HSBC is broke; restricts large cash withdrawals

HSBC sign

Following research last week suggesting that HSBC has a major capital shortfall, the fact that several farmer’s co-ops were unable to pay back depositors in China, and, of course, the liquidity crisis in China itself, news from the BBC that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags.

The BBC reports that some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November for their own good: “We ask our customers about the purpose of large cash withdrawals when they are unusual… the reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime.”

As one customer responded: “you shouldn’t have to explain to your bank why you want that money. It’s not theirs, it’s yours.”

Via The BBC,

Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

Listeners have told Radio 4’s Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”

Mr Cotton says the staff refused to tell him how much he could have: “So I wrote out a few slips. I said, ‘Can I have £5,000?’ They said no. I said, ‘Can I have £4,000?’ They said no. And then I wrote one out for £3,000 and they said, ‘OK, we’ll give you that.’ “

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

Mr Cotton cannot understand HSBC’s attitude: “I’ve been banking in that bank for 28 years. They all know me in there. You shouldn’t have to explain to your bank why you want that money. It’s not theirs, it’s yours.”

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.”

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.”

The arrogance is incredible…

HSBC terrorism drugs money

SEE ALSO:
Whistleblower: HSBC still laundering money for terrorists, drug cartels

– HSBC couldn’t track $60 trillion in suspicious activity?
– Drug money and terrorism fuel HSBC? – Senate probe
– HSBC and Standard Chartered to pay US over $2bn in charges, no one jailed

Source: http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals


4 comments

  1. It sounds like the bank is concerned about identity fraud issues and simply people accessing other people’s funds without their knowledge or permission. It does not sound like HSBC is doing this because they don’t have cash to back up the withdrawals. There are a lot of dishonest individuals out there preying on the naïve and the innocent.

    • Either you’ve got an IQ of 44 or you truly believe each branch of any bank has trillions of pounds stacked in their tiny vaults just waiting for somebody to come in and say ‘I don’t fancy paying for my new house on me debit card/BACS/SWIFT, I fink I’ll pay in cash’

      I NEVER reply to ANY messages but it makes me so angry at how THICK and ARROGANT at being thick, the general public are!!!

      FRACTIONAL BANKING. look it up. And when you have you’ll realise there’s a fraction of knowledge in your tiny brain about finance, war, global warming, false flags, Tesla and a baby could tell you,9/11. “Mummy, why did my Lego plane make my Lego tower block turn into dust when I threw the Lego plane at the bricks? – that’s because of the spark dear from the battery attached to the plane. It’s very dangerous so it made your tower disintegrate. But the carpet is fine dear”. JEEEESSUS!!!!!!!

  2. Boy, they sure are getting rather desperate with our own money, won’t you say…
    I still don’t get though, why people still deposit their own hard-earned money in the banks anyway, because when all falls down, they are proven in history checks,they do tend to take it all and hit the exotic island streets, or give it to the government (for that matter). WRONG. I FORGOT, they ARE actually doing that even before a crisis, like we’ve seen ‘investing’ our own money, pensions or savings to risk-capitalistic CFD’s stocks and fraud business. Maybe that’s why, the richest of the rich don’t even deposit their own money in the banks they themselves work, but instead in secret accounts of previous Nazi deals in Switzerland or Isle of- whateve-r, on vintage cars or jewelery, real estate and especially, Gold bars… my precious…

  3. Nothing is too big to fail and the banks will fall the hardest!

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