Monzo Bank demands new personal information to keep account

ReadandWrite

I have been with Monzo as a second account for some years... They recently demanded (claimed for Money Laundering purposes) that I supply more personal information including close detail on my annual income. They go out of their way to say it is not for "Marketing Purposes". However, after careful research, I cannot find any requirement for the bank to demand this information, Inland Revenue 2021 changes, or otherwise and have written to ask why they need it. They have ignored my note, and are now saying on 22nd January they will restrict my access to my account because I won't do as they say... 

To be clear I'm not precious about how much I earn, but I am careful to ensure I don't throw my personal information around... It is a matter of principle, as where does it end? If a bank strong-arms me for information I am not required to give by law, I think that it sets a dangerous precedent on my privacy. Any thoughts would be welcome?

mab3000

Banks are required to follow Know Your Customer (KYC) processes https://www.betterbusinessfinance.co.uk/aml-and-kyc/what-are-the-aml-and-kyc-obligations-of-a-bank-in-the-uk

They are asking for your annual income so that they can build a picture of what sort of income they can expect to be coming into the account. Every bank account I have applied for in the last few years has asked for this information. 

They are entitled to end your banking relationship with them if they wish to do so if you don’t provide this information

Band7

Your choice whether to provide the info they requested or not. Your account will likely get closed if you don‘t because Metro would not be able to comply with their licence terms if they failed to complete KYC

eskbanker

ReadandWrite said:

However, after careful research, I cannot find any requirement for the bank to demand this information, Inland Revenue 2021 changes, or otherwise and have written to ask why they need it.

Did your careful research unearth the fact that the Inland Revenue ceased to be known as that 18 years ago?

To answer less flippantly, there is no prescriptive requirement to acquire income details - the regulations are open to interpretation, i.e. each institution is effectively free to do their own thing within reason, but as above, if they deem their request justifiable (and they don't have to justify it to you, just to the regulator or other relevant authority) then you either provide the relevant data or accept that they have the right to terminate the relationship....

ReadandWrite

Hi mab3000 and Band7,
Thank you for taking the time on an answer... I note that my account is private, and the information mab3000 you have provided is for business accounts, and based on 2007 is pretty old news... I'm sure I would have been chased earlier for this info if required from that time. The money laundering changes in 2021 say nothing about a bank holding information on salaried or pension income.

I do agree with both mab3000 and Band7 that a bank can choose to end a relationship simply if you don't do what they demand. It is business model they have evolved to, but is it ethical? It certainly was not the case... I think my point has been missed, why are we making public so much that has always been personal; not by the law, but now by being forced by the banks for their personal gain, in pretence of the law. Is that not unethical? 

Ebe_Scrooge

ReadandWrite said:

I think my point has been missed, why are we making public so much that has always been personal;

But you're not making it public.  You're giving the information to your bank, who will have strict measures in place to ensure your personal information doesn't fall into the wrong hands.  If a bank, or any financial institution, either deliberately or by lack of security allows personal information to be passed to anyone who doesn't have a justifiable need for it, there'd be hell to pay - and the bank themselves would suffer massive reputational loss, as well as a very hefty fine.

Trust me, they'll be doing all they possibly can to ensure the security of your data.  And even within the bank itself, it's only available to those departments that have a justifiable need to see it - it's not like every employee in the company will know how much you earn.

Band7

ReadandWrite said:

 

I do agree with both mab3000 and Band7 that a bank can choose to end a relationship simply if you don't do what they demand. It is business model they have evolved to, but is it ethical? It certainly was not the case... I think my point has been missed, why are we making public so much that has always been personal; not by the law, but now by being forced by the banks for their personal gain, in pretence of the law. Is that not unethical? 

Giving your bank data about yourself is not the same as making your data public. Your bank has to strictly adhere to their data privacy policy (which you agreed to when you applied for the account). Banks aren't persons, so they don't benefit personally. However, they are businesses and like all businesses, they need to make money from their customers. All banks offer the option to turn off Marketing if you don't want to be sold to on an ongoing basis.

Not sure what's unethical about the law and the regulations which are in place to combat money laundering. Note I have neither said nor do I have reason to believe that you are involved in money laundering but in order for the banks to combat it, we all need to comply with certain rules. Just like we are all being screened, increasingly intimately, when we want to check in for a flight, even though 99.99% of us aren't carrying bombs or other weapons. 

As I said before, your choice whether you want to cooperate. You don't have to. But neither does a bank have to offer you a service if you can't agree to their T&Cs.

nyermen

Have to confess I still call them inland revenue (a bit like "hoover vs vacuum cleaner" perhaps).  And I do a tax return every year

I think asking for annual income isn't unreasonable. There is another reason - over a certain income, you have to pay tax on interest, so its not so unreasonable to ask.

That said, my mother got a demand for info from HSBC, but then they asked for more info, eg. the value of her houses (FYI, just one, no mortgage), then another request for how much in non-hsbc accounts with other institutions, and then further items.  She just had a standard current account with them (as a second checking account) and after the first couple of demands, she just closed it as it wasn't worth the fuss to her.

Band7

nyermen said:

I think asking for annual income isn't unreasonable. There is another reason - over a certain income, you have to pay tax on interest, so its not so unreasonable to ask.

Banks haven't been collecting taxes for many years now, so they don't need to know how much you earn.

In reality, they do want to know for their Marketing purposes. They have no means to verify whether the number you give them is correct, and you have no obligation to keep them up to date about your income. I am not suggesting that you should give your bank false information but it really doesn't matter whether your give them the exact amount. Also, you can turn off all their Marketing, so even if they have your annual income, and can see what transactions you process through them, they can't direct their Marketing campaigns at you if you don't wish to receive them.

Your mother has done the right thing - if a bank becomes too intrusive, just leave. We have choices. Mind you, I have accounts with a large number of banks (incl Monzo and HSBC) - never got asked for extra income information after the initial application [famous last words].

AmityNeon

You are not required by law to provide your occupation or income details; banks are not required by law to continue their relationship with you.

Banks are required by law to comply with KYC and AML requirements, which apply across the board to all their customers, not just business accounts; if the requirements only applied to business accounts, criminals could simply launder fraudulent money through personal accounts virtually undetected knowing that banks wouldn't care.

ReadandWrite said:

I think my point has been missed, why are we making public so much that has always been personal; not by the law, but now by being forced by the banks for their personal gain, in pretence of the law. Is that not unethical? 

What do you believe is being made public? How exactly are banks personally gaining, for you to interpret KYC/AML requirements as merely a pretence for perceived unethical behaviour? Would you be happier if a bank froze your assets to conduct a fraud investigation because they weren't aware of the various origins of your funds?

AstonSmith

Stupid question:

What exactly are the details required to meet the KYC requirements?

If we knew what those are, we could easily say whether how much money a person makes is included or not.