Banks and financial institutions freeze accounts when they detect suspicious activity, particularly where there are reasonable grounds to suspect money laundering. This is a serious measure that prevents contractual obligations from being met and has detrimental effects on the affected individual or business. Complex and constantly evolving legal regulations often result in individuals being wrongly accused of money laundering or similar offences. Even an unfounded allegation can damage a reputation and undermine the trust of clients and business partners.
Schlun & Elseven represents clients facing account freezes and criminal allegations. Our criminal defence lawyers support you in releasing frozen funds and protecting your rights. Whether facing allegations of money laundering under Section 261 of the German Criminal Code (StGB), tax evasion, violations of the Foreign Trade and Payments Act, or other economic criminal conduct, we develop a tailored strategy to achieve the best possible outcome for your case. We also advise companies on implementing effective compliance systems and prevention measures to minimise the risk of violating the Money Laundering Act.
Grounds for Freezing an Account in Germany
Financial institutions freeze accounts for various reasons, such as excessive use of overdraft facilities or too many incorrect PIN entries. Banks use these precautionary measures to protect the account holder from suspected fraud. Accounts are also frozen when there is suspicion that they are being used for illegal purposes. Suspicion arises when a large sum is deposited at once or substantial amounts are transferred to an unknown source.
Note: This page addresses accounts that have been frozen due to suspected criminal activity. For information about blocked accounts (Sperrkonto) required for student visas, please visit our immigration services page.
In cases of suspected money laundering, seek advice from an experienced lawyer, as this may lead to criminal investigations. Under Section 43 of the Money Laundering Act (GWG), banks are required to report suspected money laundering immediately. According to Section 46 of the GWG, such transactions must not be carried out initially. However, there is no established objective standard for when transactions should be classified as suspicious. Account freezes are often based on automated risk analyses and the bank’s internal compliance requirements, so the freeze frequently comes as a surprise to the affected party. Additionally, under Section 47 GWG, the bank is initially prohibited from informing the account holder about the suspicion. Legal assistance provides security and reliable support in releasing frozen funds.
Other official bodies, such as the tax authorities, can also instruct banks to freeze accounts. This can occur in cases of suspected tax evasion or financing of illegal groups. Once this action has been taken, the account holder can only access their balance after the freeze has been lifted. It is crucial to determine the reason for the account freeze to avoid recurrence in the future.
Consequences of a Frozen Bank Account
When a financial institution freezes your account, you cannot withdraw or deposit money or make transfers. The freeze also blocks direct debit payments and standing orders. The account holder loses all access to the account. This also affects the account holder’s creditworthiness if necessary payments were frozen at that time. There is no fixed period within which the account must be unfrozen. As a rule, the bank keeps the account frozen until the grounds for suspicion have been resolved. Account freezes prevent business transactions and cause significant disruptions to a person’s affairs. In the case of account seizure, the account remains frozen until all debts have been settled.
If your account has been frozen due to suspected money laundering, seek advice from a lawyer. In many of these cases, the suspect is innocent but still faces investigations into their transactions and possible tax audits. Our lawyers provide comprehensive advice on options for action when an account is frozen.
The unexpected freezing of an account causes considerable reputational damage. Clients or business partners develop doubts about the legitimacy of your financial dealings, even if the grounds for suspicion later prove unfounded. Furthermore, frozen accounts delay or prevent important transactions. If you have suffered financial or reputational consequences due to an unjustified or incorrectly implemented account freeze, seek legal advice.
Legal Steps to Release Frozen Funds in Germany
If a financial institution in Germany has frozen your bank account, contact our legal team for immediate support. Our criminal defence lawyers act promptly to restore access to accounts. For businesses, ongoing access to business accounts is crucial for determining success or failure. You can contact the financial institution yourself first. However, this typically encounters considerable difficulties. Many banks only offer online support, and personal contact is rarely available. Moreover, customer service staff often lack information about the reason for the account freeze or the steps required to remove it.
Every day counts to avoid payment reminders and defaults, so seek professional help immediately. Knowing the reason for the account freeze is crucial, especially when you are accused of money laundering, tax evasion, or other serious criminal offenses. Our lawyers obtain the relevant information directly from the financial institution. We address enquiries directly to the legal department, thereby bypassing ordinary customer service. This ensures that you promptly receive the necessary information to clarify the cause of the freeze and have your account released.
Should the enquiry to the financial institution’s legal department be unsuccessful, we can escalate the matter to the board of directors. We can also examine whether a claim for damages exists against the financial institution, particularly if additional costs or disadvantages have arisen as a result of the freeze. Our lawyers thoroughly analyze your case, outline options for action, and advise on the prospects of success. If the bank maintains the suspicion of money laundering, we represent your interests in the investigation proceedings and support you in refuting the allegation and protecting your rights.
Frequently Asked Questions about Lifting Account Freezes
Yes, an account freeze can significantly damage your credit rating. If payments due during the freeze, such as loan instalments, rent, or insurance premiums, cannot be made, payment reminders and negative entries with credit reference agencies, such as SCHUFA, are likely. This can have long-term consequences, making future credit applications, tenancy agreements, or business relationships more difficult. Swift removal of the freeze is therefore essential.
A lawyer contacts the bank’s legal department directly, bypassing bank staff. They clarify the exact grounds for the freeze, examine their legality, and lodge objections where appropriate. In cases of unjustified freezes, they can demand immediate release from the bank and escalate to the board if necessary. They also represent you in official investigations and protect your rights throughout the process.
With an account freeze, the bank restricts access to the account either on its own initiative or following official instructions, usually due to suspected illegal activity. Account seizure, however, is carried out by a creditor with an enforceable title to collect outstanding debts. In a seizure, the balance above the protected amount is paid to the creditor. Both measures restrict your account access but are based on different legal grounds.
In practice, obtaining information is often difficult. Many banks only offer online support, and available staff often lack information about the specific grounds for the freeze. In cases of suspected money laundering, banks avoid providing information to prevent jeopardising investigations. In such cases, there is no entitlement to information. A lawyer can contact the bank’s legal department directly and achieve clarity more quickly.
During an account freeze, you lose all access to your account. You can neither withdraw nor deposit money, make transfers, nor execute direct debits. Standing orders are also not processed. Only incoming transfers are credited but remain inaccessible. This makes swift action particularly important.
There is no legally prescribed period for the duration of an account freeze. The bank keeps the account frozen until the grounds for suspicion are cleared or the responsible authority gives approval. This can range from a few days to several weeks or even months. In cases of account seizure, the freeze remains in effect until all outstanding debts have been settled. Legal intervention can significantly shorten the duration.
Banks are obliged under the Money Laundering Act to report suspicious transactions immediately and freeze accounts preventively. Banks generally give no warning, as this would undermine the measure’s purpose. Common triggers include unusually high deposits, transfers to unknown recipients abroad, or conspicuous transaction patterns. Official orders, such as from the tax authorities in cases of suspected tax evasion, can also lead to freezing without prior notice.
Practice Group: German Business Criminal Law
Practice Group:
German Business Criminal Law
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