Why do the Halifax want to know where my money is from?

regularsaver1

debbie42 wrote: »

If you are asked about the money, then it's fair enough to quiz the person asking as to why they need to know, surely? Not every one is aware of money laundering regulations.

I was asked as to where I'd got my savings from when opening a share dealing account. This was as part of a credit check, before I'd deposited any funds whatsoever. Would this be part of money laundering checks?

yes they have to ask where the funds have come from - its part of KYC Know Your Customer - such as sale of property, family gift, salary, own bank account, inheritance ect

this has to be keyed on all savings and bank accounts, you just might not realise it

obviously a bank account is more likely to say salary / benefits/ pension

regularsaver1

Somerset wrote: »

You missed the point. The face to face transaction was satisfactorally answered ( paperwork shown ). My question was about the lack of questioning about the on-line transactions.

online often have restrictions about how much you can transfer?

masonic

regularsaver1 wrote: »

debbie42 wrote: »

I was asked as to where I'd got my savings from when opening a share dealing account. This was as part of a credit check, before I'd deposited any funds whatsoever.

yes they have to ask where the funds have come from - its part of KYC Know Your Customer - such as sale of property, family gift, salary, own bank account, inheritance ect

this has to be keyed on all savings and bank accounts, you just might not realise it

obviously a bank account is more likely to say salary / benefits/ pension

But look, regularsaver1, no funds were being deposited. The only pertinent answer to that question would be 'which savings?'
Banks can't expect you to disclose details of your savings with other organisations, surely?

regularsaver1

maybe share dealing has different application as like the OP said they had to have a credit check and it was part of the application

on savings accounts and bank accounts the same questions are asked before funds are deposited

this doesn't only apply to banks. I understand solicitors have to confirm where say a house deposit has come from ect

masonic

regularsaver1 wrote: »

maybe share dealing has different application as like the OP said they had to have a credit check and it was part of the application

Well, I've never come across it before, but I wouldn't answer without a compelling reason on the grounds that it has nothing to do with them. Just like I would refuse to answer questions about my salary when applying for an ISA, for example.

dunstonh

It may not be a credit check but the electronic money laundering check. Experian and the others all offer this service. Maybe its someone assuming that the experian check is a credit check.

regularsaver1

I can understand that annual income is not needed for ISA, but they will need to key where the funds have come from - ie other account, redundancy, salary, sale of property ect

if you don't answer on the share dealing I guess you would not get the account

dunstonh, on investments that you do I guess you have to say where the funds origininated from?

masonic

regularsaver1 wrote: »

I can understand that annual income is not needed for ISA, but they will need to key where the funds have come from - ie other account, redundancy, salary, sale of property ect

if you don't answer on the share dealing I guess you would not get the account

I can understand perfectly that if you are depositing funds a bank needs to know where they are coming from, because they are going to be holding the funds for you, but why, for example, would Fidelity need to know about your savings at Icesave?

regularsaver1

beats me!!!

jamesd

masonic, they would need to know because it's no longer acceptable to assume that the institution from which the money is coming has done appropriate money laundering checks, so they have to be done at each stage. If I recall correctly this was a fairly recent change to the requirements.

I assume that the intended purpose is to reduce the potential rewards for corrupt or corruption of bank staff. It's possible that someone has noticed that terrorists and other criminals are able to work anywhere, including in financial institutions where they can work to subvert the systems.