BSA Dept Dictating Check Cashing Procedures

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Question:

Our BSA department is saying we cannot cash checks from a business account made payable to cash or petty cash. I'm under the impression that we don't have the right to dictate to whom a check is payable. Am I correct?

Answer:

Your bank should have policies concerning cashing checks on business accounts. Such a policy should not be dictated, in my opinion, by your BSA/AML department. It should be guided by legal counsel and your BSA/AML officer should have input if there are any BSA/AML concerns.

First published on BankersOnline.com 7/07/08