Not upheld: KYB (Know Your Business) checks - procedural fairness and account management complaint against TSB Bank plc

Decision detail

Summary

C, a partnership, complained to the FOS about TSB's Know Your Business checks, specifically objecting to inadequately addressed correspondence, multiple staggered information requests over six months, and TSB's threats to block the account if information was not provided. Although C complied with all requests, it complained about TSB's tone and the procedural approach. The ombudsman did not uphold the complaint, finding that TSB's requests were reasonable exercises of its regulatory obligations to prevent fraud and financial crime, the staggered approach was justified, and no material loss had been caused to C.

The Ombudsman's reasoning

Financial businesses have regulatory obligations to protect against fraud and financial crime, which include requesting customer information and advising of account restrictions if information is not provided. The ombudsman found TSB's requests were reasonable and fair, and that the staggered approach to requesting information was justified as firms cannot always determine what additional information is needed until initial documents are received. No material loss was demonstrated to have resulted from the addressing issues or the timing of requests, as C was able to act on all requests and did so.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website