Bank Imposed Cash Withdrawal Limits

expat_mike

From an article in the Daily Mail today it appears that HSBC (and other banks) are imposing limits on how much cash their customers can withdraw from their savings and they also demand what the customer intends to do with the cash. They make spurious claims its all to do with money laundering prevention but since when did a bank have the right to ask these sorts of questions AND prevent you drawing out cash from your savings. That's a bit rich coming from a bank who got caught out in a major drug money laundering operation and were fined $1.9 billion as a result. Does 'moneysavingexpert' know which banks are applying this cash withdrawal policy so customers can move their savings to a different bank that treats them with some respect ?

In a related issue, after the sale of my deceased mothers house, my brother and I came across a minefield of free fast payment transfer limits depending on which banks you used and the maximum limits ranged from 10k (Nationwide) a day up to 100k (Santander) a day. Does anyone know why this is ?

Similarly, in Spain another 'unknown' transfer limit or even 'prevention' seems to be going on in stopping ex-pats transferring their euro savings to the UK as a 'safe haven'. Local Spanish banks presumably at the behest of the Spanish central bank and government appear to be blocking or making it virtually impossible for these forex transfers to take place and keep the money in Spain. Is this another 'Cyprus' cash grab operation about to take place against those with savings ?

Last year, all Spanish residents including ex-pats had to declare their worldly assets so perhaps the Spanish government wanted to find out if it was worth following the Cyprus example. Has anyone else come across this in Euroland ? Remember, not all euros are the same as they have country ID's on the notes that a government could freeze if it so wished. The Greeks dumped billions of their specific euros in exchange for German deposits prior to their crash.

ChesterDog

Banks are nowadays legally obliged to take steps to guard against money laundering and fraud. Quite how they do so is up to them, and clearly some will seem to be more rigorous or pedantic than others. The policies of some may cause a barely noticed minor nuisance, while others may seem an intrusive and unwarranted interference.

Why do you say HSBC's explanation is spurious? What would you say about them if they just let people under duress drain their accounts without comment?

dunstonh

They make spurious claims its all to do with money laundering prevention but since when did a bank have the right to ask these sorts of questions

Since about the mid 1980s with increasing requirements placed on them are periodic points thereafter. And increasing fines for failures to comply. The days of the hundreds of thousands of pounds upto a million fine have gone. Now its multi million or hundreds of millions.

ChesterDog

On the bright side, OP, I'll bet you could get a job writing for Money Week whenever you want.

:-)

Hominu

expat_mike wrote: »

since when did a bank have the right to ask these sorts of questions AND prevent you drawing out cash from your savings

Ever since you agreed to their terms and conditions of business. If you don't like those terms, you need somewhere else to keep your cash. Perhaps in your own safe.

expat_mike wrote: »

10k (Nationwide) a day

It's 10K per transaction. You can make multiple transactions if you wish to move more than that, but the payment may or may not succeed depending on various anti-fraud measures.

Likewise, a 100K transaction at Santander is unlikely to succeed without question.

expat_mike

The problem is this - The banks do not have a coherent policy over cash withdrawal conditions as each bank has interpreted the money laundering laws differently. In HSBC, they were even party to laundering drug money and were fined heavily for it. Secondly, if terms and conditions change, banks should advertise it in bold print rather than hiding it obscure caveat laden legalese.

expat_mike

dunstonh wrote: »

Since about the mid 1980s with increasing requirements placed on them are periodic points thereafter. And increasing fines for failures to comply. The days of the hundreds of thousands of pounds upto a million fine have gone. Now its multi million or hundreds of millions.

Banks haven't been fined due to Uncle Bob drawing out 10k to buy a second hand car from Arthur Daley, banks like Standard Chartered and HSBC have been fined billions for laundering tens of billions in drugs, arms and money from prostitution.

alanq

Hominu wrote: »

It's 10K per transaction. You can make multiple transactions if you wish to move more than that, ...

Or use CHAPS instead of Faster Payments
"CHAPS Limit There is no minimum or maximum payment amount when transferring using CHAPS payments."
http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1403

Hominu wrote: »

... but the payment may or may not succeed depending on various anti-fraud measures.

No doubt the same applies with CHAPS.

Thrugelmir

expat_mike wrote: »

That's a bit rich coming from a bank who got caught out in a major drug money laundering operation and were fined $1.9 billion as a result.

Don't you think that this answers your own question.

HSBC nor any other bank wishes to pay fines.....

expat_mike

Hominu wrote: »

Ever since you agreed to their terms and conditions of business. If you don't like those terms, you need somewhere else to keep your cash. Perhaps in your own safe.



It's 10K per transaction. You can make multiple transactions if you wish to move more than that, but the payment may or may not succeed depending on various anti-fraud measures.

Likewise, a 100K transaction at Santander is unlikely to succeed without question.

You're right as I found out by accident that Nationwide did allow me to transfer 20k within 24 hours but their rules say only 10k per day. I tried it on as I was fed up having to transfer just 10k a day between bank accounts and found that 20k actually worked. Why cant they advertise that and why does Santander allow 100k per day. There is no consistency and customers only find out the hard way !

expat_mike

Thrugelmir wrote: »

Don't you think that this answers your own question.

HSBC nor any other bank wishes to pay fines.....

Not really, as I'm not a drug baron, arms dealer or pimp and my bank has my history going back 30+ years. It knows my income, my out goings and my lifestyle. But apparently, it looks the other way when billions of drug or arms deal money are laundered by them as long as they get their percentage in the illegal trade.