Posted By: Tryin-2-Comply
Customers - cashing checks for business services - 03/19/13 02:55 PM
I have a couple of scenarios I need input on.
1) We have several customers who cash checks on a regular basis which are clearly for business services. (construction, roofing, heat and air, nail salon, etc.). The problem with the majority of them - they only have a consumer checking account with us. Mgt. has never enforced that these customer's open a business account. The bank has filed SARs on some of these customers indicating possible tax evasion as there are no clear payments for tax payments, employment payments, or any other business related payments. Most of the customers do not have accounts at other banks.
2). Customers with business accounts who cash business checks rather than deposting the checks into the business account. There are several that have SARs filed on those as well because it appears they are avoiding counting the revenue. Some of these customers have loan accounts with us and their tax returns do not match the total revenue that has been seen.
How do other banks handle these types of situations?
1) We have several customers who cash checks on a regular basis which are clearly for business services. (construction, roofing, heat and air, nail salon, etc.). The problem with the majority of them - they only have a consumer checking account with us. Mgt. has never enforced that these customer's open a business account. The bank has filed SARs on some of these customers indicating possible tax evasion as there are no clear payments for tax payments, employment payments, or any other business related payments. Most of the customers do not have accounts at other banks.
2). Customers with business accounts who cash business checks rather than deposting the checks into the business account. There are several that have SARs filed on those as well because it appears they are avoiding counting the revenue. Some of these customers have loan accounts with us and their tax returns do not match the total revenue that has been seen.
How do other banks handle these types of situations?