HSBC refused to give cash cheque

oo1spot

I went into my local branch of HSBC who I bank with to cash a £6000 cheque from my own HSBC account. I was asked what the money was for as their policy(as of 3 weeks ago) requests this information, I said its for my own use. They said they do need to know so I said its for things they then called the manager. The manager took me to an office and said their policy is that if a large cash withdrawal is being made they need evidence of where it is to be used. I said its for building work for a new kitchen and to pay the builders. The manager said as long as I can give them evidence from the builders company they can give me the money. This is a new policy HSBC have brought in in the last 3 weeks and it applies to cask withdrawals and cash deposits of a large amount. They wouldn't say what a large amount means, obviously £6000 is large. Since I didn't hay anything from the builders such as an invoice on letter-headed paper (they deal in cash), I left empty handed annoyed I wasn't able to get my hands on my money. I've've not had this problem before and it seems its HSBC rather than FSA or someone who is applying this. Has anyone else experienced this? I had not received anything from HSBC on this new policy and without knowing what the limit is, its a bit stupid when you may want to take out more than what the ATM gives you for shopping, presents etc.

scotjock67

Why would you write a cheque to yourself? This really doesnt make any sense?
Why not transfer the money between the 2 accounts (I really hope it is between 2accounts aand note just the one). In the days of modern banking writing a cheque to yourself is asking for trouble only reason I could think of doing something like this would be from your business account to your personal for audit reasons can you elaborate? If it as you say it is no wonder they are asking questions.

System

HSBC / First Direct ask you cash a cheque to withdraw funds over the counter.

scotjock67 wrote: »

Why would you write a cheque to yourself? This really doesnt make any sense?

I would look to make banking arrangements elsewhere if my bank required demanded proof for that level of spending.

I would have told them I want to spend it on lap dancers

scotjock67

Heng_Leng wrote: »

HSBC / First Direct ask you cash a cheque to withdraw funds over the counter.



I would look to make banking arrangements elsewhere if my bank required demanded proof for that level of spending.

I would have told them I want to spend it on lap dancers

Now it makes sense thanks for that to the OP, I now understand your frustration probably down to AML regs

CKhalvashi

scotjock67 wrote: »

Now it makes sense thanks for that to the OP, I now understand your frustration probably down to AML regs

However I had no problem (as a personal customer, nothing to do with business accounts) withdrawing that amount of cash, at a branch I don't think I've ever been to before.

It may be worth popping into another branch, as under €15k (£12687 according to Google) should be fine to withdraw, as per AML legislation.

CK

1jim

I love the lap dancer suggestion

Maybe tell them you were planning on buying a car and needed the cash for private sale.....or tell them you don't trust banks as you'd heard a rumour they were at risk of going bust due to misselling ppi and other products so you want the money to put under the mattress!

Everynamestaken

I was under the impression every bank asked for a reason on a large deposit or withdrawal (under there discretion of course). Not sure how concrete asking for actual documentation is though.

Unless the bank is suspicious, they can't really stop you from withdrawing your own cash can they? So the reason to ask is, why were they suspicious?

Maybe your reluctance to give details gave the impression to the cashier that something wasn't quite right.

It may sound daft, but did you have Id and a debit card with you at the time, as just a cheque for that amount is indeed large (anyone in the street could pick it up if it was misplaced).

shortcrust

Everynamestaken wrote: »

I was under the impression every bank asked for a reason on a large deposit or withdrawal (under there discretion of course). Not sure how concrete asking for actual documentation is though.

Unless the bank is suspicious, they can't really stop you from withdrawing your own cash can they? So the reason to ask is, why were they suspicious?

Maybe your reluctance to give details gave the impression to the cashier that something wasn't quite right.

It may sound daft, but did you have Id and a debit card with you at the time, as just a cheque for that amount is indeed large (anyone in the street could pick it up if it was misplaced).

Exactly what I was thinking. If the OP has just said 'building work' when asked rather than playing about they would have handed the money over - whatever you think of the policy, 'my own use' and 'thing' are just wind up replies.

grumbler

HSBC have lost their mind absolutely after recent problems in USA. Reportedly, they ridiculously require an invoice for buying a car for cash or 'booking proof' if the cash is needed for travel.

VOTE WITH YOUR FEET.

Hooloovoo

shortcrust wrote: »

Exactly what I was thinking. If the OP has just said 'building work' when asked rather than playing about they would have handed the money over - whatever you think of the policy, 'my own use' and 'thing' are just wind up replies.

It's the principle. It's none of their business.

I too would have gone for the "lapdancers" reply. Or possibly even the classic "I'm going to spend half on prostitutes and alcohol, and the rest I'm just going to waste".

And if they still refused to give me my money I'd do a FP to another bank and make sure I never used HSBC for any "main" banking ever again.

opinions4u

It sounds like an over-zealous implementation of internal anti-fraud rules. It might be a dreadful anti-money laundering implementation too, but I suspect not.

I once spent 10 minutes quizzing an elderly gentleman about a £3,000 cash withdrawal. He quite willingly told me it was to pay for some flagstones.

It all appreared to be a bit pricey to me and I asked him directly if he was under any duress from a trader to pay up. He stated that he wasn't, seemed sure of himself and I let him have his cash.

A week later the police interviewed me as a witness to a builders scam relating to this customer. He'd got about 6 flags for his £3,000. By not pressing the issue further I'd allowed him to be duped. Not a good feeling.

Banks have a duty of care when it comes to fraud and potentially vulnerable customers. The have legal obligations when it comes to money laundering. Sometimes customers will be inconvenienced by good implementation of procedures. It's even more uncomfortable for customers when procedures are acted upon poorly by staff.

But there are usually good reasons for why customers are asked questions that may be considered "personal".