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  • FIRST POST
    • jcuurthht
    • By jcuurthht 16th Jun 17, 6:54 AM
    • 48Posts
    • 1Thanks
    jcuurthht
    Temporarily moving savings to parents bank account
    • #1
    • 16th Jun 17, 6:54 AM
    Temporarily moving savings to parents bank account 16th Jun 17 at 6:54 AM
    I currently have over 85k in my bank account, and therefore want to move 17k to my parents bank account (which pays no interest) while I set up a new savings account.

    Are there any legal ramifications of doing this?

    Many thanks.

    Edit: I am a non-resident, so for me opening a new UK account is very limited, and the process takes a couple of weeks.

    Edit 2: The reason I want to do this is funds over 85k are not protected by the Financial Services Compensation Scheme (FSCS).
    Last edited by jcuurthht; 16-06-2017 at 7:36 AM.
Page 1
    • Robin9
    • By Robin9 16th Jun 17, 6:58 AM
    • 1,835 Posts
    • 1,192 Thanks
    Robin9
    • #2
    • 16th Jun 17, 6:58 AM
    • #2
    • 16th Jun 17, 6:58 AM
    Why?

    Why not set up a second savings account now ?
    • jcuurthht
    • By jcuurthht 16th Jun 17, 7:00 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    • #3
    • 16th Jun 17, 7:00 AM
    • #3
    • 16th Jun 17, 7:00 AM
    Why?

    Why not set up a second savings account now ?
    Originally posted by Robin9
    I'm in the process of doing that with NS&I, however I am a non-resident, so it takes some time.
    • Browntoa
    • By Browntoa 16th Jun 17, 7:00 AM
    • 31,861 Posts
    • 37,579 Thanks
    Browntoa
    • #4
    • 16th Jun 17, 7:00 AM
    • #4
    • 16th Jun 17, 7:00 AM
    Will flag up for money laundering as more than £10,000

    Just open a new account
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • jcuurthht
    • By jcuurthht 16th Jun 17, 7:06 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    • #5
    • 16th Jun 17, 7:06 AM
    • #5
    • 16th Jun 17, 7:06 AM
    Will flag up for money laundering as more than £10,000

    Just open a new account
    Originally posted by Browntoa
    What if I pay in two instalments? e.g. 10k & 8k

    Would this actually be considered money laundering?
    • Robin9
    • By Robin9 16th Jun 17, 7:24 AM
    • 1,835 Posts
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    Robin9
    • #6
    • 16th Jun 17, 7:24 AM
    • #6
    • 16th Jun 17, 7:24 AM
    Can we put £17000 for 2 weeks in perspective ?

    You might get £1 a day in interest.

    Why move to your parents account which you say pays no interest?
    • jcuurthht
    • By jcuurthht 16th Jun 17, 7:34 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    • #7
    • 16th Jun 17, 7:34 AM
    • #7
    • 16th Jun 17, 7:34 AM
    Because I have over 85k in my current account.

    Anything over 85k is potentially not protected by the Financial Services Compensation Scheme (FSCS)

    You can read more about it here: http://www.moneysavingexpert.com/savings/safe-savings
    • EachPenny
    • By EachPenny 16th Jun 17, 7:50 AM
    • 2,816 Posts
    • 5,031 Thanks
    EachPenny
    • #8
    • 16th Jun 17, 7:50 AM
    • #8
    • 16th Jun 17, 7:50 AM
    Are there any legal ramifications of doing this?
    Originally posted by jcuurthht
    Yes.

    What you are proposing, especially as a non-resident, sounds dodgy - you are even asking how to do the transaction with a view to avoiding tripping money laundering controls. It sounds like the £85k limit is being used as a justification for doing something which you shouldn't be doing.

    That is the impression your proposal gives - you might be intending to make this transaction for purely innocent reasons, but it is the impression which counts.

    Get your new savings account set up asap and transfer the money to that. There is a risk to the amount over £85k in the meantime, but how long have you had more than £85k with that bank already?
    "In the future, everyone will be rich for 15 minutes"
    • jcuurthht
    • By jcuurthht 16th Jun 17, 7:55 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    • #9
    • 16th Jun 17, 7:55 AM
    • #9
    • 16th Jun 17, 7:55 AM
    Yes.

    What you are proposing, especially as a non-resident, sounds dodgy - you are even asking how to do the transaction with a view to avoiding tripping money laundering controls. It sounds like the £85k limit is being used as a justification for doing something which you shouldn't be doing.

    That is the impression your proposal gives - you might be intending to make this transaction for purely innocent reasons, but it is the impression which counts.

    Get your new savings account set up asap and transfer the money to that. There is a risk to the amount over £85k in the meantime, but how long have you had more than £85k with that bank already?
    Originally posted by EachPenny
    Thanks, this was the information I was looking for.

    I recently completed a sale and the funds have been in my account since Monday. I'm currently waiting to receive documents from NS&I to sign and send back with notarised identification.

    I actually just remembered I have a savings account with Halifax that I can use, which will save me any trouble.

    Thanks.
    • Gambler101
    • By Gambler101 16th Jun 17, 7:59 AM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    I dont think any UK bank will go bust in the next 2 weeks lol
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • EachPenny
    • By EachPenny 16th Jun 17, 8:00 AM
    • 2,816 Posts
    • 5,031 Thanks
    EachPenny
    I actually just remembered I have a savings account with Halifax that I can use, which will save me any trouble.
    Originally posted by jcuurthht
    A far better solution, which sounds much less dodgy.
    "In the future, everyone will be rich for 15 minutes"
    • jcuurthht
    • By jcuurthht 16th Jun 17, 8:01 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    It's Santander
    • Keep pedalling
    • By Keep pedalling 16th Jun 17, 8:10 AM
    • 3,917 Posts
    • 4,276 Thanks
    Keep pedalling
    Why so much in cash? It's not banks going bust you should worry about, but erosion through inflation, and the danger of further devaluation of the pound
    • bowlhead99
    • By bowlhead99 16th Jun 17, 8:14 AM
    • 6,868 Posts
    • 12,369 Thanks
    bowlhead99
    What if I pay in two instalments? e.g. 10k & 8k

    Would this actually be considered money laundering?
    Originally posted by jcuurthht
    Whether it's £18k or £10k+£8k or £5k or £1, it's not money laundering if the money doesn't contain the proceeds of crime.

    The comment that it might "flag up" does not mean you are a criminal, it is to do with the fact that banks have monitoring systems to help identify unusual or suspicious transactions and a large receipt from a third party (especially e.g. where your parents don't normally get large receipts ; and which is then sent back out again a few weeks later) would be expected to "look funny" if it is something other than a small sum.

    Also if the bank or other money-handling organisation has a monitoring threshold such as £10,000 to help them filter off and report the riskier transactions, you can imagine that they also have a system that flags if they receive a bunch of transactions at £9999 from the same source in quick succession.

    This does not mean the bank or law enforcement agencies will take any action or make any enquiries. People put money in accounts all the time. It just means there's something for them to potentially ask questions about.
    I currently have over 85k in my bank account, and therefore want to move 17k to my parents bank account (which pays no interest) while I set up a new savings account.

    Are there any legal ramifications of doing this?
    Originally posted by jcuurthht
    The money sitting in your parents' account would appear to belong to your parents in the absence of any paperwork to the contrary, so when they get hit by a bus tomorrow and their estate is being used to settle their debts or distributed to beneficiaries, or if for example they get sued for every penny they have as a result of a vexatious lawsuit from some silly neighbour, you may struggle to recover"your" funds because it just looks like a gift.

    So, each of you should sign a letter to say it's a loan.

    Whether or not you have paperwork, their bank is not duty bound to recognise any separate trust agreement between your parents and you, and the account terms will usually say that it is a personal account of your parents alone, prohibited​ from being used as a nominee account for someone else's funds. So the "legal" structure is that it is their money, any interest or fees relating to it belong to them, and then separately they owe you a debt.

    And if they (like you) are overseas resident, the periodic balance or interest amounts in their account for the reporting period will get reported to HMRC as belonging to them and shared internationally with their relevant foreign tax authority, just as already happens with your £85k account (unless you are in one of the various countries that doesn't want to share financial account data with the UK, though the number is dwindling).

    One obvious point not related to your question is why your parents account doesn't pay them any interest when it's got over £17k in it. The MoneySavingExpert thing to do is for them to use accounts that pay more than 0% interest on the cash the bank holds. Granted, £17k for a couple of weeks would not produce much interest but if they're not getting interest on the rest of their own money they are missing an opportunity.
    Last edited by bowlhead99; 16-06-2017 at 8:24 AM. Reason: Added a bit
    • jcuurthht
    • By jcuurthht 16th Jun 17, 8:15 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    Just sold my property. But have no plan on buying another while I live abroad (which may be forever).
    • Voyager2002
    • By Voyager2002 16th Jun 17, 8:25 AM
    • 11,640 Posts
    • 7,892 Thanks
    Voyager2002
    Just sold my property. But have no plan on buying another while I live abroad (which may be forever).
    Originally posted by jcuurthht
    So you should be looking at stocks and shares, bonds, other kinds of investments...
    • dmelife
    • By dmelife 16th Jun 17, 8:28 AM
    • 14 Posts
    • 11 Thanks
    dmelife
    You will still be covered by FSCS for a limited time following house sale, 6m I think. No need to panic!

    Google temporary high balance fscs
    • jcuurthht
    • By jcuurthht 16th Jun 17, 8:44 AM
    • 48 Posts
    • 1 Thanks
    jcuurthht
    So you should be looking at stocks and shares, bonds, other kinds of investments...
    Originally posted by Voyager2002
    But I have no interest in any investment involving risks.
    • Eco Miser
    • By Eco Miser 16th Jun 17, 8:47 AM
    • 3,146 Posts
    • 2,906 Thanks
    Eco Miser
    But I have no interest in any investment involving risks.
    Originally posted by jcuurthht
    That's a pity, because there are no investments, or savings accounts, that don't involve risks.
    Eco Miser
    Saving money for well over half a century
    • Keep pedalling
    • By Keep pedalling 16th Jun 17, 8:53 AM
    • 3,917 Posts
    • 4,276 Thanks
    Keep pedalling
    But I have no interest in any investment involving risks.
    Originally posted by jcuurthht
    But you are perfectly happy to risk a large loss to currency market shifts?
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