Restriction Lifted on Business Bank Account Holding £600k

Our client, a limited company managing twenty-five residential properties across Greater London, contacted us after its bank placed a ‘temporary’ restriction on its business account, leaving it unable to access the credit balance of £600k.

Immediately prior to instructing us, our client realised its bookkeeper had unilaterally provided wholly inaccurate information to the bank in response to a number of concerns relating to transactions over the preceding twelve months.

The restriction caused considerable disruption to the company’s day-to-day business activities, including for its seventy sitting tenants, and caused significant anxiety to our client.  It had concerns of the prospect of the bank’s investigation escalating into a frozen funds investigation and of a magistrates’ court making an Account Freezing Order following an application by a law enforcement authority. It was also alarmed about a parallel criminal investigation being commenced given the nature of the inexplicable false details and documents provided.   

We acted quickly to assist our client in comprehensively correcting the inaccuracies by evidencing the wholly legitimate transactions and providing a full explanation of the company’s trading activity. We collated tenancy and management agreements, company records and incontrovertibly bona fide contemporaneous ‘books and records’ relevant to each transaction.

Perhaps mercifully, the  bookkeeper resigned before he could be dismissed. His last communication to our client was from South America. Within three weeks of us being instructed, the bank had received our client’s material and agreed to lift the restriction. The bank was satisfied as to the source of the funds and the nature of the underlying business activity. The client's position was successfully explained and the restrictions placed on the accounts were lifted, allowing the business to continue operating without disruption.

This case highlights the importance of obtaining specialist legal assistance early and providing correct information from the outset to any transaction activity queries.

Our client was represented by David Bloom, who was assisted by Elif Bilecan.