would state for example:
Foreign checks are exempt from the policies in this disclosure, but the availability of funds from deposits of foreign checks will be delayed for the time it takes us to collect funds from the financial institution upon which the foreign check(s) is drawn.

Is this required to be included as part of a Funds Availability disclosure?

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#2265728 - 02/03/22 04:15 PM Re: Foreign check and Reg CC Anonymous
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,227
Galveston, TX
It is not required, and I have never specifically seen it addressed. That is not saying that it could or should not be if you commonly accept foreign checks for deposit.
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#2265738 - 02/03/22 04:57 PM Re: Foreign check and Reg CC Anonymous
TaraSue Offline
Junior Member
Joined: Oct 2013
Posts: 48
We will accept a foreign check but will immediately send it off for collections. We don't make the deposit until that is complete.

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#2265748 - 02/03/22 05:54 PM Re: Foreign check and Reg CC Anonymous
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,477
Pulling people out of the ditc...
our language is similar to what TaraSue posted above - checks or drafts presented that are drawn on a foreign institution will be made available when funds are collected. it also includes wording about rate of exchange if drawn in foreign currency versus US
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#2266029 - 02/08/22 09:31 PM Re: Foreign check and Reg CC Anonymous
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,627
Cape Cod
Originally Posted by dmk124
Can we actually deny it? I didn't know that was an option?!?

You don't have to accept any check for deposit, even if it's payable at a U.S. bank. If you don't like the looks of the check or you feel it won't be paid, you can refuse to accept it for deposit, and only accept it for collection.
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