What the floor limit before you get interigated on paying in a cheque Lloyds

tillycat123

I went into Lloyds today to pay in a cheque from a building society that is a regular saver paid from my Lloyds account. As soon as the cashier saw the cheque she said, oh have to fill out a special form for a big cheque. No account details had been pulled up. It's going straight back out when cleared to an ISA.

Next thing I'm being called into an office and being asked where it had come from! It was not even that huge I don't think. They had photo copied the cheque and she wanted to know was it from an account of mine.

Is it just another sales ploy? I felt quite embarrassed, being taken out of a busy line and taken into an office. I was more worried I was being pulled for all my vantage accounts!

What the limit on not causing a stir when paying in??

MME_2

Floor limits aren't disclosed to help prevent fraud, it would be disappointing if these limits were published on a public forum...

The collection of cheque form is completed to try and prevent money laundering but sales staff obviously divert their attention as soon as they are satisfied of the origin of the funds.

jambosans

I don't believe such a limit exists. The member of staff may have had suspicions for a number of reasons, the cheque amount may have simply been used as an excuse for further questioning.

Perhaps you can clarify a few points:-
Why were you not paying the cheque directly into the ISA?
Did you have to complete "a special form for a big cheque"?
What was the ultimate resolve of the situation (i.e. did they deposit the cheque)?

Edit: MME is suggesting floor limits exist, I answered with limited knowledge of LTSB branch procedure. That said, MME also seems to confirm my implication that these "floor limits" are used to satisfy money laundering detection/ prevention procedures.

leandygandy

I used to work for a bank and there was a floor limit for large deposits there, the counter staff had a small form to fill out. Having said that, it was a simple process - the form was filled out after the customer had left, and all we had to say was something along the lines of 'as this is a large deposit we need to ascertain where the money has come from, could you please tell me?', to which people generally answered 'I just sold my car for cash' or 'It's an inheritance' or the like, and make a note on the back of the cheque. The form would then be passed onto the counter manager, who would have a look at the account to see if the transaction pattern on the account supported the reason given. 9/10 times the account would look fine and no further action would be taken. However, I also saw many an account where large cash deposits would be made into an individual's account 2,3,4,5 times daily and all over the country...in which case money laundering reports were files as appropriate and sent to the MLRO for proper investigation.

Obviously, this was many years ago so I can't speak for current practice, nor can I speak for all banks but hopefully it will explain why you were asked the things you were.

I do think you're bank were particularly tactless though, it shouldn't be an interrogation!

tillycat123

Once the cheque clears it's enough to cover 1 and a half ISA's elsewhere. I was only allowed to make one withdrawal from where it came from but will be sending 2 chq's from c/a.

Nothing on ''special form'' for me to complete, she only filled in 2 bits that I could see.

Cheque did get deposited but not till much later in the day, checked online banking.

Nothing got entered onto a computer about me by the cashier to say this person looks dodgy, lets pull then over for a chat. She just saw the size of the cheque.

I guess it's no big deal, like you say checking for laundering but I wish I had just popped it in the deposit box rather than be made to look dodgy in front of a que of people.

rb10

LTSB does have a limit, above which cheques paid in are subject to extra checks by the branch.

However, a good cashier would firstly not make you wait whilst they fill in the form, but would also make it seem more like general conversation while they process your transaction, rather than an interrogation. There is no reason why it should seem to be that they are interrogating you.

ChiefGrasscutter

I had a cheque from a well known financial investment institution a few years ago and Lloyds asked a few questions about it when I went to pay it in - can't remember the details. The cashier went off and photocopied it and my paying in slip together - I could see that from where I was standing.

This was done by the cashier and not by anybody else in the bank.

I in turn asked exactly the day on which it would be cleared - as it would be moved elsewhere immediately after.

I was a bit surprised at what I thought would not be an large cheque for a main stream clearing bank was being subject to this level of scrutiny and I certianly move larger sums regularly by internet banking, but then again I suppose now cheques are becoming rarer so the odd "large" one might stand out more.

Mind you a Lloyds cashier rejected a cheque written out to me where my middle initial was rather unclear - I had to get the person to re-write it - this time without my middle initial!

MME_2

Agree with RB10, it all depends on what experience the staff at a particular branch have in dealing with this sort of thing. The form should technically be completed be a member of staff of a minimum grade however, some counter conversation can go a long way.

When I worked in branch we used to get a few larger cheques and never had any problems in what can be a touchy area. On relief at other branches though I was embarrassed by how some staff handled it.

coolesticeking

When I did my remortgage I asked for a cheque of £26,000 so I could pay various debts off. Went into Lloyds TSB to pay this in and someone came over from reception and said "Sir, would you like to follow me we need a word."

Followed, door shut and THEN they explained because of the value of the cheque they had to check to prevent fraud.

Asked what it was for, told them and they said that was fine, but would have to be cashed in another way as they put it.

Did show on internet banking the next day and cleared in the nornal timescales.

I think it depends on the bank, but I heard once any cheque over 3,000 would be checked this way and this was NatWest 3+ years ago, could have changed now!

claire07

I had a largish cheque (11k) when my Chelsea fixed bond matured (they didn't do bacs). The cheque had Chelsea in large red letters on it and I was questioned where it came from and the source of the money and my plans for it in front of a queue of people. Then later in the day the bank rang and said it would take an extra day to clear as it was a cheque for a large amount and a security measure for my own safety.

I think as a previous poster said I'd got spoiled with the ease of moving money round on the internet and now rather than have the hassle again I post any cheque off to my Coventry account instead.

meer53

Moving money on the internet is also subject to internal checks by your bank, the system is alerted to large transactions (and some smaller ones too as money launderers are pretty well aware of bank procedures !) and some money transfers do not take place until you have been contacted to verify that they are genuine. You should receive a message with any large money transfer which advises you that there may be a delay before this is actioned (thats what happens where i work)