Santander closed accounts

blahblahwhat

My sister sent some money from Iran through 3rd party in 2 transactions from two UK bank accounts. Sadly, this is the only way to transfer money because Iran and UK have no direct banking. Santander asked where the funds have come from. I provided evidence from my sister and a letter from the 3rd party person that sent me money that I’m entitled to the funds. Of course, a direct relationship between these two parties is impossible to make as there are 5 intermediary parties in between and I can’t get the hold of them. Anyway, Santander is not convinced and is now shutting down my accounts, locked me out, and withholding the money that was sent to me through 3rd party as well. 

My questions are:
1- is it legal for them to withhold my money indefinitely? Surely if they can’t prove there’s any fraud committed I am entitled to get it?
2- what can I do to get my money back of they can withhold my money indefinitely?

Thanks!

marcia_

 You went around getting the money in the wrong way, looks like money launderin..
 in which case yes the bank can legally keep your money until they are satisfied where it comes from and that it's legitimately yours. 

 You need to provide the full trail of the money from origins to you. Every single account/person needs to be contacted 

born_again

Iran is a sanctioned country as far as UK banking goes.

So if Santander know that it actually came from Iran. End of story. 

International money transfers are very rarely direct. Most go through intermediary parties.

artyboy

Intentionally layering a transaction to conceal its origin from one of the world's most heavily sanctioned countries...? If this isn't a wind up then the OP is probably lucky they've not had their collar felt by the Bill.

Hoenir

blahblahwhat said:

Sadly, this is the only way to transfer money because Iran and UK have no direct banking. 

Yes it does. 

Transferring the value of money from Iran to the UK has never been illegal or prohibited. You must use an FCA regulated money exchange provide (1) proof of source of the IRR funds from Iran and (2) the GBP funds in the UK that are sent to your bank account.

eskbanker

Hoenir said:

blahblahwhat said:

Sadly, this is the only way to transfer money because Iran and UK have no direct banking. 

Yes it does. 

Transferring the value of money from Iran to the UK has never been illegal or prohibited. You must use an FCA regulated money exchange provide (1) proof of source of the IRR funds from Iran and (2) the GBP funds in the UK that are sent to your bank account.

Further down the article you've copied that from, it does acknowledge the issues faced by those trying to move money from Iran to the UK, while asserting that technically it ought to be allowed and unsurprisingly touting for business:

Bank account Restrictions and Closures 

It is not unusual for a bank to block funds, close an account and even terminate the banking relationship altogether. However, if you think that a bank has discriminated then (through  legal proceedings) we may be able to reinstate your bank account, collect compensation on your behalf for injury to feelings and legal costs. In the majority of cases, these are achieved before issuing a claim as most banks do not want the publicity of being involved in a race discrimination claim.

The background on EU / UK Sanctions on Iran

Even Prior to the JCPOA (Joint Comprehensive Plan of Action) that resulted in the lifting of sanctions in 2016, the transfer of funds between the UK and Iran was never illegal but required pre-authorisation from HM Treasury. So long as the reason for the transfer and its value were genuine then individuals were not unreasonably denied authorisation / approval.

It is US secondary sanctions that remain in place and because of their extraterritorial jurisdiction (the ability of a government to exercise authority beyond its borders) banks, businesses and individuals with any connection to the US are still at risk of prosecution by the Department of Justice if they have a ‘US element’ such as a ‘US person’ or ‘US dollar’. As a consequence, several major banks have been fined hundreds of millions of dollars for violating the US sanction regime in Iran. As a result, EU and British banks refuse to deal with Iran even when the transaction is completed legally in their territories.

While we understand why British banks are avoiding any dealing with Iran / Iranian, we believe this practice is discriminatory to a whole class of British society. Many Iranians whether student or otherwise have had their UK bank accounts closed or blocked even though their actions are wholly legal.

We have regularly received calls from Iranians who have received funds in cash or from multiple individuals or businesses and have ended up with the funds being frozen and their bank account closed.

https://oliverfisher.co.uk/iranians-buying-uk-property-transferring-money-from-iran/