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5 months delayed payment because of money laundering checks

After realising investments in a trust for now grown up children, funds were paid to a Santander account set up for this purpose before being sent to the Trust beneficiaries. Reasonably enough, as it is a large sum, this triggered Santander's money laundering checks. After a huge amount of form filling and paperwork about the origin of the funds (which were well documented) it took exactly two months for Santander to verify the funds as legitimate and tell us the transfer could go ahead. At which point, the payments were bounced back. After some enquiries, it emerged that Santander had blocked the account because of 'dormancy' - i.e. the lack of activity over two months that had been caused by the bank's slow checking procedures. After lengthy enquiries we were told by phone that the blocks would be lifted in 48 hours. 12 days later and following a formal complaint and investigation, the blocks have not been lifted, and we now recieved a letter from Santander stating that the verification process needed to remove the blocks will take 8 weeks. It is not at all clear what verification process this is, given that we have just been through an 8 week verification process on the funds.

Without going into personal details, these delays are causing several people real hardship, anxiety, stress and ultimately severe depression. We can be criticised for entering into commitments based on assumptions about how long this process would take (we were originally promised the funds in February and are now looking at end of August at best). I have heard of similar stories of innocent citizens having their lives disrupted by terribly drafted anti-money laundering legislation, but Santander must also be at blame for the amount of time this is taking. Do we have any rights here, or does the anti-crime legislation trump everything, including innocent peoples' access to their legitimate funds? There seems to be nothing on this on this website or the Financial Services Ombudsman site. We can and will contact the Ombudsman in the hope of some eventual compensation, but the process is too slow to resolve the immediate situation.
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Comments

  • wmb194
    wmb194 Posts: 4,281 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 25 June 2024 at 11:29AM
    After realising investments in a trust for now grown up children, funds were paid to a Santander account set up for this purpose before being sent to the Trust beneficiaries. Reasonably enough, as it is a large sum, this triggered Santander's money laundering checks. After a huge amount of form filling and paperwork about the origin of the funds (which were well documented) it took exactly two months for Santander to verify the funds as legitimate and tell us the transfer could go ahead. At which point, the payments were bounced back. After some enquiries, it emerged that Santander had blocked the account because of 'dormancy' - i.e. the lack of activity over two months that had been caused by the bank's slow checking procedures. After lengthy enquiries we were told by phone that the blocks would be lifted in 48 hours. 12 days later and following a formal complaint and investigation, the blocks have not been lifted, and we now recieved a letter from Santander stating that the verification process needed to remove the blocks will take 8 weeks. It is not at all clear what verification process this is, given that we have just been through an 8 week verification process on the funds.

    Without going into personal details, these delays are causing several people real hardship, anxiety, stress and ultimately severe depression. We can be criticised for entering into commitments based on assumptions about how long this process would take (we were originally promised the funds in February and are now looking at end of August at best). I have heard of similar stories of innocent citizens having their lives disrupted by terribly drafted anti-money laundering legislation, but Santander must also be at blame for the amount of time this is taking. Do we have any rights here, or does the anti-crime legislation trump everything, including innocent peoples' access to their legitimate funds? There seems to be nothing on this on this website or the Financial Services Ombudsman site. We can and will contact the Ombudsman in the hope of some eventual compensation, but the process is too slow to resolve the immediate situation.
    Before going to the ombudsman the first step is to make a formal complaint to Santander.
  • We have made the formal complaint. The eventual response was this '8 week verification' letter. No explanation, either of this statement or of why two weeks previously they had told us it would take 48 hours. This would seem to fall within the Ombudsman's criterion of 'you’re unhappy with their response'. So we can make a complaint to the Ombudsman, but as it takes them a month to set up a case it does not help much in the short term
  • mebu60
    mebu60 Posts: 1,401 Forumite
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    Suggest redirecting formal complaint to: ceo@santander.co.uk - Michael Regnier. One of their executive assistants should pick it up and hopefully progress. 
  • penners324
    penners324 Posts: 3,362 Forumite
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    I'd contact your MP and the CEO of Santander.

    Lots of stories on mse about their incompetence unfortunately 
  • eskbanker
    eskbanker Posts: 35,277 Forumite
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    We have made the formal complaint. The eventual response was this '8 week verification' letter. No explanation, either of this statement or of why two weeks previously they had told us it would take 48 hours. This would seem to fall within the Ombudsman's criterion of 'you’re unhappy with their response'. So we can make a complaint to the Ombudsman, but as it takes them a month to set up a case it does not help much in the short term
    Does the response definitely use that exact "8 week verification" wording?  Perhaps it's just a coincidence but financial institutions are obliged to resolve complaints within that specific timeframe, but if you're complaining about a process that's meant to be quicker, the complaint shouldn't effectively give them even more time to deal with the subject of it!

    Does the letter indicate that it's their final response, after which you can indeed escalate to FOS (even though this itself is a time-consuming exercise)?
  • eskbanker said:
    We have made the formal complaint. The eventual response was this '8 week verification' letter. No explanation, either of this statement or of why two weeks previously they had told us it would take 48 hours. This would seem to fall within the Ombudsman's criterion of 'you’re unhappy with their response'. So we can make a complaint to the Ombudsman, but as it takes them a month to set up a case it does not help much in the short term
    Does the response definitely use that exact "8 week verification" wording?  Perhaps it's just a coincidence but financial institutions are obliged to resolve complaints within that specific timeframe, but if you're complaining about a process that's meant to be quicker, the complaint shouldn't effectively give them even more time to deal with the subject of it!

    Does the letter indicate that it's their final response, after which you can indeed escalate to FOS (even though this itself is a time-consuming exercise)?
    The exact wording is 'I am afraid the dormancy will not be lifted under (sic) all verification has been completed. Unfortunately I am unable to give you a timeframe on this but just so you are aware if we were to complete a manual removal of the dormancy this would take in the region of 8 weeks'. No confirmation that this is a 'final response', and of course it means it might not take 8 weeks.
  • dealyboy
    dealyboy Posts: 1,888 Forumite
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    Sorry I cannot give 'best' advice, but only offer my sympathies regarding the apparent incompetence of the bank.

    If I were in that situation I would be investigating legal action against Santander as you have received notification of completion of AML checks with the go ahead to move the funds only for Santander process to block it, this is clearly unacceptable.

    I agree with earlier comments re contacting CEO and MP.
  • HillStreetBlues
    HillStreetBlues Posts: 5,024 Forumite
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    I agree with the above, total  incompetence, but with MP you will need to wait till 4th July as atm you don't have one.
    Let's Be Careful Out There
  • born_again
    born_again Posts: 18,364 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    I'd contact your MP and the CEO of Santander.

    Lots of stories on mse about their incompetence unfortunately 
    CEO yes..

    MP ? Given we are in the throws of a general election, we do not have any. Add in they will not be interested as they have more pressing matters such as trying to retain their seat. Thats if they are standing again.
    Life in the slow lane
  • xylophone
    xylophone Posts: 45,426 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    throws of a general election

    Wrestling match....? :)

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