I hate situations when you have a rule and exceptions, especially when the exceptions are based on an inside relationship. It just puts people in a very unpleasant position, as skzith can attest.
That said, I recognize there are exceptions in almost every bank. I think you must clarify for yourself, skzith, what the rules are (including the exceptions), and then follow them. Your first duty is to your employer here, and you are not breaking any laws.
Cashing checks payable to businesses is one way to hide business income and avoid taxes. But that's not the only reason that some businesses like to do this. Some are simply trying to use shortcuts to turn checks into cash.
While I don't approve of your bank's apparent exception here, I don't recommend that you buck the system unless you've decided that you won't mind looking elsewhere for employment. That's not meant as a threat. It's just recognition of the facts of life.
And if the bank management or the business in question gets into dutch over this at some point, you can take satisfaction in the fact that you thought they would.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8