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A&L rejects centenarian&#39s cash

An IFA has hit out at the inflexibility of the FSA&#39s money laundering rules after a 101-year-old client&#39s £170,000 investment in a two-year fixed-rate bond with the Alliance & Leicester was refused.

Croydon IFA Dennis Munday says centenarian Phyllis Grogan had her application turned down because of insufficient identification.

Mrs Grogan&#39s nephew, a senior partner of Streeter Marshall solicitors, to which Munday is attached, had instructed Munday to invest the money from his aunt&#39s maturing building society account into A&L.

Mrs Grogan no longer has a valid passport or driving licence and the bank was not satisfied with the documents provided, which included copies of a utility bill, a communication from the Inland Revenue, a national identity card, a letter from the benefits agency, a bank-issued tax letter and a P60 in respect of her pension.

Munday says: “Alliance & Leicester refused to accept the documents we gave them even though we, as Mrs Grogan&#39s solicitors, had certified them as a true copy of the original. This is surely bureaucracy gone mad.”

Alliance & Leicester press manager Peter Brown says: “Our staff do have to see and stamp the original documents to say they have seen them under the money laundering rules.”

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