HSBC - Safeguard update information

GingerBob_3

Wildfowl wrote: »

Well, after spending a fun hour (a whole hour!) on the phone to them today (no, they didn't call me back - of course they didn't phone me back) according to them all banks in the UK have been asked to provide this information by both the Bank of England and the British Government and they are just complying. But we can trust them because they have been in business for over 100 years. What a load of patronising BS.


It's like banging your head against the wall. But ATM caps are the tip of the iceberg apparently. The next step is that they will suspend your internet banking services until you admit whether you are a 'homemaker', student or unemployed and tell them what country you were born in. !!!!!!.


I have had enough. In the words of Adrian Mole's father: I'm taking my overdraft elsewhere!

What's a "homemaker"? If you filled it out with random answers would it constitute fraud? I wouldn't have thought so.

GingerBob_3

Wildfowl wrote: »

Well, after spending a fun hour (a whole hour!) on the phone to them today (no, they didn't call me back - of course they didn't phone me back) according to them all banks in the UK have been asked to provide this information by both the Bank of England and the British Government and they are just complying. But we can trust them because they have been in business for over 100 years. What a load of patronising BS.


It's like banging your head against the wall. But ATM caps are the tip of the iceberg apparently. The next step is that they will suspend your internet banking services until you admit whether you are a 'homemaker', student or unemployed and tell them what country you were born in. !!!!!!.


I have had enough. In the words of Adrian Mole's father: I'm taking my overdraft elsewhere!

That sounds like a bare-faced lie.

henm2

Ballard wrote: »

That was very well put, CG. There are a surprising number of posters who can't see the whole picture but you've made a succinct point with a good analogy. It's unlikely to cut much ice but what can you do?

If HSBC lose their ability to trade in US$ then their whole business is sunk. So of course they will currently jump to and obey anything the US authorities tell them to do as regards AML. Hence all the 'safeguard' stuff.

Ballard

henm2 wrote: »

If HSBC lose their ability to trade in US$ then their whole business is sunk. So of course they will currently jump to and obey anything the US authorities tell them to do as regards AML. Hence all the 'safeguard' stuff.

I was tempted to clarify that it's not just the ability to trade in the US that's potentially at risk but the capability to trade or maintain accounts in US Dollars, as you've pointed out. This is the worst case scenario, of course, but losing the worlds premier currency is such a dangerous prospect that they're not going to take any chances.

maninthestreet

GingerBob wrote: »

Well that's not too bad, because you can ignore it regardless. As for money laundering safeguard - get a load of this:


http://www.bbc.com/news/uk-36098769


Will this clamp down on the panama hat brigade? Not a bit of it! It will just make life even more difficult for the man in the street.

I hope not!

notaexpert

So my fellow people; I (and others) understand that they can ask what you do, how much you earn in order to ascertain if you are able to use maintain money coming in and out of their business, fair enough.

But to ask what tax bracket you are in is above and beyond and downright nosey. And apprently the country you were born in according to another poster. And I have not heard other banks asking for this.. so this is a HSBC thing who are driving very carefully in order not to lose their licence seeing as they are at the 9 points threshold.... but to lie to customers that it is a national requirement/Governement/all banks are doing it..... just shows something is amiss.

Seems they like to keep everyone dancing to their tune.

Ballard

I opened a couple of accounts this week and I think that they both asked which country I was born in and which country/ies I'm liable to pay tax in.

The reason that banks need to ask is that they have to be FATCA compliant as, again, they can't afford to upset our American cousins.

Like it or not, The Greenback is by far the biggest currency in the world.

Ballard

I've just googled 'why does my bank need to know which country i was born in' and the following web page was given:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/386413/Automatic_exchange_of_information_-_account_holders.pdf

I feel that you should have got the answer when you asked HSBC but bank employees are asked to obtain a lot of data and I suppose that they can't be aware of the reasons for everything.

Similarly, a quick google before a rant and/or calling an organisation liars could save some embarrassment.

grumbler

Ballard wrote: »

I've just googled 'why does my bank need to know which country i was born in' and the following web page was given:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/386413/Automatic_exchange_of_information_-_account_holders.pdf

I feel that you should have got the answer when you asked HSBC but bank employees are asked to obtain a lot of data and I suppose that they can't be aware of the reasons for everything.

Similarly, a quick google before a rant and/or calling an organisation liars could save some embarrassment.

I just had a brief look and can be wrong but this is my understanding of this document:

Information collected by UK financial account providers will be sent to HMRC. HMRC will share information with the tax authority of another country (where we have signed an agreement with them or where there is a European Union requirement to do so) if the account is held by one of their tax residents.

Tax residence of account holder / Location of financial account / Information reported
UK resident / UK / None*

The information to be reported in respect of each account will be:
1) Name
2) Address
3) Date of Birth
4) Place of Birth
5) Tax Identification Number (TIN) (where applicable)
6) The account number
7) The name and identifying number of the account provider
8) The account balance or value as of the end of the calendar year or other appropriate period.

So, I don't see why the information has to be collected that doesn't need to be reported anywhere?

The only ambiguity that I don't understand is:

* Information may still be reported under the UK’s domestic reporting rules

And certainly, there is no anything here about working hours and other rubbish that HSBC demand.

Ballard

I'm missing your point, Grumbler. It's probably my fault as I didn't have a great night's sleep but HMRC need to be able to determine whether they need to report the data to the relevant overseas tax authority. To do this they need to know your place of birth (item 4) and whether you are liable to pay tax in other countries.

This is why you're asked to provide the information. It's not a trick question or as a way of trying to sell you anything. It's what they have to do to comply with regulations.

You may recall that quite recently Boris Johnson was charged tax by the IRS. This was because he was born in New York and still held a US passport. THE US knew because his bank(s) will have told HMRC who would have passed the information onto the IRS. I believe that that event shook him into returning his US passport.

Working hours/salary is a different thing entirely. HSBC could claim that it's part of their KYC procedure and this would be valid in some cases. High earners are more likely to have large transactions flowing through the account, for example. Realistically it's probably more to do with what line of credit/type of debit card etc., they are comfortable providing.