Do I need AML checks to cash in a trivial pension?

agent69

I gave up full time work about 18 months ago, and for the following 12 months did odd bits of agency work. During the course of this work I paid small amounts into a pension scheme (current value about £200).

I would like to take the money as a lump sum, but the provider says that I have to complete anti money laundering checks before they will pay out. I don't have all the documents they are asking for, and I object to having to pay to get them certified for such a trivial amount. Is AML really necessary on such a small amount of money?

dunstonh

is AML really necessary on such a small amount of money?

yes ......

Marcon

agent69 said:

I gave up full time work about 18 months ago, and for the following 12 months did odd bits of agency work. During the course of this work I paid small amounts into a pension scheme (current value about £200).

I would like to take the money as a lump sum, but the provider says that I have to complete anti money laundering checks before they will pay out. I don't have all the documents they are asking for, and I object to having to pay to get them certified for such a trivial amount. Is AML really necessary on such a small amount of money?

You can object all you like, but until you comply with the law, which is what this is, the provider can't pay you. It may be worth asking them what alternative documents they will accept if you don't have the ones they are asking for (although I'm baffled how you could get them certified if you don't have them!).

agent69

dunstonh said:

is AML really necessary on such a small amount of money?

yes ......

Thanks for the concise reply.

Is there a reason why I have to provide certified docs to get £200, but not to withdraw far larger sums from my SIPP?

garmeg

agent69 said:

dunstonh said:

is AML really necessary on such a small amount of money?

yes ......

Thanks for the concise reply.

Is there a reason why I have to provide certified docs to get £200, but not to withdraw far larger sums from my SIPP?

Why not transfer to your existing SIPP who will do the donkey work for you?

dunstonh

Is there a reason why I have to provide certified docs to get £200, but not to withdraw far larger sums from my SIPP?

The AML regs may not have been completed when you opened the original pension (pre-dates requirements maybe).  Then some years later the AML regs were changed to cover withdrawals.

If your SIPP is a more modern plan, they would have identified you at the outset (or if an adviser was involved, they would do it).   More modern providers use electronic AML checks.  

Sea_Shell

What documentation are they asking for?

My DH will be looking to access some small pots next year, which he's held for donkeys years (old contracting out schemes) and it would be good to know what ducks to get in a row in preparation.

agent69

Sea_Shell said:

What documentation are they asking for?

My DH will be looking to access some small pots next year, which he's held for donkeys years (old contracting out schemes) and it would be good to know what ducks to get in a row in preparation.

They want proof of who you are and where you live. The problem is that I don't have any utility bills, council tax statements or bank statements from the last 3 months to prove my address.

Spoke to the company this morning and they are happy to look at other docs that are older than 3 month. Also (contrary to yesterdays letter) they don't need certification in these Covid times.

Hopefully problem solved.