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TSB account suspended for buying bitcoins?

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Found 16th Aug 2014
Hi, my tsb account was suspended for sending a large sum over £500 to a person. i called tsb and said i was sending it to my friend but then i was asked where i got the money from and i said from my brother (because i was buying bitcoins for my brother). Now I have to go into my bank and show them my brothers bank statement saying that he send xxx amount of money to my paypal and from my paypal it went into my bank account. has this happened to anyone else? thanks
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I'm with TSB but this hasn't happened to me, not that I have £500 anyway lol. I do know that some banks will suspend payments if there is unusual activity on your account, if you don't normally send amounts this large that could have send up some flags with your bank.

Also Paypal + Bank + Large amount being transferred = Stress, they don't play well together.
amygx

I'm with TSB but this hasn't happened to me, not that I have £500 anyway … I'm with TSB but this hasn't happened to me, not that I have £500 anyway lol. I do know that some banks will suspend payments if there is unusual activity on your account, if you don't normally send amounts this large that could have send up some flags with your bank.Also Paypal + Bank + Large amount being transferred = Stress, they don't play well together.


But surely after i show my bank my brothers bank statement saying that he sent me the money, everything will be alright?
It is because you received a large amount of money into your account, that weren't wages, and then passed all/most of it onto another bank account.

The TSB computer flagged this because it thinks you may have fallen victim to one of those fake jobs on Gumtree, receiving and then sending on money.
Edited by: "SUMMONER" 16th Aug 2014
SUMMONER

It is because you received a large amount of money into your account, … It is because you received a large amount of money into your account, that weren't wages, and then passed all/most of it onto another bank account.The TSB computer flagged this because it thinks you may have fallen victim to one of those fake jobs on Gumtree, receiving and then sending on money.



its actually because they suspect illegal activity
hukdealz

its actually because they suspect illegal activity


what do you mean by illegal activity?
I had it with santander for a lot more in bitcoins. They think you are money laundering (well they thought I was, as it was a lot more).
Just show them the evidence from your brothers transaction and you'll be fine.
Banks don't care about money laundering, just the repercussions.

eg: customer crying their eyes out, that the original money they received has been removed from their account, after they sent most of it on to an account somewhere further EAST.
Edited by: "SUMMONER" 16th Aug 2014
Hmm am with tsb and I sent my dad £200 through my bank to my PayPal to his PayPal and to his bank nationwide with no probs
SARAH001

what do you mean by illegal activity?



one of two possibilities
1) money laundering
2) if you don't normally have that sort of money coming into your account, it may be income from some crime such as fraud
SARAH001

what do you mean by illegal activity?



Well it looks like money laundering so that's probably why it got flagged.
DVS_Dee

Well it looks like money laundering so that's probably why it got flagged.


Yes but it wasn't money laundering so when i show them my brothers bank statement showing that he sent me the money then it should be alright, right?
Yes, you will be fine.
SARAH001

Yes but it wasn't money laundering so when i show them my brothers bank … Yes but it wasn't money laundering so when i show them my brothers bank statement showing that he sent me the money then it should be alright, right?



Yes im pretty sure once you present evidence you'll be fine, it most likely got flagged because its unusual behaviour for your account, so the bank have done a good job there!
DVS_Dee

Yes im pretty sure once you present evidence you'll be fine, it most … Yes im pretty sure once you present evidence you'll be fine, it most likely got flagged because its unusual behaviour for your account, so the bank have done a good job there!


SUMMONER

Yes, you will be fine.


Teezgaff

I had it with santander for a lot more in bitcoins. They think you are … I had it with santander for a lot more in bitcoins. They think you are money laundering (well they thought I was, as it was a lot more).Just show them the evidence from your brothers transaction and you'll be fine.


Thanks for the reassurance guys! I appreciate it
Money laundering, the system will flag it up automatically. Don't sit here pulling your hair out over nothing, just show them that the transaction was legit and everything will be fine.
it was probably bitcoin that alerted the system as it is well known that criminals use bitcoin which is untraceable. if you show evidence otherwise it will be fine.

it may raise the question of why did your brother not buy the bitcoin himself rather than transfer money to you to do it. so be ready with an answer.

Edited by: "mutley1" 17th Aug 2014
mutley1

it was probably bitcoin that alerted the system as it is well known that … it was probably bitcoin that alerted the system as it is well known that criminals use bitcoin which is untraceable. if you show evidence otherwise it will be fine. it may raise the question of why did your brother not buy the bitcoin himself rather than transfer money to you to do it. so be ready with an answer.



This ^

Why didn't your brother make the transaction himself?

Every bank has a responsibility to stop money laundering and fraud, so their systems will look for activity that falls out of line with regular account use. Someone earning JSA who begins to move £1000 into, and out of their account is suspect, as is someone who earns a regular salary and begins to send privately acquired funds to a known criminal funding supply.

I once spoke with someone who paid a cheque into their account from a "friend" who drove trucks. The cheque was from Ireland and therefore had a slightly longer clearing time due to the Euro to Pound conversion, however, the cheque "cleared" on day 3 and the money was taken out and handed back to the truck driver. 2 days later, the Bank of Ireland get in touch and what do you know - the money was never there to begin with. That`s a closer to home version of the same thing from Nigeria. In the case of bank transfers, the same can apply but on a lesser scale; yes the money cleared instantly because it had to have been there to have got to your account, but there's nothing stopping the other bank clawing it back if it detects fraud.

In your case, what on earth is stopping your brother from sending the money to bitcoin himself? The fact your own bank is still waiting for this information tells me there's something untoward here, so you have to make sure your brothers money was legitimate or you'll be shopped for attempted money laundering. As per my edit below, why did he send money to your PayPal from his bank instead of straight to your bank? Doesn't the transfer of funds from Bank > PayPal > Bank take 5 days each way? This also breaks the chain of identification as your bank can't see the originator of the funds, otherwise they could have simply called your brothers bank and figured out whether the transfer was suspect or not.

Ultimately this was a computer making a decision based on a rule and once your bank are satisfied they'll unblock your account.

>>> EDIT for clarity: Now I see there was a chain of events of Brothers bank account > PayPal > Your bank account > Bitcoin. I'm sorry to come across as blunt, but that right there is pretty dodgy looking, would you agree?

Edited by: "dkl_uk" 17th Aug 2014

mutley1

it was probably bitcoin that alerted the system as it is well known that … it was probably bitcoin that alerted the system as it is well known that criminals use bitcoin which is untraceable. if you show evidence otherwise it will be fine. it may raise the question of why did your brother not buy the bitcoin himself rather than transfer money to you to do it. so be ready with an answer.

mutley1

it was probably bitcoin that alerted the system as it is well known that … it was probably bitcoin that alerted the system as it is well known that criminals use bitcoin which is untraceable. if you show evidence otherwise it will be fine. it may raise the question of why did your brother not buy the bitcoin himself rather than transfer money to you to do it. so be ready with an answer.


When i was on the phone to the tsb agent, he said what was I sending the money for. I said I was sending it to a friend and he said that was ok. but after reading the comments when I go to the bank and if they ask what I was sending the money for, i will say I was sending money to a friend to buy bitcoins off her for my brother. And when they ask why didn't my brother send the money directly to my friend i'll say he doesn't have online banking so he asked me to do it because the banks were closed to make a cash deposit. Then i'll give them my brothers bank statement showing where the funds came from (obviously his bank account).

For clarity the money was sent like this: His paypal (from his bank acc)>My paypal> Withdrawed to my bank acc> Money sent to my friend to buy bitcoins.
Edited by: "SARAH001" 17th Aug 2014
is the recipient really your friend?
SARAH001

after reading the comments when I go to the bank and if they ask what I … after reading the comments when I go to the bank and if they ask what I was sending the money for, i will say I was sending money to a friend to buy bitcoins off her for my brother.



No. You tell the bank precisely what your involvement was or they'll smell a lie and you risk having an array of actions taken. If that is exactly what your involvement is, then you need to make sure your brother and the female friend had 100% legitimate reasons for getting you involved in a financial transaction that you did not need to be involved in.

I have never in my 10 years of working in Finance heard of a transaction requiring so many steps leading to something legitimate. This is how it should have gone:
Brothers bank > Bitcoin.

I know that's how it should have gone because I did approximately 15 seconds of research, and although that doesn't make me any more a bitcoin specialist than yourself or even your brother, it does mean the bank can see exactly the same thing. The first bitcoin trading site I came across allowed me to select UK Bank transfer as my method of payment. They don't even allow for PayPal (which is neither here nor there because PayPal was simply the vehicle of choice from your brother to yourself, but still, it goes to show what Bitcoin thinks of PayPal).

Anyway, back to the point.
SARAH001

And when they ask why didn't my brother send the money directly to my … And when they ask why didn't my brother send the money directly to my friend i'll say he doesn't have online banking so he asked me to do it because the banks were closed to make a cash deposit



So how did he transfer the money to PayPal?
Your answer? Probably did it via telephone banking.
Their answer? Why didn't he transfer the money to your friend direct instead?
Your answer? Red face and a stutter.

I don't even work for Lloyds and my spidey senses are tingling. You should be cautious of making up answers on the spot, and please don't disregard the importance of getting the answers right to the best of your knowledge. You should be wary of the fact the bank has chosen to suspend your account due to rules put in place to stop fraud and money laundering, which, if the bank is found guilty of, can net someone 5 years in prison and a large fine. It is the responsibility of the bank to make sure they are happy that this is a legitimate transaction or they face criminal charges.

My questions and opinions are brought about by 10 years of experience within two separate financial institutes. I am an analyst but started at grass roots on the front line. You may find my responses are to the point, but my suspicion is that the bank will think you're being taken for a ride and you're either completely unaware of that fact, or you have your own suspicions but wish to protect your family. Be as cooperative as possible and do not follow the opinions from any website that doesn't have accredited legal counsel, this is not the place to get advice about how to deal with your bank. Even the fact I work for one right now doesn't mean my own advice isn't flawed.
SARAH001

after reading the comments when I go to the bank and if they ask what I … after reading the comments when I go to the bank and if they ask what I was sending the money for, i will say I was sending money to a friend to buy bitcoins off her for my brother.

SARAH001

And when they ask why didn't my brother send the money directly to my … And when they ask why didn't my brother send the money directly to my friend i'll say he doesn't have online banking so he asked me to do it because the banks were closed to make a cash deposit


My brother acutally doesn't have online banking though! You can send money to someone using your debit card via paypal.
SARAH001

My brother acutally doesn't have online banking though! You can send … My brother acutally doesn't have online banking though! You can send money to someone using your debit card via paypal.



That sounds entirely plausible.

Keep an eye on your Direct Debits and Standing Orders. If Lloyds have suspended all outgoing transactions then they won't be paid, and you should contact the companies to prepare them so you aren't charged. If Lloyds have limited your online banking to "view only" then it's an easy job, otherwise you'll have to ring up and ask what's due out between now and Wednesday and start letting people know what's going on.

Lloyds may offer to allow certain payments through if you pay through the Bill Payment system, or may even allow Direct Debits through as they're obviously a more reasonable source of outgoings.

Apart from that, you should probably think about dragging your brother out of bed and to his bank for 08:59 tomorrow morning so you can get your account sorted before the bank holiday.
dkl_uk

That sounds entirely plausible.Keep an eye on your Direct Debits and … That sounds entirely plausible.Keep an eye on your Direct Debits and Standing Orders. If Lloyds have suspended all outgoing transactions then they won't be paid, and you should contact the companies to prepare them so you aren't charged. If Lloyds have limited your online banking to "view only" then it's an easy job, otherwise you'll have to ring up and ask what's due out between now and Wednesday and start letting people know what's going on.Lloyds may offer to allow certain payments through if you pay through the Bill Payment system, or may even allow Direct Debits through as they're obviously a more reasonable source of outgoings. Apart from that, you should probably think about dragging your brother out of bed and to his bank for 08:59 tomorrow morning so you can get your account sorted before the bank holiday.


Ok, thanks, so when I go to the bank, i'll tell them i was buying bitcoins for my brother. He sent me the money from his paypal to my paypal which then I withdrawed to my bank account. I think all they want to know is where the money came from (my brothers bank acc) because on the phone the tsb agent said to get my brothers statement (on my brothers statement it says PAYPAL**my name**, is this enough evidence?) and take it to a branch and they will fax it in. How long do you think it would take for my account to be unblocked? thanks
Edited by: "SARAH001" 17th Aug 2014
you should just keep it simple and not go into long explanations of how the money got to you and what you used it for as it will just confuse people. just do as they ask and only answers that they ask. just be prepared with answers to their questions that's all.

so far they have asked you to show your brother's bank statement so just show them that and wait for any further requests.
mutley1

you should just keep it simple and not go into long explanations of how … you should just keep it simple and not go into long explanations of how the money got to you and what you used it for as it will just confuse people. just do as they ask and only answers that they ask. just be prepared with answers to their questions that's all.so far they have asked you to show your brother's bank statement so just show them that and wait for any further requests.


Ok, thanks

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