An FBO check cannot be cashed. FBO stands for "for the benefit of" and is used in financial transactions that involved a check and a third party. The first party writes a check to the third party; the FBO indicates that the funds are for the benefit of a second party.
FBO checks are used in a variety of financial transactions to move money from investment or other accounts when a check must be issued to make the transfer. The check is written to a third-party business, but that business cannot cash the check or use the funds in a way that isn't beneficial to the FBO recipient. Usually, this means depositing the funds into an account owned by the beneficiary.
