An authorization letter for bank is a letter written to the Bank by an owner or a Signatory of a bank account to allow the bank do transactions on the account. If you wish to grant a power of attorney to a third party to manage your bank account, you must write a letter and send it to your banker.
You cannot complete your banking formalities for various reasons. You have the option of giving a power of attorney to a trusted person to act legally on your behalf and complete your banking formalities for you. You must indicate your personal information in the letter and then indicate the surnames, forenames and addresses of the proxy holder (s). Attached to your letter must be a photocopy of both sides of the identity cards of the two persons concerned by the power of attorney for banking. The sending of your mail should be addressed to your bank branch, for your banker, by registered mail with acknowledgement of receipt.
How to Write a Bank Authorization Letter
An authorization letter is a legal document written by an individual or a group of people to grant someone else the authority to act on their behalf. It grants the person authorized legal permission to do something that is commonly not allowed.
The first thing to note is that bank authorization letters are formal documents. The tone of the letter should be formal, and the letter should be free of any informal terms.
A polite and very professional emphasis is recommended. When writing the letter, on the left side of the page, start by writing your official name and address and make sure to add the date also.
It is essential that you mention the name of the recipient. In most cases, the recipient of the letter is usually the branch manager; however, you can still use the generic “To Whom It May Concern.”
Here is a summary of some of the key points that must be included in the letter:
- The tone of the letter: maintain the tone of the letter to formal. Authorization letters are formal letters, and there should be no compromise whatsoever over the formal style of the letter.
- The date: ensure that you have properly specified the date in the letter. This will ensure the awareness of the writer and will save you from any misunderstandings that may arise in the future.
- The body of the letter: Try to make the letter as short as possible. Make sure to use simple vocabulary throughout the letter to avoid any confusion or misinterpretation.
- Accuracy: accuracy is very important when writing a bank authorization letter. Go through the letter several times to make sure that the recipient of the letter will be able to fully understand the contents of the letter with ease.
Registered mail with acknowledgement of receipt is legally binding. It is therefore recommended that you use a registered delivery method to send your power of attorney letter. With a registered mail, you can send a power of attorney letter with acknowledgement of receipt. It’s simple, fast and cheap.
Parties Involved in a Bank Authorization Process
In the bank authorization context, a party can be a group or a single person. They are the owners of the accounts being designated to someone else.
Normally there are three parties involved in the bank authorization process. The first part is the one who is granting authority, the second is the bank, and the last party is the person being granted the authority.
Purposes of Bank Authorization Letters
There are different reasons why people write authorization letters. You may be required to write such a letter to the bank for various reasons, including:
- When you want to authorize someone to act on your behalf to close your account
- To activate your account if frozen
- If you would like to change the nominee and add another to your account
- If you would like the bank to hand over your bank statement to someone else
If you’ve been tasked to write authorization letters by your bank and you have no idea about that, then don’t worry. We’ve got you covered. Here, we have some samples you can use for your convenience.
Sample Letters & Examples
SUBJECT: Application for Power of Attorney for Bank Proxy
I, the undersigned NAME FIRST NAME, domiciled at the POST ADDRESS and holder of bank account number XXX, domiciled in your bank branch, gives a power of attorney to NAME on this bank account and authorizes him/her to carry out all transactions on this bank account from [Date] to [Date]. I would like to thank you in advance, and I would ask you to assist, Sir/Madam, in the assurance of my highest consideration.
Also Known as: authorization letter to access bank account, authorization letter for bank withdrawal, authorization letter to bank for banking transaction, proxy authorization letter.