Withdrawals of above £2,000 in cash or cryptocurrency from NatWest Bank now need advance notice

One of the largest banks in the UK, NatWest, has instituted a new policy requiring clients to provide advance notification for cash withdrawals, including those from cryptocurrency sites, that exceed £2000.

Customers who need “large sums,” defined as £2,000 or more, must give the bank 24 hours’ notice, as stated on the bank’s door.

Customers may be asked to submit an explanation and supporting paperwork about the nature of the transactions they seek to complete, and sufficient “documentation” must be supplied in such circumstances. A valid identification card, a bank card with a PIN, and receipts for any payments made would all suffice as proof of identity.

The notification clarified that giving the bank early notice does not allow the bank to release the funds. The branch may deny the transaction, preventing the client from withdrawing the monies, if it is not “satisfied” with the reason and documents given.

This calls into question the bank’s previous justification, raised in the wake of the Silicon Valley Bank (SVB) collapse, when it questioned whether or not the crypto space was unfairly blamed for the failings of the traditional bank, given that the rationale behind such developments is to “keep customers safe and secure.”

The restriction will affect all customers who use the bank to buy or sell cryptocurrencies on major exchanges and withdraw their funds through traditional banking services.

During the SVB collapse, when NatWest bank set daily limitations on transactions and cited client protection from possible crypto frauds as the justification, the bank came under attention from the media. The bank said the measures were necessary because cybercriminals were increasingly using cryptocurrencies, but subsequent developments have called into question that claim.

Speculation that NatWest is collapsing, with the “crypto justification” as a handy excuse, was helped by the event, which also highlighted worries about the extra scrutiny required on clients who wish to access their cash.

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