*Resolved-Account unblocked* HSBC Personal Account "Under Investigation" - Account Blocked Entirely

kuratowski

John_ said:
This makes no sense; if banks are not supposed to stop accounts then how do they stop money laundering?

My view is that they can ought to be able to stop suspicious transactions without going so far as to prevent someone from being able to feed themselves for weeks or months, i.e. not even able to shop at the supermarket.  Clearly the regulations require some revision.

gghostinthecamera

John_ said:

gghostinthecamera said:

soulsaver said:

BTW when you look for another back up bank avoid the RBS group - you think 10 -14 days is bad? 28- 60 is their notified time and of the posts I've seen, they initiate it maliciously and  take most of the time stated.

Oof yeah I'm avoiding the mainstream banks. I'm a regulatory consultant in the financial sector and I've advised at all of them. Hell, I was advising at HSBC for nearly a year last year. 

I've gone with Starling Bank, simple and straightforward for the moment. Thankfully, I have time to divert my salary into the new account. 

Can you make transfers into a frozen account, or only deposits at a branch?

That being the case, you’ll have hopefully known immediately what was going on here.

Indeed - however the AML regulations require that such rules are applied proportionately. I was actually part of the team that the FCA selected to perform a thematic review of AML/ABC compliance in a particular financial sector, and they took a grim view of firms applying AML measures disproportionately. I.e. classifying any/all customers/transactions   (potential or otherwise) from the Middle East as high risk (and this happened more than you would imagine).

These transactions happened on my credit card, a proportionate response would be to block the card, contact me, ask me what's happening. It is NOT proportionate to block someone's current account and savings based on a potentially fraudulent transaction on another account. 

Furthermore, fraud and financial crime are two different things, with different motives, different rulesets and different penalties.

Resolving a case of potential fraud is as simple as calling me up, asking me to confirm that it was actually me doing these transactions, perhaps asking why and that's it. I don't understand what they need 10-14 days to investigate an account that they have been operating for 22 years, with activity that hasn't changed for the last decade. This is the opposite of knowing your customer and due diligence. 

colsten

Since we'll never get to hear HSBC's account of the matter, it will always remain a mystery why the account and the card were blocked.

Contador38

HSBC was fined $1.9 billion in 2012 for not stopping Colombian/Mexican Drug cartels laundering money via HSBC America.
Since then, HSBC are most extreme to show they are whiter than white. I remember they were asking many UK customers
(some who have been banking with HSBC for +20 years) to supply information under their 'Know your Customer' prog.
Customers who refused to supply the required info had their accounts frozen and eventually asked to move their business elsewhere. Therefore I am not surprised they would act that way. Heavier fine is pending if they trangress again.
I myself had a small current account with them in Africa.. Every 2 years HSBC Africa would ask me to supply tons of info which I had to deliver in person at an HSBC branch in UK who would then send to HSBC Africa.
They froze that account many times until they got the info and eventually after many hoops I managed to close the account.
Reports from family friends are that HSBC UK is ok, but if anything unusual happens in your accounts , they then become very heavy. 
Hope your problems with them get sorted

stehouk

I'm reminded of the PG tips advert many years ago, "dad you know the pianos on my foot, you hold it son and i'll play it"

gghostinthecamera

Quick update: called the HSBC Fraud dept to see if there had been any update on the investigation. The lady on the phone asked me how long they said it would take, I said I've heard 10-14 days and 48 hours so not sure which one it is. She said it definitely would not be 10-14 days and that it will take 48 hours. She suggested I call back tomorrow if I haven't heard anything. 

Will see tomorrow!

staggered

Hope it gets sorted for you.
I had a problem with HSBC around 8 years ago - I received a letter out of the blue telling me that all of my accounts were being closed and I had 14 days to find another bank.  When I asked why, they refused to tell me.  Very stressful situation.  As someone said earlier, HSBC were hit with massive fines for not doing enough to prevent money laundering and have been a lot more vigilant (over vigilant?) ever since.
I would suggest opening an account with another bank / building society as soon as you get chance and giving HSBC the elbow.

Shakin_Steve

stehouk said:

I'm reminded of the PG tips advert many years ago, "dad you know the pianos on my foot, you hold it son and i'll play it"

You 'hum' it, son, I'll play it.

gghostinthecamera

Update: no callback from HSBC contrary to what I was told yesterday. So I called them and the rep said tomorrow or the day after....so 24-48 hours....

Tildaplum

CALLER: Do you know why my account's blocked and under investigation.....

HSBC REP: you hum it, ....