I guess I should have made my point a little differently. We advise against cashing checks at the bank because it is a way to conceal business income. Prudent business people deposit all business income into their deposit account SO THEY HAVE A RECORD. If your customer is being used by a third party that is concealing business income your bank is connected to illegal activity - tax evasion.
Personally, I would not permit this activity. If you continue to do so, you may have to determine if an SAR is warranted.
The moral of the story is that your customer may be okay, but their business may be used by those that have the need to launder money. These types of customers need more scrutiny than others. Check cashers fall into this category.
Dolly Nugent
Vice President
Compliance & CRA Officer
Citizens Business Bank