Lloyds Bank Freezes 8,000 Accounts in Money Laundering Clampdown

Christopher Zenios24/06/20192min
Lloyds is the largest retail bank in Britain and is considered one of the “Big Four” clearing banks. The Banking Groups activities are arranged into sections of Commercial, Retail Banking, Pensions, Insurance, Wealth & International with operations overseas in the US, Europe, Asia and the Middle East.

Following the stricter requirements of the new “know your customer” outlines, 8,000 offshore Jersey banking account has been closed after Lloyds requested proof of identity for three years.

The information that was required for the accounts included copies of certified identification documents. Following the freeze, Lloyds staff have been working 12 hours a day and extended hours on weekends to manage the issue. Lloyds commented “Over the last three years we have made multiple attempts to contact these customers, asking that they provide us with the necessary information”

Unfortunately, where a customer has not provided us with this necessary information, we have had to freeze their account until we get the information. This is also to protect the customer, as it prevents anybody else trying to use the account if the customer has stopped using it or has moved address.

News of this comes as Guernsey, Jersey and the Isle of Man come under scrutiny regarding accounts. The islands have agreed to present information that is clear about company ownership and tax havens.

This freeze of accounts comes at a time where banks are being pushed to carry out thorough due diligence on their customers after a string of scandals. To help in tackling money laundering the European Banking Authority have been granted greater powers to take action and ensure defences across the EU.

Last month $267m was recovered by authorities in accounts linked to the late Nigerian dictator Sani Abacha in an action that proved Jersey’s commitment to acting on money laundering crime.

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.

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