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How to prepare the documents so that the bank does not freeze the account during the payment

2020-01-08
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There are special rules for working with documentation when making the first and upcoming payments. If the requirements are met, you can reduce the risk of account blocking and suspension of transfer. Non-compliance with the rules may result in the loss of funds. You can learn more about the specifics of payment execution from our experts at IT-OFFSHORE.

Basic rules of payment processing

Currently, any incomprehensible action on the part of the client may result in the non-payment. Such measures taken by banks are related to changes in legislation and increased control over banking institutions. Many banks are afraid of losing funds due to the risk of penalty and license withdrawal.

Problems with transfers can affect businesses at any level, from any country. There are some requirements that need to be met in order for the account to continue to operate and there are no problems with frozen payments.

Basic requirements are the following:

  • Specifying the direction of the person's work;
  • Notifying the bank of any changes or additions;
  • Indicating your partners to the bank, including new ones;
  • Preparing appropriate documentation for each payment. 

Every transaction in the account must be documented. Such securities may include contracts and legal agreements with full details and description of the subject matter of the contract. Data also include an invoice, NF, bill of lading with information about the parties and the date of execution of services. It is possible to provide acts and customs declarations. To prevent the detention of payment, all documents must be collected and submitted on time without any errors.

To what banks pay attention

The Bank may freeze the account if mistakes have been made in the details of the parties - then the institution asks for explanations or requires notarized documents that confirm the submitted details.

Any deviations in the agreement or the account require clarification and correct documentation. Explanations may be required in the event of a discrepancy in the transaction. They are also necessary if the transaction has no commercial basis and there are discrepancies in the documentation.

What to do if the payment is stopped

Regardless of the reason for the payment  to freeze, it is recommended to give a prompt response to the bank's requests. Refusal to communicate may aggravate the situation. Once it is clear what the problem is, the required documentation should be sent.

It needs to be noted that any transaction has to be documented, and it is recommended to check the data several times, as well as the payment. Only after the analysis should the transaction be performed. Documents need to be sent to the bank promptly. It is not allowed to send the documentation required by the bank in parts and with breaks of several days.

Otherwise, there is a risk that the bank will unilaterally decide to terminate the relationship. This situation leads to a loss of time. It may also be necessary to prove the legality of the origin of money that remained in the account.

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