Intrusive questions by Building society

Daffodily

I wanted to deposit £500 in cash this morning into a savings account with Coventry Building Society. I was asked where the cash came from from - was it from my current account or had I sold something?.  This surprised me as it was not a huge amount.  I tend to keep some cash in the house for personal use (like many folk I guess) but didn't feel I should have to disclose this to the building society employee.
Presumably this line of questioning is in relation to money laundering, but ..... really??  What are the rules in relation to depositing cash to building societies and banks? 

Rudyson

It's standard procedure now. I've been asked a few times online where the money has come from: savings, investments, pension, transfer from another a/c in my name, my drugs and prostitution empire, etc.

Olinda99

They usually ask if it was from another account or if you have sold something.

Daliah

That‘s how money gets laundered - small cash deposits into personal accounts. They are obliged under their licence terms to check the source of the cash.

The usual applies - you have nothing to fear if you have nothing to hide. So just tell them where the cash came from and all will be fine.

The_MoneySavingKid

This has been fairly standard at banks for at least the past few years -  for fraud and money laundering purposes

[Deleted User]

Just give them a brief indication of the source; I wouldn't expect to be asked  as £500 could be a single ATM / Post Office withdrawal though. 

I wouldn't expect anything more unless alot higher value or regular deposits. 

lr1277

On the flip side, when sending money by internet banking, I am always asked the reason for the transfer. To pay a bill, send to family etc. Obviously the list created depends on what your bank wants to know. This question is asked when transferring very small amounts.

jimjames

I was asked a similar question when I paid in almost £10k in cash recently. Very subtle asking if it was a purchase I'd not made but I have no issue answering if it helps keep things secure. 

Daffodily

Thank you all. I obviously don't get out much!   My point was really that it was "only" £500 and as Oberoth says this sort of amount could be a single ATM withdrawal. Daliah says they are required under the terms of their licence. It seems a bit of a meaningless exercise anyway as whatever I replied could not have been verified.  I just wondered if they are really required to ask the question for any deposit, however small, or is it just over a certain amount.

theoretica

If it was a fixed amount money launderers would just pay in below that - probably it is easier to ask more often than worry about the exact line - like asking for ID buying alcohol if you look below about 40...

There are also the people naive enough to accept money from strangers to go through their account - who might just be naive enough to answer honestly about where it came from too, or splutter guiltily...

CRISPIANNE3

Daffodily said:

I wanted to deposit £500 in cash this morning into a savings account with Coventry Building Society. I was asked where the cash came from from - was it from my current account or had I sold something?.  This surprised me as it was not a huge amount.  I tend to keep some cash in the house for personal use (like many folk I guess) but didn't feel I should have to disclose this to the building society employee.
Presumably this line of questioning is in relation to money laundering, but ..... really??  What are the rules in relation to depositing cash to building societies and banks? 

I remember walking into Nationwide bs with £8,000 to deposit into my account and no questions were asked. This was about 8 years ago.