We're attempting to do an IRA funds transfer to an investment company and they are rejecting our bank money order, using the USA Patriot Act as the reason. Can anyone clue me in on what is going on? They want only a personal check, credit card or cashiers check, and apparently are not familiar with what a bank money order is. Perhaps a losing battle, but I couldn't figure out why they are bringing up the Patriot Act as the reason. I'm about to get a copy of their letter, but it doesn't sound like it will tell me much.

I'm just curious. Why would you use a money order instead of a cashier's check for this type of transfer?

We only use bank money orders as official bank checks. They are the equivalent of a cashier's check. They are labeled "Bank Money Order" and we issue and sign them. It's never been an issue before when we've done this. I know from searching these strings that others use them also. It was the reference to the Patriot Act as a reason they couldn't accept it that bothered me.

I'm with you, the reference to the Patriot Act doesn't make sense to me either. I'm thinking, but it's 4:55 on Friday afternoon! I'm interested to see what others will say.

It's been my experience that investment companies do a poor job in training their people on compliance issues. That's probably the case here --- someone doesn't understand the law.

Susan, we are running into a similar problem with an investment firm only they are refusing to accept treasurers checks in amounts of less than $10,000 citing their anti-money laundering policy. They will accept a wire transfer but not a bank check. I think in their zeal to adopt AML policies, they have gone off the deep end. They even tried citing the fact they would have to file a 4789 on the transaction. I don't think they quite get it yet.