LONDON – Barclays should no longer facilitate trades in cash. That’s the conclusion of the Barclays internal ethical commission. This doesn’t mean Barclays will shut down its ATMs immediately.
The opinion of the committee, which dates from earlier this month, is that there are serious objections to the continued use of cash. Because there is no supervision of the government, it can be used for criminal activities such as money laundering, trade in child pornography, drugs and other illegal contraband. The committee strongly advises to increase the risk profile of customers that make cash withdrawals. It is unclear what the effect will be on Barclays customers.
A spokesman for Barclays said that the opinion is unrelated to their ATMs being “out of order” last week. At the time some customers were informed the ATMs were shut down after the ethical commission reached their conclusions, but the spokesman denied any possible relation between both events.
According to a document the Coinion obtained through whistleblower organisation coinleaks Barclays reached its monthly cash allowance at the Bank of England after failure to comply with Anti Libor Manipulation provisions. Only after personal delivery of Commonwealth Office legalised copies of birth certificates by all employees with powers of attorney the cash drawing rights were reinstated to their previous levels and could the ATMs be supplied. Initial failure to obtain apostille stamps on both sides of the documents caused much delay.
It is still unclear what the consequences are of the conclusions of the ethical commission and what “no longer facilitate trades in cash” actually means. It could mean the complete shutdown of Barclays ATM network, as ATMs facilitate cash trades. According to the spokesman that’s not the case. “It is more about people who want to borrow money to withdraw cash”, he said.
In his view the conclusions of the ethical commission are not binding for the bank, how this is going to develop is still unclear.
“Sometimes policies change, but you can’t infer what we are going to do with cash in the future. Even the First Lord of the Treasury does not know how to deal with cash anymore.”
At the same time the conclusions of the ethical commission can lead to policy changes. An earlier conclusion by the committee that companies issuing gift cards should be scrutinised before they can become a customer has become standard policy. All in all it is not clear how Barclays is going to deal with this. Currently the Bank of England is investigating the dangers of cash, according to the BBC.
submitted by dugo