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AIBU?

Can Lloyds or any bank ask this?

70 replies

FoofffyShmoofffer · 26/04/2011 11:26

Well they can ask but do we have to answer?
What difference does it make?

When my Dad died he left a policy that he had secretly set up split 3 ways between me, mum and sis.
Think it came to about seven thousand.
When I went to bank the cheque I was asked by the cashier how we had acquired this money. I had to stand there 6 weeks after my dads death in a crowded bank and tell her. I presumed it was because we were living off benefits at the time and it was alot of money but I damn well didnt like it.

Two days ago DH went to the bank with a cheque for two thousand signed by my mum.
He was asked by the cashier where it was from and what connection was this person to us. I was bloody annoyed. How is their business?
We aren't on benefits anymore so it can't be that. It just feels so damned intrusive.
Does anyone know why they do it? and do all banks do this?

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Al0uiseG · 26/04/2011 11:51

I've only ever been asked when I wanted to withdraw cash, obviously I tell them it's so I don't have to pay VAT to the builders Grin

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FoofffyShmoofffer · 26/04/2011 11:52

LtEve Grin if you are ever asked please do.

Then come back and tell us how it went.

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Bigleaf · 26/04/2011 11:52

Also, maybe it's not so much your answer, but if you hesitate before you answer, or come up with some long winded explanation that makes the cashier think you're probably lying.

They probably would take the cheque anyway (as not to would be considered "tipping off" which in itself is an offence) but then they might report you to the Money Laundering Police who might ask for further info on your account

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BaadRobot · 26/04/2011 11:53

A couple of months ago, my mother took a bag of 2p coins into her bank to be changed up for a £5 note. The cashier asked her where they came from to which she responded "from my penny jar, it was full". She asked why they wanted to know and they told her it was about money laundering. Anyway, she asked for them to be changed up for a £5 note and they said they couldn't do that. They made her pay the £5-worth of 2p coins into her bank account first and then they allowed her to withdraw it.

I could understand if it was a large amount, but for a fiver?!

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KatieMiddleton · 26/04/2011 11:54

They have to ask for anti-money laundering regulations. You don't have to answer.

I wouldn't be bothered. The person asking is more likely to be embarrassed than me.

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KatieMiddleton · 26/04/2011 12:00

Re the changing money most banks haven't done that for years (obviously you get the odd rogue cashier) exactly for anti-money laundering reasons. The amount is irrelevant - they have the same process so it is consistent and because it is felt that some staff cannot be trusted to use their judgement so the choice is taken away.

Another reason to put it through an account is because when the till is checked and you discover some numpty has forgotten to reset the machine between weighings or accepted US cents in with pennies you can trace back where it came from.

Fwiw the lack of autonomy and common sense and indeed the numpties are why I left retail banking. Too frustrating.

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FoofffyShmoofffer · 26/04/2011 12:03

I think in the first instance, 6 weeks after my Dad suddenly dying, it was hard enough to utter the words" my dad has died" let alone to tell a random woman in the bank "My Dad has died and left me this money".

When I found out that they had asked DH it really irritated me. He wasn't arsed.

Now I know why, it sort of seems fair enough. Sort of.
My Mum has been the victim of cheque fraud quite some years ago and the bank were brilliant so....well I suppose I can't whinge.

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confuddledDOTcom · 26/04/2011 12:33

I've discovered a good way to get rid of change. Self-service tills. Just throw everything you have in there and if there's outstanding put alternative payment in. If that's a note it will give you change logically not from what you've put in - same if you over pay on 2p coins.

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MotherMucca · 26/04/2011 12:46

Bloody annoying. I inherited £11k a couple of years ago. And had to provide bank a letter from my late grandfather's solicitor before they would accept the cheque!

Once it was cleared, I bought something amounting to around £2k, however my bank refused to honour it, as I was spending an unusually large amount. Got it sorted in the end, but I was mighty angry and embarrased.

Fecking bastard Halifax.

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FoofffyShmoofffer · 26/04/2011 12:49

Ah mothermucca it's a familiar cry that's been going around since the dawn of banks.

"..but it's MY money!"

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xstitch · 26/04/2011 12:49

I have been asked what I am going to spend the money on. They wouldn't release it on me saying shopping and bills. They eventually gave me the money when I showed them the bills and gave them a breakdown of what I was planning to buy. I think they went too far that time. I was only withdrawing £300. Not really much when you are going to pay gas, electricity, telephone and a big food shop.

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FoofffyShmoofffer · 26/04/2011 12:53

Bloody hell xstitch that's ridiculous.

I have just transfered most of the £2000 across to pay off my mastercard online. Have a feeling I won't be questioned about that somehow.

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Vallhala · 26/04/2011 12:55

How bloody ridiculous!

I have never been questioned as to where I got my money from by my bank but if I were I'd reply with two words...

Bank robbing.

Asked what it was to be spent on I would answer with another two words:

Pink champagne.

:o

Bloody foolish idea... as if a money launderer is going to tell them the truth!

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MotherMucca · 26/04/2011 12:58

Crikey, xstitch that takes the biscuit!

Yep, foofy my money ggggrrrr! Oh, this has got my blood pressure going!

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WholeLottaRosie · 26/04/2011 13:28

This reply has been deleted

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HeidiKat · 26/04/2011 13:39

I work in a bank and we are obliged to ask the question for deposits over a certain amount or outwith usual account activity. Part of my training when I first started stated that if we do not ask and it turns out that the person is money laundering the cashier can face a fine or even a jail sentence as they will be considered to be implicit in the crime. If the person gives an unsatisfactory answer or refuses to answer there are other procedures we can use to investigate further. I have had the point made to me by irate customers that these questions are intrusive, especially in an open plan bank where others can hear, but unfortunately it is necessary, the banks have a responsibility to stop money laundering wherever possible as it can fund drug import, terrorism etc.

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xstitch · 26/04/2011 13:42

I know cashiers have to do it but it is a stupid law. It won't stop money laundering. For a start money launderers will have pre-planned and will have a plausible answer for these questions.

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ButterpieandCheese · 26/04/2011 13:43

When I used to get student loans (which then immediately went out to pay a terms rent etc) my account always got blocked. Seriously, 3 times a year it happened, and I would have to ring up and pass security to get it unblocked. Pita.

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xstitch · 26/04/2011 13:47

My account got blocked because I bought a train ticket to travel down south. I bought it from the mainline station rather than my local one because I got a lift to the station. This was apparently strange and suspicious behaviour. They phoned to tell me it was blocked and to come in and see them. Only they didn't phone me they phoned some random stranger on a completely wrong number. I complained about this and they repeatedly said 'but we have to think of security' I have yet to have a satisfactory response to the question 'How does phoning a stranger about my bank account improve security?'

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ButterpieandCheese · 26/04/2011 13:49

also, how is £2000 coming from the student loans company three times a year to a 21 year old whose only other income is obviously a part time job, then going out to a local letting agency that lets out shared houses (and, once, when I had more money than usual, to buy a cheap laptop from currys) at all suspicious?

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exexpat · 26/04/2011 13:52

I think that making cashiers ask these questions is stupid, ineffective and insensitive. I had to pay in a big life insurance cheque a few years ago after DH died - the guy on the counter sort of whistled at the amount (six figures), and said something along the lines of 'nice, very nice, lucky you, where did that come from?' When I said through gritted teeth that it was the payout on my husband's life insurance he sobered up a bit and said they had to ask because of money laundering regulations.

But really, who is going to say anything incriminating if they are actually laundering money? And what kind of money laundering would result in paying in a cheque from an insurance company at a normal bank branch? I think it's all pointless, but if they have to ask, they could at least do a bit of sensitivity training.

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manfromCUK · 26/04/2011 13:56

@HeidiKat
but unfortunately it is necessary

No it isn't. As any sane person (including quite a few on here) realises, asking a pointless and intrusive question is hardly likely to illicit a helpful piece of intelligence about money laundering and terrorism etc.

It's not really the fault of the bank, or the staff - it's the utterly daft legislation and the fact that more ordinary people don't question it. The response of the banks is a box-ticking exercise, but it isn't really to stop money laundering - it's so the EU politicos can shift the blame to a hapless cashier. As I alluded to in previous post, airport security is much the same - not about sensible measures to stop bad things happening - just about proving you asked some daft questions so it wasn't your fault.

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HeidiKat · 26/04/2011 14:05

OK , it may not be necessary in terms of actually effectively preventing money laundering but it is necessary if cashiers want to keep their job as everything is documented and if the manager or higher above finds out it hasn't been asked it is a disciplinary matter. Maybe it even has a sort of placebo effect in that if the criminals realise that the banks are aware of money laundering issues they are likely to think twice before trying it? Maybe not, really not sure but the guidelines must be there for a reason, and despite what the person actually says you can usually tell by a persons demeanour if they are being truthful or not unless they are a very accomplished conman/woman.

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mateysmum · 26/04/2011 14:09

My mum died recently and my sister went to pay in a cheque for about £9k from the proceeds of the estate to the building society branch where my mum and sister had both banked for years and the staff were well aware my mum had died.
The cashier had to get the manager out of her office to approve the payment in!!!! as it was such a large sum of money!!! All accompanied by the Spanish Inquisition of course.
Bonkers.

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LadyClariceCannockMonty · 26/04/2011 14:10

Seems bizarre to me. If it happened to me I'd be sorely tempted to reply along the lines of 'Oh, long story but basically it's all very shady' . It's a bit like when the airport staff ask if anyone gave me something to carry and I have to fight down the urge to say 'Yes, a shifty-looking man asked me to wrap some little packs of this powdery stuff in my spare knickers'.

I take the point above that it won't go well for the staff if they don't ask the question, but I think it's highly unlikely to deter criminals and almost certain to piss off/offend thousands of innocent customers. If my bank asked me such a thing I think I'd have to question them but I have never seen and will likely never see a cheque for more than £1000 anyway

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