Users of the newly launched Apple Savings service that was initiated in partnership with Goldman Sachs this April, experienced severe delays in moving or withdrawing their deposits. Some have even struggled to retrieve amounts as high as $100,000 from their accounts, as reported by the Wall Street Journal.
The explanation for these delays appears to be carrying out “security reviews” to make sure the depositors are not involved in criminal money laundering activities. It seems absurd that such banking practices are being implemented, causing inconvenience to customers and generating skepticism around their own service.
One of the primary triggers for a security review is making large deposits into a new account. Apple has been promoting the attractive interest rate of 4.15% on its savings service, encouraging people to deposit large amounts. The fact that the service is recently launched implies that all the accounts are new. The baffling part is that if customers followed Apple’s marketing strategies, they are at risk of being perceived as money launderers, and their funds being frozen.
The nightmare doesn’t stop there. Renowned individuals such as Antonio Sanchez, a Grammy-winning musician, have also been targeted by these security reviews. Sanchez had $100,000 in funds frozen, intended for a down payment on a house, compelling him to borrow money from his mother-in-law. For the average customer, not having the notoriety of a Grammy winner, there is less chance of fair treatment. The only solution seemed to be getting the Wall Street Journal to contact Goldman Sachs about the issue, a solution most people cannot access.
Goldman Sachs has a history of struggling to provide services to smaller customers as it is not a retail-focused bank. This incident also highlights the shift in traditional banking away from meaningful customer service and its adoption of increasingly automated and often hostile approaches towards retail depositors.
The problem worsens as the opaque anti-money laundering protocols seem to have control over every bank deposit in the United States. Any suspicious activity, even as mundane as opening a bank account and depositing money in it, could lead to funds being frozen for an indefinite period without any explanation.
In conclusion, as we delve further into the future of technology, we must question whether traditional banks are serving their customers effectively, especially when they have the power to freeze funds without any appropriate explanation or transparency. If banks fail to provide genuine customer service and maintain unbiased protocols, the question then arises – do people truly possess control over their own money?
Source: Coindesk
