A joint bank account in the UAE may be operated by two or more account holders, but the authority of each holder depends on the account mandate and terms agreed with the bank. Some joint accounts allow specified transactions to be carried out by either holder independently, while others require joint instructions or signatures.
A Power of Attorney for a joint bank account may allow another person to carry out defined banking matters on behalf of one or more account holders. However, the attorney does not become an owner of the account, and the POA cannot automatically give the attorney greater authority than the principal is entitled to exercise under the account mandate.
The bank will also review the wording and validity of the Power of Attorney before allowing the representative to act.
How Does a Power of Attorney Work for a Joint Bank Account in UAE?
A Power of Attorney in Dubai allows a principal to authorise another person, known as the attorney or agent, to perform specified acts on the principal’s behalf.
For a joint bank account, the POA should clearly identify the banking authority that is being delegated. The attorney acts as the principal’s authorised representative; the appointment does not make the attorney a joint account holder or give the attorney beneficial ownership of the account funds.
Under the UAE Civil Transactions Law, where representation is created by agreement, the instrument granting the authority determines the scope of the representative’s powers. The wording of a banking POA is therefore particularly important.
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Can One Joint Account Holder Give Someone a Power of Attorney?
A joint account holder may appoint an attorney to exercise powers that the holder is legally entitled to delegate, but this does not automatically give the attorney control over the entire joint account.
The practical position depends on:
- the joint-account mandate agreed with the bank;
- whether the relevant transaction can be authorised by one account holder or requires all holders;
- the powers expressly stated in the Power of Attorney; and
- the bank’s verification and compliance requirements.
For example, if the account mandate requires both joint holders to approve a particular transaction, a POA from only one holder should not be assumed to override that requirement.
What Powers Can Be Included in a Banking Power of Attorney?
The powers included should reflect what the principal actually needs the attorney to do. A banking POA should avoid unnecessary or excessively broad authority.
Depending on the intended arrangement and whether the bank accepts the authority, a POA may address powers such as:
- obtaining account information or statements;
- making deposits or withdrawals;
- giving specified banking instructions;
- making or approving transfers;
- signing banking forms and applications;
- dealing with fixed deposits or specified investment products;
- communicating with the bank concerning the identified account; or
- closing an account where that power is expressly granted, legally available to the principal and accepted by the bank.
Sensitive powers involving withdrawals, transfers or account closure should be stated clearly rather than assumed from general wording.
Where only limited banking authority is needed, a special Power of Attorney may be more appropriate than granting broad general powers.
What Is the Process of Making a Joint Account Power of Attorney?
Step 1: Confirm the Account Mandate and Required Authority
Before drafting the POA, it is useful to confirm how the joint account is operated and what the relevant bank requires for third-party representation.
The principal should identify exactly which banking matters the attorney needs to handle and whether those matters can be authorised by that joint holder alone.
Step 2: Draft the Power of Attorney
The document should be drafted around the intended banking authority rather than relying on a generic template.
Relevant details may include:
- the full details of the principal;
- the full details of the attorney;
- the name of the bank or financial institution;
- the relevant account or account category where appropriate;
- the specific transactions the attorney may carry out;
- any restrictions or limits on that authority; and
- the intended duration or expiry of the authority, where applicable.
A defined duration may be useful where the authority is required only for a particular period or transaction. Whether a POA should be limited in duration depends on the principal’s circumstances and intended use.
Read also: Power Of Attorney In UAE: Does It Expire When Someone Dies?
Step 3: Complete the Applicable Notary Process
A Power of Attorney intended for formal use in Dubai may need to be ratified through the applicable notary procedure.
Dubai Courts currently provides a Power of Attorneys Ratification service. The notarial process includes verification of the parties’ identity, capacity and the powers being granted.
Dubai’s Smart Electronic Notary system also allows POA transactions to be processed electronically. Depending on the transaction, verification can take place through virtual or personal attendance, so it is no longer correct to assume that every POA must be physically signed in front of a notary at a branch.
Typical documents include proof of identity for the principal and information identifying the attorney and the powers being conferred. Additional supporting documents may be required depending on the type of POA.
For more detail, see how to notarize a Power of Attorney in the UAE.
Read also: Legal Documents That Can And Can’t Undergo UAE Notarization
Step 4: Submit the Power of Attorney to the Bank
Notarisation or ratification of the POA does not mean that the attorney can immediately transact on the account without further bank checks.
The bank may review:
- the validity of the POA;
- the identity of the attorney;
- the scope of the powers granted;
- the joint-account operating mandate;
- whether further bank forms or specimen signatures are required; and
- applicable compliance and customer-verification requirements.
Does a UAE Bank Have to Accept a Notarised Power of Attorney?
A notarised or ratified Power of Attorney should not be treated as an automatic guarantee that every bank will allow every transaction stated in the document.
UAE financial institutions are required to verify that a person claiming to act for a customer is properly authorised and to verify that person’s identity. A legally valid Power of Attorney can be used as evidence of authority, but the bank may still review whether the requested transaction falls within the POA, account mandate and its applicable compliance procedures.
Banks may therefore request additional identification, account documentation, internal forms or updated supporting records before registering or acting on the POA.
What If the Power of Attorney Was Issued Outside the UAE?
A foreign-issued Power of Attorney intended for use in Dubai may require additional authentication or attestation before it can be relied upon locally.
Dubai Courts’ notarial guidance provides that foreign-issued supporting documents may need authentication through the relevant authorities and legal Arabic translation where required.
The exact process depends on where the document was issued and how it will be used. The receiving bank may also impose its own documentary requirements before recognising the attorney’s authority.
When Might a Power of Attorney for a Joint Account Be Useful?
A banking POA is not automatically necessary for every adult or every joint account. It may be useful where there is a genuine need for another person to act on behalf of an account holder.
Examples may include where:
- a joint account holder is outside the UAE for an extended period;
- the holder cannot personally attend to a specific banking matter;
- a representative needs defined authority for a particular banking transaction;
- the holder wants another person to manage specified account administration; or
- temporary or limited banking authority is required.
Choosing an Attorney for Banking Matters
Because a banking POA can provide access to sensitive financial information or funds, the principal should carefully consider who is appointed and how much authority is granted.
Relevant considerations include appointing someone:
- who the principal trusts to act within the powers granted;
- who can understand and follow any limitations in the POA;
- who can responsibly manage the relevant financial tasks; and
- whose appointment is suitable for the specific purpose and duration of the authority.
The POA should also be reviewed if the purpose for which it was created ends or the principal no longer wishes the attorney to retain the authority.
Frequently Asked Questions About Joint Account Power of Attorney in UAE
Can one joint account holder give a Power of Attorney in the UAE?
A joint holder may grant authority over powers that the holder is legally entitled to delegate. Whether the attorney can carry out a particular transaction depends on the joint-account mandate, wording of the POA and the bank’s requirements.
Does a Power of Attorney make the attorney a joint account owner?
No. The attorney acts as the principal’s authorised representative. A Power of Attorney does not by itself give the attorney ownership or beneficial rights in the funds held in the joint account.
Can an attorney withdraw money from a joint bank account?
Only where the POA expressly provides the necessary authority, the principal is entitled to delegate that power under the account arrangement, and the bank accepts the authority for the requested transaction.
Can a Power of Attorney be used to close a joint bank account?
Account closure should not be assumed from a general POA. It depends on whether the principal has authority to close the account under the joint-account mandate, whether the POA expressly grants that power and whether the bank accepts it.
Does a UAE bank have to accept a notarised Power of Attorney?
A bank must verify that the person acting for its customer is properly authorised. A valid Power of Attorney may establish authority, but the bank can still verify its scope, the attorney’s identity, the joint-account mandate and applicable compliance requirements.
Does a banking Power of Attorney need to name the bank?
Naming the bank and clearly identifying the relevant banking powers can make the intended authority clearer. The appropriate wording depends on the transaction and the receiving bank’s requirements.
Can a foreign Power of Attorney be used for a UAE bank account?
Potentially, but a foreign-issued POA may require authentication or attestation and legal Arabic translation before use in the UAE. The receiving bank may also require additional verification or documentation.
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Contact our Notary Public Dubai team for fast and reliable notary services in the UAE.
How Can Notary Public Dubai Assist?
Notary Public Dubai can assist with the preparation of a Power of Attorney tailored to the intended banking authority and with the applicable document procedures.
The document can be drafted to identify the principal, attorney, relevant banking relationship and specific powers that are intended to be delegated.
Notary Public Dubai does not act as the bank and cannot guarantee that a financial institution will accept a particular POA or permit a particular transaction. Final acceptance remains subject to the receiving bank’s account mandate, verification and compliance requirements.
For assistance preparing or completing a banking Power of Attorney, contact our team.