Major Bank Demands Customers Prove Withdrawals Are Valid, Warns Cash Can Be Refused At Will

NatWest Group PC NWG, a U.K.-based bank, is asking its customers to explain why they're withdrawing their cash. 

According to its website, the bank explained that it is taking measures to protect its clients from scams. NatWest said that, if it finds the customer's response to its question about the cash withdrawal unsatisfactory, it will ask them to provide supporting documentation.

"Our primary aim is to keep customers safe and secure, and our branches follow our processes carefully to achieve this. This will include asking you questions about the purpose of your cash withdrawal, and in some cases, for supporting documentation such as an invoice. This helps us validate the withdrawal as genuine and protect you against fraud and scams," the bank said on its site. 

The bank added that it will block customers from withdrawing cash if it believes there's an issue.

Also Read: Cramer Says Banking Stocks Turmoil Looks Like 'Train Wreck' For Wall Street — But Market Won't Be Destroyed If Debt Ceiling Crisis Is Resolved

"In some instances, we may decline the cash withdrawal based on the information provided surrounding the transaction. This would only ever be in situations where we need to safeguard our customers," the bank said.

Last week, on Stansberry Research's "The Daniela Cambone Show," macro guru and hedge fund manager Hugh Hendry said that the Federal Reserve's monetary policy has increased the probability that banking customers could one day face restrictions on the amount of cash they can withdraw in the U.S.

Hendry said that the country's banking industry will likely witness a further deposit flight since customers can now easily pull out their funds with a button.

"A combination of being stuck with these uncompetitive rates and now the tyranny that money can fly so quickly … The thing that's pulling money out is the Fed's offering too much via money markets. I mean, you could go to the Fed directly," he said. 

Now Read: Bill Ackman Warns No Regional Bank Can Survive Current Crisis: 'Running Out Of Time To Fix The Problem'

Photo: Shutterstock