Why Your UAE Corporate Bank Account Was Blocked and What Actions to Take to Recover Your Funds

If your company’s corporate bank account in the UAE has been blocked, it is crucial to promptly identify the cause and adopt a clear and lawful course of action.

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Common Reasons for Corporate Account Freezes in the UAE
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Account blocks usually occur due to the following:

• Outdated or inaccurate KYC documentation
• Suspicion of unusual or high-risk transactional activity
• Failure to provide supporting documents for transactions
• Links to sanctioned or high-risk jurisdictions
• Complaints from clients, partners, or government authorities

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Recommended Steps in Case of Account Blockage
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1. Request an official notification from the bank specifying the reason for the freeze and the list of required documents.
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2. Prepare and submit the following documents to the bank:
    
   • Corporate formation documents
   • Passport and visa copies of shareholders and directors
   • Evidence of the source of funds (contracts, invoices, correspondence)
   • A clear description of the company’s business mode
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3. Justify the legitimacy of the business, the origin of incoming funds, and the nature of transactions. The more structured and transparent your response, the higher the chances of resolution.

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How to Withdraw Funds from a Blocked Account
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• In most cases, if the account is not permanently frozen by the UAE Central Bank, the bank will allow the     transfer of remaining funds upon formal account closure.
• To proceed with the withdrawal, the bank may require:
   
  • A formal request for account closure
  • Original or scanned copies of cheques or payment instructions confirming ownership of the remaining balance
  • Details of an alternative bank account for transferring the funds

What to Do If the Bank Refuses to Release the Funds
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• If the bank refuses to return the balance or fails to clarify the situation, legal remedies may include     submitting a formal demand or filing a complaint with the UAE Central Bank.
• In cases of non-responsiveness, we recommend pursuing the matter through legal representation to escalate the issue appropriately.

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Our Support
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Our team provides comprehensive assistance with:

• Unblocking corporate bank accounts in the UAE
• Recovering funds and obtaining approvals for balance transfers
• Communicating with banks and drafting legal submissions
• Structuring alternative banking and fintech solutions
• Opening new corporate accounts in the UAE and abroad
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Contact us for confidential and professional support in resolving blocked account issues or securing the return of your funds.

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