Bank accounts: problems of identification
This note is aimed at the more practical manifestations of money laundering legislation: why can't I open a bank account?
Please note that this briefing paper is no longer being updated but is kept here for readers seeking further detail. The most recent relevant briefing is Economic crime: The UK's multi-billion pound problem.
This note gives practical guidance which Members may like to convey to constituents who find that their application for a bank account is refused. More detail on the general legislative background and policy comment should also see standard note Money Laundering Regulations SN/BT/2592.
Opening a bank account has become harder rather than easier over the past few years as the banks have responded to fines in the $billions for money laundering failures from regulators. This has come to be known as ‘de-risking’.
The main guidance comes from an international body – the Joint Money Laundering Service which is regularly updated. This note reflects the 2014 guidance.
If individuals find that they are initially refused a bank account they should either try other banks or ask to speak to the branch (or higher) money laundering officer.