Not upheld: account access restriction and customer due diligence questioning complaint against Nationwide Building Society

Decision detail

Summary

Mr P complained that Nationwide Building Society asked intrusive questions and blocked his internet banking access, causing him upset and worry. He felt the information requested was unnecessary and wanted it removed. Nationwide did not uphold the complaint, explaining that financial institutions are required to collect and maintain up-to-date information for regulatory compliance. The ombudsman found that Nationwide had legal and regulatory obligations under Know Your Customer and Customer Due Diligence requirements, and the questions asked were standard and necessary. The ombudsman concluded that blocking internet banking access was a fair and proportionate measure to ensure compliance with these obligations and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Nationwide has legal and regulatory obligations that are ongoing and apply beyond account opening. The firm is entitled to review accounts and restrict access to comply with KYC/CDD requirements. The questions asked were standard information required by financial businesses and were not intrusive or different from what would normally be expected. The account terms and conditions explicitly permit blocking access if customers do not provide requested information for legal or regulatory reasons. The blocking of internet banking was not disproportionate as it prompted Mr P to answer the questions necessary for the CDD process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website