My account has been blocked!

You need cash, so you go to an ATM. But wait a minute... something is wrong. You are not allowed to withdraw funds despite having available balance in your account. Why is this happening?

The bank blocked your account

Accounts may be blocked for several reasons, but always on justified grounds and with prior notice in order to prevent possible damages, such as direct debits that don’t get charged or, as in the example mentioned above, not being able to withdraw funds from an ATM.

It happens frequently on accounts with several holders that give the bank contradictory instructions due to disputes among them. In these cases, the bank must remain neutral and not favour any of the co-holders, so that the account blockage complies with best banking practices. But, as mentioned above, the bank must previously inform all co-holders about the blockage and keep it effective until an agreement between them is reached, or the dispute is resolved by means of a court ruling.

Your bank may also block your account in compliance with regulations on money laundering and terrorist financing. Don’t panic. These regulations require banks to request the necessary documents in order to identify and track account holders and their transactions. Therefore, when the bank's request is not complied with, after prior notice, the account blockage is considered legitimate.

 

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