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Email this5:50 pm
February 18, 2016
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Interesting stuff happened to my friend:
He is long time client of one of Big5. Has chequing, VISA accounts. Alvays paid debt on time, never went into overdraft. Has pre-authorized bill payments, receives salary on chequing, etc.
So, he was buying a house; he moved about 1/2 mill from High Interest account to his chequing. Few weeks after money cleared he gets certified cheque (or draft, forgot) to seller's lawyer, paid for new house, all is well. After a month or so, his old house is finally sold and he deposited certified cheque (or similar) to his Big5 chequing account. Again, after few weeks moves all fund to High Interest Saving...
Long story short, few days ago he received a letter that Big Bank is closing ALL his accounts (chequing, VISA) due to 'suspicious activity' he performed.
It looks like you are very suspicious person if you have enough cash to buy a house and do not want to be milked forever by Big5. Or am I missing something here????
6:07 pm
December 17, 2016
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Can't even venture a guess but I am curious why he didn't just do the out and in directly with his HISA? thereby eliminating the transiting through the BIG 5 checking account - banks are particularly leery about transiting.
11:12 am
October 21, 2016
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SavingIsGood said
Long story short, few days ago he received a letter that Big Bank is closing ALL his accounts (chequing, VISA) due to 'suspicious activity' he performed.
It looks like you are very suspicious person if you have enough cash to buy a house and do not want to be milked forever by Big5. Or am I missing something here????
It is the 'movement' of large amount of money that attracts attention. Money taken out OR money deposited is nothing special. But the 'out' and 'in' he did will definitely attracts attention. Though I'm surprised by what the bank did. OTOH, we do not know ALL the details of your friend.
Your friend should drop by a branch to clarify the situation with a branch manager.
11:17 am
April 7, 2017
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I think the bank should clarify the decision with their client before reacting.
8:17 pm
October 21, 2013
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If there was something "suspicious" going on with my accounts, and I didn't know what it was, I would be alarmed. And I wouldn't be able to get over to the bank fast enough to find out the explanation. If the answer wasn't clear, then I'd be contacting the credit bureaus.
9:22 am
February 18, 2016
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Yes, he could get a draft from Tang but closing was very tight and he trusted CIBC more as he got draft in 5 minutes while Tang delivers to you.
Unfortunately bank does not need to clarify why they do not like you anymore. Read account contract and all small prints.
But money was coming from FI, not from the bag at the branch? I personally move high amounts between Tang and Hubert. What is big deal? I want the best interest...
I believe he should talk with branch manager announcing what is going to happen and ask in writing it is kosher or record his conversation with the phone... Well, he learned lesson in a hard way. He did call provided number explaining and now has to wait few days for final decision.
His only concern is if banks exchange this kind of info, then he might be rejected opening accounts at other FIs.
12:56 pm
April 6, 2013
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SavingIsGood said
…
But money was coming from FI, not from the bag at the branch? I personally move high amounts between Tang and Hubert. What is big deal? I want the best interest...
…
Would your friend remember the financial institution the buyer's cheque was drawn on? Maybe it was the buyer's source of the funds that tainted your friend.
Not all financial institutions are equal, as far as screening for money laundering and terrorist financing.
The money launderers and terrorists know that and have been moving from the big banks, that have diligent screening, to smaller institutions, which may not have as stringent screening.
In Florida, regulators found that The North Dade Community Development Federal Credit Union (five employees, US$3 million assets, around 600 members) had done $2 billion in wire transfers to foreign countries in 2013 alone. 
The fees from those wire transfers were, at one point, 90% the credit union's revenues!
See April 10, 2015 Miami Herald article Regulators shutter Miami Gardens credit union with history of regulatory violations.
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