HSBC apologizes in the wake pf cash withdrawal isue in Britain

LONDON – The British bank HSBC has apologized after reports that some customers were prevented from withdrawing large sums of cash from their accounts.
 

  

HSBC said that, as part of a policy change put into effect in November, it began asking customers in some instances to show evidence of what they planned to do with large cash withdrawals.

“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,” the bank said in a statement. “We apologize to any customer who has been given incorrect information and inconvenienced.”

The British Broadcasting Corporation’s Radio 4 reported on its “Money Box” program on Saturday that some customers were not allowed to withdraw amounts above 5,000 pounds in cash, or about $8,253.

The policy change was part of the bank’s efforts to comply with regulations to fight money laundering, which require banks to report suspicious behavior, such as withdrawing large amounts of cash.

For example, banks operating in the United States are required to report cash transactions above $10,000 to the government, as well as transactions that occur under dubious circumstances.

“Cash presents more risk, and in particular financial crime risk, than other payment methods. It also leaves customers with very little protection if things go wrong,” the bank said.

“Therefore, we need to monitor particularly closely movements of cash in and out of the banking system. This is why 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.”

Two years ago, HSBC agreed to pay a record $1.9 billion to settle charges by authorities in the United States that the bank had lax controls against money laundering and allowed hundred of millions of dollars of suspicious transactions by customers in Mexico and other nations, including drug proceeds.

As part of the settlement, the bank pleaded guilty to violating several laws in the United States, including the Bank Secrecy Act, but avoided criminal prosecution.

“Asking the right questions, protecting our customers and reducing the risk of money laundering, fraud and other crimes, means we are doing the right thing and fulfilling our responsibilities as a bank and to society at large,” the bank said.

Source : HSBC apologizes after cash withdrawal issue in Britain