Changes to FCA & my bank account

Hoenir

OFuzz said:

Hoenir said:

OFuzz said:

I've been subject to multiple calls from bank regarding changes to FCA guidelines that require me to explain transactions on my bank account.

Banks are in the front line against Money Laundering.  Exposed to fines if they do not conduct the neccessary due diligence. They only have need to question people with unusual banking activity. 

What's unusual? Cash - legal tender. Crypto transactions - not illegal, provided all information on holdings and transactions.
If I trade FX, would I receive the same level of scrutiny or just because its Crypto? What about investment vehicles and funds - do they encounter multiple phone calls?
Describe what is unusual

Think about it. The normal bank customer has a very boring existance in terms of transactional activity. 

OFuzz

Hoenir said:

OFuzz said:

Hoenir said:

OFuzz said:

I've been subject to multiple calls from bank regarding changes to FCA guidelines that require me to explain transactions on my bank account.

Banks are in the front line against Money Laundering.  Exposed to fines if they do not conduct the neccessary due diligence. They only have need to question people with unusual banking activity. 

What's unusual? Cash - legal tender. Crypto transactions - not illegal, provided all information on holdings and transactions.
If I trade FX, would I receive the same level of scrutiny or just because its Crypto? What about investment vehicles and funds - do they encounter multiple phone calls?
Describe what is unusual

Think about it. The normal bank customer has a very boring existance in terms of transactional activity. 

I'm stumped tbh. So (minimal volume and value) cash transactions are a red flag. Minimal volume and value trading platform transactions too? What is a bank account for then? Paying bills and earning 0.01/2% interest? 

TheBanker

OFuzz said:

Hoenir said:

OFuzz said:

Hoenir said:

OFuzz said:

I've been subject to multiple calls from bank regarding changes to FCA guidelines that require me to explain transactions on my bank account.

Banks are in the front line against Money Laundering.  Exposed to fines if they do not conduct the neccessary due diligence. They only have need to question people with unusual banking activity. 

What's unusual? Cash - legal tender. Crypto transactions - not illegal, provided all information on holdings and transactions.
If I trade FX, would I receive the same level of scrutiny or just because its Crypto? What about investment vehicles and funds - do they encounter multiple phone calls?
Describe what is unusual

Think about it. The normal bank customer has a very boring existance in terms of transactional activity. 

I'm stumped tbh. So (minimal volume and value) cash transactions are a red flag. Minimal volume and value trading platform transactions too? What is a bank account for then? Paying bills and earning 0.01/2% interest? 

It's complicated. Without sounding condescending, it's not a simple case of querying everything over £xx.

It will sometimes be patterns of transactions, rather than one transaction on its own that flag. Or it might be a change in the way you use your account.

I'd suggest most banks are less likely to query payments that originate from a fully regulated UK investment firm, compared to those originating from Crypto.

This FCA page is about cash deposits through the Post Office, but it highlights how the regulator expects banks to manage their money laundering risks associated with cash: https://www.fca.org.uk/firms/financial-crime/cash-based-money-laundering