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#678172 - 02/01/07 11:01 PM MMDA withdrawal limitatn & bk employee as signer
fmb Offline
Member
Joined: Sep 2003
Posts: 97
We have a customer that exceeded the limit of six withdrawals last month in their money market account. They have been made aware of the limitation and they feel that the number of withdrawals (that are counted in the six) may continue to be a problem for them. The customer has asked a bank employee (who is also a friend) to be an authorized signer on the money market account--thus the withdrawals are made in person by the "depositor" and exempt from the limitation of six withdrawals. Can we do this?

Thanks.

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#678178 - 02/01/07 11:09 PM Re: MMDA withdrawal limitatn & bk employee as signer fmb
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It's never a good idea for a bank employee (friend or not) to be an authorized signer on a customer's account unless the account relationship is totally independent of the bank employee's status. In other words, having a bank employee as a signer because he's a bank employee is a really dumb thing to allow.

It's also not smart to try to make an end-run around the transfer restrictions by using an in-bank "shill." Regulators will see through such a scheme quickly, and the bank will be criticized for permitting it.
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