Bank customer refused €5k in mix-up over laundering rules

FORGET the luxury of Las Vegas, the class of the Caymans or even the moneyed delights of Monaco.

Judging by the way Bank of Ireland wrongly treated one of its loyal customers, dastardly money-launderers are just as likely to be living la dolce vita in... Macroom.

The unusual revelation was put to one customer in the mid-Cork town after she was blocked from taking a relatively small amount of cash out of her three decades-old local account due to anti-money-laundering rules.

Speaking to the Irish Examiner, the woman, who does not wish to be named, said that when she asked to withdraw €5,000 from her local Bank of Ireland branch, the teller insisted on being told exactly how the money would be spent.

On reducing the request to €2,000, the customer was again grilled, at which point she was told anyone attempting to take out such an amount had to explain why. She left with nothing, in front of a lengthy queue of neighbours, despite having enough cash in the bank to make the transaction.

A spokesperson for the financial institution said there was “a complete misinterpretation of the rules”, as details on how withdrawals are spent can only be sought when there are legitimate concerns related to money-laundering.

The teller had wrongly believed the information — which is in fact reserved for withdrawal requests at or above €10,000 — was required for all withdrawals, she confirmed. “Under anti-money laundering rules, the bank has to query certain lodgements and withdrawals and report, if appropriate, to the Central Bank.

“Unfortunately, how this should be implemented was misinterpreted in respect of an individual withdrawal request by a customer.

“This was an isolated incident and the bank confirms that the issue will not reoccur,” the spokesperson said.

While the customer accepted the explanation, she said the mistake could have been easily avoided by examining her credit history and personal records, which are known to the bank.

“It was embarrassing,” she said “It’s a relatively small town and there were people behind me in the queue. I think I’ll stick my money down the mattress from now on; it might be easier to get out,” she said.