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Moved sizable investment money and opened an HSBC Savings account (based on a recent promotional rate) at a local branch office more than a week ago. Now I received a message from the branch manager that their back office needs to know the source of funds, employment information, etc., because of the size of the account.  Money was transferred from other banks in the U.S. and I have been with them for the last 10+ years. Is this a normal procedure and what does it mean?

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Just tell them it's an inheritance from the estate of a Mr. Escobar.

seawolf21 (Feb. 03, 2017 @ 7:39a) |

1) That's why I said earlier, don't mess with them.  You could lose your money.
2) If you cut a check and they don't retu... (more)

forbin4040 (Feb. 03, 2017 @ 11:07a) |

This is HSBC CYA theater. They got fined 1.9 billion for money laundering related to middle east oil from Iran and other... (more)

acroBios (Feb. 03, 2017 @ 2:15p) |

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What did they say when you asked them? If the money comes from overseas, then there's a Trump tax on it.

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Hadrianus said:   Moved sizable investment money and opened an HSBC Savings account (based on a recent promotional rate) at a local branch office more than a week ago. Now I received a message from the branch manager that their back office needs to know the source of funds, employment information, etc., because of the size of the account.  Money was transferred from other banks in the U.S. and I have been with them for the last 10+ years. Is this a normal procedure and what does it mean?
   You are retired and the money came from savings. End of story.

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I use the truth when it works fhe best.

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KYC aka know your client AKA Federal regs

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This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.

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LtWaldo said:   This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.
  Thanks, good information. I have already provided answers they asked for. Hypothetically, if someone opens a large savings and then refuses to provide what they ask for after opening the account would they simply close the account and hand over the cash or they could freeze the account and cause havoc for the customer (again after they agreed to open the account since they could have refused to open the account in the first place or asked those Know Your Customer questions in advance)?

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TravelerMSY said:   I use the truth when it works fhe best.

Of course if the truth is it's from robbing the bank from across the street, the truth might not work so well.

I remember seeing such a question when opening a bank account. I just wrote it was savings. Nothing ever came of it. Banks are required to know their customers. More are asking additional questions before opening accounts.

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Hadrianus said:   
LtWaldo said:   This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.
  Thanks, good information. I have already provided answers they asked for. Hypothetically, if someone opens a large savings and then refuses to provide what they ask for after opening the account would they simply close the account and hand over the cash or they could freeze the account and cause havoc for the customer (again after they agreed to open the account since they could have refused to open the account in the first place or asked those Know Your Customer questions in advance)?

  KYC could allow them to freeze the funds...aka Turn them over to the Feds.  (And you will never see them again without a lawyer and about 10 years)
You DON'T want to mess with them on some kind of 'principle' or 'right'.  

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 As long as the bags of cash were clean  and didn't have too much stray white dust, you're good.

 Welcome to the 21st century.

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burgerwars said:   
TravelerMSY said:   I use the truth when it works fhe best.

Of course if the truth is it's from robbing the bank from across the street, the truth might not work so well.

I remember seeing such a question when opening a bank account. I just wrote it was savings. Nothing ever came of it. Banks are required to know their customers. More are asking additional questions before opening accounts.

  
I wonder, do they ever ask, "why are you opening an account with us, our rates stink"?

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forbin4040 said:   Hadrianus said:   
LtWaldo said:   This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.
  Thanks, good information. I have already provided answers they asked for. Hypothetically, if someone opens a large savings and then refuses to provide what they ask for after opening the account would they simply close the account and hand over the cash or they could freeze the account and cause havoc for the customer (again after they agreed to open the account since they could have refused to open the account in the first place or asked those Know Your Customer questions in advance)?



  KYC could allow them to freeze the funds...aka Turn them over to the Feds.  (And you will never see them again without a lawyer and about 10 years)
You DON'T want to mess with them on some kind of 'principle' or 'right'.  


Not true. They'd simply close the account and send you a check for it. They don't want to do business with you.

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I think HSBC asks this for everyone opening an account.  When I opened an HSBC checking account in 2015, the online application had a box for "Your Source of Income"; I put "Employment".

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govenar said:   I think HSBC asks this for everyone opening an account.  When I opened an HSBC checking account in 2015, the online application had a box for "Your Source of Income"; I put "Employment".

Here they are asking for source of funds,.Not source of income..

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ach1199 said:   
govenar said:   I think HSBC asks this for everyone opening an account.  When I opened an HSBC checking account in 2015, the online application had a box for "Your Source of Income"; I put "Employment".

Here they are asking for source of funds,.Not source of income..

  Yes, more specifically, the question was: Were your assets that you’ve saved were entirely from savings from employment over the years? I guess buy "assets" they mean funds or money deposited in their new savings account.

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HSBC is extra flaky about who your employer is and source of funds. It took them a month and three phone calls before they would accept the answers Wells Fargo inheritance money and an out of state employer I am a local rep for.  Started with $1500.00 and three bill pays per month to qualify for signup bonus.

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JW10 said:   HSBC is extra flaky about who your employer is and source of funds. It took them a month and three phone calls before they would accept the answers Wells Fargo inheritance money and an out of state employer I am a local rep for.  Started with $1500.00 and three bill pays per month to qualify for signup bonus.
  Today, I received their debit card and check book for the Checking account I had to open to qualify (nominal deposit to open) for the Savings account. I don't know why now (after the fact) they are getting inquisitive about my pay stub and source of savings?

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I also chase promotional rates and move money between local banks several times a year. Fairly significant amounts. I've NEVER been asked the source of the funds. The only information they asked was the usual name, address, social security number, phone number, and maybe a few other tidbits of information that I consider trivial. This was at banks I've had accounts in for years, and also banks I've never had any accounts with. I'm retired by the way.

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ach1199 said:   
forbin4040 said:   
Hadrianus said:   
LtWaldo said:   This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.
  Thanks, good information. I have already provided answers they asked for. Hypothetically, if someone opens a large savings and then refuses to provide what they ask for after opening the account would they simply close the account and hand over the cash or they could freeze the account and cause havoc for the customer (again after they agreed to open the account since they could have refused to open the account in the first place or asked those Know Your Customer questions in advance)?



  KYC could allow them to freeze the funds...aka Turn them over to the Feds.  (And you will never see them again without a lawyer and about 10 years)
You DON'T want to mess with them on some kind of 'principle' or 'right'.  


Not true. They'd simply close the account and send you a check for it. They don't want to do business with you.

  I would seriously doubt they would 'just cut you a check' because that would then 'launder the funds'

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forbin4040 said:   
ach1199 said:   
forbin4040 said:   
Hadrianus said:   
LtWaldo said:   This is normal, even for opening smaller accounts in regional banks. KYC regulations. HSBC especially got a huge fine in the last couple years for money laundering for criminals, so they're very careful. Just fill out the form and you'll be fine.
  Thanks, good information. I have already provided answers they asked for. Hypothetically, if someone opens a large savings and then refuses to provide what they ask for after opening the account would they simply close the account and hand over the cash or they could freeze the account and cause havoc for the customer (again after they agreed to open the account since they could have refused to open the account in the first place or asked those Know Your Customer questions in advance)?



  KYC could allow them to freeze the funds...aka Turn them over to the Feds.  (And you will never see them again without a lawyer and about 10 years)
You DON'T want to mess with them on some kind of 'principle' or 'right'.  


Not true. They'd simply close the account and send you a check for it. They don't want to do business with you.

  I would seriously doubt they would 'just cut you a check' because that would then 'launder the funds'

  I walk into their branch (HSBC) and write 2 checks on 2 major US bank accounts (A and B) to be deposited. I could have wired the money or transferred by ACH. How could this be laundered money? By the way, when the promo ends I plan to wire the entire balance back to one of those US banks (Bank A). So now the receiving bank A could claim the same thing (what is the source of this fund?). Catch 22. This is pretty much my entire life savings!

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Savers must answer intrusive questions to get money
'How much of your wealth came from inheritance?'... the new, intrusive questionnaires savers must answer to get access to their money.
Two major savings institutions have ordered long-standing customers to provide astonishingly detailed personal and financial information just to open deposit accounts or access money already invested, The Telegraph has learnt.
Customers who refuse to answer intrusive questions about their income to HSBC have been denied savings accounts – even when they have banked with the company for decades.

http://www.telegraph.co.uk/finance/personalfinance/savings/10788... 

Mr Gates, a retired school administrator, in November tried to replace a maturing regular savings account – run in joint names with his wife and funded from their HSBC current account – only for Mrs Gates, 71, to be asked “intrusive” details of her pensions and other income. The couple were told they could not open the account without answering.

“I don’t think we are being naive in expecting some privacy from intrusive questioning for what, in effect, is an internal transfer from an existing account,” Mr Gates said. The couple will switch banks.

HSBC was reprimanded in 2012 when it emerged that staff had inadvertently laundered billions of dollars for drug cartels and pariah states. It now appears to be trying to steer a difficult line between tightening its rules and not offending customers. A spokesman said: “Any customer joining the bank today would be asked about their income and its source.

"For customers where some of our records are incomplete, we do ask for it when they apply for a new account. We understand this may seem burdensome to customers who have banked with us for years, but we try hard to balance these obligations with a convenient account opening process.”
 

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Just tell them it's an inheritance from the estate of a Mr. Escobar.

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Hadrianus said:   
forbin4040 said:   
 
  I would seriously doubt they would 'just cut you a check' because that would then 'launder the funds'

  I walk into their branch (HSBC) and write 2 checks on 2 major US bank accounts (A and B) to be deposited. I could have wired the money or transferred by ACH. How could this be laundered money? By the way, when the promo ends I plan to wire the entire balance back to one of those US banks (Bank A). So now the receiving bank A could claim the same thing (what is the source of this fund?). Catch 22. This is pretty much my entire life savings!

  1) That's why I said earlier, don't mess with them.  You could lose your money.
2) If you cut a check and they don't return the 'check' (Issue you a new one), that's laundering money.  What if that check bounced 15 days later? (Fraud), or something else.  They had already issued you a new check which you could take to another bank making it slightly harder to trace these funds.  
3) Funds from a WireTransfer would already be considered, good funds.  Checks are the real key, as well as cash.
 

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This is HSBC CYA theater. They got fined 1.9 billion for money laundering related to middle east oil from Iran and other. So now they probably have to report to some monitor. You were an easy check box on their compliance quota while the questionable stuff they made lots of cash on can fall through the cracks. I am sure all the agents of sovereigns under sanctions are rushing to open accounts similar to yours to take advantage of that promotional offer, HA!

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