Forum Moderators: LifeinAsia
I want to apply for a business credit card!
I've lived in NJ long enough to know that you should never document any money laundering you may be undertaking.
Seriously though, adamnichols45- can you post some more details about what you're asking? I don't understand the correlation between money laundering and a business credit card.
Well basically i went to apply for a credit card and they was asking for documents in relation to money laundering!
When i checked the list of documents they includeded the following.
Bank statements
certificate of incorperation
passport
etc
etc
Like you i am to confused about this!
It is a money laundering prevention method - you will not be able to open an account without providing this information - why the confusion?
Is money laundering just a UK term? - other countries might call it something else.
When i checked the list of documents they includeded the following.Bank statements
certificate of incorperation
passport
Well, yes. This is normal. Any bank will want proof of ID before you open a bank account, get a credit card, or whatever.
They want to check that Little Web Design Ltd isn't really Cosa Nostra Laundries Ltd.
Like Dayo_UK, I'm having trouble seeing where the cause for confusion comes in here, could you explain some more?
hth, a.
update: a Google search for "money laundering" brings up the law on this (Money Laundering Regulations 2003) as the top result, the relevant bit is:
Identification procedures4. - (1) In this regulation and in regulations 5 to 7 -
(a) "A" means a person who carries on relevant business in the United Kingdom; and
(b) "B" means an applicant for business.
(blah, blah, blah ...)
(3) A must maintain identification procedures which -
(a) require that as soon as is reasonably practicable after contact is first made between A and B -
(i) B must produce satisfactory evidence of his identity;
So that's what the banks are doing.
That's typical when opening a bank account. The bank has to know (legal reuirement in the U.S.) that you are who you are. If you are a business, then the bank has to know that you actually have the authority to represent that business.
Otherwise, you could be a low level worker who works in the mail room in that company. You periodically slip into your pocket checks that are made out to the company. During your lunch break, you go to the bank and cash them in the "company" account you just setup. After work, you hit the ATM to get the cash for the checks you deposited. Understandably, the banks (as well as businesses) would prefer to discourage this practice! :) Also, the IRS needs to know who to tax for the interest income.
The money laundering angle is similar. A drug dealer (terrorist, Mafia wise guy, etc.) opens a bank account for a "business" that doesn't really exist. He gets a big wire transfer from an offshore account ("it's related to my business"). Then he withdraws the money to pay for "expenses."
Im new to the whole business accounts thing. I was just surprised they wanted to know so much about me at such an early stage!
It is a money laundering prevention method - you will not be able to open an account without providing this information - why the confusion?
Been watching this one since it started and was waiting for it to pan out. Yes, in the US the term "money laundering" is simply associated with banking illegal funds and is seldom referred to a process involving prevention at financial institutions. More like identification verification.
So now I can let out a hearty laugh at
I've lived in NJ long enough to know that you should never document any money laundering you may be undertaking.
:-D
uk vs usa
in the US the term "money laundering" is simply associated with banking illegal funds and is seldom referred to a process involving prevention at financial institutions. More like identification verification.
It's exactly the same here in the UK.
The OP's bank are just using a bit of verbal shorthand...
best, a.
