In this article, we’ll be explaining how to remove a hold on a bank account.
Importantly, if you have a hold on a bank account now, you should consider opening a backup account for the future.
Backup accounts ensure that you can continue to send and receive money and no single bank is able to cut off access to your funds.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Remove a Hold on Bank Account
- What Happens When a Bank Puts a Hold on Your Account?
- Frequently Asked Questions
- Ready to Explore Your Options?
How to Remove a Hold On Bank Account
To remove a hold on a bank account, account holders may need to provide information related to the account or a recent transaction. Information relating to recent transactions often includes supporting documentation and related party information. That said, banks may request a wide range of documents depending on the nature of the investigation.
With this in mind, having a least one backup account is an essential part of anyone’s financial life as it can ensure that you always have access to your money. Additionally, if after an investigation a bank does decide to close your account, it’s important that you have another account in your name so you can receive a transfer from the account that is being closed.
In the next section, we’ll discuss what happens when a bank puts a hold on your account and answer some of the most frequently asked questions on the topic.
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What Happens When a Bank Puts a Hold on Your Account?
When a bank puts a hold on your account, the account will still be active and the funds will remain on deposit. However, it suggests that the bank is conducting an investigation related to your account.
In most cases, investigations are triggered by irregular transaction activity, such as high-value or volume transactions, or sending and receiving money from high-risk countries or third parties.
Restrictions on Bank Accounts
When an account has been opened for an extended period of time, restrictions typically involve placing a hold on outgoing transactions. Though in some instances, banks will also block incoming transactions.
New accounts can also have restrictions, however, these may relate to the frequency of transaction activity while the bank is getting to better understand your client profile.
Frequently Asked Questions
Below are two of the most common questions that we receive from people looking to know how to remove a hold on a bank account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Do I Get a Bank to Release Hold of Funds?
To get a bank to release the hold of funds, you may need to give the bank supporting documents, the written rationale for recent transactions, information about parties that you have transacted with, and more.
With this in mind, whenever engaging in transaction behavior that is outside of your normal behavior, it is always best to inform your banker ahead of time.
How Long Can They Put a Hold on Your Bank Account?
The length of time that a bank can put a hold on your bank account depends on the reason for the hold. Likewise, different jurisdictions allow banks to place a hold for different lengths of time. And, whether the bank wants to maintain a relationship with you going forward will also be a factor.
However, as a client of the bank, it’s important to question whether maintaining a relationship with a bank that will put a hold on your account is the type of banking relationship you want.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.