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Opening an account is only half the job. UAE banks regularly review their clients, and an account may be restricted or closed if something does not add up.
Common reasons
- Account turnover does not match what was stated in the application
- No documents for large or unusual transactions
- Counterparties from higher-risk jurisdictions
- Outdated documents of the company or its beneficial owners
- A long period without transactions
- Information about the business does not match its actual activity
What KYC and periodic review mean
A bank is obliged to know its client: who the beneficial owners are, what the company does and where the money comes from. Every few years, and more often if necessary, it requests updated documents. If you respond late or incompletely, the account may be frozen.
How to reduce the risks
- Describe the business honestly and in detail when opening the account
- Make sure transactions match the description
- Prepare contracts and invoices for large payments in advance
- Renew the licence, visas and Emirates ID on time
- Respond to bank requests within the deadline
- Do not keep an account "just in case" without any transactions
What to do if an account is restricted
Do not ignore the bank's letters. Request the list of documents, prepare them and respond within the deadline. If the account is closed, you will need to find a new bank and describe the reason correctly.
The bank is not obliged to explain the reasons for closure. The best protection is transparency and well-kept documents.
We help with both the initial opening and a repeat application: see the bank account opening page. For the steps, see the article How to Open a Bank Account.