Not upheld: CIFAS fraud marker application and account closure complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr A complained that Chase unfairly applied a CIFAS fraud marker against him and closed his account. Chase had filed the marker to record misuse of facility after fraudulent funds entered Mr A's account. The ombudsman found that Chase met the required standard of proof by demonstrating fraudulent funds entered the account and that Mr A was deliberately complicit, evidenced by his admission of lying about the source of funds and his immediate transfer of those funds out of the account. The ombudsman upheld Chase's right to apply the marker and close the account in accordance with its terms and conditions and regulatory obligations. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the CIFAS standard requiring clear, relevant, and rigorous evidence of deliberate complicity rather than mere suspicion. The combination of Mr A's admission of lying about the source of funds and his immediate transfer of funds out of the account upon receipt demonstrated deliberate dishonesty and complicity, meeting the threshold for a misuse of facility marker. Banks are entitled to close accounts in compliance with their terms and conditions and regulatory obligations, and Chase acted within its rights.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website