The Central Bank explains what a business should do when limiting account transactions

Some companies face difficulties in obtaining services from credit institutions. Banks can often restrict remote services or refuse to conduct transactions to organizations, as they may suspect violations of tax or antitrust laws. In this regard, the Central Bank explained what actions should be taken if account transactions are limited.

Each bank has its own set of rules according to which the client’s risk level is assessed: low, medium or high. Depending on this rating, banks decide in which case and when to allow any transactions.

The Central Bank’s explanations contain recommendations to prevent falling into the red zone:

• Timely inform the bank about changes in the data in the Unified State Register of Legal Entities/EGRIP;

• Fill out payment orders in detail with care;

• Provide documents for relevant requests from the bank as soon as possible;

• Do not divide the business into small companies;

• Reduce the cost of cash and not withdraw it in large amounts;

• Conduct independent verification of contractors;

• Monitor incoming documents, submit reports on time and pay taxes.

If the client considers the ban of the bank to be unlawful, he has the opportunity to challenge this decision.  Thus, the client provides the bank with all supporting documents for the transaction. The Bank is obliged to consider this application within 7 business days. If even all the evidence provided did not affect the bank’s decision, the client can apply to the Interdepartmental Commission at the Central Bank.

The Commission assesses the client’s risk level. If the Interdepartmental Commission agreed with the bank that set the restrictions, the account operations will be terminated.

Despite this, the possibility of appeal remains. You should immediately contact the commission at the Central Bank.