Opening bank account and fraud

agrinnall

zaax wrote: »

simples they check a computer

I would have just replied "idiot" but I needed a few more characters.

Goldiegirl

grumbler wrote: »

Come on... Multiple accounts? Money laundering? Reporting? It's just two accounts for Christ's sake.

Nothing to worry about if the credit history is fine. If there are some problems, indeed it's worth waiting a little after the first application.

I speak as a bank employee.

We are under an obligation to Know Our Customers, so if anything unusual is noticed we have to ask the questions.

Probably nothing will be noticed, but if I noticed that a search revealed a recent enquiry for the opening of another bank account I'd ask about it. If I got a sensible answer, I'd proceed, but if I was not happy, for example if the customer was evasive, I'd report the suspicion to the correct department of my bank, and let them look into it further. I'd then rest easy that I'd done my duty.

With regard to the liability for fraud the liability rests with the bank, but for anything relating to terrorism there is a personal liability. If you fail to report a reasonable suspicion, the maximum penalty is two years imprisonment.

So bank staff aren't asking questions for the sake of it, they are protecting the interests of all their customers, and protecting their own interests too.

Why risk disiplinary proceedings or criminal action? It's just better to ask the customer if anything unusual is noticed rather than thinking 'it's just two accounts for Christ's sake.' If bank staff had that attitude the criminals would have a field day

innovate

If the banks' systems were truly reliable and we could always be sure that we can get our cash out of our accounts whenever we like, have our SOs and DDs executed when they should be executed, receive payments when they have been sent in a timely manner, and if we could actually trust the banks that they don't gamble our money away and go bancrupt, you could probably argue that one current account should be all that a single customer would ever want.

Unfortunately, we can't rely on this, as recent experience has clearly shown on multiple occasions. Therefore, bankers will find that it will be completely normal that people have several accounts, may be even opened on the same day, and that they send money between these accounts. Customers have no choice but to protect themselves against the shortfalls and vulnerabilities of the banks.

mulronie

Fraud? Really? I do wish people would understand what this word actually means before bandying it around.

In the UK fraud is a serious criminal offence, defined with its own specific legislation, and carrying a sentence on conviction of up to 10 years.

It is not defined as "behaviour that maybe construed by at least one person as looking a little bit odd".

Goldiegirl

mulronie wrote: »

It is not defined as "behaviour that maybe construed by at least one person as looking a little bit odd".

Of course its not - that's why, if there are any concerns, the staff member reports it to their MLRO, who looks into the matter, and decides whether the matter should be taken further.

The staff at the counter are the front line, all they need to do is to report a suspicion.

When I worked at a high street bank, I made maybe two or three reports a year, and none of them were taken further.

All I'm trying to highlight is something that MIGHT happen, if customers aren't open about their intentions.

grumbler

Goldiegirl wrote: »

I speak as a bank employee.
...but if I noticed that a search revealed a recent enquiry for the opening of another bank account I'd ask about it.

As a bank employee you should know that you cannot see an "enquiry for the opening of another bank account". What you can see is only a credit search.

Why risk disiplinary proceedings or criminal action? It's just better to ask the customer if anything unusual is noticed rather than thinking 'it's just two accounts for Christ's sake.' If bank staff had that attitude the criminals would have a field day

Criminal action?
IMHO you definitely lack some common sense if a recent credit search rings a bell to you. I have accounts with all UK banks and some BSs. I think other bank employees are not doing their job and have to be prosecuted. Or, probably, they just have some common sense?

rb10

Goldiegirl wrote: »

Probably nothing will be noticed, but if I noticed that a search revealed a recent enquiry for the opening of another bank account I'd ask about it.

What bank's branch staff have access to a customer's credit record?

That is the only place that they could see whether a credit search had been carried out recently.

In my experience branches just get a yes/no/refer answer back, the same as if you apply online. No more detail than that.

Goldiegirl

All I can say is, if I noticed something, I'd ask the question.

In recent years I mainly dealt with the administration of mortgage applications, and Transfers of Equity - personally I haven't opened accounts for some years.

I just wanted to point out a situation that COULD arise - I didn't say it was definitely going to happen.

My reports to the MLRO were all concerned with mortgage matters - and my reports were about two or three a year.

I just wanted to point out that if asked about something, it's best to be open about what you are doing, to allay any suspicions.

Staff have to be alert - if not, criminals could take advantage of holes in the system, and then everybody would complain about that.

Goldiegirl

grumbler wrote: »

As a bank employee you should know that you cannot see an "enquiry for the opening of another bank account". What you can see is only a credit search.
Criminal action?
IMHO you definitely lack some common sense if a recent credit search rings a bell to you. I have accounts with all UK banks and some BSs. I think other bank employees are not doing their job and have to be prosecuted. Or, probably, they just have some common sense?

Any credit searches are not the only thing that are taken into consideration. That's why we need to know our customers.

For example, an 18 year old student opening an account with £100k, might prompt the question, where is the money coming from. In most cases, the answer would be from parents. But if the response was evasive, then that could prompt a report to the Money Laundering Reporting Officer, as 18 year old students with that sum of money is not typical.

Jules2012

Big difference opening a bank account with £100k and someone opening another bank account with another banking group IMO