PartialLogo
Britain

Syndicate owners feel they're 'being treated like criminals' as intrusive checks impact members

Pontefract paddock: in use for an eight-race card on Sunday
The BHA is pushing for greater transparency on the management and running of syndicates

Syndicates are experiencing "significant impact" from enhanced source of funds checks for owners that are being demanded by Weatherbys Bank, according to the chair of the Racehorse Syndicates Association.

Dan Abraham, who also runs Foxtrot Racing, said owners were being put off joining syndicates due to the demands for financial documentation for as little as a ten per cent share, while owner and professional punter Nick Goff said he felt the process treated him "like some kind of criminal".

A syndicate bank account is a requirement under the BHA's syndicate code of conduct with Weatherbys Bank offering a Multi Owner Account that allowed syndicate managers to open a new account on behalf of their owners and act as the signatory.

However, last year a change in the bank's policy resulted in any new account for syndicates of ten or fewer members, or for anyone who holds at least a ten per cent share in a larger syndicate, having to undergo a full onboarding process.

Goff, who has owned horses for 15 years, publicly questioned the requirements in a series of posts on X after buying a 20 per cent share in a horse for £5,000.

Having provided a receipt for a recent horse sale, which was stated as acceptable proof of funds by Weatherbys Bank on its onboarding questionnaire, Goff said he was told he would have to provide a tax return, or three months' bank statements, which he declined to do.

Goff subsequently provided proof of funds in savings accounts having spoken with Weatherbys Bank prior to doing so, but this was not deemed acceptable either.

Goff said: “I won’t be treated like some kind of criminal, which is how this process has felt so this will be the end of my involvement in buying horses.

“I have offered to relinquish my share in the horse as I don’t wish to cause the other four guys any hassle. Rather than continue with their application with Weatherbys without me...we will continue as a group without a Weatherbys' account. Racing needs to fix this.”

Nick Goff: "One of the things that prevents punters going to the black market is the worry they might not get paid"
Nick Goff: "I won’t be treated like some kind of criminal"

Syndicates turning away from using Weatherbys Bank accounts is potentially damaging for shared ownership at a time when the BHA is pushing for greater transparency around the sector, Abraham said.

“The regulations are having a significant impact on syndicates,” he said. “People feel it’s an unnecessary intrusion and syndicate managers believe it is putting people off joining. I know people are exploring having 9.99 per cent shares and the belief is this would not trigger the checks, but it’s a difficult situation.

“As a sole owner you can have a BHA account and that’s that, but as syndicates we’re trying to encourage transparency and having a syndicate account with Weatherbys is a part of that. 

"What is happening now encourages people not to pay money, for example to Foxtrot Racing, but to pay it to Dan Abraham instead and then I pay it on. That approach doesn’t work well for the transparency at a time when it’s being pushed for.”

A spokesman for Weatherbys Bank said it could not comment on individual cases, adding: “The account opening and due diligence procedures ensure our compliance with regulatory standards which mandate we verify the identity of our clients, their underlying beneficial owners and scrutinise the source of funds to prevent illegal activities such as money laundering.”


Read more:

'It's an insult' - Paddy Brennan blasts new financial rules for syndicate members 

BHA chair Joe Saumarez Smith to step down with immediate effect due to ill health 

New medical guidance recommends patients should be asked about gambling at health check-ups   


Sign up to receive On The Nose, our essential daily newsletter, from the Racing Post. Your unmissable morning feed, direct to your email inbox every morning.

Deputy industry editor

Published on inBritain

Last updated

iconCopy