Bank Fraud Landmark: TSB Repays Victim and Admits Giving Criminal a Bank Account

By Amelia Murray

The Telegraph speaks with Cliff Moyce, Global Head of the Finance Practice at DataArt, about the TSB incident, where the bank opened an account for a criminal. Moyce highlights the banks’ liability to the regulator for failure to exercise due diligence when opening bank accounts and suggests a regulator-centered path to customer compensation.

“Cliff Moyce, head of finance practice at global technology consultancy DataArt said banks have a responsibility to operate good "Know Your Client" when creating accounts.

If they fail, their immediate liability is with the regulator rather than customers. Banks can be fined and customers can be given compensation as part of the regulatory action. He added that banks also have discretion to recompense customers.

Mr. Moyce said there always has been and always will be bank accounts operated by criminals for nefarious reasons and it would be ‘unrealistic’ to ever expect the number of fraudulent accounts to be reduced to zero.”

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