In today’s global and dynamic era, the sudden blocking or closure of business bank accounts can pose a significant threat to a company’s stability—regardless of its size or market position. Such actions can bring business operations to a grinding halt, inflict severe reputational damage, and result in substantial financial losses. Often, these measures are taken unilaterally by banks without prior notice—or with insufficient warning—leaving companies exposed, in legal limbo, and facing high risks.
According to banking laws, banks are obligated to operate within regulations that mandate a “reasonable refusal” when providing business services. This means a bank must present clear, reasonable, and lawful justifications for any decision to block or close a business account. When such refusals are unjustified, clients have legal avenues to protect their rights and restore their accounts to normal operation—or at the very least, secure a suitable extension that allows them to adjust to the situation.
The legal and regulatory landscape in this domain has become even more intricate due to global geopolitical developments. Since the Russian invasion of Ukraine in February 2022 and the tightening of banking compliance requirements—especially in Europe, including Switzerland—banks worldwide, and particularly in Israel, have been compelled to strengthen their internal procedures and controls. In May 2022, Israeli banking authorities were also required to enhance risk management directives for anti-money laundering and counter-terrorism financing in line with the Financial Action Task Force (FATF) guidelines. The tightening continued in December 2023 with the escalation of the security situation in Israel during the “Iron Swords” war, leading to further strictness in international banking compliance policies regarding money transfers to and from Israel.
Consequently, many companies in Israel and abroad face significant regulatory hurdles concerning international money transfers, especially when dealing with countries like Switzerland that have hardened their compliance policies. In light of stringent regulations and international sanctions imposed also on Israelis, the blocking of bank accounts and freezing of assets have become more tangible and complex threats.
At RNC Group, we represent and support companies that find themselves in such predicaments—from the initial approach to the bank to obtaining injunctions and suitable extensions, or re-establishing account functionality as needed.
As part of our services, we offer proactive consulting to companies, including an in-depth analysis of business activities and the development of strategies for risk management in relationships with banks. This forward-thinking approach enables our clients to prevent—and, when necessary, efficiently handle—account blockages, safeguarding their business interests even before legal confrontations arise.
We stand ready to provide you with the most effective legal solutions for any situation. Your success is our success.