RBS cubsidiary closed friend's account with no notice.

ChiefGrasscutter

pastysupper wrote: »

I still don't understand how the bank can hold her money as has been suggested on here, without direct instruction from the authorities....

Mainly because they have a right so to do under the T&C's of the account.
Mine has a long list of circumstance when they may prevent a payment being made, or refuse to act on an instruction from the account holder.

Here is a case which has been highlighted by myself on here before.
The person whose finances were frozen by a Bank was trying to claim compensation for loss of opportunity.
The case gave a rare small insight into the world of AML checks.
In essence the court ruled that yes the banks do have the right to do such things, they do not have to pay compo for any consequential losses resulting from the freeze and that importantly their suspicions need only to be more than fanciful that there is something dodgy going on.
http://www.bailii.org/ew/cases/EWHC/QB/2014/B2.html
which confirmed the earlier decision in the 'Jayesh Shah' case cross referred to in this one.

No doubt some might feel based on the above that Mr Iraj Parvizi was subject to unnecessary inconvenience by the bank. If so I recommend they Google his name............

Eco_Miser

pastysupper wrote: »

I still don't understand how the bank can hold her money as has been suggested on here, without direct instruction from the authorities....

Why do you think they haven't had direct instructions from the authorities?

ERICS_MUM

Perhaps the millionaire Indonesian businessman is named on a 'wanted' or 'blocked' list such as those issued by the US Treasury or Interpol ? Might not be him, just someone with the same or similar name.

It might be blocked at the request of the bank in Indonesia if they suspect the business man of something illegal, or maybe even the Indonesian govt or police. There are loads of possible reasons and your friend is very unlikely to ever find out.

Is it a very large amount completely inconsistent with the average balance on your friend's account ?

pastysupper

So if the bank can hold on to the money, what exactly do they do with it and how do you go getting it back? Clearly i'm preparing her for the worst case (and from reading here, likely) scenario. She really has been left with nothing to her name now, and no way of even getting funds.

The balance and payments have been fairly substantial over the past couple of years. perhaps a year ago, she actually took a call from her branch asking about them, which she was easily able to explain. they seemed content with her explanation at the time.

bigadaj

[QUOTE=pastysupper;701213

Thrugelmir- totally innocent reason. She met a generous millionaire Asian businessman a couple of years ago while travelling, who has agreed to help fund her expensive education.[/QUOTE]

Don't you see how dodgy this sounds? I'm obviously giving the benefit of the doubt on the whole thread being trolling.

Is all of the money in this account from mr Indonesia or is it mixed with her own from elsewhere?

What is the businessman getting out of this and is it connected to the expensive education?

pastysupper

I am aware how dodgy it sounds, but knowing her I am 100% sure it is completely legitimate- I have never met the guy, but I know enough to be sure he is completely genuine too. He has no connection to her education-she just met him while she was travelling a couple of years ago- there are actually people out there who help others without a need for something back! Mr Asia pretty much funds her 100%.

I am certainly not a troll, as I have better things to do with my time.

ParaJon

pastysupper wrote: »

So if the bank can hold on to the money, what exactly do they do with it and how do you go getting it back? Clearly i'm preparing her for the worst case (and from reading here, likely) scenario. She really has been left with nothing to her name now, and no way of even getting funds.

The balance and payments have been fairly substantial over the past couple of years. perhaps a year ago, she actually took a call from her branch asking about them, which she was easily able to explain. they seemed content with her explanation at the time.

Whilst i worked for a bank the only times that a "regular" person has their account FROZEN without warning is that the bank who "sent" the funds into her account have confirmed they have came from account where frauds been confirmed. I.E there is someone in Indonesia who has reported X amount as missing from there account.

Also when she first agreed to the account Banks ask questions such as "will you be receiving irregular credits from foreign countries or third parties?" if she answered No to this, it could look to the bank that this is a fake account being used to funnel money into the system.

She should go to her local branch with valid photo ID & bank statements, Emails from the "Rich Millionaire Businessman" and the fraud team can potentially pick out the "fraudulent transactions" and give her access to her "legitimate funds" i.e salary. But she will need to prove all of this.

NOW before people suddenly assume the bank has over reacted here. It could very well be your friend is lieng to you or not giving you the full details. What is this mans main form of business? he could be making his funds illegally i.e drug money/ trafficking or fraud? and that his assests have been frozen for criminal activity and therefore any linked accounts to his are being frozen aswell. In which case she may be in more of a hole than thought.

ChiefGrasscutter

The fact that the bank rang her to discuss the incoming funds a while back indicates something alerted them back then.
One suspects they were watching since before then and even more carefully since.
Bank staff are not allowed on pain of instant dismissal/jail time to even hint to a customer that they are under suspicion. So I would not read too much into her comment that the bank seemed satisfied when they contacted her with her explanation.

I wondered whether this was one of those international Sugar Daddy scenarios when these people fund the female's education in return for ...ehm splutter cough "services rendered"

pastysupper

Thank you to all that have provided advice and direction on this. I will let you know what happens (when she eventually receives her letter etc...)

No Chiefgrasscutter, "services" have not been, are not being, and never will be rendered.

colsten

pastysupper wrote: »

I have never met the guy, but I know enough to be sure he is completely genuine too.

Do you realise how utterly ridiculous you sound? Do you realise that even if your hunch was right, it's irrelevant to your friend's bank problems what you think about the guy?