Not upheld: KYC review process, account restrictions, and communication failures complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr W complained on behalf of business G about Barclays' KYC review process, specifically that the account was restricted before he was aware of the information request and that Barclays failed to clearly communicate all required information upfront or respond to his letters. Barclays maintained it had followed its regulatory obligations and standard processes, with timescales in line with industry practice. The ombudsman found that Barclays was entitled to conduct the KYC checks, the restrictions did not impact account use, the timescales were reasonable, and postal issues were outside Barclays' control. The ombudsman did not uphold the complaint, finding no evidence of wrongdoing or adverse impact on the business.

The Ombudsman's reasoning

The ombudsman found that Barclays was entitled to carry out periodic KYC checks as a regulatory requirement. The timescales provided were in line with general industry standards and Barclays could not be held responsible for postal delivery issues. The restrictions on new products and services did not impact the use of the account itself. While Barclays did not respond to all of Mr W's letters, the KYC review was already complete by the time some letters were delivered, and no tailored response was necessary. The ombudsman noted that as the complaint was brought on behalf of a company, only direct financial loss could be considered, not the personal distress suffered by Mr W.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website