What is the probability the bank will freeze the account if the company's status in the company register is "suspended"?
what happens with the bank account if the company's status in the company register is "suspended"
- Thread starter george1879564
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Depends on how good their KYB (know your business, just some part of KYC but then for checking business records) software is, some banks will only check the actual records when creating the account but more start to have proactive monitoring software for this purpose. Also depends on the country I can imagine, e.g. a UK/US company has all their details readily available online (at least the status) so that would be easier to check than some offshore one I can imagine.
It completely depends on a jurisdiction. Beginning from the company's status: “suspended” is not the universal term used by registers across all jurisdictions and if used, it can have different meaning. In some jurisdiction, nothing may happen, in another, manipulation with an account of the suspended company is a crime.
In general, a bank should freeze the account since the moment they are aware that the company is not fully legal. But unless you share the jurisdiction of the company and the jurisdiction of the bank, do not expect any reasonably founded advice.
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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂
If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...
I'd imagine suspended company would have bigger alarm bells ringing than the cash in accounts - that implies something big is going to happen
It may take some time for the bank to find out, but once it does, it should not be able to accept instructions and process transactions.
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