Cheque payments to BIBC - Building Industry Bargaining Council

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Cheque payments to BIBC - Building Industry Bargaining Council Powered By Docstoc

It has become increasingly evident that fraudulent activities on the interception and stealing of
cheques are on the increase. Due to the resultant losses accruing to our valued clients and First
National Bank as a result of these cheques being paid into bank accounts with similar names to
the payees cited on the cheques, the bank has decided to take a more pro-active approach in
order to mitigate cheque fraud and losses.

In the past the bank accepted and collected cheques for commercial clients wherein the payee’s
name was not correctly cited. However, it has become a clear risk for both First National Bank
and our commercial clients not to have the name or trading name of the payee fully and correctly
cited. Therefore, First National Bank is adopting the following position on the matter of “Not
Transferable” cheques:

    a. “Not-Transferable” cheques will only be accepted if the payee has been cited in full, i.e.
       the registered name including “(Pty) Limited” or “CC”;


    b. The full trading name of entity has been quoted as the payee.

Please take note that as of 1 April 2010, the bank will not be able to accept any “Not
Transferable” cheques where the payee’s name is not correctly cited as per a. or b. above.

Kindly advise your debtors that cheque made payable to your business must reflect the full
registered name or trading name of your entity. The same rule must apply on cheques made out
to your creditors. This process will afford your business and the business of your creditors’
sufficient protection in the event cheques are intercepted or stolen.

May we also suggest at this time that FNB is able to offer you and your clients a range of
alternative electronic payment methods to cheques, which are faster and more secure?

Join us in the fight against crime.

Kind regards,

Deidre Wingrove-Scholtz
Service Analyst

Note from the Building Industry Bargaining Council:
As per the letter above, please note that with immediate affect all cheques made out
to us must be made out to: BIBC (Cape). This is our chosen trading name as per our
Bank Mandates and the bank will not accept any cheques that are not made out to
BIBC (Cape).

Thank you

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