Can Lloyds or any bank ask this?

[FoofffyShmoofffer]

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?

[LadyClariceCannockMonty]

God, I'm dying to be asked where I got my cheque from now so I can give that answer!

[olderandwider]

I have paid in many substantial cheques and never once been asked by my bank where the money came from.

The only time they seemed remotely interested in checking I wasn't money laundering was when I took in some bags of coins (about £7 worth!) and wouldn't give me the cash because of money laundering regulations. It had to be paid into my bank account instead. Madness! For 7 quid!

[FoofffyShmoofffer]

olderandwider Get you and your many substantial cheques Fab.

[Rosa]

In Italy the cashier doesn't ask but we might get a phone call a day or so later - however if the payment has come from a relative or a company they use common sense and don't bother us.
They have to advise the powers that be of money of higher amounts to avoid money laundering but never at cashier level ....I think its wrong that cashiers should be put under this responsability anying over X amount should go to a higher level. There are enough tricsters out there to fool them anyway

[manfromCUK]

@Chil1234
I disagree - IMHO it is a totally pointless question. Unless the would-launderer is exceptionally dim it will not catch a single perpetrator. It may, however, inconvenience a lot of perfectly innocent people who, like me, would tell the bank where to go if asked a question of this nature.

[whackamole]

I work for a bank - and it is to do with money laundering.

FWIW, FoofffyShmoofffer, I do think your bank was being very overcautious - but according to the law not only the bank as a whole but the member of staff can get a prison sentence or (unlimited) fine if they are seen to be being part of the process.

manfromCUK, what you are suggesting is unfortunately unworkable as some people are criminals! If everyone was trustworthy then these measures wouldn't need to be put in place.

[OkeeDoeKee]

As others have said banks have a legal obligation to report any money that may be subject to money laundering and a Financial Investigator will investigate further. Banks will notice any unusual activity on an account so even if money is paid in via a cash point it would get flagged up on the account as an unusual transaction worthy of further investigation.

Obviously as some have pointed out people who may have come by their money via criminal means would possibly have a 'plausible' explanation if asked a direct question but if someone refused to give an answer or gave an unsatisfactory explanation it would just ensure their account was monitored for any further suspicious activity and a full investigation carried out.

POCA (Proceeds of Crime Act) is fantastic legislation. Why should a drug dealer, fraudster or bank robber live the life of Riley funded by their criminal activities? If there was no POCA these people would come out of jail after a few years, get back into their top of the range BMW and put their feet up in their half million pound houses. Now they do their time and have these assets to which they have no right taken off them. The money goes back into the Public purse and compensates the victims of those crimes.

[atmywitssend]

Its anti-money laundering procedures. Banks have to ask where any "unusual" funds come from. When I worked in a bank we had to watch anti-money laundering videos regularly which made clear the penalties potentially faced by bank staff for failure to be vigilant - which include jail. So annoying but they are doing their job.

[Ishani]

I'm pretty sure it's so they can sell you stuff that's all, if it was say the death of a parent their next sentence is Oh wasn't it lucky he/she had a will, have you got one, do you know we offer a will writing service etc etc.

[ruddynorah]

a lot of it is to sell you stuff. under money laundering regs they mustn't tip you off that they are suspicious, they just fill in a form to send to head office.

i inherited a large amount of money, nearly 100k and was momentarily surprised that after a week the bank hadn't rung to ask if i had plans for the money. having worked as a branch manager i knew how many 'points' i could earn for my branch. however i then remembered that i would appear on the large deposit report at my home branch, 200 miles away where i went to uni. they of course wouldn't waste their time calling me as i'd be unlikely to attend an appointment with one of their staff so they wouldn't earn the 'points.' and, they didn't. such a helpful bank..making sure i'm making the most of my money...well, no seeings as i live so far away

[VivaLeBeaver]

I bank with Barclays and have been asked - like you it was because a relative had died. A bit later I cashed an Isa and paid the cheque via the machine and got a phone call from Barclays. As others have said its not down to the bank but they have to ask.

Sorry about your dad.

[dribbleface]

not sure about the money laundering thing, guess it makes sense but i have found lloyds to be particuarly intrusive, i paid in a cheque from an accident and was asked ' can i ask what you will be doing with this money?' erm spending it i answered, what all of it? YES!

And don't even get me started on the sales calls to 'upgrade my account', i swear i could file a claim for harrassment the amount of times they bother me, despite me politely reminding them they have placed a note on my account not to call me. Must get round to changing my accounts to another bank!

[LadyClariceCannockMonty]

dribble, I think the correct answer to questions like that is 'None of your fucking business'. How dare they?

[MoreBeta]

I wonder if they ask oligarchs and potenates where they got their money from when they fly in and buy UK property, art works, and companies?

[dribbleface]

Ladyclaricecannockmonty - did think that but was a bit taken by surprise! Guess they wanted me to stick it in their savers account thingy.

[FoofffyShmoofffer]

Hell fire! Where did you get it is one thing but what are you going to do with it???!!!!

Haha oh the fabulous answers to that question are myriad

[LadyClariceCannockMonty]

Well, you'll just need to think of some fantastic answers for if it happens again! (not that I want you to have another accident, you understand ... )

[takethisonehereforastart]

I got some insurance money and my bank never asked me a thing when I paid in the cheque.

They were probably too excited about paying off our overdraft with it to care.

I swear when I was being paid in cash each week because of a computer payrole issue one of the cashiers at the bank thought I was a vaguely unsuccessful prostitute though. I'd hand over my meager bundle of £5 notes and she'd hold her breath and count them with as little contact between the notes and her fingers as possible