HSBC Banking on Large Cash Withdrawals in England
According to BBC, HSBC has recently started asking at least some of its individual banking customers in England to explain “large” cash withdrawals, especially where the requested cash appears atypical of spending patterns. Financial exploitation is part of the concern. As reported by BBC, HSBC representatives explained:
“HSBC has said that following customer feedback, it was changing its policy: ‘We ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for.’
‘The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We are writing to apologise to any customer who has been given incorrect information and inconvenienced.'”
Not surprisingly, the new policy has already generated questions and concerns:
“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.’
But Eric Leenders, head of retail at the British Bankers Association, said banks were sensible to ask questions of their customers: ‘I can understand it’s frustrating for customers. But if you are making the occasional large cash withdrawal, the bank wants to make sure it’s the right way to make the payment.'”