Authorized signers in business banking in the United States
In this blog, we explore how U.S. companies manage their authorized signers, the challenges of a decentralized mandate structure, and the operational and compliance risks that come with it. With no central registry or regulatory requirement for updates, many firms rely on informal processes that can quickly become a liability.
Authorized signers in the US: Informal mandates, formal consequences
In the United States, authorized signatories (typically referred to as "authorized signers") are central to how companies manage their financial authority. Yet, the structure around them is surprisingly informal compared to other jurisdictions.
There’s no centralized registry for bank mandates or a formal legal requirement to update signatory information with any government body. Most companies rely on internal board resolutions and corporate documentation to manage these designations, typically presented to financial institutions only when opening or modifying accounts.
The process today
Authorization is granted via board resolutions or internal delegation.
Banks maintain their own records and may require periodic confirmation of authorized signers.
Certificate of Incumbency (CoI) documents are updated annually, often on fixed dates with little flexibility.
No real-time feedback mechanism exists to verify if banks have actually updated their systems.
Authorized signer risks are real
Despite the informal infrastructure, the stakes are high:
A lack of timely updates leaves ex-employees or unauthorized individuals with residual access to accounts.
Mandates scattered across Excel sheets or disconnected departments pose an audit and compliance risk.
Banks may act on outdated records, resulting in financial or reputational damage.
In M&A activity, legacy signatories often remain active across acquired entities, delaying integration and increasing exposure.
These shortcomings have left many U.S. organizations looking for better visibility and tighter governance.
Cygnetise: Turning governance into a competitive edge
Cygnetise provides a digital backbone for managing authorized signers across a decentralized structure like that of the U.S. It acts as a golden source repository, enabling:
Real-time updates: Push changes instantly to internal teams and external banks.
Four-eyes approval: Ensure all additions, removals, and edits require two authorized users.
Immutable audit trails: Track every change, timestamped and transparent, satisfying internal audit and external regulators.
Document attachments: Upload CoIs, board resolutions, and related documentation for each signer.
Expiry notifications: Get alerts before signer documents lapse, ensuring no list goes out of date unnoticed.
For U.S. firms, especially those in regulated industries or managing hundreds of entities, this isn’t just a productivity boost. It’s a safeguard against operational disruption and reputational risk.
A modern mandate for modern business
The U.S. financial system might be decentralized, but your mandate management doesn’t have to be. Cygnetise gives Governance, Compliance, and Treasury leaders the control and confidence they need, without the need for spreadsheets or stress.
In a world where compliance moves fast and risk never sleeps, Cygnetise is how modern companies manage authorized signers, efficiently, securely, and globally.