Santander blocked my account with no explanation
Options
Comments
-
I can see there has been an interesting discussion of whether or not what I was doing is a business activity or not- well I guess this is a good question, I guess you could argue I'm not, but I'm happy to accept I am. In which case I am agains the Ts and Cs. But as jonnygee2 mentioned this isn't particularly relevant, if the problem was just that I was using a personal account instead of a business account they likely would be more open about why I'm being shut down.
Incidentally, I did look at opening a business account with Santander, and being up front from the start about the purpose, but they explicitly disallow any businesses that are related to crypto in any way.
jonnygee2- I did indeed go to the FOS. They were super helpful. A couple of days after the FOS contacted Santander, they told me formally that my account was being closed down. Which was progress, and I'm very happy (assuming I get my money back- which I don't so far!).
Now what is super weird is that the customer service dude at Santander said that my account was being closed down at the request of the FCA. And that Santander themselves did not wish to close it. This is super weird. I mean, the FCA are a regulator, not some crime agency or something similar. Is it within their remit to be closing down people's accounts? I am told that I can expect a letter from the FCA- if I do ever receive anything I will share with y'all, if you're interested! It is possible the customer service due was just confused. He originally said it was shut down by the 'FCI' until I pointed out there is no such organisation and he said 'oh yes, I mean the FCA'.
In another development, I have just had my Halifax account shut down as well (this time however they told me it was being closed, and havn't frozen it, and said I'll continue to be able to use it for 65 days). Now I was using this for exactly the same reason as I was using Santander. I have no beef with Halifax at all, the timing however is certainly suspicious.
I have two further bank accounts which I have had for over a decade and are NOT used for my arbitrage, they are just regular personal accounts. So far it seems they are unaffected, and most likely won't be, but I'm not going to lie, I'm a little worried these may be affected as well (this is probably me just being paranoid though). I am not sure to what extent banks talk to each other.0 -
who's Santander?0
-
They also needed to wait another 30+ years for the technology to evolve to the point where it was a practical proposition, rather than something only suitable for experimentation and dedicated enthusiasts.Because as cryptocurrencies become more adopted over time I will depend on banks less and less.
Similar to how in 1880 people were predicting that the internal combustion engine would wipe out the horse drawn carriage, but simultaneously need a horse drawn carriage to get from A to B.
Which returns us to the subject you don't want to discuss.... which is that virtual currency has to evolve to a state where it is a practical proposition (including regulation and policing) before banks will be 'wiped out'.
My own prediction is that banks will evolve their own form of virtual currency (complete with regulation and policing) which will always outcompete others because it will have the benefit of security and stability.
I'll go as far as to predict the name given to this 'virtual currency' will be "plastic" - and it will be common to hear people use phrases such as "put it on the plastic" to mean pay for it using the bank's 'virtual currency'
"In the future, everyone will be rich for 15 minutes"0 -
I can see there has been an interesting discussion of whether or not what I was doing is a business activity or not- well I guess this is a good question, I guess you could argue I'm not, but I'm happy to accept I am. In which case I am agains the Ts and Cs. But as jonnygee2 mentioned this isn't particularly relevant, if the problem was just that I was using a personal account instead of a business account they likely would be more open about why I'm being shut down.
There is, though, a slightly different point about the nature of your trading. If in any way at all you've been accused of trading other people's money (for example, accepting payments from someone to buy or sell coins on their behalf), you've committed a crime by running an unregulated financial business, which would certainly explain the banks reaction.A couple of days after the FOS contacted Santander, they told me formally that my account was being closed down. Which was progress, and I'm very happy
So they haven't yet told you if the funds are being returned? It sounds like at least some of them will not be returned.Now what is super weird is that the customer service dude at Santander said that my account was being closed down at the request of the FCA.
So it does actually sound like you are being investigated for running an unregulated financial business. The FCA will probably ask for more information and evidence before deciding whether to prosecute.0 -
The timing of the Halifax closure is strange, but 65 days to move your banking business elsewhere means its probably not been triggered by anything other than a they don't want your business anymore after the FCA have been in touch with them.Thanks
JG0 -
Incidentally, I did look at opening a business account with Santander, and being up front from the start about the purpose, but they explicitly disallow any businesses that are related to crypto in any way.
Then you wonder why they've closed your personal account undertaking a similar activity in an underhand manner. :wall::wall:0 -
For anyone who is getting bored/annoyed at these unrelated posts on the merits of bitcoin I apologise but some posters (like EachPenny) ignored my request and I can't resist a good debate so still doing it here....They also needed to wait another 30+ years for the technology to evolve to the point where it was a practical proposition, rather than something only suitable for experimentation and dedicated enthusiasts.
Absolutely, agreed.Which returns us to the subject you don't want to discuss....
When did I say I didn't want to discuss it? If you read my post, I said I did want to discuss, just not here (which you have ignored).which is that virtual currency has to evolve to a state where it is a practical proposition (including regulation and policing) before banks will be 'wiped out'.
Agreed, certainly it has to evolve to a state where it is practical for everyone to use it.My own prediction is that banks will evolve their own form of virtual currency (complete with regulation and policing) which will always outcompete others because it will have the benefit of security and stability.
What will be the difference between banks' own virtual currencies and what they already offer? Will they have the properties of scarcity and decentralisation which is what separates existing virtual currencies and the £, $ etc? In other words, why would anyone use these bank's new currencies?0 -
There is, though, a slightly different point about the nature of your trading. If in any way at all you've been accused of trading other people's money (for example, accepting payments from someone to buy or sell coins on their behalf), you've committed a crime by running an unregulated financial business, which would certainly explain the banks reaction.
Yeah that seems reasonable. Fortunately I havn't been doing that!So they haven't yet told you if the funds are being returned? It sounds like at least some of them will not be returned.
They said I will get it back. Although I havn't yet. I need to wait for my letter confirming account closure before I can begin the process apparently.So it does actually sound like you are being investigated for running an unregulated financial business. The FCA will probably ask for more information and evidence before deciding whether to prosecute
Ha- I would hope they ask for more information before deciding whether to prosecute!! The question is really, how did the FCA get interested in the first place? It's not like they have open access to everyone's accounts in the country. Perhaps Santander have a duty to send them details of things that look suspicious?0 -
The timing of the Halifax closure is strange, but 65 days to move your banking business elsewhere means its probably not been triggered by anything other than a they don't want your business anymore after the FCA have been in touch with them.
This is even if the FCA have been in touch with them at all- perhaps it's just my volumes have been too high for a personal account. My bank accounts I do not use for arbitrage remain unaffected (touch wood).0 -
Ha- I would hope they ask for more information before deciding whether to prosecute!!
If they do approach you I would seek independent legal advice first, because your openness has probably not helped, e.g. calling people your 'customers' and saying you do AML checks makes it sound a lot like you are doing something you actually aren't.
Also, I really do want to stress what a huge risk you have been taking. I don't know what kind of AML checks you are doing, but even for the largest banks fully preventing money laundering is very difficult. Online systems like Creditsafe are in no way guarantees that money is safe.
Simply doing the checks will not actually prevent prosecution. As a personal trader, if you help launder money you are committing a very serious crime.The question is really, how did the FCA get interested in the first place? It's not like they have open access to everyone's accounts in the country. Perhaps Santander have a duty to send them details of things that look suspicious?
The bank will have reported to the NCA, who probably passed on your details to the FCA. It does not sound like the NCA investigation is still open, as your funds are being returned.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards