Why does HSBC ask whether one plans to receive or send international wire transfers when creating a new HSBC Direct savings account?
asked Jan 26, 2020 at 23:59
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1I don't know for definite, but a good hypothesis would be to help reduce fraud. If you tell them you never plan on doing that, then they will ignore fraudulent attempts from overseas.– Aaron D. MarascoCommented Jan 27, 2020 at 1:06
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Just guessing but it might be because it is a foreign bank and that is their requirement?– Bob BaerkerCommented Jan 27, 2020 at 3:53
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What's the context of this question? Does it feel more like a contractual promise on your part to never use wire-transfers (in which case the wording would seem unusual, since it's hard to know that I'd never want to use a wire-transfer), or does it feel more of a "survey" type question where they are perhaps trying to get an idea of how many customers expect to make use of wire-transfers?– TripeHoundCommented Jan 27, 2020 at 8:55
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@TripeHound feels like some time-wasting paperwork, just like most of my HSBC experience. No idea if that's some contractual or something else.– Franck DernoncourtCommented Jan 27, 2020 at 12:54
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Have you asked them why they want to know? There may be a simple but company-specific and unknowable-to-us answer (i.e. as part of their marketing plan, they have different products available for people who are likely to do a lot of international transfers).– dwizumCommented Jan 27, 2020 at 14:39
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1 Answer
Banks have to consider money laundering and other risks in providing you with an account, and the approach they take is risk based - they will want to more information and evidence for a riskier account.
For international transfers there are more federal regulations and a particular requirements to flag up suspicious transaction individually or collectively over $10k, especially if international. (just as you have to declare it if you carry >$10k in cash going through customs). So if you are going to want to use the account for international transfers there will be additional KYC and monitoring.
