Why do U.S. banks ask customers to explain why they are withdrawing funds?
Banking
Asked by Question Bot01/Apr/20141 answer
1 Answer
F
Faisal Khan
Answered 01/Apr/2014
This practice has recently propped up in the US and UK (perhaps in Canada as well, but haven't heard cases as such). Elsewhere in the world, there is no way in hell, a teller can ask me why I am withdrawing the money, I would equally ask the teller why he/she is interested to know (or bluntly tell them, none of their business).
In South Asia, the Gulf and South East Asia, withdrawing money from the teller is silent thing. You sign, present ID and take your money away. There isn't any talk (other than perhaps a hello).
Margo Darling very correctly points out that one of the strong indicators of this practice, but one that is US concentric.
I heard about this practice in the UK, but it is subjective. A banking colleague even did an experiment withdrawing GBP 6,000 from banks and depositing them again and withdrawing the cash again from other branches to see if they will ask him. It was almost a 75% hit rate when he was asked why he needed this cash. He replied back that it was none of their business. This did make most of them be quiet, but on two occasions he was asked by the floor manager to explain the withdrawal, and they cited internal banking circulars on large cash withdrawals, and the right to ask the customer. Though this was strictly a personal experiment, it did show the UK is getting antsy about the whole cash withdrawal thing.
I personally think, other than questions that confirm the genuine verification of the account holder, there ought not to be any questions asked by the bank as to why I am withdrawing money, even if it is for a Nigerian Prince.
In South Asia, the Gulf and South East Asia, withdrawing money from the teller is silent thing. You sign, present ID and take your money away. There isn't any talk (other than perhaps a hello).
Margo Darling very correctly points out that one of the strong indicators of this practice, but one that is US concentric.
I heard about this practice in the UK, but it is subjective. A banking colleague even did an experiment withdrawing GBP 6,000 from banks and depositing them again and withdrawing the cash again from other branches to see if they will ask him. It was almost a 75% hit rate when he was asked why he needed this cash. He replied back that it was none of their business. This did make most of them be quiet, but on two occasions he was asked by the floor manager to explain the withdrawal, and they cited internal banking circulars on large cash withdrawals, and the right to ask the customer. Though this was strictly a personal experiment, it did show the UK is getting antsy about the whole cash withdrawal thing.
I personally think, other than questions that confirm the genuine verification of the account holder, there ought not to be any questions asked by the bank as to why I am withdrawing money, even if it is for a Nigerian Prince.