New AML regs re address?

slopemaster

Someone tried today to transfer 200 euros to my French account from their First Direct account. They did this last year with no problem.

Today they were told that new money laundering regs require them to have my 'legal address'. However, 1st Direct were unable to clarify whether this meant my permanent UK address at which I am resident for tax purposes, or the French address (2nd home) at which the French a/c is registered. Nor could they clarify whether this "rule" applies to all transfers or only cross-border ones.

We decided it's too much hassle and he will give me cash when he comes.

But I'm curious as to whether there really is a new rule, or whether - as I strongly suspect - 1st Direct are making this up / over-interpreting existing regs?
I have certainly never been asked for an address when sending money.
And I know that banks don't even check payee's name matches a/c details, let alone address.

username

It wouldn't surprise me if they're being over cautious, given the fact that they're part of HSBC, who've had some money laundering incidents in recent times.

Archi_Bald

Why not use a specialist currency transfer service such as Transferwise instead of a bank transfer? You get a better deal that way. The difference on £200 is probably minute but as a matter of principle I would never use a bank for sending money abroad.

grumbler

Archi_Bald wrote: »

The difference on £200 is probably minute

As international transfers cost a flat fee on the top the exchange loos, for small payments the difference is more noticeable, especially if some intermediary bank adds their fee.
E.g. £20 fee is extra 10%.

worriedindebt

username wrote: »

It wouldn't surprise me if they're being over cautious, given the fact that they're part of HSBC, who've had some money laundering incidents in recent times.

Spot on, this is a new policy introduced by the HSBC Group amongst others

slopemaster

Archi_Bald wrote: »

Why not use a specialist currency transfer service

I do, but their minimum amount is greater than this unless its a regular payment

henm2

All that is required is the full correspondence address under which the French bank account is held.

HSBC Group i.e. HSBC and First Direct now specify that that they need a full address for all beneficiaries for all international payments and also all UK CHAPS payments.

As others have mentioned this is yet another change under their AML compliance procedures.

Archi_Bald

slopemaster wrote: »

I do, but their minimum amount is greater than this unless its a regular payment

You must be talking to the wrong companies. 200 Euros is certainly an amount that several transfer services will do for you as a one-off.

http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/10980535/What-is-the-cheapest-way-to-send-100-abroad.html

https://www.fxcompared.com/

zerog

slopemaster wrote: »

Today they were told that new money laundering regs require them to have my 'legal address'. However, 1st Direct were unable to clarify whether this meant my permanent UK address at which I am resident for tax purposes, or the French address (2nd home) at which the French a/c is registered. Nor could they clarify whether this "rule" applies to all transfers or only cross-border ones.

Suppose he gave them either address without bothering to ask which one is "legal"; what do you think would happen? I suspect they would just send the money once the box is ticked

slopemaster

zerog wrote: »

I suspect they would just send the money once the box is ticked

Yes, I did kind of think that