CHAPS Payment Frozen

joe_g99

Hi

I'm lucky enough to be fulfilling a lifelong dream and am buying a boat, to do this I need to send a large amount of money abroad and the exchange rate offered by HSBC made me balk, instead I decided to use a transfer company called TransferWise.

As the amount I was sending was more than the 10k allowed online so I popped into the branch and sent it and I was told it would be with them in a few hours, however the next day it still hadn't arrived so I popped into the branch to ask about it where I was told "the bank was fulfilling its statutory obligations" and they couldn't give me any information about how long it would take

I'm guessing this is probably money laundering and while that's fair enough its annoying to be kept completely in the dark with no idea how long its going to take, if it takes too long the sale could fall through and I'd loose my deposit

I can see why my situation looks suspicious, for the past 7 years my sole income is from gambling, its all online so there's no dodgy bundles of cash anywhere along the line but one company is based in Ireland

Does anyone here have any experience with this, how long will it typically take to resolve and what rights do I have here, is there a limit to how long they can hold the funds for and do I have any right to compensation if the sale fall's through as a result of this delay and I loose my deposit. I can see why my situation is suspicious but it is legit and I'm willing to cooperate with them completely, is there any way I can help them and in the process hurry it along a little

somethingcorporate

There is only one party that can answer any of those things definitively, the bank, so start hassling them.

You'd not be entitled to compensation, ultimately they need to be satisfied that it is all legitimate for the protection of their customers.

henm2

As already mentioned you need to ask the bank.
However before the bank make such a payment they will be examining the source of funds going through your account for anti money laundering purposes and the gambling transactions will probably have flagged up. Gambling transactions (even though not money laundering) are usually against personal banking terms and conditions. This is very likely the reason for the hold up in the payment and also could mean that the bank soon gives you notice that they are going to close the account.

grumbler

henm2 wrote: »

...Gambling transactions ... are usually against personal banking terms and conditions.

Really?! Any example?

DevCoder

grumbler wrote: »

Really?! Any example?

This isn't common in the UK, although gambling transaction attract a certain "risk" weighting in money laundering factoring.

It pretty common overseas though, the US for example has a number of mainstream banks which prohibit this and especially the middle east with any Sharia compliant bank.

henm2

grumbler wrote: »

Really?! Any example?

http://forumserver.twoplustwo.com/28/internet-poker/hsbc-uk-bank-closing-my-account-1154275/

noh

henm2 wrote: »

http://forumserver.twoplustwo.com/28/internet-poker/hsbc-uk-bank-closing-my-account-1154275/

That is an example of an account closed because of money laundering suspicion not because gambling transactions are against the T+Cs of the account.
It was the transferring of large sums to 3rd parties that caused suspicion not the gambling transactions.

meer53

As far as i am aware, gambling transactions are not against any bank T & C's.

They won't like it, and transactions are usually flagged up for investigation, but as long as there are no other issues with your account operation, nothing will happen.

No bank can tell you what to spend your money on.

If i was the OP, i'd be more worried about sending such a large amount through a third party, who actually states in their T & C's that THEY may use a third party to move your money !

DevCoder

meer : There are a number of UK banks that prohibit such transactions, but they tend to be wealth management rather than retail. Although I don't think the OP would be operating under Sharia law in any case . The others are just down to the banks own requirements. Wealth Management has different views then the retail banks.

joe_g99

somethingcorporate wrote: »

There is only one party that can answer any of those things definitively, the bank, so start hassling them.

That's the main problem, they are pretty much refusing to say anything so hassling them is just an exercise in frustration, does anyone know what rights I have regarding getting information off them and how long they are allowed to hold it for

grumbler wrote: »

Really?! Any example?

A member of our syndicate had his HSBC account closed and the reason given was because the money was coming from gambling, I'm not sure if it was actually in there terms and conditions but they did say it was a matter of policy, and their terms and conditions allow them to close any account they want for any reason.

If they don't find any evidence of money laundering but decide to close my account anyway, is it likely that the transaction will still go through? I really don't care if they close my account as having read the 2+2 thread I think I'm going to leave HSBC anyway but I'd hate for this purchase to fall through because of it

DevCoder

joe_g99 wrote: »

That's the main problem, they are pretty much refusing to say anything so hassling them is just an exercise in frustration, does anyone know what rights I have regarding getting information off them and how long they are allowed to hold it for

If its AML, then they can't "tip off" so the information is protected, although the transactions should be risk scored and a decision made within a few days.

A member of our syndicate had his HSBC account closed and the reason given was because the money was coming from gambling, I'm not sure if it was actually in there terms and conditions but they did say it was a matter of policy, and their terms and conditions allow them to close any account they want for any reason.

If they don't find any evidence of money laundering but decide to close my account anyway, is it likely that the transaction will still go through? I really don't care if they close my account as having read the 2+2 thread I think I'm going to leave HSBC anyway but I'd hate for this purchase to fall through because of it

I think that they will look at the transactions and allow the transfer, I doubt they would even close the account. They just need to be doing due diligence which although a pain for both parties (more so yourself) takes time.

If they close your account and refuse the transfer then you'll have to obtain the funds of your account and either pay it into another bank (hoping that HSBC don't apply a silly CIFAS marker) or come to some other arrangement to get funds to your seller.