ISA RATES DIPPED & Money Laundering Regulations? How much declaration?

juanmanuelmarquez

Hi all,
Im shocked to see that the CASH ISAs have gone soo low! I was wondering how much is the limit before it breaches the Money Laundering Regulations...i mean when the banks etc... can question you of where you got the money from?

I was told it was 8k, then 9k, and now im getting told around 8-10k or more you can get questioned?

Does anyone know the exact figure and any evidence to prove this?

Thanks in advance?

dunstonh

I was wondering how much is the limit before it breaches the Money Laundering Regulations...i mean when the banks etc... can question you of where you got the money from?

There is no minimum. The clerk just needs to be suspicious of you.

juanmanuelmarquez

dunstonh wrote: »

There is no minimum. The clerk just needs to be suspicious of you.

no, i mean in general, if you was to go to the bank, i was told if you deposit a large sum, they question you of where you got he money from, and whether you have any receipts to prove where the money came from....whats the limit? even if you buy a house with cash they ask you, according to Money Laundering Regs.... i think it maybe 8k?

dunstonh

no, i mean in general, if you was to go to the bank, i was told if you deposit a large sum, they question you of where you got he money from, and whether you have any receipts to prove where the money came from....whats the limit?

I refer you to my previous answer.

innovate

Same answer as already given

dunstonh wrote: »

There is no minimum. The clerk just needs to be suspicious of you.

Vortigern

If the OP has money in poorly performing cash ISAs then he should just do an ISA transfer and nobody will ask any questions about money laundering.

Why is he bothered about money laundering anyway? Something to hide?

westy22

If you transfer money from one institution to another then there are no questions at all because they know exactly where it has come from.

I sometimes pay in cheques for between £10k and £40k into my account and have never been asked why or where it came from.

If you were to try and pay in £10k to £40k in cash however, then I suspect that the bank may ask you to sign a declaration of source.

jimjames

Vortigern wrote: »

If the OP has money in poorly performing cash ISAs then he should just do an ISA transfer and nobody will ask any questions about money laundering.

Why is he bothered about money laundering anyway? Something to hide?

Good question. The rules are there to protect us all. If there is a legit source of the money it should be no bother to prove it.

juanmanuelmarquez

yes i understand that i need to prove my source, however, i was wondering whether i would get taxed for having such a large sum. as it would be classed as income would it eventhough if ive sold my car etc...?

i have previously banked cheques with large sums, but got told that i may need to prove receipts with cash. its no problem just more of a headache digging out the receipts of paperwork etc...i thought i may as well not have all my eggs in basket if you know what i mean... thanks for your help!

juanmanuelmarquez

Vortigern wrote: »

If the OP has money in poorly performing cash ISAs then he should just do an ISA transfer and nobody will ask any questions about money laundering.

Why is he bothered about money laundering anyway? Something to hide?

im currently with barclays, from what i can remember i joined last year when it was on 3.05% and now i think its 2.28%, i think it will be too much hassle to transfer considering its only 2-3 months left til new allowance and non of the easy access really gurantee the rate til end of tax year? is it really worth it for 0.- - %s? as im waiting til new tax year and then probably transfer to a fixed rate if its over 4%....what does everyone else think?...would this be wise?

innovate

juanmanuelmarquez wrote: »

yes i understand that i need to prove my source, however, i was wondering whether i would get taxed for having such a large sum.

If the large sums you are depositing are classed as income by the HMRC, you need to pay tax on them. If it's a lottery win, you don't need to tax it. Ask your local tax office if in doubt, don't take any chances, you could badly regret it if you do.

juanmanuelmarquez wrote: »

as im waiting til new tax year and then probably transfer to a fixed rate if its over 4%

The likelihood that we will see any new ISA rates above 4% this year is remote, IMHO. Whether there will be any better rates in April than we have now - who knows. But I wouldn't hold my breath.