Nationwide International refusing new accounts for Thailand-based savers

[orientalist]

I don't know how recent this is, but Nationwide Int'l just told me they have designated Thailand a "high-risk" jurisdiction and will no longer open new accounts for Thai-based savers. I believe they will allow "conversion" from one type of account to another, but no new accounts are permitted.

[trd]

Well that's strange as I applied successfully online three weeks ago, they opened the online banking, sent me the forms and I just sent them back two days ago with my proof of ID notarized documents.

Edited March 3, 2016 by trd

[sunnyjim5]

Nationwide as an organisation does not speak so it would good to know the status of the human employee who gave you this information.

[orientalist]

I have two existing accounts. When I requested a new Instant Access account this week via their private messaging system, that was the reply I got from support staff.

[chiang mai]

NWI is no longer a separate entity, it is now regarded as the IOM branch of NW UK so some changes were to be expected.

I had been with NWI for over ten years and kept large sums on deposit, they asked me to close my accounts with them about a year ago, solely because of where I live. I wrote to Graham Beal the head of NW and complained and he ignored me!

A part of the above is linked in with the 2012 consumer review program, as a result of that lengthy process a number of things happened. The first was that only residents of the UK were entitled/allowed to use onshore financial services. Any banks etc who skirted that rule had to have in depth knowledge of their customer and to hold copies of all manner of customer ID - the HSBC Safeguard program was a bi-product of that.

The following extract describes the motivation for HSBC Safeguard:

"Money laundering and anti-terrorism/organised crime regulations are a lot tighter than they were a 25 years ago, and HSBC are one of the banks hurriedly checking this sort of information for fear of falling foul of the regulators (especially the US ones) and ending up with massive fines".

Another bi-product of the review was that non- UK resident expat Brits no longer had access to onshore IFA's, a subject that I'm in discussion with a director of the FCA about currently and a review is now underway - a report on this subject has been promised shortly.

Hope that helps explain some of the logic.

Edited March 4, 2016 by chiang mai

[orientalist]

Thanks, Chiang Mai. They have at least allowed me to convert one of my old accounts to Instant Access, and they haven't asked me to close the other one. They did refer to the fact that I've had accounts with them for a number of years, as if they were doing me a favour for being an old customer.

[KittenKong]

I've had accounts with them for many years. They have said nothing to me, but I do also provide them with a UK correspondence address.

[laolover88]

I've had accounts with them for many years. They have said nothing to me, but I do also provide them with a UK correspondence address.

Never had any problem with Nationwide, unlike Halifax and RBS. In order to ensure no problems with Debit/Credit Cards I do tell them where I am. The issue of a UK address and even affirmation of residence has grown in importance over the years. Try opening a UK bank account if you are not a British citizen, even with FLR or EU ID! Even though I am domiciled overseas I keep a UK address, pay a Council Tax charge, but am not on the electoral roll....Be interesting to see if post June 23 anything changes!

[trd]

Thanks, Chiang Mai. They have at least allowed me to convert one of my old accounts to Instant Access, and they haven't asked me to close the other one. They did refer to the fact that I've had accounts with them for a number of years, as if they were doing me a favour for being an old customer.

That still doesn't explain why the opening of my account with solely a Thai address is now in progress. They have written to me twice. I have spoken to them in the Isle of Man three times to clarify some issues. No one is telling me the account cannot be opened. The internet banking is already active based solely on my online application, but is pending until notarized passport and proof of address docs are received. Edited March 4, 2016 by trd

[Pdavies99]

Well that's strange as I applied successfully online three weeks ago, they opened the online banking, sent me the forms and I just sent them back two days ago with my proof of ID notarized documents.

I think its probably gossip? I opened a new account with them about 3 weeks ago, the account details came through a few days ago, and its online now, no problems.

[Madgee]

I have used NWI for several years.

I was based in China and now in Thailand. On Monday I spoke to them via Skype about a withdrawal and change of account; it was verified a few minutes ago.

I also notified them of a change in address via downloaded forms off their website a few weeks ago which were accepted without problem.

Anybody with a NWI account should have been notified about changes in their banking policies last December, which included new forms to disclose personal information if you had a UK postal address on their records, regardless of circumstances, to be completed and returned no later than March 2016. This is all to do with the new banking disclosure laws of the EU. Many banks, including Swiss banks have participated. Apparently, this is more to do with terrorist funding more than anything else. (So they say). A point of note is they do specifically ask if you are a USA citizen!

As far as the UK is concerned, the new £500 tax free interest kicks in next month? So this may also have something to do with the new policies as well if you still have any financial connections with the UK, including pensions etc.

I think the days of many ex-pats who think the UK Gov. doesn't know where they are and hide behind the Personal Data Act are numbered.

Just my opinion.

Edited March 4, 2016 by Madgee

[chiang mai]

Well that's strange as I applied successfully online three weeks ago, they opened the online banking, sent me the forms and I just sent them back two days ago with my proof of ID notarized documents.

I think its probably gossip? I opened a new account with them about 3 weeks ago, the account details came through a few days ago, and its online now, no problems.

If you see my earlier post you'll realize that it's not gossip!

Did you give them a UK or overseas address?

[trd]

In my case I gave them only my Thailand address.

[spambot]

I have used NWI for several years.

I was based in China and now in Thailand. On Monday I spoke to them via Skype about a withdrawal and change of account; it was verified a few minutes ago.

I also notified them of a change in address via downloaded forms off their website a few weeks ago which were accepted without problem.

Anybody with a NWI account should have been notified about changes in their banking policies last December, which included new forms to disclose personal information if you had a UK postal address on their records, regardless of circumstances, to be completed and returned no later than March 2016. This is all to do with the new banking disclosure laws of the EU. Many banks, including Swiss banks have participated. Apparently, this is more to do with terrorist funding more than anything else. (So they say). A point of note is they do specifically ask if you are a USA citizen!

As far as the UK is concerned, the new £500 tax free interest kicks in next month? So this may also have something to do with the new policies as well if you still have any financial connections with the UK, including pensions etc.

I think the days of many ex-pats who think the UK Gov. doesn't know where they are and hide behind the Personal Data Act are numbered.

Just my opinion.

• It could well be something that is being enforced by the new tax free earning changes and so more information is required by Nationwide to ensure they do not give UK non residents these benefits.
• This would add to the loss CGT allowance on house sales brought in last April.
• Hence it could be something they are pursuing and targeting non-residents in a broad campaign.
• You mention "New £500 tax free interest" I am assuming that you are referring to the Interest Basic-rate (20%) taxpayers – will be able to earn £1,000 interest with no tax (so a max tax saving of £200 compared with now). Higher-rate (40%) taxpayers – will be able to earn £500 interest with no tax (so a max tax saving of £200 compared with now). Additional-rate (45%) taxpayers: £0 – they do not get an allowance.

[chiang mai]

I have used NWI for several years.

I was based in China and now in Thailand. On Monday I spoke to them via Skype about a withdrawal and change of account; it was verified a few minutes ago.

I also notified them of a change in address via downloaded forms off their website a few weeks ago which were accepted without problem.

Anybody with a NWI account should have been notified about changes in their banking policies last December, which included new forms to disclose personal information if you had a UK postal address on their records, regardless of circumstances, to be completed and returned no later than March 2016. This is all to do with the new banking disclosure laws of the EU. Many banks, including Swiss banks have participated. Apparently, this is more to do with terrorist funding more than anything else. (So they say). A point of note is they do specifically ask if you are a USA citizen!

As far as the UK is concerned, the new £500 tax free interest kicks in next month? So this may also have something to do with the new policies as well if you still have any financial connections with the UK, including pensions etc.

I think the days of many ex-pats who think the UK Gov. doesn't know where they are and hide behind the Personal Data Act are numbered.

Just my opinion.

Does NWI regard you as UK resident or not, please, do they hold a UK address for you on file?

[chiang mai]

I have used NWI for several years.

I was based in China and now in Thailand. On Monday I spoke to them via Skype about a withdrawal and change of account; it was verified a few minutes ago.

I also notified them of a change in address via downloaded forms off their website a few weeks ago which were accepted without problem.

Anybody with a NWI account should have been notified about changes in their banking policies last December, which included new forms to disclose personal information if you had a UK postal address on their records, regardless of circumstances, to be completed and returned no later than March 2016. This is all to do with the new banking disclosure laws of the EU. Many banks, including Swiss banks have participated. Apparently, this is more to do with terrorist funding more than anything else. (So they say). A point of note is they do specifically ask if you are a USA citizen!

As far as the UK is concerned, the new £500 tax free interest kicks in next month? So this may also have something to do with the new policies as well if you still have any financial connections with the UK, including pensions etc.

I think the days of many ex-pats who think the UK Gov. doesn't know where they are and hide behind the Personal Data Act are numbered.

Just my opinion.

• It could well be something that is being enforced by the new tax free earning changes and so more information is required by Nationwide to ensure they do not give UK non residents these benefits.
• This would add to the loss CGT allowance on house sales brought in last April.
• Hence it could be something they are pursuing and targeting non-residents in a broad campaign.
• You mention "New £500 tax free interest" I am assuming that you are referring to the Interest Basic-rate (20%) taxpayers – will be able to earn £1,000 interest with no tax (so a max tax saving of £200 compared with now). Higher-rate (40%) taxpayers – will be able to earn £500 interest with no tax (so a max tax saving of £200 compared with now). Additional-rate (45%) taxpayers: £0 – they do not get an allowance.

My account closures were over two years ago so probably not resulting from recent legislation.

[orientalist]

Well that's strange as I applied successfully online three weeks ago, they opened the online banking, sent me the forms and I just sent them back two days ago with my proof of ID notarized documents.

I think its probably gossip? I opened a new account with them about 3 weeks ago, the account details came through a few days ago, and its online now, no problems.

It isn't gossip. As I said above, this was an official communication via the bank's secure messaging system last week from the New Accounts Manager, which said in part:

Following a recent policy review the decision was taken to no longer offer accounts to customers resident in jurisdictions designated as high risk.

I appreciate that you have held accounts with us for sometime, however as Thailand is classed as a high risk country we are unable to process this new account request. Please accept my apologies for any inconvenience caused.

In my case, they only have an address in Thailand. I used to close and open accounts every year to take advantage of bonuses, but haven't done so for 3-4 years. The amount of money I have deposited is fairly modest and I haven't deposited any NEW funds for maybe 8 years.

[Jonmarleesco]

Not a major surprise. Thailand is still in the grey zone when it comes to money laundering legislation and application.

[sunnyjim5]

Well that's strange as I applied successfully online three weeks ago, they opened the online banking, sent me the forms and I just sent them back two days ago with my proof of ID notarized documents.

I think its probably gossip? I opened a new account with them about 3 weeks ago, the account details came through a few days ago, and its online now, no problems.

It isn't gossip. As I said above, this was an official communication via the bank's secure messaging system last week from the New Accounts Manager, which said in part:

Following a recent policy review the decision was taken to no longer offer accounts to customers resident in jurisdictions designated as high risk.

I appreciate that you have held accounts with us for sometime, however as Thailand is classed as a high risk country we are unable to process this new account request. Please accept my apologies for any inconvenience caused.

In my case, they only have an address in Thailand. I used to close and open accounts every year to take advantage of bonuses, but haven't done so for 3-4 years. The amount of money I have deposited is fairly modest and I haven't deposited any NEW funds for maybe 8 years.

Interesting ! I have had a similar discussion with my ex bank who claimed Thailand is classified as a "high risk" country,

When challenged they were unable or unwilling to provide an explanation for this classification.

I therefore did some research , closed my accounts, and moved to a bank who (to date) does not claim Thailand to be high risk.

[Madgee]

I have used NWI for several years.

I was based in China and now in Thailand. On Monday I spoke to them via Skype about a withdrawal and change of account; it was verified a few minutes ago.

I also notified them of a change in address via downloaded forms off their website a few weeks ago which were accepted without problem.

Anybody with a NWI account should have been notified about changes in their banking policies last December, which included new forms to disclose personal information if you had a UK postal address on their records, regardless of circumstances, to be completed and returned no later than March 2016. This is all to do with the new banking disclosure laws of the EU. Many banks, including Swiss banks have participated. Apparently, this is more to do with terrorist funding more than anything else. (So they say). A point of note is they do specifically ask if you are a USA citizen!

As far as the UK is concerned, the new £500 tax free interest kicks in next month? So this may also have something to do with the new policies as well if you still have any financial connections with the UK, including pensions etc.

I think the days of many ex-pats who think the UK Gov. doesn't know where they are and hide behind the Personal Data Act are numbered.

Just my opinion.

Does NWI regard you as UK resident or not, please, do they hold a UK address for you on file?

Originally, they contacted me (Dec 2015) because I had an old UK contact address only on their files. They wanted me to redo my tax declaration to them because of the new UK tax laws and declare my current country of residence for tax purposes. My accounts have always been changed to my C of R address.

I have not been considered a UK resident for 8 years by NWI or NW BS. (or HMRC)

I presume my old UK contact address will always be on an archived file somewhere.

Edited March 5, 2016 by Madgee

[stuartsmithson]

Last week I opened a Bonus 95 account with NI.

I supplied a notarised copy of my passport, original bank statement (not from Thai bank) and proof of the origin of the funds to be invested.

No problem at all for me.

[KittenKong]

It could well be something that is being enforced by the new tax free earning changes and so more information is required by Nationwide to ensure they do not give UK non residents these benefits.

This would add to the loss CGT allowance on house sales brought in last April.

Hence it could be something they are pursuing and targeting non-residents in a broad campaign.

You mention "New £500 tax free interest" I am assuming that you are referring to the Interest Basic-rate (20%) taxpayers – will be able to earn £1,000 interest with no tax (so a max tax saving of £200 compared with now). Higher-rate (40%) taxpayers – will be able to earn £500 interest with no tax (so a max tax saving of £200 compared with now). Additional-rate (45%) taxpayers: £0 – they do not get an allowance.

Unlikely, as non-residents can have UK interest paid gross anyway and (assuming they have no other UK income apart from dividends) are not liable for tax on any of it.

Come this April and the whole thing should be much easier as all UK interest will be paid gross and no tax will be due (under the circumstances described above). In fact come this April offshore accounts may become largely pointless for many non-residents. I've been progressively moving my deposits back onshore for several years and I see no reason to stop.

[orientalist]

From the accounts of posters who are still able to open new accounts with NI, I can only assume they welcome new funds, but don't like people like me who just move the old funds around to take advantage of the first-year bonus. Had they allowed me to buy bonds without additional paperwork 3-4 years ago (which they do now), I wouldn't have needed to keep switching accounts around.

Coincidentally, I will be receiving a pension within a year so they would have had 20 years of new funds coming in from me. Now I will look elsewhere for a better deal. I see Santander offers a cash card with their Instant Access account and I think I still have an old A&L account still active.

Regarding Thailand as "high risk," around 2007 - before the sub-prime fiasco - RBS was advertising offshore accounts for expats all over the web. When I filled in the enquiry form, they actually called me to tell me Thailand was on their list of dodgy countries.

[3NUMBAS]

Thai hookers repatriating their earnings ???