Banks responsibility when accepting cash

[determindator]

I would like to know how much help you would expect from a bank if cash was paid into an account found to be a fraudster. I thought they made enquiries into the receiving bank account over a certain amount of money.

[GrumpyToSayTheLeast]

What's happened? Which bank? How much? For what?

[determindator]

Over £10k Barclays fraudster made contact by email masquerading as a close friend. Has not happened to me btw

[determindator]

Just found this https://www.theguardian.com/money/2016/feb/13/banks-current-account-fraud

[AndyOrch]

Thread moved to an appropriate forum.

 

Regards

 

Andy

[unclebulgaria67]

Banks should check the identity of the person setting up the account and once done unless they receive anything from official sources regarding anything criminal, then they will presume all entries on the account are perfectly legal.

 

Along time ago, a relative had a cheque sent to an old address by a company who owed them money. A person living at their old address had somehow opened an account in my relatives name so they could cash the cheque. I suspect my relative had stupidly allowed confidential post e.g bank statements to go to their old address and the new tenant used some of the post for identity fraud. In the end my relative got the money that was owed to them and this dodgy account set up was closed.

[king12345]

I don't understand how they open these accounts.

Every time i opened an account I had to produce a photographic id and 2 proof of address.

Easy to get the proof of address forged, but what about id?

Do they forge passports???

There are so many security features in passports nowadays that it's incredible that they can be forged so well to fool banks' officials.

Scary...

[steampowered]

It depends on the circumstances really. The paying bank should do what it can, but I don't suppose that would be much, as the account details etc. will be held by the receiving bank not the paying bank.

 

The receiving bank would have more information but you might need a court order to get it, and by then the account would have been emptied.

[determindator]

Thanks for replies. I wondered where the bank stands with money laundering rules. A bank clerk takes over £10k cash from someone and pays in to an account the customer does not have a paying in book for. You'd think certain enquiries would be made.

[Migster]

If they suspect money laundering they aren't allowed to say anything to the customer, as this would be "tipping off". Instead they should complete a SAR (suspicious activity report) which someone else will then look at and investigate further if required.

[stu007]

https://www.fca.org.uk/firms/financial-crime/fraud

 

https://www.fca.org.uk/firms/financial-crime/money-laundering-terrorist-financing

 

https://www.bba.org.uk/policy/financial-crime/

 

http://www.bbc.co.uk/programmes/articles/1KD40dVs0FmtnRv4ByszLr8/bank-fraud-easy-to-be-a-victim-hard-to-get-your-money-back

 

http://www.actionfraud.police.uk/homeoffice-fraud-counting-rules

[ericsbrother]

any cash movement over £1k requires some form of ID to be shown by depositor if ordinary current account. the problem is that if cash paid by vistim directly into fraudster's account it proves who they were but not the fraudster....

[determindator]

any cash movement over £1k requires some form of ID to be shown by depositor if ordinary current account. the problem is that if cash paid by vistim directly into fraudster's account it proves who they were but not the fraudster....

 

As usual then all geared up in favour of the fraudster.

 

Thanks for links Stu

[BazzaS]

As usual then all geared up in favour of the fraudster.

 

Thanks for links Stu

 

The AML regulations aren't intended to be "anti-fraudster" though (in the same way speeding laws aren't intended to catch drink drivers, although getting noticed for one might flag you up for the other!)

 

Just because a drunk driver doesn't get stopped for speeding if they drive under the speed limit, doesn't mean the speeding laws are wrong.

It isn't unreasonable to ask how the fraudster got an account in a name other than their own, though, (if they did!), as the AML requirements should have prevented it in many circumstances.

 

If they had forged (but good quality) documents : the AML regs may make it harder to pass, but can't prevent it entirely.

 

Was the recipient account in a false ID?

[determindator]

More advertising in banks is a start. Bold posters alerting to fraud.Completing a mini questionnaire to ground you before you pay in cash over a certain amount. One question which comes to mind is 'have you spoken to this person on the phone if they claim to be a personal friend' Don't assume.

 

It's banks' job to be anti-fraudster. For the record maybe we should have more random car stopping, more drink and drug drivers would be taken off the road.

[determindator]

Other fraud email stories, just a couple of examples who knows the extent.

 

http://www.dailymail.co.uk/money/mortgageshome/article-3385825/Sarah-Ritchie-saved-45-000-dream-home-lost-devastating-new-[problem].html

 

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/11605010/Fraudsters-hacked-emails-to-my-solicitor-and-stole-340000-from-my-property-sale.html

 

https://www.theguardian.com/money/2016/mar/04/fraud-[problem]-email-barclays-lloyds