Glossary

Banking

Account freeze

An account freeze is a temporary restriction preventing withdrawals or transfers while a financial institution investigates activity, verifies documentation or responds to a legal order. Incoming funds may continue to arrive while outgoing payments are blocked.

In plain terms: Money goes in, nothing comes out, until the institution finishes checking.

Why it matters

The practical emergency for a small company: payroll, contractors and tax payments all stop. Respond immediately with whatever documentation is requested, and get the funds moving before arguing about the cause.

Read the full guideUS business banking

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