How to Remove a Hold on Bank Account: Bank Guide

The first step to knowing how to remove a hold on a bank account is understanding the reason why the bank put a hold on it in the first place.

In this article, weโ€™ll be explaining how to remove a hold on a bank account.

Importantly, if you have a hold on an account now, you should consider opening a backup account for the future.

Backup bank accounts ensure that you can continue to send and receive money and no single bank is able to cut off access to your funds.

If you would like to explore your bank account options, you can get free access to one of our most popular banking articles on how to get an international bank account by clicking here.

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

Table of Contents

  1. How to Remove a Hold on a Bank Account?
  2. What Happens When a Bank Puts a Hold on Your Account?
  3. Frequently Asked Questions on Account Holds
  4. Do You Want Help Opening Bank Accounts?

How to Remove a Hold On a Bank Account?

Removing a hold on a bank account requires the account holder 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 anyoneโ€™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, itโ€™s important that you have another account in your name so you can receive a transfer from the account that the bank is closing.

In the next section, weโ€™ll discuss what happens when a bank puts a hold on your account and answer some of the most frequently asked questions on this topic.

Do You Want to Explore All Your Offshore Banking Options?

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 financial transaction activity, such as high-value or volume transactions, or sending and receiving money from high-risk countries or third parties.

Restrictions on Account Holds

When an account has been opened for an extended period of time, restrictions typically involve placing a hold on outgoing transactions. However, in some instances, banks will also block incoming financial transactions.

New bank accounts can also have restrictions, however, these may relate to the frequency of transaction activity while the bank is getting to better understand your personal client profile.

Frequently Asked Questions on Account Holds

Below are two of the most common questions we receive from people exploring how to remove a bank hold on a bank account. If you have further questions you would like answered, donโ€™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 money 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 Banks Hold on Your Bank Account?

The length of time that a bank holds your account depends on the reason for the hold. Likewise, different jurisdictions allow banks to place a bank hold for different lengths of time. And, whether the bank wants to remove the account hold to maintain a banking relationship with you going forward will also be a factor.

However, as a client of the bank, itโ€™s important to question whether maintaining a banking relationship with a bank that will put a hold on your personal account is the type of banking relationship you want.

Do You Want Help Opening Bank Accounts?

If so, you can get access to GlobalBanks IQ in just a few clicks.

GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…

+ Expert insights on which banks to choose & why

+ Step-by-step reports to open bank accounts in the best banking hubs

+ GlobalBanks international bank database & detailed bank profiles

+ Tried & tested banks for high-risk, offshore, & non-resident clients

+ Plus, get YOUR most pressing account opening questions answered by our team!

And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open an account.

In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open an account.

To learn more about opening bank accounts with GlobalBanks IQ, just click here now. Or, contact us directly with any questions!

Share This Article on Your Favorite Platform
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.

Sorry, but you cannot copy the content on this page.