πŸ… Bank Medallion Stamp

🏅 Bank Medallion Stamp

US Capital Private Bank Knowledge Base

A Bank Medallion Stamp (also known as a Medallion Signature Guarantee) is a special, highly secure stamp or seal applied by banks, brokerage firms, or financial institutions to certify that a signature on a financial document is genuine. This stamp guarantees the identity and authority of the person signing and assumes financial responsibility for any fraudulent transactions resulting from the endorsement.

What Does a Bank Medallion Stamp Do?

  • Authenticates Signatures: Confirms that the signature on the document belongs to an authorized individual, preventing unauthorized transfers or fraud.

  • Facilitates Transfer of Securities: Required by clearinghouses and transfer agents to process stock, bond, and other financial instrument transfers.

  • Provides Legal Protection: The financial institution issuing the medallion stamp takes liability for any fraudulent signatures, making it a strong layer of security.

  • Required for High-Value Transactions: Typically used for the transfer, sale, or gifting of securities, including stocks, bonds, mutual funds, and other assets.

Why is a Bank Medallion Stamp Important?

  • Prevents Fraud: Ensures that only legitimate owners can transfer or sell their securities.

  • Ensures Compliance: Many financial institutions and regulatory bodies require this guarantee to uphold the integrity of financial transactions.

  • Streamlines Processing: Facilitates quick and secure processing of securities transactions by providing a trusted certification of signatures.

When Do You Need a Bank Medallion Stamp?

  • When transferring ownership of securities such as stocks, bonds, or mutual funds.

  • When requesting redemption or withdrawal of securities from brokerage accounts.

  • When changing the registration on securities certificates.

  • When completing certain estate planning or gifting transactions involving securities.

How to Obtain a Bank Medallion Stamp?

  • Visit your bank, brokerage, or financial institution where you hold your securities or accounts.

  • Bring valid identification and any documents requiring signature certification.

  • The institution will verify your identity and authority, then apply the medallion stamp to your documents.

Important Notes

  • Not all banks provide medallion stamps—usually, financial institutions that are members of a Medallion Signature Guarantee Program issue them.

  • The stamp includes unique symbols and codes to identify the institution and prevent forgery.

  • Fees may apply depending on the institution providing the service.


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