New Bank regulations: Identity, Address and Resources

[Dein]

We're resident in England, with French property and bank account. We've just had a letter from the bank asking us to supply them with evidence of identity, address and "vos ressources". It looks like it is to do with money laundering. Has anyone else had this sort of letter? What information do they really need?

Many thanks!

[woolybanana]

I see no reason why you should give them your resources, whatever that word means. They may be trying to get you to invest through them or open accounts in €. However, there is no reason why you should not identify yourselves appropriately.

I once came across a snotty, little nasty on a service called Britline who said that they wanted all my cash and investments put through them before being able to use them. Of course I declined!

[cooperlola]

Britline did not ask us for any commitment about our investments (not that we have any) etc, but they did want to know the ins and outs of a duck's backside about our salaries and all sorts of other guff.  It's the only bank I've come across over here that seemed to want to know so much about one's financial position.  The others just seem content with proof of residence.

[pachapapa]

I think this is fairly general now. Last month I had occasion to open an account in a snowy mountainous location and was asked the manner of accumulation of my "mega bucks" used to open the account. I explained that I had imported greenbacks from an account in Chile with the J.P.Morgan Bank La Serena , then sold them at a premium for Argentinian Australes, then used the Australes to buy External Argentinian Bonds in the market in Montevideo Uruguay, then I sold the Bonos Externos on the New York Exchange and popped them into an account at CitiBank on Park Avenue and then ...they seemed quite happy.

It would seem probable that they only wish to know the legality of the funds used to service the account rather than the sordid details of the contents of your "piggy bank".

[Gardengirl]

I 've had several emails over the past few months from our branch of CA asking for a whole lot of info, which had been handed over and photocopied when we opened accounts with them. I ignored them all, knowing that they had almost every detail I was prepared to share with them. I finally had a very nice email in English from the manager asking me to please present documents proving identity and place of residence in France and in England at the branch, I took in my passport and an energy bill, which they photocopied, and told them they would have to wait until we next visited UK for documents from England. When we next returned I took in an English bank statement, with amounts blacked out, and an English energy bill.

I was told they must now check every 3 years, because of money laundering.

[Gardian]

[quote user="cooperlola"]Britline did not ask us for any commitment about our investments (not that we have any) etc, but they did want to know the ins and outs of a duck's backside about our salaries and all sorts of other guff.  It's the only bank I've come across over here that seemed to want to know so much about one's financial position.  The others just seem content with proof of residence.[/quote]

In defence of Britline, I did have a conversation with somebody there when we were first applying to open an a/c with them.

She said that unlike any 'local' bank, they knew full well that they would never set eyes on 99% of their customers. Accordingly, their documentation requirements were more demanding. In truth, none of their requirements gave me a problem, except when it came to getting a 'reference' from my UK high street bank.

"Sorry, no can do".  "Why on earth not", said I.  "Because we don't know you".  "But I've banked with you for 40 years!!"  They did it in the end, but with bad grace.

BTW, don't want to start yet another 'Britline-is-rubbish,-oh-no-it-isn't' discussion: just trying to explain their point of view, however thin their reasoning. 

[cooperlola]

Interesting, Gardian.  I do bank with them and find them very good.  Ditto their insurance arm.  Always had excellent, friendly service.  It's just one of their "quirks" which is not shared with some other banks and does seem, at first glance, very nit-picky!

[Department71]

We have also had the same letters etc. The last one I e-mailed back to say we haven't changed our identity since the letter last time, nice e-mail returned thanking me and saying it would be put in my file.

All they got from me was a copy of utility bill and I think photocopy of driving licence. There was I think a space for tax office details, didn't go there!!

Steve

[Will]

Ours asked for the copies and a completed form to be returned by post, fax or e-mail. But failed to give a fax number, e-mail address or even a postal address on either the form or the covering letter. And it was in respect of an account recently closed.

Don't you love French banks?

[AnOther]

[quote user="gardengirl "]I was told they must now check every 3 years, because of money laundering.[/quote]I can understand it for new accounts but for existing customers who have already provided the necessary information it's utterly pointless. An example of brainless 'catch all' rules when one glance at the activity on the average account would tell them all they need to know about that particular customer and whether they are an international drug baron or a pensioner surviving at subsistence level !

If I ever get such a letter I think I'll take a leaf out of Department 71's book and respond similarly.

[mint]

[quote user="Will"] Don't you love French banks?[/quote]

Er....NO!

What really made me spew flames and brimstone was when we closed our CA account (not without a lot of hassle, I may add), was when they carried on paying direct debits despite our no longer having an account!

What they wanted, of course, was for us to close each individual prelevement at a cost of 13 euros BEFORE finally closing the account!

Like Coops, I do NOT normally hark back to our days in the UK (what's the point?) but, back in that foreign country, I'd close an account in the full and happy knowledge that no further payments would be made out of it.  I wouldn't expect to have to CANCEL all direct debits, standing orders, etc AS WELL.

Sorry to shout but, as you see, the blood pressure still gets raised at the very thought of having to pay out about a hundred and fifty euros to be free of CA.  I paid up in the end because to have pursued my case with them would have driven me to drink (and I was quite well able to do that all on my own!)

[cooperlola]

I see the direct debit system is changing to a Europe wide one called SEPA.  It would be nice to think these would be different and that the person who initiated them could cancel them - not the ruddy bank - but I somehow doubt it, Sweets.

[AnOther]

Charging to cancel a DD is scandalous and indefensible however I think you'll find that even in UK each DD should be be cancelled individually. If not they will be called off by the recipients on their due dates and closing the account just means that they will be rejected, usually resulting in letters to you from the disappointed beneficiaries.

Are you saying that CA actually paid DD's from a closed A/C with no money in it though ?

I have only had occasion to cancel one DD on my CA account and that was accomplished in under 5 minutes in the branch, and at zero cost, but then we know that no two CA branches operate the same !

[mint]

That's right, Erns, they paid the DDs then wrote to us to say we owed them x amount of euros.  When we went in to protest that we no longer had an account, they said they didn't receive the cancellation letter.

It was a letter using one of the templates that Clair had provided and we took the letter into the branch to ensure that they'd received it.  What do you say when they deny we'd ever closed the account?

It was the 13 euros per DD for cancellation that made me think I'd just close the account and that that would be the end of the matter.  We paid the organisations, EDF, Phone, whatever, by cheque and then, of course, we waited yonks to get the organisations to pay back to us the amounts that we paid twice, once by cheque and once by CA through DD.

I wouldn't ever go with CA again and we now have a very basic acount with la Banque Postal.

[allanb]

[quote user="cooperlola"]I see the direct debit system is changing to a Europe wide one called SEPA. [/quote]

I'm sorry to say this, because I also hate the prélèvement system, but I don't think SEPA has anything to do with direct debits.  It's just the establishment of a single set of rules for interbank transfers within the euro zone, including some rules about fees.

If I'm wrong, and it will abolish the French prélèvement system, I'll be very happy.

[HoneySuckleDreams]

SEPA is a system to make payments in the EURO zone easier/clearer. It's all about payment instructions, absolutely naff all to do with the prelevement system in France (Sorry!)

France Telecom are about to adopt this method, so be advised in advance of issues that will arise

[Dein]

Thanks that is helpful.  We've had the accounts for about 7 years and have changed our UK address in that time so maybe they are just updating their records because of the new rule.  We can provide the type of information you describe fairly easily I think.