ISA law for bank workers

[Hectar]

Does anyone know whether it is fraudulent for a bank worker to open an isa in their own name but with someone elses money for that person?

IE: A daughter who works for a bank uses her father's money to open an isa for him, but in her name.

I ask this with regard to such an incident wherein the said money has gone missing after the father's death and the daughter is refusing to account for the money and claims the isa was closed down, but, the isa is still showing as open as far as the will is concerned.

If she admits to using the money after closing the isa down herself and then agrees to pay the money back is there any redress for fraud and if so how can this be addressed and reported to the bank she works for or any other bank that may have taken her on or intend to do so in the future?

[natweststaffmember]

Re: ISA law for bank workers

Does anyone know whether it is fraudulent for a bank worker to open an isa in their own name but with someone elses money for that person?
If they are the person who specifically opened the ISA in their name, ie they were the account opener then it may well be contrary to bank procedures and disciplinary. However, it is not unlawful for them to open an account a present a cheque/cash in the name of themselves to the bank. Furthermore, and I have read the rest of the post, if the money was a "gift", the estate might be governed by tax rules and she would have to pay tax on that(I have to say I don't know the rules on this though).
IE: A daughter who works for a bank uses her father's money to open an isa for him, but in her name.

I ask this with regard to such an incident wherein the said money has gone missing after the father's death and the daughter is refusing to account for the money and claims the isa was closed down, but, the isa is still showing as open as far as the will is concerned.
Have you asked her to provide documentation that the ISA is closed? If not how do you know it is open?
If she admits to using the money after closing the isa down herself and then agrees to pay the money back is there any redress for fraud and if so how can this be addressed and reported to the bank she works for or any other bank that may have taken her on or intend to do so in the future?

You have to prove that the daughter had an agreement with the father because if not then you are possibly in for a rocky ride. I am gonna ask Cetelco to have a quick look here and give an opinion based on the post and the law.

[Guest]

Re: ISA law for bank workers

Private individuals such as family members are permitted to act for each other in this way and frequently do. There is nothing fraudulent about holding money in accounts on behalf of others, or in named accounts, even if that name differs from that of the owner or provider of the money. However, as above it may be that bank employees should disclose any such dealings to their employers or further, it may be that they are expressly forbidden from doing so by the terms of their employment. A breach of employment terms however, may not constitute fraud.

Fraud is a criminal offence. If you believe a fraud has been committed you must report it to the police and let them conduct an investigation.

Specifically, how has the money "gone missing"?

[Hectar]

Re: ISA law for bank workers

For example: The father was unaware that the isa had been closed as it was part of the will and hence, the money in it was part of the estate. When repeatedly asked about the isa the daughter claimed it had been closed down and refused to account for the movements of the money. An existing letter admitting that she opened this isa in her name with his money is available.

On repeated requests from the executors the daughter finally admits that the money was used for expenses for the father, whom she visited very rarely in the care home he lived because the estate is now being finalised and no money can be paid out until this isa money has been accounted for. She agrees to pay part of the money back but withold obvious bogus expenses. (bogus because the daughter who looked after him knows everything that went on in the home concerning her father with respects to his clothes and personal care along with his finances and the very rare logged visits to the home by other family members) The isa daughter makes it very clear to the executors that she will not give permission for her bank account to be inspected.

[natweststaffmember]

Re: ISA law for bank workers

If the daughter can account for that half that cannot be repaid then I would say it is the end of the matter, ie if she states it was for miscellaneous items to the value of x amount and can provide reasonable proof of it then the matter is closed. Can I ask why it is preventing the estate going forward? Is the ISA issued notorised?

[Hectar]

Re: ISA law for bank workers

Without going into more complicated detail my original question was:

Does it contravene banking codes of practice for a bank worker to open an isa in their name using another's money for whatever purpose?
This is all I need to know.

[Hectar]

Re: ISA law for bank workers

Thank you for your replies. The former employer in question has been contacted over this matter and they are not at all happy about it.

No further replies are necessary.:closed_2: