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

Zecis

Well my annoyance with the bank drove me to look at other banks....and wow there are some significantly better deals around.....so it's v likely to be good bye to my bank....30 years of relationships burned thanks to this policy

Barkin

I look forward to the thread where you're equally annoyed due to the same attitude from whatever bank you move to.

I'll bring popcorn...

born_again

Yes the bank are right

grumbler 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Money paid into account from iffy sources, withdrawn.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 🤦‍♀️

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.

You & others are missing the point, that OP made no mention of where cash came from in account.
Could have come from mule accounts & then either withdrawing as cash, or spending on other goods/services is turning it from dirty to clean money 👍

GingerTim

Yes the bank are right

Zecis said:

Well my annoyance with the bank drove me to look at other banks....and wow there are some significantly better deals around.....so it's v likely to be good bye to my bank....30 years of relationships burned thanks to this policy

And you'll find that pretty much every bank will have to follow the same policies.. 

grumbler

Section62 said:

eDicky said:

400ixl said:

grumbler 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....

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.

And what do they need out at the other end for many of these illegal activities, clean cash. Laugh if you want, and try to put them down but actually they are right.

I'm trying to imagine what kind of illegal activities require 'clean' cash, and how money in the form of cash can be distinguished as being clean...

So contrary to grumbler's assertion, the desirable thing to do these days is cashing money out of the banking system (preferably from someone else's account) in a way which permits conversion to an asset that cannot be traced.  I.e. what born_again said.

Well, and how can a bank stop THIS by asking stupid questions? If I take cash to buy a car, tell this to my bank, but then change my mind and buy a boat instead (or guns/drugs/...) who is going to check this and how?

Usually it's the opposite. I have a suitcase of durty cash (from selling drugs), want to buy a house, but cannot.

born_again said:

You & others are missing the point, that OP made no mention of where cash came from in account.
Could have come from mule accounts & then either withdrawing as cash, or spending on other goods/services is turning it from dirty to clean money 👍

No I'm not missing anything:

grumbler said:

...if it's the sources that they are concerned about, they should ask different questions, not about spending this cash.

eskbanker

grumbler said:
Well, and how can a bank stop THIS by asking stupid questions? If I take cash to buy a car, tell this to my bank, but then change my mind and buy a boat instead (or guns/drugs/...) who is going to check this and how?

Don't let perfect be the enemy of good - the ability to corroborate is inevitably limited, but that doesn't mean the question shouldn't be asked and supporting evidence sought.  It's clearly not a foolproof system but much will come down to circumstances, credibility and attitude when the dialogue happens, and hence the difficulty of enshrining this in legislation....

sheramber

Scammers persuading people to transfer money to a 'safe account' can get caught out if the person scammed realises quick enough

If they get them to give them cash, on the premise that they will deposit for them,  then nobody can trace where the money went.

Banks donlt just query cash withdrawals.

it took me nearly an hour to persuade my bank that my bank transfer to a confirmed account was a genuine payment to a tradesman who had done some work for me.  It was twenty questions.

EnPointe

Yes the bank are right

Zecis said:

The closest bank branch is a 2 hour journey away, so I'm drawing a five figure sum

Which comes into the realms of the anti money laundering  provisions   if it's over 10k 

We also see situations where peopel are being coerced into  withdrawing large amounts of cash  whether that is due to blackmail / extortion or from Bank Impersonation frauds.

Are you sure the people you are paying to  for these supplies are in a postion to  actually  sell  them to you?  or are they just double charging and tax evading  ( by   charging the original customer  through the books and pocketing your cash purchase of the 'over ordered'  supplies 

this is before the  consideration that ' over ordered'   buidling supplies is  fairly common way in which scammers and cowboys operate  anyway ?

EnPointe

Yes the bank are right

Zecis said:

Well my annoyance with the bank drove me to look at other banks....and wow there are some significantly better deals around.....so it's v likely to be good bye to my bank....30 years of relationships burned thanks to this policy

  i think it;s time to invest in popcorn and deckchairs  for when Zecis finds themsevles 'debanked' because they  can't/ won't / don't   wish to understand how  Anti money laundering  legislation works... 

 personally  i suspect the person  Zecis is paying  cash  to for these building supplies is not autorised to sell them on belf of the building  company  and is pocketingthe cash  in the hope that  neither the  building co or  the client  does a proper  audit of the bill of materals  vs  the supplies purchased from  and returned  as faulty / unused for credit to the merchant

molerat

Nosy bank want to know why I want the money out

or

Useless bank won't refund me the money I paid to a scammer

https://forums.moneysavingexpert.com/discussion/6494805/revolut-refund-after-scam#latest

The banks can't win