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LLC Conduct Phone Transfers to Personal Acct/Loan?

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Can an LLC or Corporation conduct telephone transfers from the account to a personal account or personal loan? I have been told that telephone transfers ARE allowed as long as proper verification measures have taken place. If an owner, or authorized signer on a business account needs to do a telephone transfer, they are allowed to do so, as long as they are verified to be on the account and their identity can be verified over the phone. Also this can only be done if a Resolution of Authority allowing the signers to execute all powers on an account has been signed. However, I have also been told that we should not allow this, but it is a bank decision on how to handle it. Can you please advise me on what the best practice should be?

There is no law or regulation that controls this, just your bank's comprehension of and appetite for the risks involved.

The simplest rule is any transfer must be between accounts owned in the same right and capacity; e.g. I can transfer between the accounts I own individually. If the LLC in which I am a member has provided an authenticated resolution indicating I can transfer funds between accounts that it owns, then I can. Those two circumstances in unison do not imply I can transfer from the LLC to my account or from my account to the LLC.

First published on 09/10/2017

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