Anyone else had their company bank account closed due to Patriot Act?

[rumpel]

I am still investigating what happened. All I know is they had an audit and when the "documents" were not in order those accounts were closed. The branch only had 2 days to get any "missing" documents. I had an account with them since 1997. But over the years, the bank was bought by another.

[AX10]

1. DID YOU get your money back?

[rumpel]

3. Yes, they send me a check of the balance. That is why I called.

[rumpel]

6. But I would not know how to cash it without an account. It is made out to

my company.

[BuyingThyme]

11. I'm sure the bank that cut the check will cash it.

[GreenPartyVoter]

2. Holy cow! What a horrible thing

[classof56]

4. I hadn't even heard of this, but surprises me anymore.

Those of us with personal bank accounts should get ready, I guess.

Geez!

Tired Old Cynic

[BuyingThyme]

5. I was contacted by a bank and asked to update my

fictitious business name info.

It's probably something simple like that, or perhaps a resale permit or business license requirement. The rules probably differ by state.

[rumpel]

7. But they have a copy of all my incorporation papers.

[BuyingThyme]

8. Do you have to renew your name every few years?

(And have you done it lately?)

[rumpel]

9. No. It is a corporation.

on edit: I also had a dba but that I know needs to be renewed every 5 years.

[HereSince1628]

10. I wanted to open an account and the bank said it needed to

do a background check, I don't think I ever had to share anything by my address and social security number before PA.

[rumpel]

12. It is very strange. He said because of the tightening of the Patriot Act

Rules, they have to do so much more paperwork. Even employees of the bank, known to them personally, unless they have a copy of the drivers license and other identification they will have problems, he said. But the timing of this audit as he says, I do not know what is going on.
My mother was apalled to have been subjected to fingerprinting to merely cash a check.

[Rainscents]

14. This is strange shit that's going on.

[dweller]

15. fingerprinted here too

for a check. Fortunately the check was no good, so it went with me back to the guy that gave it to me to get cash.

but it was the first time i was printed for a check.
dp

[AZBlue]

31. Fingerprinting was in effect before PA

So was the background check but it is now a more comprehensive type. Before they ran you through a system that tracks people with bad accounts and/or ran a credit check. Now they can investigate you further or need more proof of identity. They say it's to track the funding of terrorist groups.

[BuyingThyme]

13. Are you guys something other than Whitey?

In my world, nobody but the DMV, or the arresting agency, ever asks for a finger print.

[pitohui]

22. perhaps you just haven't cashed v. big checks

i'm white & i was asked for a fingerprint when cashing several thousand dollars worth of traveler's checks at a casino where i was an unknown in a town where i had never been before

of course the fingerprint would be useless for tracking me down if i was a real evil-doer since my DMV does not take fingerprints & i've had no reasons to use the services of an "arresting agency"

:-)

but it doesn't seem a particularly outrageous request under the circumstance

[BuyingThyme]

25. It sounds outrageous to me.

[pitohui]

26. next time i need a quick $4K i'll cash a check at bank of buyingthyme

:-)

does it change yr answer if i remind you that this casino cashed my checks for free, with no fee, as a courtesy?

you are always free to use joe blow check cashing place around the corner & pay god knows what, $25 or more, for cashing yr check if you want to give false information abt yr identity

it costs money to be dishonest, and i think it should, frankly

[The Wielding Truth]

16. Get this - I called on my mortgage payment cause escrow went up and...

When I called the 800# a recording said that account information was being sent to a credit bureau by courier when it was lost and the accounts affected would be sent a letter that was to be mailed that day. I thought gee, maybe mine was lost so I asked the cust service. She said unfortunately it was. She said that I could keep checking my credit for free on a credit website. So I thought Well, that was pretty decent . and the info was encrypted soo.... Then I went to our savings to withdraw some cash for Christmas and they told me a computer glitch erased all their cust signatures. I had to sign again and get a photo id. HMMMMM...
George are you out there. I have done nothing you would be interested in.
I love America and vow to respect the Constitution.
Oh maybe that's why my records are missing???

Anyone else have this happen??? Tell me.

[Aimah]

17. The Government can check the banks documents...

If the bank does not have everything it needs it will close your account after a certain amount of time. Most of the closed accounts I've seen have been due to incorrect social security numbers or incorrect identification. It's not just company accounts it's any banking account. They call it a CIP (Customer Identification Program)program. My banks back office usually gives us 5 days to get any information before they close the accounts. We can reopen the accounts with different account numbers later as long as we have all of the information we need. 95% of the instances I've encountered have been bankers who opened up accounts for non-resident alien customers incorrectly.

Here's an article that can explain further.
http://www.consumeraffairs.com/news04/2005/patriot01.html

This other link is long reading. Extremely detailed.
http://www.access.gpo.gov/nara/cfr/waisidx_03/31cfr103_03.html

[Daphne08]

18. I thought the Republicans wanted less intrusion by the

federal government.

[pitohui]

19. not due to patriot act

if you have large deposits, you have to provide certain proof of identity, such as a driver's license, state-issued identification card (for those who can't drive), or passport

this was really always the law since the 1980s money-laundering act, however, w. patriot act banks are i guess more quick to insist on getting certain proof of your identity even with a small account

if you can't prove who you are and that the money comes from a legal source of income, i don't think it is unfair to refuse to do business with you

provide the documents & you can re-open the account

i've had to comply w. quite a few ctr (currency transaction reports) in my day, it is a nuisance, but at the end of the day if i were a bank or casino or other financial, i'd want to know who i was doing business w. even if the gov't didn't insist on it, we are talking abt money here

recently i do know of a man who had cash removed from his safety deposit box, replaced by a receipt from the internal revenue service, but you know what -- he could have easily avoided this issue if he had just paid his damn taxes like the rest of us

it ain't too much to ask, when dealing w. money, that you are who you say

sorry if i sound less than sympathetic, but i have to obey the law & feel maybe you should too

[Aimah]

32. It probably is due to the Patriot Act in part.

What you say is true about the amounts of deposits and showing IDs and proof of where the money came from but this is mainly so the bank can file a report on it. Unless you're depositing 10,000 or more in cash everyday you'll rarely see it become a big issue. There is also a waiver the bank can give to businesses that have had their account open for more than a year so the bank no longer has to file a ctr. From my experience with the time frame that he spoke of it was probably due to the back office not having the correct SS number or ID on file. Lately most of the accounts I've seen closed have been business who do check cashing. It's high risk for the bank if the checks bounce and a lot of the people who use check cashing places lack the proper ID and social to open an account on their own.

[Aimah]

20. I kind of understand the concept but...

even with all of the regulation it still doesn't stop random people from defrauding the banks. Even with all of the double checks of the IDs and SS numbers people still open accounts and then go to town writing bad checks. There are people who do this "professionally" they go from bank to bank doing it.

[Democrat 4 Ever]

23. Not related to a bank account but I've had a weird time purchasing

some cheesy little doodads for my sons-in-law for Christmas. Order some little stocking stuffers from Amazon.com. They are cheap ($8.95) multi-function tool that includes needlenose pliers, wire cutters, scissors, bottle opener, screwdriver, etc in. Nothing special just a little something extra to give the guys.

Well, after placing the order I received an e-mail from Amazon requesting verification that I indeed was ordering three of these items. I verified the order. I then got an email from the company that makes the item. THEY are now asking if I had ordered these items. Again, I verified the order. THEN I got a phone call from the company asking that I verify that I am the one ordering these items. I asked them what the heck was going on and they gave me some vague explanation about "homeland security" requirements. Just wanting to make sure I wanted this item. I finally got an email they have been shipped and will be here tomorrow.

What the heck am I missing? Here is a photo of the item.


These things had better be good. Or at least worth $8.95 and all the trouble.

Moral of the story, I guess, is be afraid, very afraid.

[Aimah]

30. Never heard of that happening before.

I've heard of companies double checking because the bank thought the purchase was odd. Like if you buy something you wouldn't normally buy. I usually see that when a customer buys gas more than twice in one day (card thieves usually buy gas first with stolen cards).

The oddest situations I have at the bank is when a transsexual wants to open an account. If they've gone totally through the change including their name. Their born name is still tied to their social in the system. So while you're trying to open an account for Barb Smith the name Bob Smith comes up. I've haven't found a good way to clear up the confusion.

[Oversea Visitor]

21. You have been voilated

Denied your right to operate a business without any defence. See a lawyer.
Ask for show cause letter. Make a report to your state AG.

[pitohui]

24. ha, it's the other way round

more likely this person has already been or soon will be reported as a suspicious person to the federal gov't

i don't know where you're an overseas visitor from but under our money-laundering acts, which date to 1986, a person doesn't have the right to operate a business if they can't prove who they are and a legal source of the funds received from the business

[Oversea Visitor]

27. Malaysia

1) We cant open an account as a business unless it is registered
2) You need a director resolution your Memorundum of Association and your Article of Association to be forwarded to the bank before you can oepn an account.
3) Within the MA and AA all your listed business activities are in it.

So maybe in this case I dont know how easy it is to open a business acoount in US :rofl:

In my country you prove everything before you open a bank account.
The bank has the right to close the account if you bounce your check more then 10 times in a year.

As for money laundering it falls under the Accounting Act and Companies Act.
The enforcement Agency here is the Tax department and the Registrar of Companies.

Our company tax system is base on projected profit for the year and paid to the tax department on a monthly bais. ( VERY VERY MESSY, get fined for underprojection, damn hard to claim back for over projection :rofl: Drive the Accountants nuts)

To me I am maybe confuse shouldnt the Banking act prevent Banks from simply opening up a company Account without proper oversight? Maybe that is where I am confuse.

[Aimah]

28. In the US

You can open a business using your own SS number if you open it in a "Doing Business As" form. If not you need a separate EIN or business TIN. Basically just articles of incorporation from the state that you do business in and one form of major ID ( state ID or passport).

[Oversea Visitor]

29. I see

so not proper oversight at the start. Just need an identification. Very chaotic and problematic.