Последние Новости от LS Legal Solicitors
BANKS TO BE REQUIRED TO CARRY OUT 70 MILLION IMMIGRATION CHECKS ON BANK ACCOUNTS
Thursday 9th November 2017
At present the law (the Immigration Act 2014) requires banks and building societies, including banks that are UK branches of EEA banks and non-EEA banks, to carry out checks when opening current accounts for the purposes of identifying 'disqualified persons'. The Act defines a disqualified person as being any person in the United Kingdom who requires, but does not have, leave to enter or remain, and for whom the Secretary of State considers a current account should not be opened. The opening of an account also refers to joint accounts, accounts where the disqualified person is a signatory or beneficiary, or adding the person to an existing account as the same.
As part of the Government's plan to create a "hostile environment" for illegal immigrants in the UK, as of 30 October 2017 it will implement Schedule 7 of the Immigration Act 2016. The introduction of this provision will place further and additional obligations on banks in respect of checking persons who not only wish to open a new account, but also who already hold accounts. This new provision also requires checks to be carried out on any financial product by means of which a payment may be made.
This means that from 01 January 2018, banks and building societies will be required to carry out an estimated 70 million checks every three months on standard/current accounts. These checks will be performed by way of a search of the Credit Industry Fraud Avoidance System database using the individual's name, date of birth, and address. Banks will not be required to obtain further documentary evidence of the individual's immigration status. The database is supplied by the Home Office and contains details of persons who are believed to be in the UK illegally. If the bank or building society identifies someone who they suspect to be a disqualified person, they must notify the Home Office who will confirm whether the individual is a disqualified person. While awaiting confirmation, the bank or building society will operate the account as normal and should avoid informing the individual that they have been flagged. If the Home Office recognises the account holder as a disqualified person, the Home Office can apply to freeze or close the account. The Home Office will allow the individual to have access to funds to cover living costs and legal expenses at an amount deemed reasonable by the Court.
The Home Office estimates that the new scheme will identify an additional 6,000 individuals in the first year who do not hold legal immigration status, and claim that this measure will be used in routine cases to disrupt the ability of illegal migrants to remain in the UK and therefore it acts to encourage them to leave voluntarily.
This new obligation could see administrative errors resulting in legal residents having their accounts frozen in error. It also has the potential for the Home Office to use the information to pursue enforcement measures against the individuals identified as being a disqualified person and could result in an increased amount of unannounced visits of the Home Office.
What happens if your bank account is closed?
If your bank account has been closed, the bank will unlikely be able to assist you. If you are a disqualified person residing in the UK unlawfully, then you will not be able to open another account. If you believe that there has been an error in closing your account the only option available will be to complain to the Home Office. This can be done by either calling 0300 123 2241, emailing complaints@homeoffice.gsi.gov.uk or writing to the Home Office at the Complaints Allocation Hub. Unfortunately, a response can take up to 20 working days and does not promise any form of resolution.
Currently, there is no new or emergency process in place to handle errors, despite the inevitability that they will occur and the hardship that will inevitably result.
If you have any questions about the issues raised in this article or should you need to regularise your stay in the UK, please get in touch to assess your options during a no-obligation consultation by e-mail info@LSLegaLUK.com or by phone +447535959450 and it would be our pleasure to assist you.