Bank account suspended

[ksupty]

Is this normal and acceptable behavior from a bank?

They are requesting ex-employees (who had rights to the bank account) updated passport copy and utility bill, and company financials for 2 years even the country the company is located doesn't require you to file annual returns?

They asked a lot of different documents related to company which I provided, but then they suddenly suspended the account and are still asking these and telling me that they will not process any transaction before they get all these.

I've already hired a lawyer, but just wanted to hear if anyone has tips/experience on situation like this?

 

[mrau]

Hi @ksupty Which bank is that?

 

[Gipsy]

bank of cyprus ?

 

[ksupty]

It's Choicebank Ltd in Belize

 

[JohnLocke]

Normally you will have to provide the documents required in order to sort this out. I don't know if a lawyer is able to help here!

Maybe it is your business they don't like anymore.

 

[Dubsize]

Hi,
what's your business?
Maybe it can help us understand the reason they are causing you troubles.

 

[ksupty]

Affiliate marketing/SEO, nothing that should raise the alarms. We've been banking there since 2013/2014 without any issues (from our end). Choicebank has changed their correspondent bank so many times that we stop counting and we've had issues clients not receiving their money as well money coming in with different payee names.

 

[ksupty]

Normally you will have to provide the documents required in order to sort this out. I don't know if a lawyer is able to help here!

Maybe it is your business they don't like anymore.

I'd be a bit surprised if bank has legal rights to take your money if you don't provide former employee passport copy or utility bill. Also, I'm not 100% sure about this, but I don't think I have agreed to provide any financials etc. to the bank either.

If it was just that they don't want to do business with us anymore, that's fine, they have of course right to do so. But not to close account and return the balance to UBO's account is not acceptable in my opinion.

 

[NickNack]

You need to move out of that bank ASAP

Never bank in the carribean. Thats how you get your money stolen or stuck for years.

 

[JohnLocke]

Never bank in the carribean. Thats how you get your money stolen or stuck for years.

I'm curious, have you tried more than one bank in the Caribbean?

 

[diablo]

What bad experience did you had @NickNack ?

 

[NickNack]

• Caledonian`s SEC Freeze
• Choice bank used to be easy peasy they changed correspondents 3 times in the past 5 years and they wont let you take out your money without updating your compliance
• DMS a couple years ago shut accounts down as they werent running compliance properly
• Not to mention all the many carribean banks that dont have correspondents, lost their correspondents, or are in the long process of getting other crappy banks to be their correspondents

 

[Marco]

I learned yesterday that my bank in Luxembourg suspended my account. In the letter that they sent me, they said that they reserve themselves the right to freeze the funds. If they do that, I have the feeling that something really bad will happen.

 

[mrau]

I learned yesterday that my bank in Luxembourg suspended my account. In the letter that they sent me, they said that they reserve themselves the right to freeze the funds. If they do that, I have the feeling that something really bad will happen.

Why would the bank want to suspend your account all of the sudden? Did you do any suspicious transaction? How long had you been banking with them?

 

[Marco]

Why would the bank want to suspend your account all of the sudden? Did you do any suspicious transaction? How long had you been banking with them?

They are a bunch of assholes. I have been banking with them for the last 10 years. Nothing suspicious at all. Always the same companies sending me the same amount of money for the last 10 years. 6 Months ago, they even wrote me a recomendation letter that I asked them for.

 

[AVDPT]

Yes, same problem with Choice bank ltd.

Since Nov 2017 account closed, that is a report to a client with rejected payment. Bank has asked many documents, but keep in mind, that now Belize regulations say that companies must have financial documents and books available, so bank formally is not asking too much. They asked to send US forms signed, to declare you have not to pay taxes to US. Everything is done, now we are waiting for somebodies 'approval", who is that, when it will happen- never got an answer. I wonder if it is new reporting regulations problems, or simly this bank has no more correspondence access. I start to believe the last is the real problem. Business was completely legal, freelance brokerage, active since 2014.

Thinking where to move, I consider Bulgaria now.

 

[JohnK]

I feel sorry for you guys having a bank account with Choice Bank Ltd! I hope they soon will free your money!

 

[Marco]

Yes, same problem with Choice bank ltd.

Since Nov 2017 account closed, that is a report to a client with rejected payment. Bank has asked many documents, but keep in mind, that now Belize regulations say that companies must have financial documents and books available, so bank formally is not asking too much. They asked to send US forms signed, to declare you have not to pay taxes to US. Everything is done, now we are waiting for somebodies 'approval", who is that, when it will happen- never got an answer. I wonder if it is new reporting regulations problems, or simly this bank has no more correspondence access. I start to believe the last is the real problem. Business was completely legal, freelance brokerage, active since 2014.

Thinking where to move, I consider Bulgaria now.

Where you banking with Choice Bank in Belize?

 

[Martin Everson]

If a bank has found a gap in its KYC it has the right to ask for information to fill that gap. I doubt a lawyer will make much difference here. You need to contact the regulator first by email and then CC the regulator into communications with the bank.

Often 9/10 times the bank actions are driven by spot checks by the correspondence bank. When that happens it can be a nightmare for the bank to gather than information they need. It is also far worse for the client as they get dumped on for things the bank should have known in the first place.

 

[Spinat]

how likely would you say it is in 2020 that the banks suspend, freeze or close accounts just like this?

We have seen so many EMI's close accounts, we have also seen banks in Belize and Lithuania steeling peoples money, but what today still something that will happen?