Not upheld: refusal of cash withdrawal / access to funds restriction complaint against HSBC UK Bank Plc

Decision detail

Summary

Mrs N complained that HSBC refused her request to withdraw £60,000 in cash to keep at home, despite having successfully withdrawn £30,000 for the same purpose the previous month. HSBC declined the request citing concerns about financial crime risks. Mrs N, who had recently fallen victim to a bank impersonation scam, argued the refusal was distressing and that HSBC had no explicit policy against large home cash withdrawals. The ombudsman found HSBC's refusal was reasonable and within its contractual and regulatory obligations to protect customers from financial harm, and that a £60,000 cash withdrawal carried legitimate risk triggers. The complaint was not upheld, though the ombudsman advised Mrs N could pursue the withdrawal through a formal branch appointment process subject to HSBC's verification checks.

The Ombudsman's reasoning

HSBC has a regulatory duty to protect account holders from possible financial harm and is entitled to restrict access to funds where it reasonably believes action is needed to prevent financial crime. The account terms explicitly permit such restrictions. A £60,000 cash withdrawal carries legitimate risk triggers including theft, loss, fire, flood, and inflation erosion. The earlier £30,000 withdrawal does not negate these risks. HSBC's proportionate approach, including private questioning and verification of fund sources, is reasonable and complies with regulatory obligations. The bank played no part in the scam that affected Mrs N's confidence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website