A mandate signatory, also known as an account signatory, is a specific individual within a business who holds the authority to manage the company's bank account.
Based on bank mandates, this person is officially authorised to conduct various financial operations on behalf of the business. According to the reference, "A bank mandate, or account signatory, is a person in your business who is authorised to manage your bank account."
Banks typically offer different options for managing accounts and designating signatories, depending on whether you are a business or commercial banking customer. These options can determine the level of access and the specific actions a signatory is permitted to perform.
Key Responsibilities and Capabilities
A core function of a mandate signatory is to oversee and interact with the business's finances held within the bank.
As highlighted in the reference, account signatories are empowered to:
- View all balances and transactions: This allows them to keep track of the financial health and activity of the account.
- Set up payments: They can initiate and process payments, such as transferring funds, paying bills, or setting up standing orders.
These capabilities are fundamental to the day-to-day operation and management of a business's financial resources. The scope of their authority is defined by the bank mandate agreement established with the bank.
Why are Mandate Signatories Important?
Having clearly defined mandate signatories is crucial for several reasons:
- Control and Security: It ensures that only authorised individuals can access and move funds, providing a layer of security against fraud and mismanagement.
- Operational Efficiency: It streamlines financial processes by assigning clear responsibility for account management tasks.
- Legal and Compliance: It helps businesses comply with banking regulations that require formal authorisation for account access and transactions.
In essence, the mandate signatory is the gatekeeper and active manager of a business's bank account, operating under the specific permissions granted by the bank mandate.
