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  1. #1
    HAHA!
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    Question Does a banker know ?

    when you cash a cheque what industry this payment is coming from? I know that SWIFT sends some sort of identification for the industry when you make payments via that system.
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  2. #2
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    I think it would probably depend on who handles the companies payroll and what they put on the check.

    Some companies use a payroll company that manages lots of other companies, so it might not be obvious where the check is coming from. On the other hand, if it says the name of the company is on the check and googling the name returns what the company does, then yes they would be able to tell.
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  3. #3
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    ok thanks but what I mean is different. What you say can be done with some "voluntary" research by the clerk if they want to know.

    My scenario is: I go to my bank hand them a check to put into my account and when they process it their system somehow discloses an industry code . I know that SWIFT payments are coded in a way which would disclose this information.
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  4. #4
    SitePoint Addict Green Moon's Avatar
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    At least in the United States, with the automated check processing system, they only capture the MICR encoded information in most cases (bank routing info, account, and amount). It would be virtually impossible for someone to look at a check in many cases and even determine what the industry is.

  5. #5
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    Not sure about the industry... if you mean about the field you are working in, the bank of origin, where the account was opened, of course, your bank can only suspect it if they know what you do (they want to know everything about you for two reasons: to sale you loans and credit cards, and for security reasons)

    The cheque has certain numbers at the bottom that gives all the necessary information (sort code, account number, etc). The bank does not show the cash available in your account until they have the cash is on the way (it could still be bounced but 90% isn't)

    The rules varies slightly from country to country. When you pay in your cheque into your bank account, the bank doesn't have a clue where the money is coming from (apart from the information on the cheque itself). The cashier only checks that it looks legal (the paper is the correct one, it is a normal amount and a normal trasaction for your account, if you have received more cheques from the same company, etc). His responsability is to see if there is anything suspicious on the transaction itself and it is related to money laundering.

    After that, it goes to a center where they are processed electronically and then sent to the bank that issued that cheque which will do their own checks and tests and, if the first impression is the transaction is legit, will advance the money even when it will take up to two months to know for sure if the transaction is real or not.

    At this time, the origin bank will know everything about the customer that issued the cheque, and you can be sure that, if there is anything suspicious, they will tell your bank because the cashier was silly enough to accept the cheque when it could be a fraudulent transaction and hence the chance that the bank will loose cash.

    I hope this helps

  6. #6
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    Thank you for this detailed explanation. It's not that I am overly concerned about privacy but last time I talked to my bank manager he asked: "you got a good sized payment there last month what was that for?" Now it wasn't for anything that I couldn't disclose and he didn't ask this with any authority or any legal concerns but purely because he seems to be a nosy git.

    So since I have a banker who seems to double as Dr Watson I just wanted to know what his scope of information gathering is but I am starting to realise if he wants to know something there are almost no boundaries.
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  7. #7
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    This rule depend on the country but if the amount was quite large for your account, he may be forced to ask about it (again for security purposes and for selling purposes too) and also what you will do with that money.

    If the amount exceeds a certain limit (in UK is 25000 GBP), he needs to write down where the money is coming from. Sometimes is obvious, like some other account you have, but if he has any doubt, he needs to ask you and write your answer else he could be held responsible if it is money laundering and even go to jail for protecting you.

  8. #8
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    well my checks aren't quite 25k a piece yet Surprises me though because they make a big deal about money laundering in the UK so this is a huge limit. In Germany it's €8k or this amount in several batches over certain time periods would raise flags too.
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  9. #9
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    As you have just learnt yourself, they ask about any amount that looks unsual for the account, but when it raises that limit, the cashier needs to write it down.

    Maybe the amounts have changed. It's been 3 years since I left the bank and things do change over time. But it used to be like that.


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