Advice on receiving a large amount of money from abroad

jamesd

MarcoM wrote: »

Why would the bank insist on seeing documentation?

Lets consider an investigation a bank did into some of my transactions. They didn't breach account terms, were lawful and profitable for me but they also happened to resemble the transactions used in layering, a money laundering technique. So the bank wanted sufficient information to determine that all of the transfers were between by own accounts at them and two other banks and that no unexplained external money was being added that was being laundered along with the legitimate transactions.

I greatly dislike such things but I also sadly recognise that lawful though my actions were, the anti-money laundering regulations and risks were what are causing me an ongoing loss of money, not primarily the actions of the bank.

This has however enhanced my lack of appreciation for the costs and losses that those regulations impose on innocent customers. About £900 a year at the moment for me.

MarcoM

jamesd wrote: »

Lets consider an investigation a bank did into some of my transactions. They didn't breach account terms, were lawful and profitable for me but they also happened to resemble the transactions used in layering, a money laundering technique. So the bank wanted sufficient information to determine that all of the transfers were between by own accounts at them and two other banks and that no unexplained external money was being added that was being laundered along with the legitimate transactions.

I greatly dislike such things but I also sadly recognise that lawful though my actions were, the anti-money laundering regulations and risks were what are causing me an ongoing loss of money, not primarily the actions of the bank.

This has however enhanced my lack of appreciation for the costs and losses that those regulations impose on innocent customers. About £900 a year at the moment for me.

James, very detailed reply, thanks.

Would it be best for someone to transfer the money over a number of transactions rather than a big one and also would using a different recipient account avoid all of the money being blocked?
Also are the same problems encountered with transfer within the same country for example a 2 million transfer between a will executor and a beneficiary?

To the person saying that the it will help to show the statement of the origin account this is all well and good but who do you show it to? When i go into my hsbc branch all I get is a machine staring at me and no frontline staff. Also I would doubt that a call centre half across the world would understand the notion of previous notice on a large bank transfer...do they have this on their script?

John_Pierpoint

My very limited experience is that the banking system will happily accept money and the write and say "where did this come from?"; helpfully enclosing a form with boxes to be ticked.
The theory is "know your customer" but in reality it think it is "anus protectus". Obviously it is not a good idea to lie as further evidence might be demanded. In my case I was turning inheritance into property purchase.

xylophone

When i go into my hsbc branch all I get is a machine staring at me and no frontline staff.

Choose a large branch with staff and make an appointment to see the customer adviser.

I would expect the executor to draw a cheque on the executor's account and give it to you with a letter detailing the bequest or if a bank transfer is envisaged, to write to you formally with details of the amount and asking for details of the account to which the bequest is to be sent.

You would take this with you when you go to the bank for the meeting. If the bank had any other requirements, these would be specified.

MarcoM

xylophone wrote: »

Choose a large branch with staff and make an appointment to see the customer adviser.

I would expect the executor to draw a cheque on the executor's account and give it to you with a letter detailing the bequest or if a bank transfer is envisaged, to write to you formally with details of the amount and asking for details of the account to which the bequest is to be sent.

You would take this with you when you go to the bank for the meeting. If the bank had any other requirements, these would be specified.

If the documents were in a foreign language would I be required to provide costly translations as well? Would the bank refund this fee?

Also do you think there isn a chance that after being pestered by the bank for proof of origin of the moneys they would be cheeky enough to offer financial advice on how to invest it.....

xylophone

If the documents were in a foreign language would I be required to provide costly translations as well? Would the bank refund this fee?

Do you speak and read the foreign language in question? If not, and there are any such documents, I should think you'd want them translated yourself!
I can't imagine that the bank would pay - why should it? You are the one requiring the banking facility.

they would be cheeky enough to offer financial advice on how to invest it.....

The bank might well offer/suggest its investment services - up to you to politely decline if they are not required.

MarcoM

What are the thresholds for these investigations?

I once had a 70k payment from another bank and all I got was a ridiculous phone call from my bank trying to get me to book an appointment with a tied FA. No mention of SOCA, consent etc etc