The money laundering aspect has already been touched on, however, your problem *may* possibly stem from your customers (not you) depositing cash in to your account (if this scenario applies to you). Banks are supposed to know their customers and I've seen first hand where a professional business woman had a number of accounts closed due to chunky cash deposits being paid into some of her accounts (which were a mixture of business/personal). She was queried about it by the bank, who were not satisfied with her explanation and who after giving notice, subsequently closed all of her accounts at the same time. The reasons cited where to do with money laundering concerns and the cash deposits being made into her accounts by unknown persons.

For clarification;

1.  I believe the deposits related to different amounts paid in from a few hundred up to a maximum of ?5,000.00. (I think ?5K as a cash deposit is a red flag anyway).

2. Due to being unaware that someone was paying money into her account (the client failed to notify her in advance or put a reference on the cash deposit). She was unable to confirm with any certainty who made the deposit.

3. If you have a personal account and are treating it as a business account (and the bank are unaware that you are running a business/self employed). All the transactions into the account may look suspicious to the bank if they only expect to see wages/benefits paid into it.

Actually this is right if you have a lot of different people banking money into your business account and its all cash the bank looks at this as suspicious as its not done by online banking or a debit. I knew of an escort agency that had all the fees paid into her bank by the women and all in cash she got questioned on it they decided to close her bank down and the owner had further trouble by authorities at a later date. If you own a fish n chip shop and its just you banking cash that's fine but the other situation is not normal if multiple people are banking money and all in cash.

Actually this is right if you have a lot of different people banking money into your business account and its all cash the bank looks at this as suspicious as its not done by online banking or a debit. I knew of an escort agency that had all the fees paid into her bank by the women and all in cash she got questioned on it they decided to close her bank down and the owner had further trouble by authorities at a later date. If you own a fish n chip shop and its just you banking cash that's fine but the other situation is not normal if multiple people are banking money and all in cash.

I agree with what you said above. Internet banking, cheques, etc. leave a paper trail so if need be the bank can easily work out where the money came from. As cash is anonymous, too much of it from an unknown source as well as any unusual banking patterns tends to bother them.

I meant to mention in my original post but forgot so I'll just stick it here; the bank also expressed a general concern about international transfers of money (incoming or outgoing) in case it related to the funding of terrorism. Post 9/11, the government massively clamped down on the banks for allowing money to be collected and transferred in relationship to terrorist activities. The lady in question was able to explain and provide proof of what the international funds transfer was for, so in this particular instance, they were happy with that explanation but the banks do have a list of countries/organisations on a 'watch' list and if any money comes in from those countries (or is being forwarded to those countries) the bank will query it. If someone has a client based say in the UAE, and he sends money over and especially if it comes via a 'forwarding bank' (e.g. your bank which is bank A, sends money to bank B, who then forward it on to account of bank C, which is the intended recipient account), then that too might raise eyebrows at the bank and raise a red flag.

It would be interesting to hear from the original poster as to the reasons the bank put forward for closing the account.

I spent a short time working in banking and I suspect the most likely reason is that a personal account is being deemed as being used as a business account. There are algorithms for checking movement of funds in and out of accounts and cash deposits of varying amounts in a 'haphazard' fashion might well flag for investigation. I did on occasion see accounts which were clearly prostitute's accounts, but the profession is not illegal and it was certainly none of my business to investigate.

Two obvious choices 1) are to set up a business account. There will be a general term you can use for your job if you are not comfortable with letting them know exactly what you are doping. 2) Collect or your cash and deposit as a wage or salary on one day per week or month.

Yes it would be good if the OP contributed some more, since she's been online and other people have put time and effort into responding.

Whilst I can understand it may be an individual banks policy that sole traders are not permitted to use an ordinary current account for depositing their takings (understandable, since they make an inordinate amount of money from business accounts), it's not a legal requirement and IMO it should be stated in the account terms and conditions - I don't think I've ever spotted it in any of mine when I've opened accounts?

If they'd really rather lose a customer who in future might use other products of theirs which do cost us/make them money than have people just get on with their banking then that's up to them, but if it ought to be clear. And then people can go elsewhere .

 take all the money out  close that  account and place it all with another bank . I use more than one bank account, the money  goes into different ones( Nat west Barclays)   no one questions it I've done that for years before escorting .
You don't need the hassle or to be stressed out uneccesarrily

I'm with the HSBC, I have two current accounts.  Both personal accounts not business.  1 used for personal, 1 used for business.  My bank know I use it for business, they think I am a Masseusse legit lol.  I even have credit card payments from my card reader paid in regularly.  My weekly wages are paid in one large chunk each week in cash by myself.  I have had a few issues with being paid in fake notes.  Which the bank helped me with paperwork for my accountant.  Still not an issue.

I have even had a lengthy compliance investigation with HMRC which my bank complied with.  Never have they questioned my account.  I did ask them if I needed a seperate business account and they said it was not necessary.

My accountant doesn't like me doing this, he wants a business account.  But seeing as having a business account only costs me money and doesn't offer me any privacy with my personal account from HMRC, I just don't see the benefit.

But my bank also see me paying my tax each month, so maybe that's why I been left alone as they know I paying taxes.

Hi ladies im after some advise please. Has anyone else been affected by banks just suddenly closing the account? I understand that some banks don't accept our line of work so stop us from being able to use their services. What im asking is does anyone know of any banks that are not small minded and allow us to use their services? XXX

Not me but my friend has had bank accounts closed (personal accounts) and was refused a business account because her occupation was "dancer" on her tax returns. They suspected her of doing sex work and she hasn't been able to open any high street bank accounts. She was offered compensation by one but they refused to give her an account. They flagged her up for making too many cash deposits. I don't think she was depositing excessive amount. I have been with the same bank for years have made regular cash deposits. I have never been questioned were my money comes from. But I'm older than her and look quite plain when I'm not working so maybe they just wouldn't suspect me of being involved in sex work.