Releasing Frozen Funds from a German Bank Account

Several reasons allow financial institutions to freeze a bank account, from excessive overdraft facilities to an account PIN that has been entered incorrectly too often. In such a case, it is a precautionary measure to protect the account holder from suspected fraud. However, bank accounts can also be frozen if there is a suspicion that they are being used for illegal purposes. In general, suspicion can arise during transactions when a large sum is deposited at once or significant amounts of money are transferred to an unknown source. Particularly if you suspect money laundering, you should seek experienced legal advice, as you may not only have your account frozen but investigations will be initiated against you.

It is not uncommon for bank accounts to be frozen because financial institutions consider certain transactions to be suspicious. Under the Money Laundering Act (GWG), financial institutions are generally obliged to report suspicious financial transactions immediately and take appropriate countermeasures, including freezing accounts. However, there is no set objective standard for determining suspicious transactions. For this reason, freezing the account can come as a considerable surprise to the account holder. Seeking legal assistance can provide you with security and reliable support when releasing frozen funds.

Other authorities, such as the tax office, can also instruct banks to freeze accounts. This may be the case if there is suspicion of tax evasion or the financing of illegal groups. Once the action has taken place, the account holder will not be able to access their funds until the freeze has been lifted. It is, therefore, essential to speak to your financial institution to find out the exact reason for freezing the account. If you find out the reason why the account was frozen, you can prevent this from happening in the future.

If a financial institution freezes your bank account, no money can be withdrawn or deposited, and no bank transfers can be made. Payments by direct debit and the execution of standing orders are also subject to freezing. Accordingly, the account holder loses all access to the account. Furthermore, this may affect the account holder’s credit rating if necessary payments have been frozen at this time. There is no set period during which the account should be unblocked. As a rule, the bank will keep the account frozen until the suspicious reason has been resolved. Account freezes can prevent business transactions and cause significant disruption to a person’s affairs. In the event of an account seizure, the account will remain frozen until all debts have been settled.

If your account has been frozen on suspicion of money laundering, it is advisable to seek advice from a lawyer. In many of these cases, the suspect is entirely innocent but may still face investigations into their transactions and possible tax audits. Having legal counsel on your side offsets the inherent disadvantage you have against government authorities.

If the bank or another financial institution currently freezes your bank account, do not hesitate to contact our legal team for immediate assistance in releasing frozen funds. Our lawyers will act quickly and efficiently to keep your bank account open and operational. For businesses, having access to their accounts when needed can be the difference between success and failure. An urgency that our lawyers are fully aware of. Of course, you are also free to contact the financial institution yourself first. However, experience shows that you will encounter resistance.

On the one hand, it is problematic that many banks only offer online support, and the traditional bank employee is not available to answer your questions. On the other hand, when approached, bank employees usually have no information themselves about why your account has been frozen and what you should do about it. As every day counts when an account is blocked to avoid being inundated with reminders, it is advisable to seek professional legal support immediately to have the block lifted as quickly as possible.

It is crucial to enquire why your account was frozen and why you were suspected of money laundering or other illegal activities. Our lawyers will obtain the relevant information about the reasons for the freezing from the bank or financial institution. The enquiry will be addressed directly to the financial institution’s legal department, bypassing the bank employees with whom you would communicate. In this way, you will find out the reason for the freezing. This is the only way to rectify the cause and reactivate the account.

The unexpected freezing of an account can damage your reputation and lead to customers or business partners questioning the integrity of your financial transactions. Even if the accusation of money laundering or tax evasion may be unfounded, it can still lead to concerns about the trustworthiness of a company. At the same time, a frozen account at a critical moment can slow down a transaction or even lead to its cancellation. It is especially worth contacting a lawyer if you have suffered financial or reputational damage due to an ill-timed block on your account or a block without justifiable cause.

If, exceptionally, an enquiry to the bank or financial institution’s legal department is unsuccessful, you can also contact the Management Board directly. There is also the option of contacting an arbitration board or seeking media attention. Finally, claiming compensation from the financial institution for the additional costs you have incurred is also possible.

Our expert lawyers will meticulously analyse your case to show you your options for action. We will advise you on whether taking legal action and claiming compensation makes sense. Through careful examination and preparation, our team will notify you in a straightforward and transparent manner as to whether you should take up a case and your chances of success.