Luxembourg bank refusing my salary transfer.

[Crossy]

Anyone else had a similar issue?

Had an email from my Luxembourg bank that they would no longer accept the deposit of my salary from my Hong Kong employer, no reason given

I suspect it's a money laundering thing, but who launders money 10k USD at a time?

Grrrr.

[BritManToo]

I'm guessing it's easier to say 'no' than do the paperwork.

[lust]

You can deposit it into my account, mate. Gotcha covered.

[chiang mai]

You've got lots of sensible options, Singapore, IOM even overseas banks in Thailand, presumably that was HSBC in Lux., they're shrinking their footprint considerably these days and the Panama thingy will shrink them even further.

[Crossy]

You've got lots of sensible options, Singapore, IOM even overseas banks in Thailand, presumably that was HSBC in Lux., they're shrinking their footprint considerably these days and the Panama thingy will shrink them even further.

Actually it was Raiffeisen.

[blackcab]

They read about you in those leaked documents from Panama.

Next thing you know you'll wake up in an orange jump suit in Guantanamo Bay.

[Crossy]

It gets worse.

Still no explanation as to why they refuse funds from outside the UK, but they now also inform me that I can't transfer what I have in their bank to Thailand (it's been OK in the past) due to internal instructions that they cannot be an intermediary bank (the funds all came from outside the EU).

Such is life.

Investigating alternatives to launder my massive funds.

[Pib]

Maybe your name is in the Panama Papers leak.

Seriously, an expat with accounts in multiple countries just never knows when a major banking problem will raise it's ugly head as many banks scurinize their international financial transactions and customers.

Hope you get your funds transferred soon.

[KNJ]

The bank is being investigated after being named in the Panama papers, probably they are trying to Cover their backsides

[Naam]

You've got lots of sensible options, Singapore, IOM even overseas banks in Thailand, presumably that was HSBC in Lux., they're shrinking their footprint considerably these days and the Panama thingy will shrink them even further.

the compliance department of my Singapore bank demanded to know a couple of years ago why i paid something like €4,000 to a german forwarder to ship two dogs to India.

Luxemborg is under EU tax (not money laundering) pressure. i'm not sure but i gather that Crossy is an EU citizen and his bank suspects that his salary is subject to the claws of Her Majesty's taxcollector.

it's the stupid bàstàrds of the compliance departments who think they have to prove their raison d'être but are too lazy to check whether a resident of Thailand is liable to pay UK income tax.

Edited April 21, 2016 by Naam

[WorkingTourist]

“I suspect it's a money laundering thing”

Ask them if they’ll accept the deposits if you provide them with proof of ownership/origin.

I think the EU threshold is €50,000, but if you have done many $10,000 deposits then the system might have flagged you as someone trying to go below the radar.

[chiang mai]

Substitute the words Crossy for MacDonalds and Hong Kong for France and the picture is clear.

http://www.telegraph.co.uk/business/2016/04/20/mcdonalds-france-faces-300m-tax-bill-over-luxembourg-link/

Actually I'm pretty naffed off with the compliance folks, that's the same group who keeps saying, "no you can't because you live in Thailand" to every request I make to consult an onshore IFA, even though the FCA says I may!

Edited April 21, 2016 by chiang mai

[SOTIRIOS]

...are we supposed to know better than your own bank.....???

[chiang mai]

...are we supposed to know better than your own bank.....???

The OP only asks, "Anyone else had a similar issue", not for an explanation as to why!

[bermannor]

Ooooh, the German Raiffeisen, can they even spell Hong Kong?

Grannies and farmers hold their money with them. They like most the clients with fixed saving accounts and 0.1% interest.

[4evermaat]

Will they still allow atm withdrawals? Or withdrawals/transfers a different bank in luxembourg (or Swiss)?

For transfers, are ALL SWIFT transfers blocked? Or only specific currencies? Like USD, GBP, etc the currency.

Sometimes banks offer ability to convert currency before transferring.

I find this all very interesting. I would expect this from USA or india...but not a luxembourg bank or especially a swiss bank.

Edited April 21, 2016 by 4evermaat

[ThailandLOS]

They don't like Chinese banks since Luxembourg Banks are part of the US bank maffia.

I have had similar experiences from SWIFT transfers in the opposite direction to China (that all clear thru US). Ridiculous amounts sometimes, less than 1000 USD.

Edited April 21, 2016 by ThailandLOS

[bermannor]

I forgot:
deposit a 2 digit million € amount with them and they will do everything for you, even send you money to Timbuktu.
Remember, banks and justice are the biggest prostitutes. Thai hookers are nuns compared to them.

[bermannor]

The good thing is, there are plenty of banks and hookers to service you ? but justice is a monopolist ?

[bermannor]

Sorry ThailandLOS,

I transferred in the last couple of months at least 10 times money (3 and 4 digit US $ amounts) with 2 German banks to Chinese companies, absolutely no problems.

But the interesting thing is, that all companies hold bank accounts with HSBC accounts in Hong Kong ?.

[Baerboxer]

You've got lots of sensible options, Singapore, IOM even overseas banks in Thailand, presumably that was HSBC in Lux., they're shrinking their footprint considerably these days and the Panama thingy will shrink them even further.

the compliance department of my Singapore bank demanded to know a couple of years ago why i paid something like €4,000 to a german forwarder to ship two dogs to India.

Luxemborg is under EU tax (not money laundering) pressure. i'm not sure but i gather that Crossy is an EU citizen and his bank suspects that his salary is subject to the claws of Her Majesty's taxcollector.

it's the stupid bàstàrds of the compliance departments who think they have to prove their raison d'être but are too lazy to check whether a resident of Thailand is liable to pay UK income tax.

Naam is probably pretty close to the mark. The Channel Islands have just enacted new disclosure legislation as they are pressured by tax authorities of various EU nations including HMRC for information on their clients.

The compliance departments are staffed by, IME, very junior people who check forms and follow procedures designed to protect the bank. Example HSBC. Their latest is to "rule" themselves who is resident for tax purposes in the UK. (I'm not - and they know I haven't been for several years). But now they say I am because I have a UK NI number - which is nothing to do with tax and where you are resident but issued when you commence work and remains the same for life. Now they want me to fill in yet another self declaration form, and support this with translated (at my expense) proof of residence for tax purposes in Thailand. They generously demand you do this before mid June. There compliance has got sillier and sillier with more forms and less and less common sense. Time to terminate them.

For you, I suspect it is a little different. You are not resident in the UK and presumably claim HK or Thailand as your tax residence. If HK you will be paying HK tax. It Thailand, then they will suspect your're having your salary paid into their bank to avoid Thai income tax. The Jersey legislation includes the provision of information to countries outside the EU. If you work outside the EU, have your salary paid into a EU or area like the Channel Islands or Isle of Man or tax friendly places like Luxembourg or Liechtenstein and then transfer to your Thai account to avoid Thai income tax, they will tell the Thai tax authorities, Even though at the moment Thailand doesn't tax the income unless it's brought in in the year earned.

It sounds like your back just won't do this anymore as that's easier than covering their arse even if they loose some business.

[Baerboxer]

I forgot:

deposit a 2 digit million € amount with them and they will do everything for you, even send you money to Timbuktu.

Remember, banks and justice are the biggest prostitutes. Thai hookers are nuns compared to them.

Tend to agree.

The tighter reporting and monitoring requirements are become more onerous for the banks. So it's easier and more profitable to get rid of the lower end of the premier clientele by pissing them off and then concentrate on those high rollers who can afford armies of tax accountants and lawyers to ensure there covered.

[Baerboxer]

Substitute the words Crossy for MacDonalds and Hong Kong for France and the picture is clear.

http://www.telegraph.co.uk/business/2016/04/20/mcdonalds-france-faces-300m-tax-bill-over-luxembourg-link/

Actually I'm pretty naffed off with the compliance folks, that's the same group who keeps saying, "no you can't because you live in Thailand" to every request I make to consult an onshore IFA, even though the FCA says I may!

I was told recently by a UK IFA that they have to have additional licenses to advise people outside the UK. They have two companies - one for UK and one for international customers.

Certainly the IFA's within HSBC UK don't want to know.

[chiang mai]

Substitute the words Crossy for MacDonalds and Hong Kong for France and the picture is clear.

http://www.telegraph.co.uk/business/2016/04/20/mcdonalds-france-faces-300m-tax-bill-over-luxembourg-link/

Actually I'm pretty naffed off with the compliance folks, that's the same group who keeps saying, "no you can't because you live in Thailand" to every request I make to consult an onshore IFA, even though the FCA says I may!

I was told recently by a UK IFA that they have to have additional licenses to advise people outside the UK. They have two companies - one for UK and one for international customers.

Certainly the IFA's within HSBC UK don't want to know.

Related to the OP in that it discusses the changes to cross border financial regulations and controls and show how things are changing on that front.

I took this issue up with the Director of Policy and Strategy at the FCA in the UK, he wrote to say there's no reason under FCA rules why they cannot advise UK expats overseas, subject to the EU passporting rules whereby a an IFA must be passprted into the EU country where he/she will offer advice, a matter of some training and a fee. But offering advice to UK expats in Asia is not covered by the EU passporting rules, there are no UK rules for Thailand whilst there are specific rules governing IFA's in Singapore and Hong Kong and UK IFA firms who practise there are subject to those rules. BUT, UK IFA's with offices in Singapore who send IFA's into Thailand to offer advice and sell financial products are NOT covered by any rules, in fact they are breaking Thai law by offering advice for which they are not regulated or licensed. Nothing like a good fry up!

[Jonmarleesco]

“I suspect it's a money laundering thing”

Ask them if they’ll accept the deposits if you provide them with proof of ownership/origin.

I think the EU threshold is €50,000, but if you have done many $10,000 deposits then the system might have flagged you as someone trying to go below the radar.

Transfers from an employer are not deposits in the accepted sense.

[Tchooptip]

Slightly off topic but still related to international Banking and Thailand...

My bank is HSBC in France, this month I had to transferred the 800,000 Bahts for my retirement extension like the year before and the year before...

I did it with online banking, but I had to told them again "why", I told them why, even if they knew already.

But I had to call HSBC premier 2 times asking why this money transfer was still pending after 5 days? No problem sir everything is correct, in fact it should have been done already so we cannot answer...

Then on another phone call they told me Thailand is on a black list (?) so an authorisation from a manager was needed.

An authorisation from a manager to send myself my own money

By the way good luck I did not do it at the last second

[Jonmarleesco]

It gets worse.

Still no explanation as to why they refuse funds from outside the UK, but they now also inform me that I can't transfer what I have in their bank to Thailand (it's been OK in the past) due to internal instructions that they cannot be an intermediary bank (the funds all came from outside the EU).

Such is life.

Investigating alternatives to launder my massive funds.

They wouldn't be acting as an intermediary bank; they already hold the funds. Sounds like the staff are playing safe without bothering to check with someone who might know better.

[Jonmarleesco]

You've got lots of sensible options, Singapore, IOM even overseas banks in Thailand, presumably that was HSBC in Lux., they're shrinking their footprint considerably these days and the Panama thingy will shrink them even further.

You're kidding. Neither Singapore nor IoM will prove much use. Thailand isn't on a blacklist, but it is on a grey one, which makes things difficult. HK is quite possible, but might need a personal visit.

[Crossy]

It gets worse.

Still no explanation as to why they refuse funds from outside the UK, but they now also inform me that I can't transfer what I have in their bank to Thailand (it's been OK in the past) due to internal instructions that they cannot be an intermediary bank (the funds all came from outside the EU).

Such is life.

Investigating alternatives to launder my massive funds.

They wouldn't be acting as an intermediary bank; they already hold the funds. Sounds like the staff are playing safe without bothering to check with someone who might know better.

Intermediary was their word, possibly lost in translation.

They said that as my invoice was paid outside the EU (Hong Kong) and because I was also transferring outside the EU (Thailand), recent internal instructions prevented them from performing the transfer.

I still don't have an explanation about why they won't accept my salary in future.

[chill]

The OP has already been told that it is a newly introduced policy by his own bank. If they choose not to tell him why that is their concern and not much anyone can do about it. The OP can if he wishes change banks and I would recommend that he choose one where there are no EU or US restrictions. He might consider opening a USD offshore account with a Thai bank in Bangkok. I see Bangkok Bank offer a flexible USD current account. If he opens an account with them then gets his salary transferred directly to that account it should meet all his needs.