Vanquis Source of Wealth Docs

PullingMyHairOut1

Hi
My wife and I have flipped or switched fixed rate bonds for a number of years now from at least 10 different banks, building societies etc in order to get the best rates usually from advice from Martin. Usually they are over 1 or 2 years. The source of wealth originally came from pension pots and inheritance from parents. We have flipped Vanquis a few times since 2017. We have just opened a new one and they have asked for source of wealth documentation which they haven't asked for before. This could be awkward as it will need lots of paperwork copies rather than originals from a number of organisations as they are mainly downloaded now and then copies need signed verification of them all. Just wondering if this is the new norm for money laudering requirements? If we don't respond within 28 days all 4 of our accounts funds will be returned - even the two 3 year fixed we have which mature in March next year? If so and other savings providers may follow suite it will make flipping a much harder process? Anyone have experience of dealing with this?

Uriziel

Have they told you that if you don't respond they will be returning the money to you and closing your account?

Typically if you cannot satisfy their request your money will be frozen since you will be flagged for potentially money laundering so don't just assume that they will return the money to you.

Chief_of_Staffy

They have a history of this nonsense. I'd suggest that any company that claims emails are less secure than Royal Mail is incompetent and should not be dealt with. As to your issue, you either have to do what they want or bank somewhere else.

https://www.financial-ombudsman.org.uk/decision/DRN-5165720.pdf

HobgoblinBT

Other providers are likely to follow suit if they haven’t already instituted such checks.  Look at the recent fines levied for failures in their AML process on the relative “good guy” Nationwide!

poseidon1

PullingMyHairOut1 said:

Hi
My wife and I have flipped or switched fixed rate bonds for a number of years now from at least 10 different banks, building societies etc in order to get the best rates usually from advice from Martin. Usually they are over 1 or 2 years. The source of wealth originally came from pension pots and inheritance from parents. We have flipped Vanquis a few times since 2017. We have just opened a new one and they have asked for source of wealth documentation which they haven't asked for before. This could be awkward as it will need lots of paperwork copies rather than originals from a number of organisations as they are mainly downloaded now and then copies need signed verification of them all. Just wondering if this is the new norm for money laudering requirements? If we don't respond within 28 days all 4 of our accounts funds will be returned - even the two 3 year fixed we have which mature in March next year? If so and other savings providers may follow suite it will make flipping a much harder process? Anyone have experience of dealing with this?

In my case Oxbury asked  for source of funds, for a 3 month bond I did with them a month  or so ago. This was sixth such bond with them, but in this case a 6 figures deposit rather than my usual 5.

I explained it was switch out from a Chase account where interest had fallen to 2.5%. They asked for a Chase statement showing the withdrawal which I promptly supplied via an encrypted email they set up for the purpose. Evidence was accepted, so all good from that point onwards.

In OP case are Vanquish actually asking for ancient history origin of funds as inferred in the ombudsman case supplied by Chief_of_Staffey?

artyboy

poseidon1 said:

PullingMyHairOut1 said:

Hi
My wife and I have flipped or switched fixed rate bonds for a number of years now from at least 10 different banks, building societies etc in order to get the best rates usually from advice from Martin. Usually they are over 1 or 2 years. The source of wealth originally came from pension pots and inheritance from parents. We have flipped Vanquis a few times since 2017. We have just opened a new one and they have asked for source of wealth documentation which they haven't asked for before. This could be awkward as it will need lots of paperwork copies rather than originals from a number of organisations as they are mainly downloaded now and then copies need signed verification of them all. Just wondering if this is the new norm for money laudering requirements? If we don't respond within 28 days all 4 of our accounts funds will be returned - even the two 3 year fixed we have which mature in March next year? If so and other savings providers may follow suite it will make flipping a much harder process? Anyone have experience of dealing with this?

In my case Oxbury asked  for source of funds, for a 3 month bond I did with them a month  or so ago. This was sixth such bond with them, but in this case a 6 figures deposit rather than my usual 5.

I explained it was switch out from a Chase account where interest had fallen to 2.5%. They asked for a Chase statement showing the withdrawal which I promptly supplied via an encrypted email they set up for the purpose. Evidence was accepted, so all good from that point onwards.

In OP case are Vanquish actually asking for ancient history origin of funds as inferred in the ombudsman case supplied by Chief_of_Staffey?

Without wishing to go down my usual pedantic rabbit hole on this, if they truly are asking about source of WEALTH, then that is a much broader question of how the OP has made their money over their lifetime, rather than just for this specific deposit (which would be source of FUNDS).

It can be a legitimate ask, especially for new clients making large transactions, where a bank needs to determine not only the legitimacy of the funds being deposited, but that the size of the investment is consistent with the overall financial position of the client.

In this case and based on what I'm seeing, this appears to be them going rather OTT, but again it comes back to the law not being especially prescriptive on what exact checks a bank has to make.

(On a separate pedantic note, this thread is another one that seems to be totally unrelated to property!)

PullingMyHairOut1

Thanks everyone for your replies. I will try sending them a recent bank statement which shows that funds received from a closed Hodge account which offered a lower new rate. Vanquis's rate was slightly higher but would be worth an extra £200 or so. If that doesn't work I stumped who the hell keeps documents for over 15 years especially when you switch banks as well. Perhaps Martin Lewis could do an article on this in the savings section as the switching advice over the years has come from this website? Proof of ID clearly is not enough these days. 

Chief_of_Staffy

PullingMyHairOut1 said:

Thanks everyone for your replies. I will try sending them a recent bank statement which shows that funds received from a closed Hodge account which offered a lower new rate. Vanquis's rate was slightly higher but would be worth an extra £200 or so. If that doesn't work I stumped who the hell keeps documents for over 15 years especially when you switch banks as well. Perhaps Martin Lewis could do an article on this in the savings section as the switching advice over the years has come from this website? Proof of ID clearly is not enough these days. 

Have you considered become a criminal? Since the figures show that actual criminals are almost entirely unaffected by AML legislation, it may be worth considering.

artyboy

Chief_of_Staffy said:

PullingMyHairOut1 said:

Thanks everyone for your replies. I will try sending them a recent bank statement which shows that funds received from a closed Hodge account which offered a lower new rate. Vanquis's rate was slightly higher but would be worth an extra £200 or so. If that doesn't work I stumped who the hell keeps documents for over 15 years especially when you switch banks as well. Perhaps Martin Lewis could do an article on this in the savings section as the switching advice over the years has come from this website? Proof of ID clearly is not enough these days. 

Have you considered become a criminal? Since the figures show that actual criminals are almost entirely unaffected by AML legislation, it may be worth considering.

I always thought it was funny being able to promote myself (professionally) as a specialist in financial crime...

All about the context, apparently...