Several UK HSBC customers have complained of being prevented from withdrawing large amounts of cash from their bank as they couldn’t show evidence of the reason behind their withdrawals.
Customers said they were stopped from withdrawing amounts ranging from £5,000 ($8,290) to £10,000. The bank’s recent policy, in fact, asks HSBC customers to show evidence of what they plan to do with large cash withdrawals.
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However, the bank apologised saying in a statement: "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 new policy from HSBC, implemented in November 2013, is aimed at avoiding anti-money laundering, frauds and to track any dubious or suspicious transactions. The bank admitted it didn’t inform its customers properly on the new rules.
The bank said: "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.
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By GlobalData"We are writing to apologize to any customer who has been given incorrect information and inconvenienced."
