Frozen account - the money is there, but you cannot use it

A frozen account is a situation in which the bank has restricted access to funds. The money has not disappeared — it is in the account — but it cannot be withdrawn or transferred. The reasons vary: compliance procedures triggered by an atypical transaction, a regulator’s request, sanctions screening, a court order or interim measure, suspected fraud.

The first thing to do is find out the grounds in writing. Everything depends on the reason: a compliance request is resolved by providing documents, a sanctions block requires legal work, a court-ordered one requires an appeal. Rash actions — panicked transfers, trying to close the account, emotional correspondence — usually make things worse.

Practice shows that the speed and completeness of the response to the bank’s request affect the outcome more than anything else. A client who provides contracts, statements and an explanation of the source of funds within a few days most often gets the account unblocked. One who responds a month later and in parts risks having the account closed. Hence a simple rule: keep a dossier on your capital ready and have at least two accounts with different institutions.