Banking Problem!!!

[nask70]

:mad: :mad: has anyone been through this proeblem: the other day i went into the bank and was going to deposit £3000 cash before i gave the money i was asked questions to the effect of where the money had come from and also why i have not got a business account. now i am not a big time property owner although i have a few in my book and any money from them is only for the mortgages. My question is are, the banks under obligation to ask such questions if yes then why isn’t their a notice in the bank.

[justaboutsane]

I think you will find if you are depositing large amounts of cash alarm bells will ring.

I was working in the banking industry before during and after 9/11. The whole industry went through a dramatic change. New Money Laundering regulations mean that the sort of transaction you suggested will lead to the questions you mentioned being asked, it will then be noted on your account that you own properties and that from time to time you will deposit large sums of cash.

The Business account question is two fold, 1 being that a business account receiving large sums of cash is expected to a certain extent ... and 2.. Its a sales angle!!

I hope this answers your question.

[nask70]

account is it such a good if then? what are the major benefits to me or is the bank making money here!!

[nask70]

if i was to open a business acconut do i have to disclose it to the inland revenue, although i am at present declearing my income on rental to the irs. or can i treat the business account like any other account-but with a fancy name.

[Jonboy]

the abbey have free business banking, or at least they used to (opened my account in 2000) and it is free forever not one of these free for a year deals, worked very well for me over the last 6 years.

[islandgirl]

looked at abbey but everything had to be done via the cash machine / deposit safe etc - cash payment were charged or something similar. I can't remember exactly but it was not a "proper" account - no input from them hence why it was free! HSBC - 1 year free banking.

[justaboutsane]

I agree with wickerman and islandgirl... HSBC are spot on, staff are very helpful. I can call our account admin person and she is always spot on.. would love to name her! I always tell her what a star she is!

We can chose whether we pay in at branck or the deposit machine, and our main branch has a new system where the machine scans the cheques and paying in slip and prints a copy on the reciept! No worries when you forget to write which tenant the cheques are from now!

They even helped us avoid charges by using a "savings" account as a client account... trouble is we have now got too big to use that and have had to open a proper account but we had a year fee free!

[nask70]

does the bank have to display a notice as regrds to where the money had come from--i.e are they under full obligation to ask such questions without a notice? thanks

[justaboutsane]

I think you will find it is in the T&Cs which they will send you updates of. As I said they have to ask due to Money Laundering Laws. If it was found that they did not ask they could be fined!

[Jonboy]

true, island girl you could say it is not a 'proper account', but i don't want to talk to my bank mamager, they only try to get you in debt and i don't need that! cash machine works fine for deposits and withdrawls, all bank transfers can be done by phone or net, piece of cake. i'm sure it wouldn't suit everyone, but has been great for us, saved a small fortune in bank charges.

btw, i also have a personal account with another bank, if i get stuck i use that and transfer funds accordingly, just my little work around:D

[SteveP]

The reason that the bank does is, and indeed many businesses have to make similar enquiries, is to comply with the The Money Laundering Regulations 200

[islandgirl]

Jonboy - you are absolutely right - different accounts suit different people. The Abbey account was wrong for us (we would have ended up paying anyway) but it must be good for some people - if it had suited us we would have loved permanently free banking! Everyone has their own systems and it is just a matter of finding the right one for you. Seems like you have got it sorted!

[Mina]

Banks do have to notify the Met about 'unusual activity' on accounts under the new money laundering regulations so yes, they are obliged to ask and no they don't have notify you of this. You don't have to answer but you then risk the police financial investigation unit deciding to have a nose around your business. Provided you give a reasonable explanation then it's unlikely they will take an interest .