Why do bank accounts get frozen? Common reasons and what to do
By SendPay Business · · 2 min read
Banks and money apps must check the money moving through their accounts. When something doesn't fit, they can restrict or freeze an account while they look into it. It is stressful, but it usually has a clear cause and a way forward.
Common reasons
- Identity or address checks that were never finished, or have gone out of date.
- Payments that look unusual for the account, such as a large amount out of the blue.
- Signs the account may have been taken over by a fraudster.
- Money received that the provider needs to understand, so it asks where it came from.
- A court order or a request from the authorities.
Why they may not explain
If a provider suspects money laundering, UK law can stop it telling you exactly why, because warning someone could hurt an investigation. That is why replies can feel vague. It doesn't necessarily mean you have done anything wrong.
What to do
- Contact the provider through its official app or website, not a link in a message.
- Send any documents it asks for quickly: ID, proof of address, or evidence of where money came from.
- Keep a record of calls, dates and names.
- If you are unhappy with the outcome, make a formal complaint, then go to the Financial Ombudsman Service if it isn't resolved.
Where SendPay fits
SendPay platforms let you launch GBP, EUR and USD accounts, branded Visa cards and transfers under your own brand, powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What are KYC and AML?
The identity and money laundering checks behind account reviews.
What is KYC and AML? →Source of funds or source of wealth?
Two questions a provider may ask.
Source of funds vs source of wealth →What is account takeover fraud?
When a fraudster gets into someone's account.
What is account takeover fraud? →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.