LLoyds freezes 8,000 accounts

As regulators tighten “Know Your Customer”  (KYC) rules Lloyds Banking Group froze the accounts of 8, 000 offshore banking customers as part of a crackdown on money laundering after asking three years to prove their identity,  and highlighted the growing pressure on global banks from regulators to take action against financial crime.

Deutsche Bank last month warned 1000 of its corporate clients they faced the same fate because of lack of documents to confirm their identity.

Rivals  HSBC, Barclays and Royal Bank Of Scotland have also tightened controls in Jersey, sending similar warning letters to check  the identity of long standing customers.

Both Jersey and Isle of Man has come under heightened scrutiny, as they have agreed to provide clearer information about company ownership in the tax havens, after British MPs and  transparency campaigners criticised broader effects to keep out dirty money.

Lloyds banks had no specific concerns about the customers but had to block thousands form accessing their accounts after they ignored repeated messages about the new rules as the bank needed certified copies of identification documents.

Banks are pushed to do more thorough due diligence on their customers after a spate of scandals engulfed European lenders as Danske Bank in Denmark and ABLV of Latvia.