HSBC delays opening an account (3+ weeks), citing weird reason

Dmitrii

We with my wife moved to UK from Singapore 3.5 weeks ago (we taught at a university there for a number of years) and started our jobs as university lecturers in Oxford. In Singapore we are HSBC Premier customers, and we thought it would be a breeze to open an HSBC account here. We are both EU nationals. However, an HSBC employee told us that as I was born in Russia, they need to do long backgrounds checks (takes up to 4-5 weeks, needs information on all assets, the approval comes from USA(!), etc) in order to open an account for me (no problem for my wife though, she was born somewhere else).

He told us that as HSBC trades in US$, they are given a list of 180 countries, and the new customers who were born in one of these 180 countries are subject to such background checks. Is this for real, or are they are just unwilling to take me as a customer? I really do not know what to think. I am still waiting for for a reply from them, although I'm not sure I'll ever get it. And I need an account to get my 1st salary by the end of the month!

grumbler

After they were caught in USA recently, that cost them $1.9 billion, they became simply paranoid.

Just vote with your feet. There are better banks around that offer more incentives to bank with them: Best Bank Accounts

That said, as a newcomer to UK, get as many as possible proofs of ID, address and from the University to support your application. It can help if some colleague refers you personally to the bank they have an account with.

John1993_2

Dmitrii wrote: »

He told us that as HSBC trades in US$, they are given a list of 180 countries, and the new customers who were born in one of these 180 countries are subject to such background checks. Is this for real, or are they are just unwilling to take me as a customer? I

As above, they were recently given a hige fine for not being zealous enough in their checks, and so have increased them. It's not paranoia, as Grumbler claims, it's the reaction that the authorities have insisted that they take.

Paranoia would be susppecting that people are trying to launder money when no-one is. It turns out that many people are, so unfortunately more and more checks are needed to stop it slipping through.

As you are (presumably) all legitimate, you should find that once the checks are done that all is well.

pmduk

Can your employers not introduce you to their bank? It might be worth double-checking what the HSBC employee told you, as an existing HSBC customer it shouldn't be that difficult to verify you. The member of staff may just be poorly trained.

Alternatively, you could ask your branch in Singapore if they can be of any assistance.

Dmitrii

pmduk wrote: »

Can your employers not introduce you to their bank? It might be worth double-checking what the HSBC employee told you, as an existing HSBC customer it shouldn't be that difficult to verify you. The member of staff may just be poorly trained.

Alternatively, you could ask your branch in Singapore if they can be of any assistance.

They certainly have verified me instantly, when I was at the branch - Premier accounts form a global network. I felt discriminated on the basis of the place of birth (Hell, I gave up my Russian passport more than 10 years ago; I don't want to think of my place of birth, please...).
And the advisor I spoke to sounded a bit as he was enjoying the hassle he was giving me and his own power trip... Having said that, it's quite hard to give up the convenience of their global banking network.

grumbler

Dmitrii wrote: »

... the convenience of their global banking network.

What exactly are the benefits/convenience?
So far I don't see any.

Dmitrii

grumbler wrote: »

What exactly are the benefits/convenience?
So far I don't see any.

the bulk of our savings is still in Singapore, and we still need a bank account there for a while (back taxes, etc etc). We need an account in Eurozone, as we e.g. sometimes get paid for various consulting jobs in Euros, and I need to finish paying off my mortgage in Netherlands (in Euros, naturally). And now we work here in UK. And we don't want to be paying bank charges for SGD/EUR/GBP transfers. Is there any alternative to HSBC Premier for this? I don't know any.

grumbler

What you said is meaningless. I am lucky not to have any dealings with HSBC, but what I see on the website is:

HSBC Premier

The benefits to you

HSBC Premier provides banking without boundaries and wealth management for every area of your finances, wherever you are in the world.
Delivering wealth management

We can help you manage, build and protect your wealth, offering a comprehensive suite of products, services and investment advice.
Providing a priority service

A dedicated Relationship Manager is available to answer your queries. You will also receive a priority service for your everyday banking and offshore banking needs.
Making banking easier

HSBC Premier comes with online banking that enables you to access and manage all your HSBC Premier accounts from a single logon. You will also receive an HSBC Premier credit card, entitling you to shopping and entertainment rewards at home and abroad.
Saving you money

You can become a member of HSBC Premier for free, subject to meeting eligibility criteria. As a member, you will gain exclusive preferential HSBC rates and benefits including worldwide Airport Lounge Access .
Getting closer to you

Dedicated HSBC Premier Centres are located across the globe. So wherever life takes you, you're never far from receiving all the support you need.
Protecting your loved ones

You will receive worldwide emergency assistance, protecting you and your immediate family during unexpected events.

I guess it's all about the "exclusive preferential HSBC rates and benefits" that only you know.

A € account can be had with other bank and I'd be surprised if you don't have one in Netherlands (It doesn't necessarily have to be with HSBC of the same bank you have an account with in UK). £<->€ transfers between UK and Europe can be done very efficiently nowadays and at the rates close to interbank:
http://www.mycurrencytransfer.com/money-transfer-to-Netherlands/1000-GBP
http://www.fxcompared.com/Content/money-transfer-from-UK-Netherlands-below-3000-amount-1000

The same for Singapore:
http://www.mycurrencytransfer.com/money-transfer-to-UK/10000-SGD
http://www.fxcompared.com/Content/money-transfer-from-Singapore-UK-above-3000-amount-10000


I can be wrong, but I don't think that HSBC can beat this with their "preferential HSBC rates".

Dmitrii

grumbler wrote: »

What you said is meaningless. I am lucky not to have any dealings with HSBC, but what I see on the website is:
I guess it's all about the "exclusive preferential HSBC rates and benefits" that only you know.

...

HSBC offers good rates for transfer between your own accounts. They can do the usual currency trading things for you, such as waiting for the moment the rates reach certain level. I can try to compare with rates from the links you list.

Then, sometimes it's necessary for us to have a bank account in France, as e.g. some French universities don't know how to transfer money to outside of France. And, apart from HSBC Premier in France(opening an account with them was very quick), I don't know a way to open an account in France without having a proof of address in France, etc etc.

I indeed have an account in the Netherlands, but it is not free - there are account keeping fees, and I have to pay for a debit card too (without the latter I can't do internet banking).
I'd rather close it as soon as I can.

henm2

If you have links with certain countries (basically about half the countries in the world from the likes of Nigeria to Vatican city) you will be affected when opening a HSBC account. This all follows the bank's greatly toughened up AML procedures following last year's heavy US fine.
Existing HSBC personal customers will also be affected if they have not already gone through this enhanced checks process in the last few months. (although for the vast majority of existing customers assessed accounts are able to continue trouble free) However see this http://www.bbc.co.uk/news/uk-23565506
The links can be as simple as having a passport from a certain country, or having transactions with affected countries.
The bank asks lots of extra questions eg details of assets held, expected transactions with an affected country. Documentary evidence sometimes required eg bank statements. The answers provided at branch level are then passed on to be assessed at a higher level with an answer within usually a few days as to whether the bank will continue the banking relationship.

Dmitrii

henm2 wrote: »

If you have links with certain countries (basically about half the countries in the world from the likes of Nigeria to Vatican city) you will be affected when opening a HSBC account. This all follows the bank's greatly toughened up AML procedures following last year's heavy US fine.
Existing HSBC personal customers will also be affected if they have not already gone through this enhanced checks process in the last few months. (although for the vast majority of existing customers assessed accounts are able to continue trouble free) However see this http://www.bbc.co.uk/news/uk-23565506
The links can be as simple as having a passport from a certain country, or having transactions with affected countries.
The bank asks lots of extra questions eg details of assets held, expected transactions with an affected country. Documentary evidence sometimes required eg bank statements. The answers provided at branch level are then passed on to be assessed at a higher level with an answer within usually a few days as to whether the bank will continue the banking relationship.

IMHO the only "link" in my case is the place of birth, and I honestly don't see how this is different from discrimination on the basis of race, say...