Money laundering regulations

[BlueHotel]

My daughter committed suicide at the age of 53 in 2019. I was the named beneficiary of her two work pensions, a very considerable amount of money. She had asked me to distribute part of it to various friends and charities which I did, but I was still left with a large amount.
I spent some of it and invested the rest in various savings accounts. including a large amount in NS&I. The interest rate is now very low and I wanted to open a one year fixed term account with higher interest. I have been filling in the application form and I can't believe the level of detail they are asking for with regards how I got the money - including the exact sum and even where she got the funds. By being bloody clever and very hard working.

As you can imagine, this is bringing it all back to me and I am very upset especially as the anniversary is next month. I'll get through that, but I would like to know whether this amount of detail is really demanded by the regulations. If so, I assume every other bank will be asking the same.

I would be very grateful for any advice or a source of information.

Sorry for your loss and wishing you well for the anniversary

Source of wealth and source of funds are standard KYC requirements, you should be asked this by any firm. They need to be satisfied as to the origin of the sum, and JMLSG guidance does

Sorry, pressed post there. They are entitled to ask for proof of an inheritance (presumably you have told them it is an inheritance?) as they need to be satisfied as to the origin of the funds.

If it is a significant sum, that may well mean they are applying enhanced due diligence, hence wanting more info on the origin.

Thank you, I guessed that it was the amount triggering extra questions. My friend has just pointed out that I've got enough problems in my life (partner with dementia) that it really isn't important to get a bit more interest on the money. She is right.

If the money came from her pensions, then that is what you need to answer. Sometimes due diligence forms can start asking all sorts of questions that are entirely irrelevant to where the money actually came from. My sister and I opened a company account together, funded by early inheritance from our mother. The bank at one point asked about this money and tried to tell us they needed details of all our income and assets, and our husbands' too! I complained and when I sent a fairly brief explanation of where our mother's money had come from (part proceeds from the sale of a property some years before), it turned out that was fine and all they needed.

I do these checks as part of my job. Different banks will have Different ways of asking /interpretation of rules but essentially will all need to know how you got the money. Explain what she did for a living and proof of you inheriting. Would be enough for me anyway.

I recently opened a new account to get higher interest and I wasn't asked any questions about where I'd originally got the money from. Is it with a high street bank? If it's too much hassle why not open something online where ime you don't get asked any questions about where you got the money.

Presumably you will be transferring it from an account in your name.

It isn't a high street bank, it's an on line one year fixed saving account featured on Martin Lewis's moneyexpert.com. I sent them an email saying I wasn't going to continue and why; they phoned me and said in answer to the question "what was the exact amount of the inheritance", just put the amount I wanted to invest. I haven't done it yet, just too busy. I'm also going to guess the date I received the pensions which was more than eight months after her death - for a start they wouldn't accept the interim death certificate, so the post mortem delayed everything.

A bit off topic, but one thing that appalled me was that they consulted the executors of her will, who were also the beneficiaries, asking their permission to release the funds to me. It didn't matter because the executors were her sisters, but that could have caused a lot of trouble in another family. All of that was done through the solicitors who added their own delays to the process (and charged for it of course).

And yes, I will be transferring from an account in my name