Lawyer
Expert in corporate and international corporate law. Has extensive experience in supporting the acquisition of financial licenses in Ukraine, as well as business incorporation in the EU, the United Kingdom, Switzerland, the UAE, and key Asian jurisdictions.
Unblocking a bank account abroad
Blocking of a bank account abroad is one of the most common problems faced today by entrepreneurs, investors, owners of international business, as well as ordinary individuals. In most cases, the bank does not explain the details of the check, referring to internal AML procedures, and access to funds may be restricted for weeks or even months.
Such situations especially often arise after large international transfers, sale of business, transactions with crypto assets, receipt of investments or change of the client’s tax residency.
It is important to understand that account blocking does not automatically mean violation of the law. In many cases, this is a standard financial monitoring procedure, during which the bank tries to obtain additional information about the client and their operations. That is why proper communication with the bank and timely preparation of documents often make it possible to significantly speed up account unblocking.
Why banks block accounts
Modern banks operate under strict AML and sanctions control. For violation of regulatory requirements, financial institutions may receive multi-million fines, therefore the level of checks is constantly increasing.
Accounts are most often blocked due to:
- unusual or large transactions;
- unconfirmed source of funds;
- transactions with cryptocurrencies;
- suspicion of violation of sanctions regimes;
- mismatch between the client’s profile and actual operations;
- receipt of funds from high-risk jurisdictions;
- failure to respond to bank requests.
In many cases, the bank does not suspect the client of illegal activity, but only conducts an additional check before unblocking the funds. That is why the first task is to understand the reason for blocking and properly build a strategy of interaction with the financial institution.
What documents the bank may request
Depending on the nature of operations, the list of documents may differ significantly. Most often, banks request:
- confirmation of the source of funds (Proof of Funds);
- confirmation of the source of wealth (Source of Wealth);
- tax declarations;
- bank statements;
- sale and purchase agreements;
- corporate documents of companies;
- documents regarding crypto assets;
- explanation of the economic substance of operations.
Transactions related to sale of business, investments, international trade and digital assets are checked especially thoroughly. The faster the client provides a complete package of documents, the higher the chances of prompt completion of the check.
| Reason for check | What the bank usually requests | Difficulty of unblocking |
|---|---|---|
| Large transfer | POF and agreement | Low |
| Sale of business | SOW and corporate documents | Medium |
| Cryptocurrency transactions | AML package and transaction history | High |
| Sanctions check | Explanation of operation structure | Very high |
What mistakes clients make
After account blocking, many clients begin to act emotionally, which only complicates the situation. The most common mistakes are:
- ignoring bank requests;
- providing incomplete documents;
- contradictory explanations regarding the source of funds;
- attempts to hide information;
- aggressive communication with the bank.
An equally common mistake is submitting a large number of documents without a logical structure. Banking compliance must not simply receive documents, but understand the history of the origin of funds and the economic substance of operations. That is why in complex cases it is more effective to prepare a comprehensive memorandum with explanations and references to supporting documents.
How “Prikhodko and Partners” helps unblock an account
The team of “Prikhodko and Partners” supports clients in disputes and communication with international banks, payment systems and financial institutions in cases of account blocking or transaction delays.
We analyze the reasons for blocking, assess risks and form a strategy of interaction with the bank taking into account its internal AML procedures and regulatory requirements. In most cases, the key success factor is not the number of documents, but the proper construction of the legal position and logical explanation of the source of funds.
The specialists of “Prikhodko and Partners” prepare Source of Funds and Source of Wealth packages, AML memoranda, responses to compliance service requests, support negotiations with banks and coordinate collection of necessary documents in different jurisdictions.
Our team has special experience in cases related to international business, crypto assets, investment operations, sale of companies and complex corporate structures. Thanks to the combination of banking, tax and corporate expertise, we help clients effectively protect their interests and restore access to funds. In many cases, timely involvement of lawyers makes it possible to shorten the check period and avoid further restrictions from the financial institution.
Calculate the cost of services
1 question
Do you know the reason for blocking the account?
2 question
Did you receive an official document about blocking the account?
3 question
Is your account blocked due to business activity?
Can a bank block an account without explaining the reasons?
Yes. In most jurisdictions, banks are not obliged to disclose details of AML checks, especially if this is related to financial monitoring requirements.
How long can account blocking last?
The duration depends on the complexity of the check. In simple cases, the issue is resolved within several days, while in complex international cases, the check may last several months.
Can funds be returned if the bank decides to close the account?
In most cases, yes. Even after account closure, the bank usually agrees on the procedure for withdrawing the remaining funds after completion of all necessary checks.
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