A bank in Georgia has blocked an account: how to unblock it

If a bank in Georgia blocks an account, access to money and payments suddenly disappears, and the resolution period depends on how correctly you act. In this article, we will discuss why Georgian banks block or restrict an account, how to unblock it, and what documents to prepare.

Why does the bank block the account?

Often the restriction is related to Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. The bank operates within the framework of the Law of Georgia on the Prevention of Legalization of Illicit Income and Financing of Terrorism and under the supervision of the National Bank of Georgia. The basis may be the source of funds unclear to compliance, atypical operations, discrepancies in documents or verification of a specific transfer.

Types of restrictions

In practice, this may involve checking a single transaction, restricting an account, or deciding to terminate the service. The strategy depends on the nature of the restriction.

How to unblock an account: step by step

1. Find out the reason and the recipient

Ask the bank in writing what specific restrictions are in place and what documents are required. The bank's internal procedure does not match an appeal to a regulator, so it is important to understand where the source of the risk lies.

2. Prepare a dossier on the source of funds

Collect documents that prove the origin of the money and the purpose of the transactions: employment and service contracts, invoices, statements, tax returns, purchase agreements. It is important that the amounts, dates, and parties match.

3. Avoid common pitfalls

Compliance perceives it as a defect when the main certificate is issued to someone other than the person who actually paid, the translation of the document differs from the original in terms of amounts and dates, or the contract is signed without a date. Inconsistent explanations only deepen suspicion.

4. Communicate correctly and to the point.

Respond to specific compliance requests with an accurate documentation package, without redundant versions. In complex cases, it is advisable to involve a banking law and AML lawyer before submitting an explanation.

What documents are usually required?

• Proof of identity and address;
• Documents of the source of funds (salary, business, sale of property);
• Contracts, invoices and transaction statements;
• Tax returns or declarations, if applicable;
• Certified translation of documents into Georgian or English.

Deadlines and what to do in case of rejection

The review period depends on the bank and the complexity of the case, so there is no fixed deadline. If the bank does not remove the restriction, the options are re-applying with an enhanced package, filing a complaint through the bank's internal procedure, and, if necessary, defending rights in accordance with the law. Betting on an external dispute alone often does not remove the restriction if the source of the risk lies in the bank's own assessment of the client.

Frequently Asked Questions

Can the account be completely closed?

Yes, the bank has the right to terminate the service. In this case, it is important to ensure in advance that the balance is transferred to another account in a legal manner.

Will a complaint to the National Bank help?

Referral to the regulator is a separate mechanism and does not replace working with the bank's compliance department. Its effectiveness depends on the nature of the violation.

If your account has been blocked in Georgia, our lawyers will help you find out the reason, collect the correct dossier, and organize communication with the bank.

This material is for general informational purposes only and does not constitute legal advice. For specific cases, please consult a qualified lawyer. — Legal.GE NewsMaker