Paypal - money laundering regs - !!!!!!?

Snooze

Hi all,

This isn't ebay or car boot related but as the majority of the discussion on this forum is about Paypal then I hope I'm posting in the best place for advice.

Basically, I run my own blog site on a hobby subject and charge a fiver a month for a access by using Paypal as payment engine. It's been ticking along nicely for the time it's been up and running but today I received an email from Paypal:

Dear x,

We are sending you this notice because you have received more than 650.00 GBP in total payments to your PayPal account.

PayPal is required by law to comply with European Union Anti-Money Laundering regulations to collect information from customers when they receive more than the set limit in total payments. Please log into your account, go to the Account Overview page, and follow the instructions there about how to provide the required information. These steps need to be completed as soon as possible to comply with this regulation.

If you have any trouble completing these steps, please contact Customer Service at 08707 307 191

We appreciate your business and apologise for any inconvenience.

Case ID Number: x

Yours sincerely,

PayPal Account Review Department

Umm, am I missing something but since when has £650 been the money laundering regs limit? I regularly move thousands of pounds in cash through my bank accounts and have never had any of this cheese.

Anyway I logged into my (Premier) account and it wants me to confirm my home tel no., add a card and confirm bank account again for 2 small deposits as well as requesting that I upgrade to a business account because apparently my £650 is nearing the 12 monthly £1750 maximum receiving limit or something? None of it makes any sense as I've confirmed all my details and phone already, like 3 years ago or something.

The thing is, it says that I can still do all the usual stuff like receive money and withdraw it, only that I can't close the account while it's under "review". :rolleyes: So what is the point of the email if they aren't doing anything? Should I just ignore it and bin it and carry on as normal?

I've actually been thinking about changing to Google Checkout for some time now but never got round to it because Paypal has (up until now) done the job without any issues. Is Google any better? Any recommendations? Is it the same hoop-jumping process like Paypal? Any other alternatives to receive money safely from all corners of the globe without having to set up a business/merchant account?

TIA.

Rob

RFW

Snooze wrote: »

The thing is, it says that I can still do all the usual stuff like receive money and withdraw it, only that I can't close the account while it's under "review". :rolleyes: So what is the point of the email if they aren't doing anything? Should I just ignore it and bin it and carry on as normal?

I've actually been thinking about changing to Google Checkout for some time now but never got round to it because Paypal has (up until now) done the job without any issues. Is Google any better? Any recommendations? Is it the same hoop-jumping process like Paypal? Any other alternatives to receive money safely from all corners of the globe without having to set up a business/merchant account?

TIA.

Rob

Don't ignore it, its a legal requirement under UK financial regulations, so would happen under other payment methods too.

I don't know all the reasons, but Paypal is not classed as a bank so the rules are different.

I can't say whether Google Checkout would be better for you, but that in general most payers prefer Paypal.

Forgetful

are u sure the email is genuine...I get lots of emails about my paypal account..................but then I dont have a paypal account so obviously a scam!!!

Snooze

Forgetful wrote: »

are u sure the email is genuine...I get lots of emails about my paypal account..................but then I dont have a paypal account so obviously a scam!!!

Yeah it's definitely genuine.

I just don't get why all my previously confirmed info like bank account and house phone number etc has now got to be done all again.

What happens if I ignore the mail anyway? I'm not seeing any time limits for doing all this stuff.

This money laundering crap is just that. You can't do anything anymore without some busybody interfering. Back in the 80s and 90s when I worked in the demolition industry tens of thousands of pounds in cash changed hands every day without anyone batting an eyelid and now you're expected to explain where you've got £650 from. :rolleyes: :rolleyes: :rolleyes: :rolleyes: Too many flaming do-gooders.

Rob

Jakg

IIRC there is a limit, but it's nowhere near £650 - PayPal are just being over-protective as usual.

Premier_2

The lifetime receiving limit is £1700 (unless you act to remove the limit)

Paypal tell people once they have reached £650 to give them time to act before they find they can't receive anymore money.

pdel61

There's nothing you can do but comply, it is however a complete misrepresentation on Paypals behalf as there is no £1700 international or European limit, it is one imposed by them themselves.

Snooze

Premier wrote: »

The lifetime receiving limit is £1700 (unless you act to remove the limit)

Paypal tell people once they have reached £650 to give them time to act before they find they can't receive anymore money.

Thanks, so I'm okay to receive and withdraw til I reach £1700 of income at which point they'll suspend my account til docs received, correct?

They've sent me another email today entitled "Please Return Your Account to Regular Standing" and is an exact copy of their previous one, apart from one line saying "this notice is a reminder".

Rob

Marty_J

Why don't you just do as they ask?

loulou88

i got this letter last week followed the instructions they took a pound from my bank i had to send paypal a code they put on my bank statement and now its all sorted plus you get the pound back it straight forward but inconvienent i dont mind at least we know were not breaking any laws

Snooze

Marty_J wrote: »

Why don't you just do as they ask?

:rolleyes: In case I wasn't clear enough in my first post, I've already done all this once and don't have time to waste in order to do it all over again.

Rob