Bank Closed My Account for Suspicious Activity | Banking

In this article, we’re going to look at a common problem: The bank closed my account for suspicious activity.

Unfortunately, account closures for suspicious activity are happening more frequently, this is partly due to an overreliance on algorithmic compliance systems.

But, it’s also due to people not knowing which activities make them more likely to have an account closed.

Before diving in, it’s important to note that already having a backup account before your bank account is closed is critical to protecting your money. Otherwise, it could take a much longer time to actually regain access to your funds.

With this in mind, you can get free access to one of our most popular articles that outlines how to get an international bank account by clicking here right now.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. Bank Closed My Account for Suspicious Activity
  2. What Happens if My Bank Account Is Closed Due to Suspicious Activity?
  3. Frequently Asked Questions
  4. Ready to Explore Your Options?

Bank Closed My Account for Suspicious Activity

When a bank closes your account for suspicious activity, this may indicate that you recently sent or received a transaction that did not comply with their terms of service. If this is the case, it is unlikely that the bank will reopen your account. Instead, you will need to choose a new one and then transfer your remaining funds to this new account.

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What Happens if My Bank Account Is Closed Due to Suspicious Activity?

If your bank account is closed due to suspicious activity, you will not be able to reopen the account. Instead, the bank will give you a timeframe in which the funds will need to be withdrawn. In most cases, in order for the funds to be withdrawn, you will need to send a transfer from the now-closed bank account to another bank account under the same name.

Given the frequency of bank account closures, this highlights the importance of having a backup account. This is especially true if the suspicious activity is related to negative stories in the public domain or your name appearing in databases used by banks. Otherwise, if you do not already have a backup bank account it may prove very difficult to open a new account after closures begin.

Frequently Asked Questions

Below are two of the most common questions we receive from people who have had their bank close their account for suspicious activity. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

Should I Be Worried if the Bank Closed My Account?

If a bank closed your account, you do not necessarily need to be worried. Instead, you should reflect on the potential reasons why they closed your account. Then, you can try to decide how to avoid the behavior that triggered the closure in the future. Unfortunately, in almost all cases, banks will not tell you why an account is being closed. But if you have a cordial conversation with the banker to discuss the account closure process, you may receive some feedback on the reasons why.

Can You Open a New Bank Account if Your Account Is Closed?

Yes, you can open a new bank account if your account is closed. That said, the new account will need to be at a different bank. Of course, if you decided to voluntarily close the account, you can apply to reopen at the same bank. However, if the account was closed for compliance-related reasons, you will not be able to open there again.

How Long Can a Bank Legally Freeze Your Account for Suspicious Activity?

The length of time that a bank can legally freeze your account for suspicious activity depends on the country where the account is located. For example, in the United Kingdom, banks and building societies are allowed to legally freeze your account for up to two years while investigations are being completed.

Ready to Explore Your Options?

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Of course, if you have any questions, please contact us directly.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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