Our bank is about to begin selling personal money orders instead of bank money orders. We would prefer not to fill in the Payee for the purchaser, as I think that would then require us to check the Payee name against the OFAC list (which is what we are trying to avoid by changing money orders.) Is my thinking correct? Does anyone have any other comments on personal money orders vs. bank money orders? Thank you.

Whether or not your bank checks payee names when it's asked to help customers fill out PMOs will be a matter of bank policy driven by its OFAC risk analysis for the service/product. Clearly you can't check names if you aren't given them, however.

Do be aware that most states consider personal money orders a form of single-use checking account. As such, PMOs will be subject to stop payment orders.

You should also encourage customers to complete the PMOs before leaving the office, to protect themselves from loss.

John,
Thank you so much for your reply. Everything I have read has indicated to me that you are not required to fill out anything on a PMO except the amount. We are just trying to get our procedures in place before we start offering this new product. We do intend to keep a record of the purchaser of each PMO. I appreciate your help and Bankers On Line!!!

The challenge will be to get your "regulars" to accept the notion that they'll need to fill out their own MOs. A possible selling point -- No longer a need to wait at the teller window for the payee information to be typed in.