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Home >> Accounts >> Business Accounts
Fraudulent Documentation Removes from Account
I read the question about a person being removed from a business account and if that can be done. The response was that could be with proper documentation. What if what was provided to the bank was fictitious or considered unofficial paperwork, unnotorized and unwitnessed? Purely a fraudulent move to control funds prior to a divorce, and the paperwork provided looks questionable? How liable is the bank for not contacting the other party?
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 A business account is one thing, a personal account is another. A business will have people authorized to write checks, receive statements, etc. Those people come and go, so changes are made based on the type of business. This may be a letter signed from the owner, to a corporate resolution.
Personal accounts are different and may be what you are describing here. In these instances there is a joint account. If one person wants to remove another, he or she may request that of the bank. By and large, the majority of banks will not remove a person. The account must be closed and reopened with a new number. This prevents discrepancies, such as a check being presented for payment, signed by the removed party. Was the check written before or after the person was removed, does it matter? These are difficult questions that banks would rather not answer, hence the closure.
Either party may close an account. All owners have rights to remove all the funds and to act solely, but on behalf of the other owners, so each owner has the ability to close an account. There would be no need for forged papers.
If a person presented forged papers on a business account, the answer to the question might be one requiring legal interpretation, depending on what should have been required compared to what was presented. We can't comment on that here.
Published on BankingQuestions.com 2/16/10
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