Releasing Blocked Funds from a German Financial Institution

Several reasons allow financial institutions in Germany to block a bank account: from the excessive use of overdraft facilities to an account PIN that has been entered incorrectly too many times. In such a case, it is a precautionary measure to protect the account holder from suspected fraud. However, bank accounts can also be blocked if there is a suspicion that they are being used for illegal purposes. In general, suspicion can arise during transactions when a considerable 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 it is possible that your account will not be blocked but that investigations will be initiated against you.

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

Other authorities, such as the German tax office, can instruct banks to block accounts. This step may be required if there is suspicion of tax evasion or the financing of illegal groups. Once the action has taken place, the account holder cannot access their funds until the block has been lifted. It is, therefore, essential to speak to your financial institution to find out the exact reason why the account has been blocked.

If a financial institution in Germany blocks your account, no money can be withdrawn or deposited, and no bank transfers can be made.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 blocking. 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 blocked at this time. There is no set period during which the account should be unblocked. As a rule, the bank will keep the account blocked 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 blocked until all debts have been settled.

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

If the bank or another financial institution in Germany is currently blocking your account, please do not hesitate to contact our legal team for immediate assistance releasing blocked 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. You are 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 traditional bank employees cannot answer your questions. On the other hand, when approached, bank employees usually have no information about why your account has been blocked and what you should do about it. As every day counts when your account is blocked to avoid being inundated with payment reminders, it is advisable to seek professional legal support immediately to lift the block as quickly as possible.

It is essential to enquire why your account was blocked and why you were suspected of money laundering or other illegal activities. Our lawyers will obtain the relevant information about the reasons for the blocking from the 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 blocking. This is the only way to rectify the cause and have the account reactivated.

The unexpected blocking 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 blocked account at a critical moment can slow down a transaction or even lead to its cancellation. Suppose you have suffered financial or reputational damage due to an ill-timed block on your account or a block without justifiable cause. In this case, in particular, it is worth contacting a lawyer.

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

Our expert lawyers will analyse your case to show you your options for action. We will advise you on whether it makes sense to take legal action and claim compensation. Through careful examination and preparation, our team will advise you transparently as to whether you should take up a case and what your chances of success are. If your bank or another institution upholds the allegation of money laundering, our lawyers will be at your side to represent your rights and interests in the investigation proceedings.