Answer:
by Andy Zavoina:
My banks never participated in a Medallion Stamp program, but it is similar to a Notary program in purpose. There are differences for sure, but the intent is similar. Do you offer a Notary, and does the Notary save all those document copies?
I'm not sure what the real risks are or how often they arise, but reviewing the rules for the program may offer some insights as well as what comes along with retention - how will they be organized, inventoried, for how long, who will have access, what security and accountability measures need to be employed and who will check all this and how often? Without controls, you only increase risk of mis-use. I can easily see a great downside to the work involved in retention. This needs to be weighed against the risk of some forgery or fraud. If you log these similar to a Notary, you may well mitigate the risks without retention requirements of separate documents.
Answer:
by Kathleen Blanchard:
The bank should obtain training from Kemark, the administrator of the medallion programs and develop appropriate policies and procedures. It is foolish to take on this risk without knowing the rules.
http://www.kemarkfinancial.com/index.html
Also, review this suggested procedure from the ABA.
https://www.aba.com/aba/documents/securities/Medallion_procedures.pdf
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