How to execute a power of attorney in accordance with the requirements of the bank

You may come across a situation in life when you cannot engage in transactions with the bank yourself, so you should authorise somebody to do it for you. Below are summarised the main pieces of advice to help you draft a power of attorney in accordance with the requirements of the bank.

A power of attorney authorises another person to use banking services on behalf of the customer, therefore defining the authorised activities accurately and clearly is key.

What power of attorney will be accepted by the bank

The bank will accept only such a power of attorney of a private person, which has been issued by a notary public or an orphan’s court. Conversely, for a legal entity both a power of attorney certified by a notary public for carrying out certain activities, for example, depositing cash into the account or receiving an account statement and a power of attorney form filled and signed in the presence of a bank employee will do.

Clear and accurate content

It should be noted that the bank will allow the authorised person to carry out only the explicitly, clearly and accurately mentioned in the power of attorney, e.g., to handle the money in the current account, transfer the money, enter into an agreement for opening a current account, enter into an agreement for remote use of services, etc.
If the activities mentioned in the power of attorney are defined too generally or ambiguously, the bank will reserve the right not to accept such a power of attorney. Conversely, in case of doubt or contradiction, the bank will interpret the content of the power of attorney narrowly.

The term of validity should preferably be specified in the power of attorney. If no deadline is specified, the bank will consider that the power of attorney is valid until the customer notifies the bank of the withdrawal thereof.

Example of a specific power of attorney - the form of a power of authority of a legal entity

A power of attorney may be executed abroad

If you cannot come and execute a power of attorney in Latvia, the bank will also accept a power of attorney issued outside Latvia, subject to meeting the following criteria:

• A foreign notary public has certified the identity of the issuer of the power of attorney (principal), specifying the personal data of the principal, i.e., given name, surname, personal identity number, identification document number, year of issue of the document, etc. in the certificate;
• A foreign notary public has certified the authenticity of the signature of the principal in the power of attorney;
• The power of attorney is legalised or certified by an Apostille unless the laws and regulations or an agreement between the Republic of Latvia and the relevant country provide otherwise (more information is available on the website of the Ministry of Foreign Affairs of the Republic of Latvia);
• The power of attorney is issued in the Latvian, English or Russian languages. If issued in another language, a notarised translation thereof must be provided, bound and stamped together with the original document or a notarised copy thereof.

Linda Ezerkalna