Bank Acceptance Requirements for a Special Power of Attorney (SPA) in the Philippines

A comprehensive legal-practice guide for deposit, credit, and investment transactions

1. What Is a Special Power of Attorney?

Under Philippine civil law, a power of attorney is an act of agency in which one person (the principal) grants authority to another (the attorney-in-fact or agent) to perform juridical acts on the principal’s behalf. Two broad classes exist:

Type	Scope	Civil Code basis
General POA	All acts of administration, unless expressly limited	Art. 1877
Special POA (SPA)	Specific, enumerated acts that the law or the parties deem extraordinary	Art. 1878

Transactions that always require an SPA (Civil Code Art. 1878) include, among others, the sale or mortgage of real property, the creation of real rights, and the making of gifts or guaranties. Banking transactions frequently fall within these “special” acts because they involve disposition of money or property.

2. Why Banks Demand More Than the Civil Code

Commercial banks are heavily regulated “covered persons” under:

General Banking Law of 2000 (RA 8791)
BSP Circular Nos. 706, 950 & 1022 (anti-money-laundering & KYC)
Manual of Regulations for Banks (MORB)
Notarial Rules (2004) and A.M. No. 9-20-10-SC (remote notarization)
Hague Apostille Convention (effective for PH 14 May 2019)

Because they face “gatekeeper” liability, banks will only honor an SPA that passes three layers of scrutiny:

Formal Validity – executed and notarized (or apostilled/consularized) in the proper form.
Substantive Sufficiency – powers specifically cover each requested banking act.
Customer Due Diligence (CDD) – identities and signatures of principal/agent verified.

3. Formal Validity Checklist

Requirement	Domestic SPA (signed in PH)	SPA executed abroad
Document form	Written, original, in English or Filipino (or sworn translation)	Same
Signatures	Principal signs in person before notary public	Principal signs before foreign notary/consular officer
Notarial seal & jurat	Mandatory; complete notarial block incl. roll no., commission expiry, venue	Notarial seal + (a) Apostille from competent authority or (b) Philippine consular authentication (if country not apostille-party)
Witnesses	Not strictly required by law, but many banks insist on two disinterested witnesses to deter forgery	Same
Government IDs	Photocopies of valid, photo-bearing government IDs of all signatories; ID numbers recited in the jurat	Same; some banks ask for passport data page
Page association	Initials on every page or a notarial “loose-leaf” annotation	Same
Translation	If not in English/Filipino, a sworn translation by accredited translator	Same

Pro-tip: Banks often reject SPAs older than one (1) year or containing erasures, missing pages, or pin/staple holes with no countersignatures. Secure a fresh execution if in doubt.

4. Substantive Sufficiency: What Powers Must Be Stated?

Below are common banking acts and the exact wording banks usually want to see. List each power in clear, numbered paragraphs:

Banking Act	Recommended Language
Deposit & withdrawal	“To open, maintain, and close deposit or savings accounts; to deposit or withdraw any and all funds in such accounts…”
Check issuance	“…to sign, draw, and endorse checks, bills, and other negotiable instruments in my name…”
Time deposit roll-over	“…to place funds in time deposit and to pre-terminate or roll over the same upon maturity…”
Loan & mortgage	“…to apply for, negotiate, and sign loan agreements, promissory notes, real-estate mortgages or chattel mortgages…”
Electronic banking	“…to enroll in, access, and operate my accounts using electronic or internet banking platforms…”
Investments & UITFs	“…to subscribe, redeem, assign, or encumber units in unit investment trust funds, government securities, corporate bonds, and other investment instruments offered by the bank…”

Avoid catch-all clauses (“do any act necessary”)—banks will almost always insist on specificity.

5. Customer-Due-Diligence (CDD) Requirements

Face-to-Face Verification
- Original SPA presented and compared with copies.
- Attorney-in-fact must appear personally, sign the bank’s specimen-signature card, and show at least one primary photo ID (passport, UMID, PhilSys, etc.).
Record Keeping
- Bank retains a certified true copy of SPA & IDs for five (5) years minimum (Sec. 3.2, AMLA IRR).
- Entries logged in notarial register can be cross-checked via the Supreme Court’s e-Notary database.
Screening vs. Watchlists
- Principal and attorney-in-fact screened against UN sanctions lists and domestic terrorist watchlists.
Beneficial Ownership Declaration
- For withdrawals or investments ≥ ₱500,000, some banks require both parties to sign a “source-of-funds” form or CTR/STR disclosure.

6. Bank-Specific Practices (What Practitioners See on the Ground)

Bank	Additional quirks
BDO Unibank	Rejects SPAs older than 6 months for withdrawal requests; wants “at least two probabilities” ID (e.g., passport + PhilSys).
BPI	Demands firm expiration date in the SPA (default they assume one-year life if silent).
LandBank	For OFW remittances, accepts apostilled SPAs sent by courier, but release of cash only to attorney-in-fact bearing original IDs plus Barangay Certification of residency.
Metrobank	For loan documents, insists on bank-supplied SPA template to be executed.
DBP	Requires GSIS e-card if the attorney-in-fact will transact on government salary loans.

(These are practice observations; always call the branch in advance, as house rules evolve.)

7. Duration, Revocation, and Replacement

Default validity – An SPA has no statutory expiry; it endures until the principal revokes it, dies, becomes incapacitated, or the purpose is accomplished (Civil Code Art. 1920-1923).
Bank policy override – Despite the law, most banks treat SPAs as “stale” after 12 months. They will ask for re-execution or acknowledgment of continuing validity in a short affidavit.
Revocation mechanics
1. Execute a Deed of Revocation (notarized).
2. Serve it in writing to the bank branch where the SPA is lodged.
3. Secure a file-received stamp as proof.
4. Destroy unused checks, ATM cards, and web credentials issued to the attorney-in-fact.
Public notice – For real-property related SPAs, publish revocation in a newspaper and annotate on the title to bind third parties (Land Registration Act Sec. 53).

8. Common Pitfalls & How to Avoid Them

Inadequate description of powers – Leads to outright rejection.
Missing apostille – Most frequent error for documents mailed from the Middle East & Europe.
Illegible notarial seal or blurred photocopy – Always provide a fresh, high-resolution scan plus the original.
“One SPA for everything” syndrome – Courts have voided blanket SPAs for being too broad (e.g., Spouses Abubo v. People, G.R. 166457, 2012).
Using corporate seal for an individual SPA – Unnecessary and confusing; keep individual and corporate powers separate.
Failing to update signature cards – Bank cannot match signatures; transaction is frozen.
Remote notarization not accepted – Some rural-bank compliance officers still disallow video-conference notarization; clarify in advance.

9. Relevant Jurisprudence

Case	G.R. No.	Lesson
China Bank v. Spouses Mondares	207163 (2013)	Bank liable for honoring forged SPA; must examine face of document and signatures with “highest degree of care.”
Spouses Abubo v. People	166457 (2012)	Over-broad SPA with missing specific powers deemed invalid; attorney-in-fact convicted of estafa.
Development Bank of PH v. ARC	204007 (2022)	Even corporate board resolution insufficient without SPA when signing mortgage on member’s behalf.
BPI Family SB v. Pryce	168114 (2009)	Bank may refuse to honor stale SPA if policy disclosed; no breach of contract.

10. Practical Drafting Template (Individual Principal)

SPECIAL POWER OF ATTORNEY I, [Full Name of Principal], of legal age, Filipino, married/single, with residence at ___, do hereby appoint [Full Name of Attorney-in-Fact], likewise of legal age, Filipino, with residence at ___, to be my true and lawful attorney-in-fact, to wit:

To open, maintain, and close bank deposit, savings, current, and time-deposit accounts with [Name of Bank];

To deposit or withdraw any and all sums of money, sign checks, drafts, withdrawal slips, and other negotiable instruments;

To enroll in and operate electronic or internet banking facilities;

To invest, redeem, or transfer funds in unit investment trust funds, securities, and other investment instruments;

To apply for, negotiate, and sign loan agreements, promissory notes, real-estate and chattel mortgages;

To receive bank statements and other documents; and

To do all acts necessary to implement the foregoing, hereby ratifying all acts lawfully done hereunder. IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of ___ 20__, at ___, Philippines.

Principal Attorney-in-Fact

Signed in the presence of:

_____________________ 2. _____________________

11. Summary Takeaways for Practitioners

Plan ahead. Branches differ; call the specific branch where the transaction will occur.
Specify powers. Enumerate every banking act; include electronic banking in the post-pandemic era.
Observe formality. Notarization + apostille/consularization is non-negotiable.
Refresh annually. Even though not legally required, a one-year shelf life keeps CDD friction low.
Keep originals secure. Banks insist on sighting the wet-ink copy before releasing funds.
Communicate revocations. Silence binds the principal if the bank relies on the SPA in good faith.

Disclaimer

This article is for general informational purposes only and does not constitute legal advice. Consult Philippine counsel or the compliance unit of the concerned bank for transaction-specific requirements.