Restrictions on unusually high withdrawals from HSBC accounts
View(s):HSBC, the largest foreign bank operating in Sri Lanka, says that it has a policy of asking customers the purpose of unusually large withdrawals from accounts.
“Our operations and cash withdrawal arrangement in Sri Lanka remain as usual whilst we, as a responsible bank, ask our customers about the purpose of large cash withdrawals when these appear unusual,” a spokesperson for the bank said without further coment.
She was responding to query from the Business Times on bank policy in Sri Lanka after a London Daily Mail story on January 27 which said banks could block access to an individual’s own cash unless they can prove the purpose of large withdrawals.
The paper said that HSBC introduced this secret policy last November which has led to complaints from customers.
“Bank customers who try to withdraw large sums of cash over the counter face a grilling and may be asked to provide written confirmation of why they need the funds. Under pressure to crack down on fraud, branch staff are increasingly demanding customers supply evidence of what they plan to spend their own money on,” the report said.
The report quoted HSBC as saying the policy is ‘responsible’ and allows them to tackle financial crime.
A spokesman from HSBC said: ‘We may ask about the purpose of a cash withdrawal when the transaction is large, unusual and out of keeping with the normal running of a customer’s account. In these instances we may also ask the customer to show us evidence of what the cash is required for. The reason for this is twofold, as a responsible bank we have an obligation to our customers to protect them, and to minimise the opportunity for financial crime”.
In Colombo, most customers said such precautions – properly done and as long as intimated to the customers in advance – was a good protective step. “My bank checks with me sometimes when a large cheque is being cashed and I believe this is a good move towards ensuring there is no financial fraud,”one businessman said.