Recovering money and assets from frozen bank accounts

Recovering money and assets from frozen bank accounts

If your accounts are frozen by the bank for compliance reasons; if the bank where your finances and assets are deposited goes into liquidation, the lawyers at Intelligent Solution Group will take on the process of recovering money from the blocked accounts. 

ISG is your partner in the asset recovery process

We have many successful cases in our practice of recovering money from banks and payment systems, the most famous financial institutions among them: 

  • Rietumu - 2018;
  • ABLV Bank - 2018;
  • PNB (Norvik banka) - 2019;
  • Pilatus Bank (Malta) - 2018;
  • Baltic International Bank - 2022;
  • Bank of Georgia - 2022. 

It is a long-term and rather time-consuming process:

  • analysis of the client's situation (we conduct a call for 20 minutes);
  • we ask for documents/statement on request;
  • we request a short explanation from the client about the reason for closing the account and the bank's arguments 
  • we think over the solution concept and agree with the client in advance;
  • if the client agrees to move forward, we fill in the concept.

Next steps:

1. We thoroughly examine the business portfolio: 

  • contracts and transactions with counterparties;
  • the activities carried out by the client;
  • geography of clients;
  • the amount of transactions.

2. We contact your bank with prepared statements, negotiate on behalf of the client with bank officers and visit the bank.
3. We prepare a set of documents to confirm the source of funds and apply for the return of frozen money.
4. Based on the needs of the client's business, we analyze and select another bank to open an account for the transfer of frozen funds.
5. Then we pack the case, apply to another bank for preliminary approval. As a rule, to save the client's time we consider several banks, and after obtaining pre-approval we choose the one we go to. 
6. Then we apply for opening an account and help you pass the compliance control.  
7. We open a bank account. 

The refund procedure is quite tedious and even small mistakes in paperwork cause many depositors to lose money, so we do not recommend recovering money and assets from frozen accounts on your own. 

Our specialists understand how the system works as most of our employees have work experience in the banking sphere. Knowledge of specifics of financial companies, standards of paperwork allows us to return money to our clients, regardless of the complexity of the situation.

Why can a client's account be blocked?

Tougher supervision of the financial sector and international business has led to banks being stripped of their licences and accounts being blocked for no clear reason. We will tell you why a corporate or individual's account can be blocked and how to get your money back if the account is frozen.

Reasons for account service suspension can be divided into two groups: 

  • Internal bank policy. Any financial institution has its own requirements for the client, its activities and documentation. For example, a company changes its line of business to one that does not fall under the terms of cooperation. Or the composition of shareholders has changed and after Compliance inspection the bank saw certain risks to continue servicing. This may be the reason for freezing the account. An account, which receives funds, the origin of which is difficult for the bank to identify, can also be blocked.
  • External factors. Banks are controlled by the government and international organisations and are at risk of being fined or stripped of their licences altogether. In addition, the bank may be liquidated due to bankruptcy, problems with the regulator or changes in legislation.
How to withdraw funds from a frozen account?
If the bank continues to operate, but only your account has been blocked, the first thing to do is to find out the reason for freezing the account. It is worth noting that by law, in many countries banks are exempt from explaining the reason, citing the sanction of the local prosecutor. In some cases, even the account holder and his lawyers cannot gain access to the information.
In any case, it is necessary to protect your interests. However, the process should be approached competently, with knowledge of the specifics of the country's legislation and the cooperation policy of the bank itself.
In some cases it is legally possible to withdraw funds from frozen accounts to:
1. An alternative company account at another bank. 
2. An account of a beneficiary or shareholder of the company. A loan or dividend payment is specified as the reason.
Can I get all the money back from my account when a bank goes into liquidation?
Each jurisdiction has its own procedure for reimbursing funds when a bank goes into bankruptcy or has its licence revoked. Typically, each bank has a guarantee fund from which money is paid out to depositors.
The problem is that the amount of compulsory compensation can be significantly lower than the amount held in the account, and if the client tries to start the process of withdrawing the money himself, the remaining amount can "hang on" in a frozen state. That is why we recommend contacting lawyers - we have helped clients get their money back in full by diving into client cases in detail.

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