Document background
A Signature Authority Letter For Bank is a fundamental document required by South African financial institutions to establish and verify the identity and authority of individuals who can act on behalf of an organization in banking matters. This document is essential when setting up new banking relationships, updating existing mandates, or changing authorized signatories. It must comply with the South African Banks Act 94 of 1990 and related banking regulations, including requirements for proper identification, verification, and documentation of authority. The letter typically includes details of the organization, authorized individuals, scope of authority, transaction limits, and may require supporting documentation such as board resolutions or constitutional documents. It serves as a critical risk management tool for both the organization and the bank, helping prevent unauthorized transactions and financial fraud.
