The financier revealed cases when a bank can freeze money in a client’s account.
Banks can freeze money in customers' accounts for various reasons.
Svetlana Frumina, head of the Department of Global Financial Markets and Fintech at the Plekhanov Russian University of Economics, told the Prime agency about two reasons for freezing accounts.
The bank may freeze the account if the client has debts.
This, as specified, could be non-payment of loans, taxes or other mandatory payments.
The bank may also freeze the account if it suspects the client of illegal transactions.
Russian legislation allows for the seizure of funds in clients’ accounts, except in the following cases:
- alimony;
- maternity capital;
- benefits and other social payments.
Frumina stressed that banks can freeze clients’ accounts only if there are compelling reasons.
Basically, freezing a client's account is possible for debts and in case of illegal activity.
However, any freezing of funds in accounts is considered an unpopular measure that could increase the imbalance in the financial system.
