Should my bank be asking me how I am spending my money when I make large cash withdrawals?

grumbler

GeoffTF said:

grumbler said:

If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

That is a common scam. 

We are surrounded by scams. AFAIK selling for cash is the most safe way of selling a car privately. 

They are going want details.

OK, what will they do with these details and how can they protect me? 

born_again

Yes the bank are right

grumbler said:

elsien said:

k12479 said:

No, they shouldn’t be asking. But neither should you be whining that they should have done more to protect you when you get scammed nor complaining when they close your account.

... If they suspect money laundering, they have an obligation to check it out. 

     Withdraw cash to lauder it?! This is something new....

eskbanker said:
Yes, the bank has obligations under AML/KYC regulations to take reasonable measures to satisfy itself that very large cash withdrawals aren't being used for nefarious purposes....

Edit: there's no point in setting up (or answering) a poll unless the question is clearer - if the question is 'is the bank acting correctly under existing legislation/regulation' then the answer is factually yes, so isn't something to be voted on, but if the question is 'are current rules and regulations perhaps too stringent' then that's an entirely different issue, on which various differing opinions would be valid.

I think, the 'existing legislation' is far too vague. As a result banks are between a rock and a hardplace, have to improvise and their actions depend a lot on how their local pinkertons interpret the 'legislation'.
If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

Money paid into account from iffy sources, withdrawn. Is exactly how its done 🤦‍♀️

eDicky

born_again said:

grumbler said:

elsien said:

k12479 said:

No, they shouldn’t be asking. But neither should you be whining that they should have done more to protect you when you get scammed nor complaining when they close your account.

... If they suspect money laundering, they have an obligation to check it out. 

     Withdraw cash to lauder it?! This is something new....

eskbanker said:
Yes, the bank has obligations under AML/KYC regulations to take reasonable measures to satisfy itself that very large cash withdrawals aren't being used for nefarious purposes....

Edit: there's no point in setting up (or answering) a poll unless the question is clearer - if the question is 'is the bank acting correctly under existing legislation/regulation' then the answer is factually yes, so isn't something to be voted on, but if the question is 'are current rules and regulations perhaps too stringent' then that's an entirely different issue, on which various differing opinions would be valid.

I think, the 'existing legislation' is far too vague. As a result banks are between a rock and a hardplace, have to improvise and their actions depend a lot on how their local pinkertons interpret the 'legislation'.
If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

Money paid into account from iffy sources, withdrawn. Is exactly how its done 🤦‍♀️

Withdrawn in cash..? How does that launder money that is already successfully deposited in the banking system..?

400ixl

Yes the bank are right

eDicky said:

Withdrawn in cash..? How does that launder money that is already successfully deposited in the banking system..?

Some businesses are cash businesses, they don't transact across the faster payment system for obvious reasons.

k12479

eDicky said:

born_again said:

grumbler said:

elsien said:

k12479 said:

No, they shouldn’t be asking. But neither should you be whining that they should have done more to protect you when you get scammed nor complaining when they close your account.

... If they suspect money laundering, they have an obligation to check it out. 

     Withdraw cash to lauder it?! This is something new....

eskbanker said:
Yes, the bank has obligations under AML/KYC regulations to take reasonable measures to satisfy itself that very large cash withdrawals aren't being used for nefarious purposes....

Edit: there's no point in setting up (or answering) a poll unless the question is clearer - if the question is 'is the bank acting correctly under existing legislation/regulation' then the answer is factually yes, so isn't something to be voted on, but if the question is 'are current rules and regulations perhaps too stringent' then that's an entirely different issue, on which various differing opinions would be valid.

I think, the 'existing legislation' is far too vague. As a result banks are between a rock and a hardplace, have to improvise and their actions depend a lot on how their local pinkertons interpret the 'legislation'.
If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

Money paid into account from iffy sources, withdrawn. Is exactly how its done 🤦‍♀️

Withdrawn in cash..? How does that launder money that is already successfully deposited in the banking system..?

Exactly. The laundering needs to be done later, by others, the people who have "over ordered materials" and are selling it off for which they "generally want cash payments."

GeoffTF

Yes the bank are right

grumbler said:

GeoffTF said:

grumbler said:

If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

That is a common scam. 

We are surrounded by scams. AFAIK selling for cash is the most safe way of selling a car privately. 

They are going want details.

OK, what will they do with these details and how can they protect me? 

They are not trying to protect you, they are trying to protect themselves. If you do not have convincing evidence that it not a scam, they will not let you have the money.

eDicky

A bank may be obliged to refund money lost by a customer in a fraudulent transfer, so are entitled to carry out checks - but how would they be liable for any losses involved in the use of funds withdrawn in cash by an account holder..?

Barkin

True story:. About 3 or 4 years ago my father in law (in his 80's and in the early stages of dementia, although we didn't realise this until later) needed some work on his gutters. A couple of hundred quid tops. It was winter. I was going to do it myself when the weather improved.

A couple of n'er do wells knocked on his door one day, and told him they could do the work tomorrow but they'd need some money upfront for materials. £6000 !!!

He jumped in his car, drove to his bank branch (since closed...) and tried to withdraw £6000 cash.

The bank quizzed him about it, and ended up refusing to let him withdraw the cash.

We were very glad that they asked the questions.

grumbler

born_again said:

grumbler said:

elsien said:

k12479 said:

No, they shouldn’t be asking. But neither should you be whining that they should have done more to protect you when you get scammed nor complaining when they close your account.

... If they suspect money laundering, they have an obligation to check it out. 

     Withdraw cash to lauder it?! This is something new....

eskbanker said:
Yes, the bank has obligations under AML/KYC regulations to take reasonable measures to satisfy itself that very large cash withdrawals aren't being used for nefarious purposes....

Edit: there's no point in setting up (or answering) a poll unless the question is clearer - if the question is 'is the bank acting correctly under existing legislation/regulation' then the answer is factually yes, so isn't something to be voted on, but if the question is 'are current rules and regulations perhaps too stringent' then that's an entirely different issue, on which various differing opinions would be valid.

I think, the 'existing legislation' is far too vague. As a result banks are between a rock and a hardplace, have to improvise and their actions depend a lot on how their local pinkertons interpret the 'legislation'.
If I tell them that I'm buying a car, will this 'satisfy' them? Can they check this even if I tell them who the seller is? Not really. They are covering their asses  in the first place - to satisfy the stupid regulations.

Money paid into account from iffy sources, withdrawn. Is exactly how its done 🤦‍♀️

Ha-ha.
Normally it's dirty untraceable cash that needs laundering and depositing. And if it's the sources that they are concerned about, they should ask different questions, not about spending this cash.

HobgoblinBT

Yes the bank are right

Should be easy for you to prove what you are spending the money on.  1, show the bank a selfie with the building work in the background. 2. Show the bank the social media advert for the surplus materials.