Natwest wants to close the account of my son without explanation

Shakin_Steve

I know and understand the AML and KYC regulations, but I personally think that some banks (Nat West are todays favourite) are taking this to the extreme. Fear of the regulator only goes so far in the explanation for this behaviour. I'm quite surprised that consumer champions, including MSE, are not asking questions.

notveryeducated

Your son needs to check his CIFAS record, when banks close someone's account in some cases they apply a CIFAS marker on them, which prevents them from getting an account with another bank. He can request his CIFAS record by checking out this link:
https://www.cifas.org.uk/contact-us/subject-access-request

It goes without saying he'll need to open a new bank account, make sure this new account is with a bank not owned by NatWest, so he can't bank with Royal Bank of Scotland or Ulster Bank either. Try someone like Barclays, TSB, Nationwide etc. 

notveryeducated

Shakin_Steve said:

I know and understand the AML and KYC regulations, but I personally think that some banks (Nat West are todays favourite) are taking this to the extreme. Fear of the regulator only goes so far in the explanation for this behaviour. I'm quite surprised that consumer champions, including MSE, are not asking questions.

This Is Money something about NatWest closures in one of their articles last week. Check the last couple paragraphs in this article: https://www.thisismoney.co.uk/money/comment/article-8232445/JEFF-PRESTRIDGE-Robots-appears-taken-NatWest-asylum.html

colsten

Shakin_Steve said:

I know and understand the AML and KYC regulations, but I personally think that some banks (Nat West are todays favourite) are taking this to the extreme. Fear of the regulator only goes so far in the explanation for this behaviour. I'm quite surprised that consumer champions, including MSE, are not asking questions.

What does "taking AML and KYC regulations to the extreme" mean? 

Do you think banks should allow some AML? Should they ignore some of the KYC regulations they are legally obliged to comply with?

Assuming you are legally qualified to assess the complaints, I am quite surprised that you are, seemingly, jumping to conclusions without having heard the responses from the bank. 

Thrugelmir

Shakin_Steve said:

I know and understand the AML and KYC regulations, but I personally think that some banks (Nat West are todays favourite) are taking this to the extreme. Fear of the regulator only goes so far in the explanation for this behaviour. I'm quite surprised that consumer champions, including MSE, are not asking questions.

Unfortunately directors that sit on the bank's board, unlike many of their customers, aren't allowed to ignore the rules to suit themselves. They themselves are personally accountable for their actions and the directions they pass to the operational level management. The better technology and the database of accumulated knowledge becomes, the more incidents will arise. 

Tiddles1991

If anybody thinks what NatWest are doing with regards to closing people’s accounts and denying them access to any funds at all is wrong then please consider visiting this petition chng.it/jQHry7f5 

In my opinion these decisions are being made by a computer algorithm and then investigated by humans after the persons account has already been closed down which in turn creates long waits to get access to your OWN money. 

vitaweat

Shakin_Steve said:

Thrugelmir said:

Tallaght said:

NatWest, and some other banks, are dumping customers and organisations with links to countries about which they have concerns including Nigeria and Iran.

Likewise accounts with unusual transactions or transfers, high levels of cash activity, personal accounts used for business purposes, the list goes on. Monitoring accounts costs money at a time when bank profitability is under severe pressure. Easier to ask customers to move on elsewhere. 

Fair enough, but they shouldn't have to wait weeks for what is rightfully theirs. i.e. their money.

If they're suspected of money laundering they may never get the money back and will be lucky to escape prosecution or at least investigation.

From what I can see, the banks are having a big clampdown on money laundering.  I suspect the regulator has gone to them and said that they need to clean up their act.  A couple of big Aussie banks have recently received 9 figure fines for money laundering.

Malkytheheed

I suspect that like many businesses tightening their belt they are just getting rid of their less profitable customers under the guise of fraud.

DCFC79

Carmen5 said:

Natwest wants to close the account of my son without explanation. We spent whole day trying to talk with someone from the "Account closure team" and, at the end someone responde: "...Under terms and contitions...wait 15 days for a review..." and in the letter (arrived a week later that the date of the letter) the said "...make alternative arrangement for your banking before the after 14 days notice has expire". So they review during 14 days, close the accounts in 14 days?

No explanation at all. A nightmare!

How old is your son ?

Has your son given his card to anyone (other than a retailer) and they have transferred x amount of money into it ?

notveryeducated

Malkytheheed said:

I suspect that like many businesses tightening their belt they are just getting rid of their less profitable customers under the guise of fraud.

I'm starting to think this too. Only about NatWest/RBS though.