tebo53

Hi,

Now I've lived in Spain for 9 years and fully settled I've decided to close my Barclays UK bank account as all my income is paid directly into my Spanish bank account.
As there is a substantial amount of money in the Barclays account I'd like to transfer it over within the next few weeks.

My question is: How much can I transfer each week, maximum, without the authorities "thinking" its to do with money laundering etc?
Both bank accounts, UK and Spain are documented on my tax returns so no secrecy involved.

thanks,

Steve

UKMS

Transfer in one lump as long as it’s all traceable and you can account for it, it doesn’t matter what you do. You have a legitimate explanation for moving the money. If you split it into smaller chunks over time it makes no difference, if anything that could draw more attention. The triggers for money laundering are not just always based on a single transfer. EG if you want to move £100k ….. 20 transfers of £5k will be no different to a single transfer of £100k.

rbs_gb

Hi Steve, the point at which you trigger the interest of the authorities here will be "a change of income habits beyond the norm" so with 9 years of established banking habits, that isn't going to be easy. The question would be at what point your Spanish bank would consider a change of income habit to be relevant to inform the authorities. Might be worth a chat to your local manager about that. If you are trying to capitalise your Spanish accounts you could just do a lump sum transfer, pay the charges and accept the investigation if it happens. Even if it is all documented, an investigation would still want to know why there was so much money in the UK account and what was the source of the funds.

Have you an option to just drain the Barclays account by drawing at ATMs in euros and just spending in Spain on a Barclaycard with it all being charged back to the UK account? If you don't need the cash in a hurry, that should be a pretty safe way and unlikely to prod the sleeping dog.

UKMS

Obviously make up your own mind but from professional experience I can tell you that a single lump sum transfer after the closure of an account is perfectly normal and unremarkable and will draw far less background scrutiny than multiple ATM transactions, living on credit cards etc etc (which is often what small time money launderers will do). The more you start changing funds into cash the less straightforward it becomes. You would be following the pattern of behaviour of a money launderer by trying to hide the money movements and expenditure.

Local managers have little if anything to do with money laundering investigations (even though they might like to say otherwise).

rbs_gb

Agree with both your first post and this one.

Ronnyone

Here you go. Was in the paper yesterday


https://www.20minutos.es/noticia/513...n-tus-cuentas/

The bank automatically tells the hacienda when : transfer over 10.000 euros. Cash withdrawal s and deposits over 3.000 euros Loans over 6.000 euros. Doesn't mean that you can't do these things just that if you keep in the limits the bank won't refer it to the tax man.

UKMS

I think I’m correct in saying that this specifically relates to Tax rather than money laundering which has a wider gambit and has a far more international dynamic. You will never see a definitive money laundering ‘trigger’ published for obvious reasons.

Even though those limits are published and are the automatic trigger, multiple smaller transfers would attract just as much attention if not more, because it gives the impression you are trying to avoid scrutiny.

tebo53

Thanks very much for the advice.

Steve

Peter_in_Hungary

If you transfer in one lump you will probably have to explain where it came from - easily done - they may ask where the money originated, in which case 'life time accumulation, inheritance or property sale what ever fits your position. However transferring a large sum is generally cheaper than lots of smaller ones. Do the sums, research will pay off.

If you hit the money laundering limit then the transfer will take longer and last time I transferred a significant sum (car purchase) my bank phoned me up with a whole load of questions to ensure that I was not transferring the money as a result of a scam.

Check the transfer cost before doing anything because banks transferring money can (is) the most expensive way. There are a number of (FCA registered ) transfer companies who offer better value and are quicker than the banks.

Ronnyone

These quite simply are the limits that require by law banks to automatically inform the Spanish authorities. If you transfer 11.000 euros the bank will report it. You can use that information as you like but at least it answers the OPS question.

La Ley 7/2012 de 29 de octubre reconoce que la Agencia Tributaria vigilará y los bancos deberán facilitar información sobre los pagos y cobros en metálico que rebasen los 3.000 euros. Además, se controlarán todas aquellas transacciones de dinero que rebasen los 10.000 euros y todos los préstamos y créditos que rebasen los 6.000 euros.

UKMS

Of course it’s very useful info and is a consideration for the OP but without being picky the OPs question referred to money laundering ….the above as I said before specifically refers to tax authorities. Tax avoidance and money laundering are really 2 different topics although often merge.

Ronnyone

Well the authorities will only start to investigate if the bank is obliged to inform them. Banks are not obliged to police clients. That why there is a law which stipulates what the limits are before the bank has a legal responsibility to report it. Saying that any irregular bank activity will instigate an investigation is not true. People can behave as they want with their money. The bank can freeze accounts if they are suspicious but that is for the benefit of security they can't freeze your account because they think you are a drug dealer. Their only legal requirement is to report when a person exceeds the limits set by law.

UKMS

With respect you have no idea what you are talking about.

bobd22

I agree they may question re the amount but it can be explained and if needs be confirmed with UK bank that it's ones own funds.

UKMS

Correct and assuming the funds are routinely traceable the account holder would more often than not be totally unaware of anything happening.