POA for remote account company - Is this safe ?

[OffshoreResearch]

We've the chance to remotely open a company account by sending a notarized POA (power of attorney) to a local lawyer but is there something we should specify in the document text to get sure under no circumstances he'll delegate himself/gain some sort of continued access to our account ?

Has anyone any experience with remote account opening through a local lawyer authorized to sign the necessary papers on your behalf ? In some cases this's the only alternative to go there in person (which can't be done just now due to Covid restrictions).

 

[JohnLocke]

As far as I understand from past posts then the PoA will expire (for clients security) few days after the account is opened! - I don't remember how exactly this was done but I assume it is only valid for 1 month after that the person that opens the account should not have access to the bank account any longer.

I just want to put a note here: Be very careful with who you give the PoA and what bank you do business with, call the bank and get confirmed that the PoA isn't valid any longer before you put any money on that account!

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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.​

 

[OffshoreResearch]

I totally agree with you regarding the importance to talk to the bank regarding the POA (before signing it) in order to avoid any possible surprises.

 

[Sols]

Power of attorneys should be narrow in duration and scope.

Clearly define until what date and time it is valid.

Clearly define the purpose of the POA, and that it can only be used to open a bank account (type of bank account, bank services like internet banking and cards, name of bank if possible).

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This is the probably the answer to your question.

 

[OffshoreResearch]

That's correct, I'll work with this lawyer to put together the POA text by paying attention to any single words and to get sure he'll just be authorized to open a bank account in our company name without delegating himself or anyone else to such account.The POA expiration will be another crucial point too.

 

[Martin Everson]

You want to only sign with the lawyer a LPOA i.e a Limited Power of Attorney. Do not do anything else. You can google for examples of them or ask your lawyer to implement this. I have LPOA on several accounts for my accountants that allows them to do most things but excludes them from doing any outbound payments or collateralizing my account.

Bottom line you just don't want money leaving your account or your account being pledged as collateral for your lawyers holiday villa he just bought.

As admin says be very careful who you give POA to.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[OffshoreResearch]

Wow the solution was quite simple.
I'll do some research for LPOA samples but in any case I've already emailed this lawyer to explain him what I'm expecting to read in the draft he'll soon send me.
He told me he'll get the POA text directly from the bank so I'll review it with the assistance of a local lawyer to make some adjustments where needed and this's the easiest way to get this sorted out.