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http://www.bbc.co.uk/news/business-25861717

Stephen Cotton, from Worcestershire, went to his local HSBC branch this month to withdraw £7,000 from his instant access savings account to pay back a loan from his mother.

A year before, he had withdrawn a larger sum in cash from HSBC without a problem.

But this time it was different, as he told Money Box: "When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

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As this was not a change to the Terms and Conditions of your bank account we had no need to pre-notify customers of the change”

HSBC customer letterHe wrote to complain to HSBC about the new rules and also that he had not been informed of any change.

The bank said it did not have to tell him. "As this was not a change to the Terms and Conditions of your bank account, we had no need to pre-notify customers of the change," HSBC wrote.

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Please mummy can I have my money ?

"Douglas Carswell, the Conservative MP for Clacton, is alarmed by the new HSBC policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent."

http://www.griffinyo...ash-withdrawals

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Perhaps HSBC thought he was going to muscle in on their drug money laundering operation? The banksters hate competition.

Indeed lol!

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Please mummy can I have my money ?

It's not your money.

You gave all your money to the bank. It's their money now.

All you have is credit with the bank.

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So if you actually have the money you can't have it.

If you don't have it they'll happily give you a loan.

It's a wonderful system.

Is this going to extend to debit card purchases? Sorry you're a lard ar$e you can't have money to buy cake.

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So if you actually have the money you can't have it.

Well no, you actually can. Move the money via internet/telephone banking to another account elsewhere - no problem. Most banks have had daily cash withdrawal controls in place for years. The point being that they're sick of being stung by fraudsters/pretend fraudsters who pull the cash without the 'knowledge' of the account holder. An event which is inevitably followed by a very quick request for compensation in full.

You'll know when capital controls have come. That's when the banks will give you £300 a day not £3000 and all electronic transfers will be banned.

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Well no, you actually can. Move the money via internet/telephone banking to another account elsewhere - no problem. Most banks have had daily cash withdrawal controls in place for years. The point being that they're sick of being stung by fraudsters/pretend fraudsters who pull the cash without the 'knowledge' of the account holder. An event which is inevitably followed by a very quick request for compensation in full.

You'll know when capital controls have come. That's when the banks will give you £300 a day not £3000 and all electronic transfers will be banned.

Quite. You can have the money, just not in that particular form.

He was paying a builder in cash, I bet. I don't buy the loan from mum for a second. What does she need all that cash for?

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Quite. You can have the money, just not in that particular form.

He was paying a builder in cash, I bet. I don't buy the loan from mum for a second. What does she need all that cash for?

Does it bother you that HSBC can be so alert and on the ball about the potential for the illicit use of 7 grand while apparently unable to detect the laundering of billions in drug cartel money- it bothers me.

and what's this- apparently that billion pound fine they paid for their last money laundering operation was not quite the deterrent we might have hoped;

HSBC faces new money laundering claims in Argentina

Banking giant HSBC, which was hit with a US fine for money laundering last year, is facing fresh accusations of illegal activity in Argentina.

Argentina has alleged that the bank used "fake receipts" to facilitate money laundering and tax evasion, and launder 392m pesos ($77m; £50m).

The country's tax authority said it had filed criminal charges against HSBC.

Yes- I can why they might be concerned that a UK citizen might be using his own money to facilitate VAT fraud- these guys just hate criminal activity where ever they find it. :lol:

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Quite. You can have the money, just not in that particular form.

He was paying a builder in cash, I bet. I don't buy the loan from mum for a second. What does she need all that cash for?

Is that any of the bank's business?

The last time I drew out a largish sum in cash (£15K) was at the time of the banking crisis. When asked what it was for I replied, in a loud voice, "spending money, in case you close the cash machines". Embarrassed silence followed by "how would you like the money?".

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Is that any of the bank's business?

The last time I drew out a largish sum in cash (£15K) was at the time of the banking crisis. When asked what it was for I replied, in a loud voice, "spending money, in case you close the cash machines". Embarrassed silence followed by "how would you like the money?".

It is the bank's business under the Proceeds of Crime Act 2002. Tax evasion is a crime, therefore money laundering. The most probable reason for an individual to withdraw large amounts of cash is for some illicit reason, most usually tax evasion, therefore HSBC is legally compelled to have policies in place to restrict both the withdrawal and paying in of large amounts of cash.

Edit for incorrectly typing "avoidance" instead of "evasion"

Edited by Ah-so

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It is the bank's business under the Proceeds of Crime Act 2002. Tax avoidance is a crime, therefore money laundering. The most probable reason for an individual to withdraw large amounts of cash is for some illicit reason, most usually tax evasion, therefore HSBC is legally compelled to have policies in place to restrict both the withdrawal and paying in of large amounts of cash.

No it's not. Evasion is. Avoidance is what any person with any sense does, especially if they don't agree with how their tax money is being funnelled off to pay for champagne parties and pension fund blackholes.

Anyway with that digression done, I think you should be able to call on your bank credit at any time in without them asking questions about why if you are a long standing customer whose bank history is eminently searchable. Ecen so, as they did ask his answer isn't totally ridiculous - why is paying back a parental loan back so preposterous? Tthough I would wonder why he didn't just do it as a direct bank transfer online. I've paid for a car like that privately in 5 minutes - simple, quick and no hassle. Though when withdrawing substantial amounts in cash over the counter, say 20K+, I would accept the bank saying that 24 hours notice is required simply for logistics purposes.

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Please mummy can I have my money ?

"Douglas Carswell, the Conservative MP for Clacton, is alarmed by the new HSBC policy: "All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent."

http://www.griffinyo...ash-withdrawals

Douglas Carswell it seems is quite the superhero:

Douglas Carswell makes citizen's arrest.

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When I repaid a £4k loan to my parents I just wrote them a cheque. Even if it was in a savings account, just transfer the funds to a current account. Simples!

I really wouldn't feel very self assurred walking out of a bank with that amount of money.

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Is that any of the bank's business?

The last time I drew out a largish sum in cash (£15K) was at the time of the banking crisis. When asked what it was for I replied, in a loud voice, "spending money, in case you close the cash machines". Embarrassed silence followed by "how would you like the money?".

I'll bet you took in in used low denomination notes, with unconnected serial numbers! Actually I think that would not fit in your wallet. Just roll it up and put a rubber band round it. That's the way "business" is done.

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I'll bet you took in in used low denomination notes, with unconnected serial numbers! Actually I think that would not fit in your wallet. Just roll it up and put a rubber band round it. That's the way "business" is done.

"I'm here to do business and I'm 'oldin' foldin'!" Something like that? :D

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I'll bet you took in in used low denomination notes, with unconnected serial numbers! Actually I think that would not fit in your wallet. Just roll it up and put a rubber band round it. That's the way "business" is done.

No, wrong on all counts. £50s, they had to order them and I went back the next day to pick them up. Crisp new ones with consecutive serial numbers.

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When I repaid a £4k loan to my parents I just wrote them a cheque. Even if it was in a savings account, just transfer the funds to a current account. Simples!

The banks killed off cheque books, or at least they tried.

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I can understand having to give a couple days notice so they can make sure they have the cash on site. I can even see why they would try their luck being nosey, I.e. buying a car are we....we sell insurance you know. Telling someone they have to have a letter from the other person before they can have their money though?

OK most people on here know that it was proven legally several hundred years ago that its no longer your money after you deposit it. That's not the same as needing an "acceptable" reason to call on your credit with the bank.

For me, the quote at the end is a bit ominous too:

if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment

With attitudes like that, how long now until cash is phased out?

[edit for spelling]

Edited by Hold Fast

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With attitudes like that, how long now until cash is phased out?

I give it 5 or 10 years.

Most new mobiles are already capable with NFC, cash will start to become increasingly harder to use.

Stores in particular prefer people to use cash so they can track patterns for marketing. Once NFC becomes common they will start to charge a premium for cash payments.

Banks want your funds so will start to make cash more inconvenient - reducing points, notice before withdrawal etc., they will also start giving benefits to people who only use data payments - as they can fully fraud profile you better so you will be a cheaper customer for them (benefits like lower fees)

Government won't do anything to stop this happening - it will mean more tax revenue.

At some point it will take a lot more energy to use physical money to make payments.

I strongly believe we're going to see a revival in domestic servitude when the next big downturn hits - the 1%ers will become major employers as jobs become more scarce from automation, and the concept of being someone's housekeeper / chef / gardener losses it's social stigmatism. This will put further pressure on gaining visibility of cash payments - there are a lot of tax lessons in what has happened in Greece.

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snip

With attitudes like that, how long now until cash is phased out?

oh goody, we wont be needing those pesky central banks any more.

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For me, the quote at the end is a bit ominous too:

if you are making the occasional large cash withdrawal, the bank wants to make sure it's the right way to make the payment

With attitudes like that, how long now until cash is phased out?

They would love to phase out cash, hence the push for mobile phone payments.

Those of us who value being able to hold cash must use it or lose it.

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The banks killed off cheque books, or at least they tried.

I still have one.

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