Money Laundering questions asked when making a cheque lodgement.

Discussion in 'Credit Union issues' started by WaterWater, 14 Dec 2018.

  1. WaterWater

    WaterWater Frequent Poster

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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?
     
  2. LS400

    LS400 Frequent Poster

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    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.
     
  3. SBarrett

    SBarrett Frequent Poster

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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
    www.bluewaterfp.ie
     
    RETIRED2017 and RedOnion like this.
  4. Feemar5

    Feemar5 Frequent Poster

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    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.
     
  5. elacsaplau

    elacsaplau Frequent Poster

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    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??!!
     
  6. Feemar5

    Feemar5 Frequent Poster

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    I lodged via bank transfer and received letter with form to fill in
     
  7. WaterWater

    WaterWater Frequent Poster

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    Is €6k a large sum? Do the amounts vary?


     
  8. RedOnion

    RedOnion Frequent Poster

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    It's not necessarily a 'large' sum, but it might be out of a pattern of transactions on your account for example.
     
  9. Bronte

    Bronte Frequent Poster

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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.
     
  10. IsleOfMan

    IsleOfMan Frequent Poster

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    The whole thing is a bit of a joke.

    Are these funds from your savings? "Yes".

    OK then.
     
  11. PMU

    PMU Frequent Poster

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  12. WizardDr

    WizardDr Frequent Poster

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    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.
     
  13. RedOnion

    RedOnion Frequent Poster

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    Seriously??
    Not only are they 'allowed to', they are legislatively required to.
     
  14. RedOnion

    RedOnion Frequent Poster

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    Ah, I see what you mean.
    Have you heard that they're not going to be putting photos in passports any more because GDPR requires that?
     
  15. RedOnion

    RedOnion Frequent Poster

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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.
     
  16. TrundleAlong

    TrundleAlong Registered User

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    Who decides what amounts are queried? Is it Mary at the counter or are staff notified on a daily basis by the regulators?
     
  17. TrundleAlong

    TrundleAlong Registered User

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    Who decides what amounts are queried? Is it Mary at the counter or are staff notified on a daily basis by the regulators?
     
  18. Elnino

    Elnino Registered User

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    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.