Did your bank freeze your account?
Contact our expert lawyer for banking law
Blocked account or frozen assets due to suspicion of money laundering
Account freeze leads to detrimental consequences
Companies and private banking clients alike can be affected: the bank blocks an account due to the suspicion of money laundering. These measures practically lead to a business’ immediate incapacity. Businesses and individuals alike rely on the functionality of their bank accounts to wire transfers and to execute financial transactions.
If a financial institution suspects money laundering related to a money transfer it is obliged to take action. In principle, according to Section 45 of the Anti-Money Laundering Act (AMLA), the suspicious transaction report (STR) has to be sent to the central office for financial transaction investigations (e.g. Financial Intelligence Unit, FIU), which is a subsidiary of the General Customs Directorate.
Banks determine for themselves which financial transactions and money transfers are to be deemed “suspicious” and regularly do not provide customers with any information after the account freeze. This is prohibited under the rules of the AMLA (i.e. Section 47 AMLA).
Clients regularly report account freeze after one of the following scenarios occurred:
- Cash deposits
- Cash Withdrawals
- Incoming payments from abroad
- Crypto wallet transfers
- Seizure by the public prosecutor’s office (e.g. sec 111e code of criminal procedure)
- garnishment order
- Receipt of money intended for a third party ( so called “money mule scenario”)
Suspected money laundering can have fatal consequences
If the bank employee suspects money laundering, a suspicious transaction report (STR) is sent to the Central Office for Financial Transaction Investigations (also known as the Financial Intelligence Unit). Pursuant to Section 43 AMLA, the obligated party must report the suspicious facts to the Central Office for Financial Transaction Investigations without delay. “Immediately” means acting without culpable hesitation (BGH NStZ 1982, 291 (292)).
An account freeze can lead to serious complications (e.g. tax authority investigation, criminal proceeding, prosecutor’s attachment order) and even jeopardize a
company’s viability.
Banks freeze accounts for an indefinite time
A bank may only carry out a transaction that has been reported as suspicious if the bank has either received the approval of the German Financial Intelligence Unit or the responsible public prosecutor’s office or after the third banking day after the date of the initial report has passed and no response of the authorities was received.
In practice, however, banks do not comply with this rule. Once an account has been blocked the account freeze continues indefinitely.
Negative side effects of account suspension
Defend yourself and avoid the negative side effects of an account freeze!
Even if the background information quickly clarifies and answers all questions in connection with the “suspicious” transaction, in many cases a suspicion report often leads to detrimental consequences:
- Public prosecutor investigations against the account holder
- Company audits
- Tax investigations
Use the expertise of a specialist lawyer for banking law to avert such side effects or to react to them appropriately.
Legal options in the event of suspected money laundering
If your account is blocked or assets have been seized or frozen by the bank after a report of suspicion has been issued, you should react immediately and appropriately – preferably with the help of a board-certified specialist lawyer in banking law and money laundering law.
Don’t hesitate: Contact an expert lawyer for banking law - not a general practitioner!
Benjamin Hasan is a board-certified expert lawyer for banking law and capital markets law – a certification awarded to less than 0.8 % of all lawyers admitted in Germany. He earned his law degrees both in the US as well as in Germany. Operating out of Europe’s banking hub Frankfurt, Ben has dealt with almost every relevant player in the financial industry.
His ten years of experience as a lawyer comprises litigating numerous cases in the field of banking law and adjacent fields, representing financial services providers, private clients, and listed companies in matters related to anti-money laundering law and criminal proceedings and investigations.
As a supervisory board member, manager and an experienced litigator, Benjamin Hasan is versed in assertively representing his clients’ interests. Benjamin Hasan is committed to stand up for his clients’ interests with the utmost determination.
Experience from hundreds of proceedings
The lawyers of the law firm Kyprianou & Hasan have already served hundreds
of clients of
- Commerzbank
- N26
- Comdirect
- Deutsche Bank
- Postbank
- bunq
- Paypal
- Volksbank
- ING
- Savings Banks
And helped them restore access to the account and their assets as quickly as possible.
What can you do if your account was blocked or assets were frozen?
Use the expertise of our specialist lawyer for banking law with proven expertise in money laundering matters and do not lose valuable time after you become aware of the block or seizure.
Download the power of attorney & cancellation policy
Send us the following documents
through the form down below:
- Signed power of attorney & cancellation policy,
- Most recent bank statement and
- Most recent correspondence with the bank or authorities
