to want to close my bank account after this gross invasion of privacy?

[somanymiles]

I went to get cash out of my bank account this morning to pay the builders (£6,000) and was told I could not take that amount out without hard copy proof of what I was spending the money on eg an invoice. I was given no notice of this so of course did not have anything except a quote on my phone which they did not accept, even though I offered to email it to them. This was not a question of confirming my identity- it was that they have a new policy where you gave to prove what you are spending your cash on. When I asked what the threshold was for the new policy I was told they were not allowed to tell me. I am furious. Surely what I spend my money on us nobodies business but mine. It certainly isn't HSBC's business.I am thinking of closing my accounts there with all the hassle that will entail. AIBU?

yeah, I'd expect Qs on paying large sums of cash in - but even then surely anyone doing something dodgy will have a fake reason prepared eg gift from elderly auntie?

We've paid at least that much via on-line banking directly to company bank account - I suppose that is traceable.

I can't remember why we didn't do a cheque.

I'm with HSBC but haven't every had to take out so much at once - usually do cheque or on-line payment.

HSBC place I've found the call centers consistently more helpful and knowledgeable than in in person customer service. Could be worth ringing them and asking about limits.

Mine you I've with HSBC because my first bank, when I was a student and in credit, messed up repeatability but they wouldn't let me transfer the account to another bank. They insisted I had to take out entire content of bank account out in cash - had to walk out with over 3K, entire years cash, in handbag.

Caitlin I said THEY are as in the company. Based on my experience (more than once and I don't even bank with them!). I didn't say the specific Teller in the OPs post. To me 6k isn't that questionable but maybe that's because I used to work for a construction company so I'm not phased by some of the quotes and charges! . My aunt had an extension on her house done that cost 60k.

The "reasonableness" of the bank's question has to be balanced against your "normal" account activity. For example, if the £6k had recently been transferred in from a postal/internet based savings account and was then being withdrawn as cash it would (IMO as a "banker"......and not the nasty LIBOR-rigging type!) be more reasonable for you to be asked what the cash was being used for than if the funds had been transferred from a savings account you had held with your bank alongside your current account.

In addition to the legal obligations of the bank (and cashier individually) to observe money laundering regulations, they do have a moral obligation to ensure that "unusual" cash withdrawals are not being made under duress.

There are also new regulations coming into place over the next couple of years (but some banks are beginning to observe voluntarily ahead of this) to help combat tax avoidance. While I'm sure you will have paid the necessary tax on your income, the fact that you're paying your builder in cash suggests that they may not be putting the full amount "through the books". It may not be tax avoidance on the scale of Google/Starbucks/Jimmy Carr et al but it's still tax avoidance.

YANBU to feel a little frustrated for being slightly inconvenienced, but YABU to be "furious" at this. Whether it's something you feel is worth changing banks for is entirely up to you, but when it comes to "retail" banking (it's not been "personal banking" for years) you'll find that all banks are as good/bad as each other. In any case, whichever bank you use will monitor your accounts (just like they do with everyone else's) for activity that is "unusual".

If the cash has been in your account, then hasn't it already been 'laundered'? Don't get it!!

Knotter

It's called "placement, layering, and intergration"

Suspicious deposits are monitored and reported, as are transactions/transfers and withdrawals.

Also what if you want to give it as a gift? If it wasn't for internet shopping and the fire hazard I think I'd keep all my money around the house.

Knotter it applies to withdrawals because whilst the money is clean at that point there is the possibility it's going into the black economy. The girl has to ask, if the explanation is plausible and reasonable she doesn't have to go into full Sherlock Holmes mode.

Also what if you want to give it as a gift?

I think there are rules about how much you can give as a gift to one person before there are tax implications - something about how long before the die.

Thanks, makes more sense now.

tinselled up those rules don't really have a bearing on how much you can take out a bank account.

Tinselled - only if your estate is over the IHT threshold.

Shatners, she wasn't just being nosy, as a cashier you're supposed to ask (politely and discretely) where a large sum has come from / is being spent on. As many previous posters have said, it's part of anti-money laundering regs and not just some uppity cashier wanting to know if what your plans are for the weekend.

And of course no-one working in a bank honestly expects a fraudster to turn around and go, "Why yes, it's from my money laundering sideline". But if the customer is evasive or becomes aggressive when questioned and the withdrawal and depositing of large amounts of cash is forming a pattern then you think about escalating it to the bank's fraud team for further investigation.

Think it's going overboard asking for a bloody invoice though. YANBU, although I wouldn't personally choose to pay in cash.

I have no idea why you were asked, but I would check with another bank whether they have the same rules before moving your account - waste of time otherwise.

I did find it annoying with HSBC credit card ,which before I got a Kindle was just used to one of big payment things when I had the cash already but wanted credit card protection.

So I'd get few big ticket things- usually household at once.

One time despite getting in touch and having me O.k all the payments they still insisted on canceling the credit card as it flagged up as fraud and me telling them it wasn't didn't couldn't stop the process.

YANBU, it is upsetting when you want to pay a large cash sum to a builder without any paperwork and the financial authorities take an interest in it. Bloody bankers.

Last year I deposited a cheque for over 100k (inheritance) and the cashier asked if I had any plans for it ? My answer was "shoes and handbags"

Another time I deposited a cheque from a loan that we'd taken out for the purpose of paying for IVF,my answer on enquiring what my plans were for the money were "oh we're buying a baby"

Happy to report that both times the cashier was left speechless.

For those of you who do pay tradesmen in cash unless that cash sum matches what is on a VAT invoice both you and the tradesmen are committing VAT fraud. There is no legitimate way you can get a job done "cheaper for cash"

I don't think OP has come back but I'm genuinely puzzled why a bank transfer wasn't used.

I think a lot of posters are missing he point

she could have paid by cheque, or transfer but she chose to pay cash as is her right

the bank just shouldn't withhold her money, it's her money.

ive had questions, but only when paying it in, I found a parliamentary briefing but it only mentioned 15,000 euros and £10,000 - twas a bit complicated but never the less those were the only figures mentioned

this is the joint money laundering steering group website, give them a ring, I would!

Tinselled - only if your estate is over the IHT threshold

yea but with house prices way they are that an increasingly large number isn't it as they haven't increased the thresholds to same extent?

I wasn't implying it was a common thing - just that there is some kind of restriction.

Last year I deposited a cheque for over 100k (inheritance) and the cashier asked if I had any plans for it ?

My parents had that - but it was because the bank wanted to give advice ie sell them products rather than concern where the cash had come from.

I was invited in for a chat when I had fair bit in savings for same reason though it wasn't made clear that that was the reason - but I needed access to the money for moving as was renting and didn't want to tie rest up as it would be needed for the house deposit in near future.

custardo no posters are not missing the point. The reply from craicdealer sets it out well. And money laundering applies at more than just the point of deposit.

HSBC have already been in trouble for being the Mexican drug cartels' banker of choice, anything they do to make money laundering operations harder at all stages should be welcome. This includes large withdrawals of cash of laundered money that then get used for other nefarious purposes.

If it also causes trouble for people making large suspicious cash payments to builders without any corresponding paperwork, then good.

It probably is related to money laundering. Also though it's seems strange that you are paying them in cash. Did they ask you to do that? I think that the HMRC might be interested.

When I have paid someone a large amount of money, I have paid via visa debit with no problems.

Tinselled I don't mean in regards to inheritance.

When my DGS was born I gave my DS and his girlfriend some money as a gift for them/the baby. When my DS2 wanted to buy a car and it was his 18th birthday, I gave him some money for this. I gave my sister some money recently as a contribution towards a present we were buying for my parents. All of these were in cash so required withdrawals between £1000 and £10,000. I wouldn't have been able to provide an invoice, luckily I knew to use my system of smaller withdrawals over a period of time, but what would HSBC do, not allow me my own money?