Company account restriction reasons, timelines, and explanations

Reasons for Account Restriction

In order to maintain the integrity of our services and ensure compliance with regulations, certain situations may lead to the temporary restriction of an account. Below are the key reasons why an account may be temporarily restricted:

Expired Trade License One of the primary reasons for account restriction is the expiration of a trade license. Each business is required to maintain a valid trade license, which serves as proof of its legal right to operate. Once a trade license expires, the account holder has a grace period of 90 days to renew and submit the updated license. Failure to do so within this timeframe will result in the account being temporarily restricted. It is crucial for businesses to ensure their trade license is renewed on time to avoid disruption to their services.
Provisional Approval An account may receive provisional approval, allowing it to be activated with the condition that specific documents are provided within a month. Provisional approval ensures that while the account can operate temporarily, the business must still meet certain documentation requirements. If these documents are not submitted within the given timeframe, the account will be temporarily restricted. Provisional approval generally falls into three scenarios:
- Provisional Approval - Missing Bank Statement: In this case, the account is missing a bank statement or bank letter from the past three months. The client is required to provide this document within a month; failure to do so will result in the account being temporarily restricted.
- Provisional Approval - Memorandum of Association (MOA): If the account is missing its MOA, the business has one month to provide the updated document. Failure to meet this deadline will lead to the account being temporarily restricted.
- Provisional Approval - Emirates ID: This refers to an account where a renewed Emirates ID from one of the business’s shareholders or managers is missing. Again, the client has one month to submit the renewed ID, or the account will be temporarily restricted after 14 days.
Request for Information (RFI) An account can also be temporarily restricted due to a Request for Information (RFI), which arises when additional documentation or clarification is required. RFIs typically fall into one of two categories:
- Transaction RFI: This occurs when our financial partner or associated banks request more information on specific transactions. For instance, invoices or receipts might be required to verify the flow of funds, especially when cash withdrawals are involved. Clients must respond to and resolve these RFIs within seven days. Failure to provide the necessary documentation within this period will lead to the account being temporarily restricted.
- Individual Screening RFI: This type of RFI involves a request for more information about an individual associated with the account, such as a business owner or shareholder. The client has 14 days to supply the requested information. If this deadline is missed, or the client does not confirm the information, the account will be temporarily restricted after the seven-day period.

By ensuring that all required documents are submitted on time and that any requests for information are addressed promptly, clients can avoid the risk of their account being temporarily restricted.

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Last updated 8 months ago

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Reasons for Account Restriction

Expired Trade License One of the primary reasons for account restriction is the expiration of a trade license. Each business is required to maintain a valid trade license, which serves as proof of its legal right to operate. Once a trade license expires, the account holder has a grace period of 90 days to renew and submit the updated license. Failure to do so within this timeframe will result in the account being temporarily restricted. It is crucial for businesses to ensure their trade license is renewed on time to avoid disruption to their services.

Provisional Approval An account may receive provisional approval, allowing it to be activated with the condition that specific documents are provided within a month. Provisional approval ensures that while the account can operate temporarily, the business must still meet certain documentation requirements. If these documents are not submitted within the given timeframe, the account will be temporarily restricted. Provisional approval generally falls into three scenarios:

Provisional Approval - Missing Bank Statement: In this case, the account is missing a bank statement or bank letter from the past three months. The client is required to provide this document within a month; failure to do so will result in the account being temporarily restricted.
Provisional Approval - Memorandum of Association (MOA): If the account is missing its MOA, the business has one month to provide the updated document. Failure to meet this deadline will lead to the account being temporarily restricted.
Provisional Approval - Emirates ID: This refers to an account where a renewed Emirates ID from one of the business’s shareholders or managers is missing. Again, the client has one month to submit the renewed ID, or the account will be temporarily restricted after 14 days.

Request for Information (RFI) An account can also be temporarily restricted due to a Request for Information (RFI), which arises when additional documentation or clarification is required. RFIs typically fall into one of two categories:

Transaction RFI: This occurs when our financial partner or associated banks request more information on specific transactions. For instance, invoices or receipts might be required to verify the flow of funds, especially when cash withdrawals are involved. Clients must respond to and resolve these RFIs within seven days. Failure to provide the necessary documentation within this period will lead to the account being temporarily restricted.
Individual Screening RFI: This type of RFI involves a request for more information about an individual associated with the account, such as a business owner or shareholder. The client has 14 days to supply the requested information. If this deadline is missed, or the client does not confirm the information, the account will be temporarily restricted after the seven-day period.

By ensuring that all required documents are submitted on time and that any requests for information are addressed promptly, clients can avoid the risk of their account being temporarily restricted.