Receiving a notification that your business account has been frozen is never welcome and can be a very serious blow to business transactions if the problem can’t be sorted right away. A frozen account can be frustrating, not to mention embarrassing. Not being able to access your own money is a terrible feeling, especially if you need it for business purposes. There are multiple reasons a bank might freeze an account, reasons like security, non-payment of bills, suspicious activities and suspected fraud. But sometimes these freezes can be due to a minor error or for an unknown reason.
Unfortunately, as anywhere else in the world, bank account freezes are not uncommon in Malta. In this blog post, we'll discuss what to do if your business bank account is frozen in Malta, and what you can do to get it unfrozen.
What should you do when your bank account is frozen?
If your bank account is frozen, it means that you will not be able to access your money until the situation is resolved. There are a few different reasons why this may happen, but the most common is unpaid debts or overdue bills.
If you believe that there has been a mistake, the first thing you should do is contact your bank to explain the situation. They may be able to unfreeze your account on their own, or they may require you to provide additional documentation. In some cases, you may need to seek legal assistance in order to have your account unfrozen.
One of the main reasons for a frozen bank account could also be that your bank suspected illegal activity in your transactions. If this is the reason, you will be in danger of having your account shut down completely. There is also a strong chance that you won’t be able to run a business or have a business account in the near future with that bank and potentially any other and you will have to find alternate resources to make that happen.
In some cases, your bank might also freeze your account due to the transfer of large or unusual amounts of deposits, make sure to present your bank with proof of legitimacy and the activity. In addition, if your bank detects some suspicious activity on your account that you aren't aware of, you may be a victim of identity theft. Some of the best ways to protect yourself from these situations are to leverage useful tools and credit monitoring services to keep a constant eye on your financial activities. A good idea is to set all notifications to on if your business account provider has that feature.
Your account might also be frozen due to government debts if you have not paid your taxes for a certain period of time. There isn’t much that can be done to rectify this situation other than clearing the amounts.
Regardless of the reason for the freeze, it is essential to take action as soon as possible in order to avoid any further financial complications.
How to unfreeze a bank account in Malta?
You usually receive a notification from your bank when your account is about to be frozen. This could be either from the entity that froze your account or from the bank itself. In such cases, it's best to immediately contact your bank and explain the situation to unfreeze your account. Avoiding these circumstances can lead to a drop in your credit score and hefty bank fees.
Once you have contacted your bank and determined the reason for the freeze, there are a few steps you'll need to take in order to unfreeze your account. The specific steps will depend on the type of freeze that has been placed on your account. However, generally speaking, you will need to provide the bank with documentation or information that proves that the funds in your account are not being used for illegal purposes, to cover up unusual debts or to purchase items that are not authorised by your bank. Once you have provided the bank with all the necessary information, you should be able to have your account back up and running within a few days.
How wamo’s business account is making it easier to run a business in Malta?
If you're tired of dealing with banks that freeze your accounts without good reason and take a long processing time to rectify these situations, then wamo could be a great solution for you. Unlike traditional banks in Malta, wamo is a bank service provider that enables businesses to manage their finances on the go through their real exchange rates, competitive fees, quick customer support and access to international business transactions.
Regardless of the size of your business, you can easily open a business account and start managing all your finances in one place. As wamo is not a regular bank, the platform is more flexible and brings additional features that are tailored to meet business requirements at a quick pace. At the same time, you can get instant debit cards, virtual cards, multi-currency accounts and payment codes.
wamo’s dedication to great customer service with a response time in Chat of under 3 minutes, means that should you need help with your account, you will always have access to speaking with a human being (not a bot!). Plus, with wamo's business banking solution, you'll get all the features and benefits needed to run your business smoothly. From online banking with multiple accounts, GB and EU IBANs, virtual and physical debit cards and free wamo-to-wamo payments, we've got everything covered.
If you're running an international business in Malta as a non-resident, it's important to make sure your financial solutions are safeguarded and work transparently. With a well-drawn set of legal operations and transparent transactions, wamo could be a great solution for you to run a business internationally without the hassles of dealing with the long processing time and high penalty charges that can come with using more traditional banks.