Now HSBC joins banks that say you can’t pay in cash for someone else

HSBC is the latest High Street bank to stop accepting cash payments into personal bank and savings accounts from ‘third parties’.

It means married couples are no longer able to top up each other’s accounts at the bank’s branches. It also prevents customers from paying cash into friends’ accounts.

Cheque deposits from third parties are still permitted while, unlike some rivals, the bank will still allow grandparents – or aunts and uncles – to put cash into grandchildren’s accounts.

People who manage an account on behalf of someone through a power of attorney will not be affected by the crackdown.

HSBC introduced the new rule earlier this month, explaining in branch literature its aim was to tackle financial crime – in particular ‘money laundering’ where accounts are increasingly being used to move the proceeds of crime. It represents a volte-face for the bank which earlier this year told consumer organisation Which? it ‘had robust processes in place to detect and prevent fraudulent cash deposits’.

On Friday, it said that ‘like others in the industry, we have had to make changes to address the risk’.

It added: ‘Addressing financial crime and protecting our customers from it is an absolute priority.’ Although the bank says branches have been informed of the clampdown, staff in Kensington, West London, seemed unsure late last week of the reasons behind the move.

The leaflet handed out also failed to explain that third party cheques are still accepted.