Barclays Bank has been accused of being intrusive and demanding unnecessary information from their Manx customers.

But the bank says it’s normal practice and something it must do under ’know your customer’ rules.

An Examiner reader contacted us after receiving a letter demanding information from him for his existing account.

The letter says: ’This information may not have been required when you opened your account, but is now needed so that we may continue to offer you the services you receive today.’

Nowhere on the letter does it mention anything about rules for ’know your customer’ requirements.

The letter threatens: ’If we do not hear from you by June 21, 2019, unfortunately we may need to close your account(s).

’We would like to continue to provide you with the services you currently receive and therefore it is vital that you return the requested information to us.

The reader who contacted us said: ’The unacceptable part of the form comprises sections 8 and 9.

’In section 8, Barclays wants to know total gross income with a break-down including investments/dividends as would be given in an income tax return.

’They also want to have a reason for using cash and be given information on additional income and the purpose of the accounts if such income is not paid into them.

’In section 9, they demand personal information regarding self, family members, and associates which is quite beyond the pale.’

That specifically asks for details of any ’public or high profile positions held by you, a family member or close associate’.

The reader, who asked to remain anonymous, said: ’Overall, it is an attempt at an intrusive violation of privacy for marketing purposes rather than protection of depositors.

’Since the accompanying letter threatens to close depositor accounts if completion of the form has not occurred by June 21, I view the situation as demanding private information with menaces.

’They certainly know how to get rid of depositors.’

We asked on Twitter if other readers had had similar views. A few contacted us to say they had.

A Barclays spokesman told the Examiner: ’We take our responsibilities in relation to anti-money laundering and countering terrorist financing regulations very seriously and we, along with other financial organisations, must adhere to current "Know Your Customer" requirements.

Violation

’One of the ways we do that is by asking customers for information related to their income and the transactions they expect to put through their accounts.

’This helps us to protect them and the wider community from fraud, identify theft and those who wish to do us harm.

’We have tried to make this process as easy as possible for our customers, by only asking for information that is missing or needs to be updated.

’So far we have had a good response from our customers and we thank them for providing the requested information.

’We would be pleased to talk to any of our customers who may have questions about our request and we ask them to call into their local branch, or call us on 01624 684444.’

The letter sent does not refer at all to any stipulations from the Financial Services Authority.

It makes vague statements such as ’in line with our standards’ and ’documentation we need’.

After contacting Barclays and receiving the comment we have quoted in full above, the Examiner suggested that it was ambiguous and questioned why it made no reference to any legal or regulatory requirements.

A Barclays spokesman declined to comment further.

rules

Under the Isle of Man’s Financial Services Authority rules, a bank must perform risk assessments on customers and ’ongoing and effective monitoring of any business relationship’.

That includes scrutiny of transactions to ensure that they are ’consistent with the relevant person’s knowledge of the customer, the relevant person’s business and risk profile a if necessary of funds for the transactions’.