We currently require business customers to have a telephone transfer agreement on file. The agreement states those who are authorized by the business owner to call the bank and request a transfer between accounts. Retail wants to do away with this agreement, which in my opinion opens us up to more liability. Any thoughts on the matter are appreciated.

Retail wants to do away with this agreement.

Then Retail needs to talk to your legal counsel first, then approach management for their opinion, if legal agrees with them, which I would give about 1000-1 odds against.