Money Laundering questions asked when making a cheque lodgement.

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WaterWater

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I was lodging a cheque for €6k in to my savings account in my local credit union. It was coming from my current account. Both accounts are in the same name.

I was asked at the counter for the source of the funds. I said that it was coming from my current account. This did not satisfy the person at the counter. I tried to explain that my bank had already ensured that my funds were covered by money laundering rules.

Am I required to go back, and how far back to tell them where the funds came from?

At the end of the day if I had said that I had sold my two prize budgies would it have made any difference?
 
They are just following the rules, ticking boxes. Im sure they dont give a hoot where it comes from. Giving the actual correct information as you can see, complicates things. If i were lucky enough to receive €6k to lodge to my credit union, it would be from the sale of a car.
 
WaterWater said:
I was lodging a cheque for €6k in to my savings account in my local credit union. It was coming from my current account. Both accounts are in the same name.

I was asked at the counter for the source of the funds. I said that it was coming from my current account. This did not satisfy the person at the counter. I tried to explain that my bank had already ensured that my funds were covered by money laundering rules.

Am I required to go back, and how far back to tell them where the funds came from?

At the end of the day if I had said that I had sold my two prize budgies would it have made any difference?
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A person cannot assume that AML requirements are being met at another organisation.

If you told them that it was savings from salary you would have satisfied the requirements. It's not a big deal really.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Under the Criminal Justice ( Money Laundering & Terrorist Financing) acts 2010 - 2013 they are required to determine the source of large funds being transacted thru the credit union.
 
The curious thing is that if I lodge money via the teller, questions get asked; if I use machine, I get asked no questions. You may say that that's kind of reasonable but is it??!!
 
Feemar5 said:
Under the Criminal Justice ( Money Laundering & Terrorist Financing) acts 2010 - 2013 they are required to determine the source of large funds being transacted thru the credit union.
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Is €6k a large sum? Do the amounts vary?


SBarrett said:
If you told them that it was savings from salary you would have satisfied the requirements. It's not a big deal really.[/QUOTE

"Yes. I could have told them that, but that is not where the money came from."
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I transfer money to Ireland via bank transfer. For various reasons over the years. Never been asked the source of funds.
 
There are mixed replies here.

What should be noted is that 20% of suspicious transaction reports emanate from Credit Unions (assets €15bn).
Banks 51% or so.
Funds business (assets ..?) ..14%

When asked the Department of Justice (as they compiled the figures for the last 'annual report') they said the Credit Union are over compliant.

The Central Bank report on AML with CUs never raised anything about transaction reporting (they would if it was deficient) and it contrasted sharply with that of the Banks.

Draw your own conclusions.

I would tell the Credit Union about the kitchen sink if I was lodging even if the source is another regulated institution as a key issue is that even if the reporting institution is totally and utterly negligent in over reporting they are covered in the Act.
 
Col Saunders said:
WizardDr, can financial institutions ask for this information ? Is it not a breach of an individuals GDPR rights, after all, even GP's no longer put your ailment on a sick cert due to these regulations.
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Seriously??
Not only are they 'allowed to', they are legislatively required to.
 
Col Saunders said:
Going back to my question, GDPR legislation is in direct conflict with MIFID AML requirements.
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They're not in direct conflict, but there is a balancing act between them. Particularly since GDPR broadens the definition of sensitive information.
If you're familiar with GDPR you'll know of the requirements for a 'lawful basis' for collecting and processing data, and a legal requirement such as AML would normally meet that test, depending on the extent of data collection and processing.
 
It is up to each individual credit union to set their own limits. These would be entered into their banking system and a source of funds form would automatically print out for the teller when a lodgement exceeds the limit.

Credit unions regularly get inspected by the Central Bank and they can be censored and fined if they are not adequately implementing AML legislation.
 
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