I had to do this just yesterday. I wonder whether the wonderful people at my CU are understanding the requirements and procedures correctly?
My wife still works, I don't. I had her sign it at the house, and I was going to have to go down there anyhow, so I would sign the damn form while they eyeballed me doing it. I was told that she would have to appear in person, and she'd sign a blank sheet, just so they could compare. ..... OK. Pain in the ass. But it is technically required, since it's a joint account.
Here is the purpose of the Medallion: we want to assign, by direct deposit, our proceeds from SFGIX to go straight into a different credit union account--- not the credit union where this stuff is being done.
So, OK. They can do Medallions up to $100,000 there, I was told. Great, I said, cuz this business will amount to maybe $200.00 per YEAR. But, but, but, they said: we need a STATEMENT showing that this will be less than $100,000.00.
Wait, now. Lemme get this straight. I'm not moving anything NEAR $100,000.00. OK, but we need that statement to prove it. (And I said to myself, wouldn't they want that sort of thing from the RECIPIENT rather than the source? In which case I'd have been screwed anyhow, because that other credit union account, where the money is supposed to go, is rather new. I have no statement at all from them, yet.)
But anyhow: what good does it do to show that my mutual fund account holds less than $100,000.00??? I could funnel all sorts of stuff through there on any given day, anyhow????? Even if the account held more than $100,000.00, the CU can offer the Medallion UP TO $100,000.00. It seems to me that the item which ought to be their focus is the amount of the transaction between the mutual fund and that other credit union. (???)
Or maybe I should once and for all quit thinking than anything, anywhere is supposed to make any sense?
Anyone here know about this junk?
Comments
Depends on the institution and the person you get and what they may ask for.
From the ABA or American Banking Association:
https://www.aba.com/aba/documents/securities/Medallion_procedures.pdf
https://www.aba.com/aba/documents/securities/Comparison_Notary_Signature_Medallion_Stamps.pdf
So long as both accounts (brokerage and checking) are JTWROS I don't see the problem.
I only mention this because you may have many funds at many individual institutions which could be housed at one or two brokerage houses. This simplifies your life and your survivor's life. I have three brokerage houses and only one fund that doesn't participate on any brokerage platforms (BRUFX @ Bruce Fund).
https://www.occ.treas.gov/topics/compliance-bsa/bsa/index-bsa.html
---Patriot Act + (2001)
https://www.sec.gov/about/offices/ocie/amlsourcetool.htm
In the most broad form, U.S. banks/CU's and other Federal guide lined institutions have had to compile with some of all of the BSA of 1970 and the Patriot Act of 2001; as well as addendum's/additional. Many branches of official government agencies are involved, including the Security and Exchange Commission.
The legal requirements are way past my pay scale, but be it enough stated that all forms of money transfers must meet qualifications from one or more agencies.
The Patriot Act caused new wording for opening an IRA account to be included with the owners sign-off. Many financial areas have been affected. I am not familiar with the process described in this post.
Lastly........yup, one is going to come up against those who are less informed than others for certain procedures. And no, I am not an authority with this; but understand many legal aspects arise with money moves.
Broad Patriot Act/mutual funds search
D&C still requires these when transferring funds by mail directly to another institution - at least they did a couple years ago.
They’ve gotten progressively more of a pain to obtain over the years. Bet bet is try 2 or 3 different local institutions where you do business. Some are paranoid and require all sorts of documentation. Some simply make and retain a copy of the paperwork. Occasionally you’ll find one that provides the needed medallion guarantee completely pain free.
I did stomp out of one office a couple years ago (and later cancel my account there) rather than provide the onerous documentation demanded. Her gig wasn’t the Patriot Act. Rather it was that she had read an article about a bank official who had been forced to compensate an injured party for “millions of dollars” after a signature guarantee was used in a fraudulent manner (although my paperwork showed I was only moving $3,000).
PS - Yes, the agent does need to witness the signature. So in your case both signees would need to be present as I understand it.
https://hullfinancialplanning.com/are-you-eligible-for-usaa-membership/
With some of this nonsense, I've found it's easier to go through the motions than to argue about it. The most absurd recent example I can think of is getting dividends from an outside fund (registered in my name alone) automatically deposited into a joint account at my brokerage (with my name being one of the owners). The outside fund insisted that the other owner of the receiving account sign with medallion guarantee.
Once the money hits the joint account, why should the fund care what happens to it? The transfer is complete. Pointless to argue. I even commented about it when I got the guarantees. The response was to the effect: Yeah, some places are quirky that way, this isn't unusual.
The below link might be of interest as it explains the medallion gurantee vs. notary stamp along with the different amounts a medallion gurantee might cover plus what financial institutions might require to affix the stamp.
https://en.m.wikipedia.org/wiki/Medallion_signature_guarantee
http://stai.org/pdfs/109721-sta-guidelines-book-rev-1.pdf