If you’re looking to understand how long can a bank legally freeze your account in the UK, you’re in the right place.
In this article, we’ll share the specific timeframe UK banks and building societies can freeze accounts along with important nuances.
In fact, the information below will also apply to banks in other jurisdictions as well, like banks in Malta, Cyprus, the Isle of Man, and the Channel Islands.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How long Can a Bank Legally Freeze Your Account?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
How long Can a Bank Legally Freeze Your Account?
In the United Kingdom, a bank or building society can legally freeze your account for two years while investigations are being carried out under the Proceeds of Crime Act (POCA 2002) as amended under the Criminal Finance Act (2017).
For your reference, freezing an account under these two acts is intended to allow law enforcement to recover funds that are attributed to criminal activity, tax evasion, money laundering, corruption, and the financing of terrorism.
On the other hand, there are many other instances where transactions may be investigated, accounts may be under review, and where transactions may require supporting information.
In such instances, issues related to the account or transaction are usually resolved within a couple of days or a couple of weeks.
Alternatively, accounts may be frozen for reasons related to the account holder. Examples of these instances include active court cases, watch lists, or other conditions that go against bank policy. Not surprisingly, many of these instances result in an account being frozen.
When an account is frozen or closed for reasons related to the account holder, the bank will usually provide a fixed timeframe for funds to be transferred elsewhere. In such instances, funds must be transferred to a bank in the name of the account holder. This is just one of the reasons why having a backup account is so important.
Alternatively, if you’re looking to bank in the UK and are curious about the types of UK accounts available, including how to open a money market account in the UK, you can use this link to help you get started.
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Frequently Asked Questions
Below are two of the most common questions we receive from people looking for information about account freezes. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Are Your Rights If Your Bank Account Is Frozen?
Account freezes are often the result of a formal process. Therefore, the rights of the account holder will vary depending on the variables of the case. This includes but is not limited to, jurisdiction, the reason for freezing, and the bank’s internal policies and process.
Alternatively, if transactions have been frozen, the situation may be easier to resolve. For example, this might include confirming specific information or providing supporting documents. This is much easier to navigate than an investigation by law enforcement.
How Long Can a Bank Keep an Account Frozen?
A bank can keep your account frozen for up to two years in the United Kingdom. During this time investigations may be carried out related to money laundering, criminal activity, tax evasion, corruption, and other offenses.
Do You Want Help Opening Bank Accounts?
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