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stevo

Harder To Get Cash Out?

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Hello,

Over the last 6 months I have been withdrawing fairly large amounts of cash (2-6k) to pay for the ongoing building work I am having done to my home. I am not a property developer before anyone chirps up!

Earlier in the year I had minimal fuss if I wanted to withdraw cash but now I have to jump through all sorts of hoops to get my cash.

Firstly, has anyone else noticed this?

And secondly, When I spoke to the cashier about why it takes ages she mentioned that it is rare that people withdraw large amounts. Is it really rare for people to pay cash for big things?

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They have to abide by money laundering regulations, but it does seem more likely that they don't want to lose your custom!

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The fact you say the amounts are £2-6k is crucial. I think the trigger is £5k. At this point, they ask a lot of questions.

There used to be a trigger of £500 when buying currency to ask for details but recently, M&S, Thomson, etc. want your address, phone no and shoe size for the slightest amount of foreign currency. They said its a change in the Money Laundering Act. <_<

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The fact you say the amounts are £2-6k is crucial. I think the trigger is £5k. At this point, they ask a lot of questions.

There used to be a trigger of £500 when buying currency to ask for details but recently, M&S, Thomson, etc. want your address, phone no and shoe size for the slightest amount of foreign currency. They said its a change in the Money Laundering Act. <_<

So what happens if you want to take out £30k or more? Do you have to jump through loads of hoops to get your money?

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When I was trying to withdraw money for a deposit I had to phone the branch the day before so they would have enough cash. I think they keep less cash behind the counter than they used to because everybody pays on a debit or credit card these days. It's annoying though, as banks are supposedly where your money is. Northern Rock knows all about that.

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It's all about money laundering, apparently.

I recently offered to pay cash for a new car - big mistake.

Apparently just offering £30k in cash is enough to make vendors twitchy.

The salesman kindly accepted Switch instead and "forget the previous conversation" - but I would have preferred to trouser the 1% transaction charge and pay cash, personally :)

Money laundering is a big administrative nightmare.

HSBC, for instance, won't let you shift more than £10k around in any one day.

They are one of the biggest banks in the world, ffs.

Regrettably, this makes it hard to stay nimble in today's precarious times...

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Yes, it's amazing that with all the money laundering rules the streets are still awash with illegal drugs. They obviously don't work or they are designed to ensure that the smaller fry are not able to operate undetected.

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When I was getting a bankers draft drawn up to pay for my new car in Jan, I had to answer about 10 minutes worth of questions, despite the fact I had tons of ID, my invoice from the dealership and I was asking for it to be made payable to them. There was a huge queue of people getting mightly pissed off, so eventually I asked in a slightly raised tone if there was a problem with me withdrawing my own money. As if by magic, a 'manager' appeared beside the hapless cashier and assured me that there was not.

This was HBOS in central Edinburgh, with whom I have held an account since I was 16. :angry:

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Yes, it's amazing that with all the money laundering rules the streets are still awash with illegal drugs. They obviously don't work or they are designed to ensure that the smaller fry are not able to operate undetected.

It's not about stopping crime, it's about knowing about every single transaction that Joe Public makes

I've been reading some of these new rules and the requirements, it's freakin nuts!

The following applies to any business involved with money, EAs, Car Sales, Banks, Building Societies (Anything money related)

When must these due diligence measures be applied?
  • When establishing a business relationship

  • When carrying out an occasional transaction (i.e. involving 15,000 euro or more)

  • Where there is a suspicion of money laundering or terrorist financing

  • Where there are doubts about previously obtained customer identification information

  • At appropriate times to existing customers on a risk-sensitive basis.

Money transmission businesses should also note that the European Council Regulation EC 1781/2006 requires them to obtain information on customers to accompany every transfer of funds. The information must be verified where the amount exceeds 1,000 Euro (approximately £650). The Money Transmission Businesses sector guidance in Appendix 8 provides more information on these obligations.

Here is my concern, are STRers and FTBers with deposits going to be red flagged if they start withdrawing all their funds from a bank that is about to go bust?

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i ve been wondering why the canoeist's wife was investigated for transferring a lot of money out of the country when thousands of people do this all the time when they sell their house, emigrate and buy one abroad.....

i always thought the problem for tax dodgers and criminals was getting money INTO the banking system NOT getting it out!.....

eg if you have a stockpile of cash from criminal actvity or tax evasion and want to buy a house or invest it you have to ''launder'' it to make it appear the money came from a legitimate source.........otherwise questions will be asked if you make large deposits.

Edited by Michael

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It's not about stopping crime, it's about knowing about every single transaction that Joe Public makes

I've been reading some of these new rules and the requirements, it's freakin nuts!

The following applies to any business involved with money, EAs, Car Sales, Banks, Building Societies (Anything money related)

Here is my concern, are STRers and FTBers with deposits going to be red flagged if they start withdrawing all their funds from a bank that is about to go bust?

Interestingly enough, when opening a savings account with kaupthing-edge, I wasn't asked to provide any documentary proof of ID. I think this is eminently sensible. After all, they probably make the assumption that if I am funding the account from a UK bank account, that the account is already verified with all the usual documents. It's a pity more banks don't adopt this approach for savings products.

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If you try and buy a car with cash from Car Giant (Car supermarket) in Shepherds Bush, they will charge you £150 for every £1,000 you spend.

Buy a car for 5k and it will cost you £5,750.

They claim this deters them from being involved in money laundering and this deters people from turning up with Cash.

They also do not accept credit cards.

Not easy to buy a car from them but you can get a good deal.

Bosh

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Here is my concern, are STRers and FTBers with deposits going to be red flagged if they start withdrawing all their funds from a bank that is about to go bust?

That is exactly my worry I always thought there would be no problem taking out cash quickly. But as I found out today in order to withdraw, say, 20k in cash you need to arrange it 24 hours in advance and answer a call back at your home. This means you have to wait in your house for them to ring, the other option is a recorded letter sent to your house (presumably there is a fee) which you then take to the bank. Hardly rapid.

I feel like Michael Banks, tuppence a bag and all that.

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If you try and buy a car with cash from Car Giant (Car supermarket) in Shepherds Bush, they will charge you £150 for every £1,000 you spend.

Buy a car for 5k and it will cost you £5,750.

They claim this deters them from being involved in money laundering and this deters people from turning up with Cash.

They also do not accept credit cards.

Not easy to buy a car from them but you can get a good deal.

Bosh

I hope they accept debit cards.

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With my work, I had to undertake an anti-money-laundering training exercise and a test I had to pass at the end.

All I learnt was how to launder money.

There is such a concern that business' miss anything that could even be slightly 'dodgy' that you have to provide huge amounts of backup so their backs are covered if its goes wrong.

A friend of mine works for a large distribution company that was very tight in extending credit. A lot was 'cash on delivery'. Not any more. You have to declare anything in cash over £10k (or was - limits may have changed).

Banks are getting increasingly itchy with any sort of withdrawals over about £250.

I had to withdraw a load of cash to pay a CC bill on the last day before I got charged interest. HSBC were helpful but made me jump through a few hoops to get it. I think its going to get worse too.

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With my work, I had to undertake an anti-money-laundering training exercise and a test I had to pass at the end.

All I learnt was how to launder money.

There is such a concern that business' miss anything that could even be slightly 'dodgy' that you have to provide huge amounts of backup so their backs are covered if its goes wrong.

A friend of mine works for a large distribution company that was very tight in extending credit. A lot was 'cash on delivery'. Not any more. You have to declare anything in cash over £10k (or was - limits may have changed).

Banks are getting increasingly itchy with any sort of withdrawals over about £250.

I had to withdraw a load of cash to pay a CC bill on the last day before I got charged interest. HSBC were helpful but made me jump through a few hoops to get it. I think its going to get worse too.

But the tightening of the amounts you can withdraw can't be anything to do with money laundering as it has already been laundered to be in the bank in the first place. Or am I being a bit thick?

Edited by stevo

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I hope they accept debit cards.

BCA, one of the biggest car auction firms, charge a 1% + VAT 'handling charge' if you want to pay in cash. :unsure:

They don't seem to want the security issue because a debit card is no charge.

Credit card is a 2% charge!

Edited by Stourbridge Baggie

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Debit cards are good ;)

Beware they also try and sell you all there own insurances, breakdown cover, warranties etc etc.. If you sit through the shpill you will lose 30 minutes of your life. I will give then credit, I bought the wifes car there and the suspension coil snapped after two weeks and I called them and they paid in full for the repair.

Don`t ask don`t get. I did not sign up for any warranty either

Bosh

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Yes, I've encountered weirdness at the bank. Can't withdraw more than £900 without 24 hours notice.

When I went to change £60 into pound coins ( a months bus fare change for my daughters new job) I was asked who wanted the coins, what I wanted them for, was I a customer and how long I'd had an account.

I asked the girl behind the counter if it was a bank .... just to be sure! Like that's where they do the money thingy right?

They still tried to sell me insurance and a mortgage before I left.

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Interestingly enough, when opening a savings account with kaupthing-edge, I wasn't asked to provide any documentary proof of ID. I think this is eminently sensible. After all, they probably make the assumption that if I am funding the account from a UK bank account, that the account is already verified with all the usual documents. It's a pity more banks don't adopt this approach for savings products.

I agree with the need to provide ID but these new laws are going too far imo. With these new laws everyone is a potential suspect.

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But the tightening of the amounts you can withdraw can't be anything to do with money laundering as it has already been laundered to be in the bank in the first place. Or am I being a bit thick?

To be fair I think that is more to do with limiting fraud/identity theft but I could be wrong

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When I went to change £60 into pound coins ( a months bus fare change for my daughters new job) I was asked who wanted the coins, what I wanted them for, was I a customer and how long I'd had an account.

I asked the girl behind the counter if it was a bank .... just to be sure! Like that's where they do the money thingy right?

They still tried to sell me insurance and a mortgage before I left.

The change thing is that they're suspicious you're running a business and want the change for your till. Banks make a large amount of their money in charges on business accounts, subsidising our 'free' private banking.

I used to work in a bar and when low on change, had an awful time trying to get a bag of £1 coins from a bank. Used to go to the amusement arcade sometimes, change a load of notes into coins and then leave.

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My boss who lives in Geneva once decided to pay me a huge bonus in cash, I spoke to my cousin who is a financial advisor and because it was a few grand he said I should not put more than £700 in cash into an account on any one day otherwise it will be flagged and you stand a chance of this so called unusual activity being looked into by the inland revenue.

I think they go down the official line of looking for money laundering, drug money etc but I feel strongly that they are trying to catch people avoiding paying tax on earnings.

Ended up avoiding getting too stressed and used the money for everyday living. Funny thing with that is apparantly you can also be flagged for not spending money or withdrawing cash in your regular patterns.

Nearly all angles are covered.

Never again with the cash because you end up spending most of it on shit because it`s there :( ... Had a bl-oody good xmas a few years ago though ;)

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The change thing is that they're suspicious you're running a business and want the change for your till. Banks make a large amount of their money in charges on business accounts, subsidising our 'free' private banking.

I used to work in a bar and when low on change, had an awful time trying to get a bag of £1 coins from a bank. Used to go to the amusement arcade sometimes, change a load of notes into coins and then leave.

What a splendid idea, amusement arcade, cheers!

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