Banks May Decide If You Can Have Your Deposits

Think your bank deposits are safe, just because the FDIC now insures accounts up to $250,000?

Better think again.

Until customer complaints forced a reversal of policy, the British multinational bank HSBC unilaterally imposed a restriction blocking customers from withdrawing large amounts of money from their own accounts, unless they could provide the bank with a “good reason” for it.

After the uproar in London when the BBC reported the new policy, HSBC issued a statement claiming the concern was money laundering. The bank notified customers that it would “not necessarily” deny depositors the ability to withdraw large amounts of cash from their accounts.

The HSBC explained in its statement that it has “an obligation to protect our customers, and to minimize 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,” HSBC said. “We are writing to apologize to any customer who has been given incorrect information and inconvenienced.”

I think it could have been a trial balloon.

http://www.bbc.co.uk/news/business-25861717

About avirginiapatriot1776

I hope we have once again reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts. — Ronald Reagan
This entry was posted in Uncategorized. Bookmark the permalink.

Leave your name and comment (info below comment box is optional)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s