Frozen Bank Account

[carolmarshall]

ArialWhat is the name of your state? Texas

We have bank accounts that have been frozen by the bank (no IRS issues, no debt issues, no liens). We had a series of fraudulent checks come through and to be proactive, we asked the bank to monitor our transactions and contact us when "out of the ordinary activity" occurred. They closed all of our accounts for a week, then opened all but the largest one. It has been 7 weeks and no word when they will allow us access to the account. No reasons, no justification, only "we think it is appropriate". I have researched the internet only to discover the federal government has instructed banks to sieze accounts that have "suspicious activity". We get wire transfers from two countries as part of our business...Canada and Costa Rica. The federal government lists "suspicious activity" as accounts that receive wire transfers from other countries. The bank is not giving us any information, no indication regarding when we can have our account, what they are doing, or why. How can the bank keep us from accessing this account? For how long? What can I do to get this account opened to me again?
Thank You. Carol Marshall

 

[Veronica1228]

ArialWhat is the name of your state? Texas

We have bank accounts that have been frozen by the bank (no IRS issues, no debt issues, no liens). We had a series of fraudulent checks come through and to be proactive, we asked the bank to monitor our transactions and contact us when "out of the ordinary activity" occurred. They closed all of our accounts for a week, then opened all but the largest one. It has been 7 weeks and no word when they will allow us access to the account. No reasons, no justification, only "we think it is appropriate". I have researched the internet only to discover the federal government has instructed banks to sieze accounts that have "suspicious activity". We get wire transfers from two countries as part of our business...Canada and Costa Rica. The federal government lists "suspicious activity" as accounts that receive wire transfers from other countries. The bank is not giving us any information, no indication regarding when we can have our account, what they are doing, or why. How can the bank keep us from accessing this account? For how long? What can I do to get this account opened to me again?
Thank You. Carol Marshall

Your bank could be holding your account for one of two reasons. Either because of the fraud that occurred, or because of the PATRIOT Act. If it is for the fraud, then the correct action would have been for them to close that account and open a new one to prevent any further fraudelent activities. I think you are correct in assuming that it is for the suspicious activity. I'm just going by memory, but I believe that Costa Rica is a country that is considered to be high risk. This is also true with many Central American, South American, and Middle East countries for various reasons. Wire transfers between the US and these countries may be monitored closely because of the PATRIOT Act. If your bank observed activity that they found to be suspicious, they are legally required to report it to the Fed. The Feds with then do their investigations to make sure that all of your activities are legal and not tied to drug cartels, or terrorist groups.

I know it doesn't seem fair, but if this is the case then your funds will be tied up until the government is satisfied that all of your business dealings are legal. Unfortunately there is nothing you can do about it. The Fed doesn't take chances anymore when it comes to terrorism et al. Sorry.