PENSIONER DOING THE LAUNDRY

15-11-2006

John Mellor on how apensioner in hospital became entangled with thestrange world of money laundering.

From time to time I am called upon to give assistance to a fellow pensioner bemused and lost in modern bureaucracy -she's a very elderly lady who had spent some months in hospital,during which time her sister with whom she lived had died.

The local housingauthority was anxious to re-possess the Council house which had been their home for many years, so theyoffered my friend sheltered accommodation elsewhere. In order to pay her newrents and charges she was told that a bank account was needed.

Easier said than done ! Would she produce adequate means of identification,please. A passport perhaps ? Not possible. The lady has never ever left the West Midlands. How about an account then? Gas andelectricity maybe? No ! The deceased sister had always paid the billsinher own name, so this was refused as evidenceby the bank. How aboutthe old Council rent book? That wasn't eligible either, as it was also inthe sister's name.

Meantime the hospital wished to discharge her, butnew accommodationwould not be made available until payments could be made by a bank. Fortunately a friendly member of the bank staff said he would comeand meet the old lady to make sure she was not engaged in money laundering! But whycouldn't the account just be opened in the simple way ? "Money laundering prevention rules" was the response.

So banks and building societies have to face up to the costs of whatappears to quite un-necesssary regulations. Does any one believe that a serious crook with suitcases filled with cash is going to be caught by these rules?