• US banks are increasingly freezing accounts and halting withdrawals without warning or explanation.
• Elad Nehorai’s Bank of America account was abruptly closed, denying him access to his life savings.
• Republican attorneys general have accused JPMorgan of “persistently” discriminating against clients and closing bank accounts based on religious and political biases.
US Banks Freezing Accounts Without Warning
US banks are reportedly closing customer accounts and freezing withdrawals without prior warning or explanation. Elad Nehorai recently received an alert while logging into his Bank of America account, only to find that it had been shut down and he could no longer access his life savings. Further reports suggest that this is becoming a common occurrence, with a growing number of people being denied access to their checking and savings accounts.
Suspicious Activity Reports (SARs)
In order for banks to shut down customer accounts, they must first submit Suspicious Activity Reports (SARs) to law enforcement in order to investigate the situation further. However, statistics show that out of the 830,000 SARs submitted by banks in 2014, only 4% received follow-ups; with just a small fraction resulting in arrests or convictions.
Republican Attorneys General Accuse JPMorgan
Recently, 19 Republican attorneys general have accused JPMorgan Chase & Co., of “persistently” discriminating against its own clients by closing bank accounts without prior warning due to religious and political biases.
CBS Television Crew Intervention
When CBS television crew arrived at the branch where Nehorai’s account was closed, he was then granted permission to transfer his money elsewhere whilst the review process took place – which could take up to 20 days according to Bank Of America representatives. The bank claims that an FBI report triggered the closure of Nehorai’s account – however this report was actually filed by him as he reported an email scammer impersonating him asking for money from one of his clients.
Conclusion
It appears as though US banks are increasingly freezing customers’ accounts without prior warning or explanation – which can be incredibly inconvenient and distressing for those affected who rely on their funds for day-to-day living expenses and bills etc.. Whilst there are legal regulations put in place such as SARs which request further investigations if suspicious activity is suspected; it seems as though even these legitimate measures are not enough to protect people from facing unexpected closures over religious/political discrimination accusations or simply due Red Flags being raised that do not necessarily result in criminal infractions against individuals/businesses etc..
