# AI tells a foreign NGO in the Philippines to issue checks to local partners without mentioning that Philippine banks require two endorsements for checks over PHP 100,000

- **ID:** `banking/philippine-check-endorsement`
- **Domain:** banking
- **Category:** protocol_error
- **Error Code:** `BSP_CHECK_ENDORSEMENT_100K`
- **Verification:** ai_generated
- **Fix Rate:** 82%

## Root Cause

Bangko Sentral ng Pilipinas (BSP) regulation mandates that checks exceeding PHP 100,000 require two endorsements (payee and a second authorized signatory) to prevent fraud; single-endorsed checks are returned unpaid.

## Version Compatibility

| Version | Status | Introduced | Deprecated |
|---------|--------|------------|------------|
| BSP Circular 2024/12 | active | — | — |
| PDIC Check Clearing Rules 2023 | active | — | — |
| Philippine Clearing House Corp v3.1 | active | — | — |

## Workarounds

1. **Ensure the check has two signatures: the payee's endorsement on the back and a second authorized signatory (e.g., a co-director) on the front; example: 'Pay to the order of [Partner Org]' on back, second signature on front.** (85% success)
   ```
   Ensure the check has two signatures: the payee's endorsement on the back and a second authorized signatory (e.g., a co-director) on the front; example: 'Pay to the order of [Partner Org]' on back, second signature on front.
   ```
2. **Use electronic fund transfer (PESONet or InstaPay) instead of checks for amounts over PHP 100,000; these do not require endorsements.** (90% success)
   ```
   Use electronic fund transfer (PESONet or InstaPay) instead of checks for amounts over PHP 100,000; these do not require endorsements.
   ```
3. **Pre-register the check with the issuing bank's branch manager for a single-endorsement exception, but this requires prior approval and is rare.** (30% success)
   ```
   Pre-register the check with the issuing bank's branch manager for a single-endorsement exception, but this requires prior approval and is rare.
   ```

## Dead Ends

- **** — BSP aggregates related checks issued within 7 business days; multiple checks for the same purpose are treated as one transaction. (90% fail)
- **** — BSP requires two distinct signatures (not stamps) from authorized signatories; stamps are not accepted. (95% fail)
- **** — Philippine banks strictly enforce the endorsement rule at the teller; no exceptions for known customers. (100% fail)