First the migrants, now the bank accounts! What will SavingGlobal’s new system do to Britain’s financial system?

At a time at which migration from the Middle East and certain regions across Africa by vast numbers of people to Europe is accelerating, the mainstream media awash with images of people crammed onto boats crossing the Mediterranean sea, running across borders, sleeping in tents and crowding train stations in Hungary, Germany, France, Holland and, […]

At a time at which migration from the Middle East and certain regions across Africa by vast numbers of people to Europe is accelerating, the mainstream media awash with images of people crammed onto boats crossing the Mediterranean sea, running across borders, sleeping in tents and crowding train stations in Hungary, Germany, France, Holland and, very shortly if David Cameron’s dramatic u-turn is upheld, Britain, the demographic landscape of Western Europe is set to face further rapid change.

Today, however, it was announced that a digital platform from, of all places, Germany, is about to make its way across the border to the island nation, serving British residents and citizens with a facility to open bank accounts all across continental Europe without having to visit branches, and without even having to leave their seat, promising that it will search for the best rates for savings accounts.

Capture

This latest development in financial technology, which is called SavingGlobal – or Weltsparen in German – may appear to be yet another addition to the technologically advanced, easy-life and avantgarde approach which the financial sector in Britain has adopted, however, is the functionality of the platform about to become its own achilles heel?

Since 1997, the number of migrants from the Middle East, Indian Subcontinent, North Africa and Eastern Europe into Britain has rocketed, ignited by Andrew Neather, a former adviser to Labour leader and ex-Prime Minister Tony Blair, and his senior Labour party cabinet ministers Jack Straw and hard-line socialist David Blunkett, in order to change the entire demographic of the nation as a social engineering exercise.

This led to an increase in the use of cross border FX payment systems such as Western Union, to wire salaries earned in Britain to friends and relatives in the nations which new arrivals to Britain had left.

The use of Western Union to perform transfers of currency is innocuous and harmless, as the customer withdraws from his or her British bank account in Pounds, visits a local Western Union branch, and pays a commission to wire the funds to a specific recipient. There is very little risk of flouting any anti-money laundering rules, or heaven forbid, any anti-terrorist funding rules, as these amounts are often relatively small, and no bank account transfers are possible.

Dispelling any probability that an individual who has just arrived with no documentation, no legal entry to the UK and no means of financial independence, from, for example Syria or Iraq, could access the SavingGlobal platform online, and then fund bank accounts across Europe, which are then able to be operated overseas, FinanceFeeds spoke today to Nadja Hirsch, Head of Communications at SavingGlobal, who clarified this matter by stating that “There will be a full identification process in accordance to EU law and additional there will be the need of a reference account in the EU. The same procedure is already established for our German customers.”

In Germany, SavingGlobal’s country of origin, the system is already up and running, and allows savings accounts with customer balance protection of up to 100,000 euros, therefore demonstrating that it is able to provide access to accounts in major banks with large deposit amounts.

Once a customer living in one country establishes a bank account in another, under the banking rules of many European countries, a power of attorney could then be sent by mail to an individual living in that country who can then be added as a second signatory on that bank account and there you have it, a seemingly clean way to launder money across Europe.

Just yesterday, Jean Claude Juncker, President of the European Commission, announced that he wants 120,000 migrants – mainly from Syria, a bankrupt and corrupt nation which has been in a state of anarchy and violence since 2012 at the hands of its own people – to be permanently settled in EU nations.

SavingGlobal may be entering Britain at a time of economic boom and financial technology revolution, however it may be mindful to check how many of the 20,000 anticipated new arrivals to Britain will become very willing customers.

Read this next

Executive Moves

Finalto recruits Antony Parsons as head of liquidity

Finalto, the financial trading division of Gopher Investments, is making a broader push into the liquidity provision space, culminating in a new appointment focused on expanding the business into new markets.

Digital Assets

Huobi introduces Tether’s stablecoins pegged to euro, gold

Huobi, the world’s sixth-largest crypto exchange by trading volume, is set to introduce for its clients two stablecoins representing ownership of physical gold and Euro-pegged tokens.

Retail FX

Saxo Bank reports lackluster volumes for November; FX up 40% YoY

FX trading volumes through Saxo Bank’s platforms improved slightly in November, extending its volatile curve as investors continued to weigh central banks’ policy against concerns over a global economic slowdown.

Executive Moves

CMC Markets taps Finalto’s Julia Free to head UK compliance

CMC Markets PLC (LSE:CMCX) has onboarded Julia Free as its newest head of UK compliance as part of a broader organizational reshuffling at the UK’s biggest spread better.

Digital Assets

Ankr successfully patches hack, will reimburse victims and take actions to prevent further attacks

DeFi protocol Ankr plans to reimburse its affected users after a hacker managed to exploit a bug in its code that allowed for unlimited minting of its liquid staking token.

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

<