Can an agent with a power of attorney (POA) use online banking to transact on a customer’s account?

Yes, we believe that an agent with a valid POA (that is signed by your customer, notarized, and witnessed) may use online banking to transact on a customer’s account, but only if the POA authorizes the agent to execute financial institution transactions. Additionally, your bank may wish to require the agent to produce certain information about the online account.

The Illinois Statutory Short Form Power of Attorney for Property includes the power to execute “financial institution transactions” in line item (b) — provided that item (b) has not been crossed out on the POA document signed by your customer. An agent who has been granted this power may use online banking to execute such transactions.

Additionally, your bank may be required to provide the agent with access to the customer’s online account if it involves “digital assets.” The Revised Uniform Fiduciary Access to Digital Assets Act requires a custodian of an individual’s digital assets to provide access to an agent acting under a power of attorney, provided that the agent presents a written request for access, an original or copy of the power of attorney “that gives the agent specific authority over digital assets or general authority to act on behalf of the principal,” and a certification under penalty of perjury that the power of attorney is in effect. The term “digital assets” encompasses any type of electronically-stored information, but not “underlying assets and liabilities,” such as funds held in an online bank account.

Your bank also may request that the agent provide a number, username, address, or other unique subscriber or account identifier for the customer’s account and evidence linking the account to your customer.

For resources related to our guidance, please see:

Illinois Power of Attorney Act, 755 ILCS 45/3-3(d) (“11. . . . (NOTE: This power of attorney will not be effective unless it is signed by at least one witness and your signature is notarized, using the form below. The notary may not also sign as a witness.)”)

Illinois Power of Attorney Act, 755 ILCS 45/3-4 (“Explanation of powers granted in the statutory short form power of attorney for property. . . . (b) Financial institution transactions. The agent is authorized to: open, close, continue and control all accounts and deposits in any type of financial institution (which term includes, without limitation, banks, trust companies, savings and building and loan associations, credit unions and brokerage firms); deposit in and withdraw from and write checks on any financial institution account or deposit; and, in general, exercise all powers with respect to financial institution transactions which the principal could if present and under no disability.”)

Revised Uniform Fiduciary Access to Digital Assets Act (2015), 755 ILCS 70/10 (“Unless otherwise ordered by the court, directed by the principal, or provided by a power of attorney, a custodian shall disclose to an agent with specific authority over digital assets or general authority to act on behalf of a principal . . . digital assets, other than the content of electronic communications, of the principal if the agent gives the custodian: (1) a written request for disclosure in physical or electronic form; (2) an original or a copy of the power of attorney that gives the agent specific authority over digital assets or general authority to act on behalf of the principal; (3) a certification by the agent, under penalty of perjury, that the power of attorney is in effect; and (4) if requested by the custodian: (A) a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal's account; or (B) evidence linking the account to the principal.”)

Revised Uniform Fiduciary Access to Digital Assets Act (2015), 755 ILCS 70/2(2) (“‘Agent’ means an attorney-in-fact granted authority under a durable or nondurable power of attorney.”)

Revised Uniform Fiduciary Access to Digital Assets Act (2015), 755 ILCS 70/2(8) (“‘Custodian” means a person that carries, maintains, processes, receives, or stores a digital asset of a user.”)

Revised Uniform Fiduciary Access to Digital Assets Act (2015), 755 ILCS 70/2(10) (“‘Digital asset’ means an electronic record in which an individual has a right or interest. The term does not include an underlying asset or liability unless the asset or liability is itself an electronic record.”)

National Conference of Commissioners on Uniform State Laws, Prefatory Note, Revised Uniform Fiduciary Access to Digital Assets Act (2015) (“The definition of ‘digital asset’ expressly excludes underlying assets such as funds held in an online bank account. Because records may exist in both electronic and non-electronic formats, this definition clarifies the scope of the act and the limitation on the type of records to which it applies. The term includes types of electronic records currently in existence and yet to be invented. It includes any type of electronically-stored information, such as: 1) information stored on a user’s computer and other digital devices; 2) content uploaded onto websites; and 3) rights in digital property. It also includes records that are either the catalogue or the content of an electronic communication.”)