Help! Swyftx Decided to Close My Account Because of Compliance Reasons!

LAnupPatel on 21/07/2021 - 13:43

Hello everyone,

I have receive an email stating that my Swyftx account has now been closed as a security measure because I was unable to complete one of the KYC verification processes. So, I asked for the resolution of this matter and they are saying that they can not be of further assistance with this one. I tried live chat of their website to solve the issue but I am keep getting this same answer: This account has been closed for compliance reasons. If you have an AUD deposit that is held you can request a refund via your bank. This correspondence is final regarding this matter.

I have sent an email and they said that the issue at hand here is that there have been three different KYC 1 submissions made from your account - each submission contained a different individual and their respective ID. This composes a large compliance risk to us, given we are governed by AUSTRAC and thus, we have had to close the account for that reason. I apologise for the inconvenience however, I am not able to assist you further with this matter.

I have tried to submit my Australian License each time and it rejected my verification three times. To me it looks like the Glitch in the software or something.

Now Swyftx is neglecting me and not even helping to me to request a call to solve this. I have $550 in my account and $250 invested in crypto. and they are saying that I will have to request a refund via your bank.

This is the most ridiculous thing I ever come across

So what can I do?
Thank you for your help in advance.

Financial Cryptocurrency

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Comments

  • Ash-Say on 21/07/2021 - 13:59

    AFCA complaint?

    • AnupPatel on 21/07/2021 - 14:28

      I dont know if I can make an AFCA complaint on account closure due to verification fail?

      • cloudy on 21/07/2021 - 14:32
        +4

        Yea don’t waste anyone’s time

      • Pvpaul5 on 13/10/2021 - 05:22

        Hi
        Did you complaint in AFCA? What is the result.

        • rektrading on 13/10/2021 - 09:51

          The AFCA doesn't deal with complaints about digital assets.

          • Pvpaul5 on 14/10/2021 - 19:46

            @rektrading: Where I have to contact issue with crypto exchange

  • Baysew on 21/07/2021 - 14:18
    +3

    So what can I do?

    Request a refund via your bank.

    • AnupPatel on 21/07/2021 - 14:35

      I have sent money to my Swyftx account on multiple instances. It was three different transaction during last couple of months. I have never requested a refund via bank before, So how should I approach to bank?

      • Kail on 21/07/2021 - 20:04

        Honestly I'd print out the details (money sent in, Swyftx's refusal to give you access, and where they explicitly told you to get the bank to refund) and walk into a bank branch for this. Hopefully they can sort it out for you, that'd be the easiest route I should think.

        • Cheer on 22/07/2021 - 13:06
          +1

          The sad thing is the OP will lose all their profits as a result. I wonder how many positions swyftx have that are unhedged.

          You can only chargeback the amount you put in.

          • Kail on 22/07/2021 - 18:40

            @Cheer: Yeah, that sucks. It's better than nothing though, it doesn't sound like Swyftx are playing ball.
            I'd just try to get out as quickly and painlessly as possible as this point.

  • jar-unit on 21/07/2021 - 14:37

    Call them out via social media explaining what they have done? I use Binance - have had no issues with them and instant transfer from my Austraian Bank account without any fees

  • AdosHouse on 21/07/2021 - 14:51
    -2

    KYC forms are normally only required when there is a transaction of >$10k or there is a suspicious matter. With such a small amount in your account it may be possible that someone else has got your login details and is using your account?

    You say the email from them states that the three times you submitted your drivers license that they think it is 3 different licenses and three different people, well that would be very strange. Did you submit your license via an online form or via email?

    And companies like this take AUSTRAC very seriously. One (profanity) up could close a business. Even a bank like CBA isn't immune to them.

    • netjock on 21/07/2021 - 15:01

      KYC forms are normally only required when there is a transaction of >$10k or there is a suspicious matter.

      $10k plus is must report to AUSTRAC, you can get reported for less if it is suspicious small transactions.

      KYC and AML needs to be done on account opening. Otherwise it can be Mr Drug Lord or Mr Bomber Man opening an account then doing $100 transactions every second to 10,000 different accounts.

      I joined a financial institution or two that got caught up in all this but not fortunate enough to join the one that advised buying a BMW is an appreciating asset.

      • AdosHouse on 21/07/2021 - 15:49

        …..you mean BWMs aren't an appreciating asset?

        I know accounts need to collect ID to join, but I've never heard of AML/CTF paperwork being done at account opening, but then again I don't trade.

        • netjock on 21/07/2021 - 15:57

          Nobody tells you they are doing KYC (+AML / CTF), they train you not to tip off.

          They could open your account and report you soon as you leave.

          But then wild west of the online world. They just close your account when they feel the heat from the regulators.

  • netjock on 21/07/2021 - 15:02

    Wild west of crypto markets. Enough said.

  • rektrading on 21/07/2021 - 15:34

    Traditional banks are seeing digital assets as a threat to their profits. They've called their elected official friends to make it as difficult as possible to convert fiat to digital assets.

    Today's amendments will ensure full traceability of crypto-asset transfers, such as Bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing. In addition, anonymous crypto asset wallets will be prohibited, fully applying EU AML/CFT rules to the crypto sector.
    https://ec.europa.eu/commission/presscorner/detail/en/ip_21_…

    Buy the assets, transfer them off the exchange ASAP and keep changing wallets to protect your privacy.

    Privacy is a human right. People are born with this right. It's not something any government can give to their citizens.

    • petry on 21/07/2021 - 15:53

      No one has any right to privacy anymore in oz cept who America allows - its gone.

      Funny how people demand privacy when crypto is involved.

    • netjock on 21/07/2021 - 16:04

      Yes, the ATO called. They don't want you to pay capital gains tax on your crypto profits anymore, that is why they want to banning it too.

      You have no idea how traditional banks work. In a nutshell. They take the money you have on deposit earning 0% and lend it out at 2.5% on mortgages and try not to lose money when they foreclose. You don't seriously think banks, their shareholders and employees put up all the money required to lend for mortgages do you? (if they did they'd be a lot more careful but they don't).

      A few of the large investment / custodian banks have crypto divisions making money off it.

      If you want to believe in the conspiracy then yeah sure.

    • Baysew on 22/07/2021 - 12:21

      The issue isn't with a "Traditional bank" , it's with a Cyrpto Exchange, which has closed the OP's account and refuses to help them further.

      • rektrading on 22/07/2021 - 13:05

        they said that the issue at hand here is that there have been three different KYC 1 submissions made from your account - each submission contained a different individual and their respective ID.

        I don't blame them. All sorts of flags would've gone off after the user failed KYC three times. The user is lucky that the CEX hasn't reported them to the police for suspected ID fraud.

  • Farrba on 21/07/2021 - 15:36
    -3

    isnt medicare number enough.

  • Cheer on 22/07/2021 - 12:57
    • each submission contained a different individual and their respective ID. This composes a large compliance risk to us, given we are governed by AUSTRAC and thus, we have had to close the account for that reason. I apologise for the inconvenience however, I am not able to assist you further with this matter.

    Sounds like a load of BS, maybe you should tell them to provide those 3 IDs to you for personal inspection (which by their standards should alright as they should be your fake IDs, if that were true.). I suspect it is more likely their ID database was breached and they have intermingled client's IDs as a result.

    In other words, either they have been breached by hackers or they have some internal employee that has gone in and played around with it. Either way, I would recommend you get a monthly subscription for your credit file as you will most likely be suffering some theft soon.

  • Cheer on 22/07/2021 - 13:08

    No shit, if you look at all the swyftx reviews, they are all of depositors. Where are the withdrawal reviews?

    Is now a good time to be withdrawing when a bear market could be happening? See Voskcoin's youtube channel.

    What happens when all their customers start running for the exits, maybe this was just a scam?

    Not your keys, not your coins.

  • baso on 19/11/2021 - 20:52

    Hey Mate,
    can you please tell me what happened in the end? swyft just disabled my account and i cannot access it anymore. i have sent multiple emails and online chat but so far no help. i had quite alot of money in the account and they are saying go to bank.
    can you please tell me what happened with you? did you end up getting any money back?
    thanks

    • AnupPatel on 23/11/2021 - 10:45

      Hi mate,

      In my case there was a problem in their system and apparently there were three different person's KYC done under my account due to some technical glitch and that is why it was looking fishy to them.

      So I kept trying to chat and email them regarding this and they found out the problem and they gave me my access back.

      I dont know how getting the money through bank will work.

  • haadichangezi on 04/01/2023 - 12:38

    Hey Mates,

    I am facing the same problem. Swyftx has disabled my account. can you please guide me how to proceed further?

    @AnupPatel @baso

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