Prohibition of Opening a Bank Account / or Closing a Bank Account for Alleged Money Laundering

• Refusal to Open a Bank Account

Section 2 in the Banking Laws (service to clients), 1981 prohibits the bank, among other things, from refusing, unreasonable refusal, to open a bank account to a customer, and this while the account is in the plus, and abides by the terms of the agreement between him and the bank regarding the management of the account.

The rule states that a bank is prohibited from simply refusing to provide banking services, including opening an account, but is allowed to refuse if the refusal is reasonable.  It is pertinent to mention that the obligation of the bank to provide banking services, does not include providing a line of credit.

In fact, the bank’s refusal to open an account, prevents the client from getting a necessary service that is basic to a regular financial dealing, therefore, the bank must prove that its refusal is reasonable, especially when there’s a concern for unlawful engagement that is based on the law prohibiting money laundering.

• Closing a Bank Account as a Once Sided Manner Due to Concern of Money Laundering and/or Financing of Terror:

Section 2 in the Banking Laws (service to clients), 1981, is valid even if the bank, as a one sided body decides to close a client’s account.

In this case, the bank must prove that there is a reasonable reason for closing to the account, that relates to a drastic action and serious action that may cause sever harm to the client.

The rule of section 2 in the Banking Laws, includes a special settlement that is placed on a banking corporation, a statutory obligation to provide certain services that are tailored to banking corporations, when among these services they are obligated to manage the clients’ accounts.

In this regard, both the general law and the special legal settlement allow the bank to the close a client’s account after it found a reasonable reason to do so.

Our office has surmountable know-how in the banking system, including, among other areas, representation against leading banks, including law suits that our office filed on behalf of borrowers against banks, and against banks that mishandled themselves in an unreasonable way, and refused to open bank accounts for clients for no apparent reason, and/or closed accounts caused harm to account owners that didn’t know that their accounts were closed, and without giving them sufficient warnings due to concern of money laundering and/or concern for financing terror activities; all while ruining the good reputation of the clients.

In such cases, our office has the knowledge and experience and ability to represent the clients against the banks, and prevent account closure, and/or demand an establishment of an account as by law.

Our office conducts legal proceedings against banking establishments from beginning to end, starting with the Collections Authority, the high courts, municipal courts, and superior court, with much success, including setting new precedencies.

Our office provides service and legal assistance of the highest professionalism in all legal matters regarding the banking area, while being there personally for the client every step of the way.