Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

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Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit (ZeroHedge, Jan 26, 2014):

Following the quiet update that HSBC had decided to withhold large cash withdrawals from some if its clientsdemanding to know the purpose of the withdrawal before handing over the customers’ money – it appears the anger among the over 60 thousand readers who found out about HSBC’s implied capital shortfall just on this website, has forced HSBC’s hands.

The bank issued a statement (below) this morning defending their actions – it’s for your own good – but rescinding the decision – “following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals.” After all the last thing the bank, which over the past few years has been implicated in aiding an abetting terrorists and laundering pretty much anything, wants is an implied capital shortfall to become an all too explicit one.

Via HSBCStatement On Large Cash Withdrawals

25 Jan 2014

As a responsible bank we ask our customers about the purpose of large cash withdrawals when they are unusual and out of keeping with the normal running of their account. Since last November, in some instances we may have also asked these customers to show us evidence of what the cash is required for. The reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime. Large cash transactions have inherent security issues and leave customers with very little protection should things go wrong, by asking customers the right questions, we can explore whether an alternative payment method might be safer and more convenient for them.

However, following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal. We apologise to any customer who has been given incorrect information and inconvenienced.

Indeed, as one HSBC customer exclaimed, “you shouldn’t have to explain to your bank why you want that money. It’s not theirs, it’s yours.”

3 thoughts on “Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

  1. They start that, and there will be a run on the banks. In fact, there are already. Many have moved their accounts to credit unions, so greedy gut banks are lobbying to congress to force credit unions to become banks. We must be hurting them, or they would not be doing that.
    If runs on the bank accelerate, the whole system will collapse. My guess is that is why they give everyone ATM cards……..
    The system is holding together by chewing gum and rubber bands. It is only a matter of time before it breaks into pieces.

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