Definition of money laundering
Discussion
To launder money there needs to be an underlying crime associated with it. For instance a drug dealers income is a proceed of crime, making it seem legitimate is the act of laundeting. If the money that goes into those accounts is legitimate there shouldn't be an issue per say.....
But...bank KYC requirements include the purpose of use on an account. If you open an account to the tune of it being for your kids pocket money and it regularly sees international transfers and card use i think you might have some problems.
A pre paid debit card may be suitable or simply get a product like Monzo in their own country. My account let's me spend money abroad easily , I barely use cash now.
But...bank KYC requirements include the purpose of use on an account. If you open an account to the tune of it being for your kids pocket money and it regularly sees international transfers and card use i think you might have some problems.
A pre paid debit card may be suitable or simply get a product like Monzo in their own country. My account let's me spend money abroad easily , I barely use cash now.
5STM5 said:
They have asked, to try and keep things simple rather than providing documents from overseas. It might be simpler to use my or my kids ID and proof of address to open the account. I don't mind doing it providing its all above board.
It isn't above board. The bank will notice what is going on as soon as the account is used and they'll freeze it then close it.The way to keep it simple is to go talk to a bank. Having accounts in different countries and/or in different currencies is not unusual and is easy to set up.
If by "keep it simple" they mean "try to hide transactions from HMRC" and you're considering doing this in your kids' names ...
Take a look at Revolut. I use it for travel money. You can easily create accounts in multiple currencies. You certainly don’t need a uk account to buy things in sterling, and likewise it’s possible to have sterling accounts that are not registered with uk banks.
But yea if they want you for actual nefarious purposes, or there is a chance they might be doing that without telling you, then run a mile.
But yea if they want you for actual nefarious purposes, or there is a chance they might be doing that without telling you, then run a mile.
5STM5 said:
They have asked, to try and keep things simple rather than providing documents from overseas. It might be simpler to use my or my kids ID and proof of address to open the account. I don't mind doing it providing its all above board.
Do whatever you want to do, but for Christ's sake don't pull your kids into it.If it goes wrong, they'll have a black mark on their credit score before they've even started.
Sounds dodgy tbh, why can't they just open a UK bank account or use an internet bank?
Open an 'Expat' account with a UK retail bank. It will probably be located in the Channel Islands, but all done online.
As long as they are genuinely non-resident in UK for tax purposes, and can provide the supporting documents, it's no problem.
However, the question remains why you need one if it really is just for having money to spend while on holiday in the UK, because most foreign bank cards work fine (unless your expat home account is in Ethiopian Birr or Malawian Kwacha). There are other reasons that don't necessarily relate to money laundering. Amazon, for example, won't let you transact or watch Prime Video, even with a VPN, if you don't have UK account card registered with them (so I've been told by a 'friend').
As long as they are genuinely non-resident in UK for tax purposes, and can provide the supporting documents, it's no problem.
However, the question remains why you need one if it really is just for having money to spend while on holiday in the UK, because most foreign bank cards work fine (unless your expat home account is in Ethiopian Birr or Malawian Kwacha). There are other reasons that don't necessarily relate to money laundering. Amazon, for example, won't let you transact or watch Prime Video, even with a VPN, if you don't have UK account card registered with them (so I've been told by a 'friend').
GT03ROB said:
Silly question why do they need an account? If they have a debit card, use it in cashpoints in the UK no probs, tank the money from the foreign account as & when they need it. May be a slight premium, but far far easier.
This ^. I'm not sure why people overcomplicate things.5STM5 said:
Hello all,
Overseas relative wants a U.K. bank account opened to keep travel funds for their regular trips back here. If one was opened in mine or one of my kids names and our address here, for their sole use, would that contravene any money laundering laws?
Thanks
Tell your relation that you can't help. Suggest to them that they open an account in their own name with a UK bank.Overseas relative wants a U.K. bank account opened to keep travel funds for their regular trips back here. If one was opened in mine or one of my kids names and our address here, for their sole use, would that contravene any money laundering laws?
Thanks
If the UK bank has branches in your relation's country of residence, that branch may be able to advise them.
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