Can the bank block my account for not updating my information?

It is possible that in recent months you have come across an email from your bank, where a series of documentation is required (updated copy of your payroll or a certificate of income, photocopy of your DNI), warning you that if you do not If you provide said documentation within the stipulated period, it could lead to the blocking of your bank account.

Where does this come from?

From Law 10/2010, of April 28, on the Prevention of money laundering and the financing of terrorism, a rule that requires banking entities to have their clients identified and keep a series of documentation updated. According to article 11 of Royal Decree 304/2014 that approved the Regulations of the aforementioned Law, “the obligated subjects will periodically carry out review processes in order to ensure that the documents, data and information obtained as a consequence of the application of the due diligence measures diligence are kept up to date and are current.”

Within the Due Diligence Measures established by the regulations, there are:

• Formal identification: Identification of the natural or legal person. The opening, contracting or maintenance of accounts, notebooks with fictitious names is not permitted.
• Identification of the beneficial owner: natural persons on whose behalf a business relationship is intended to be established or who control a percentage greater than 25 percent of the capital or voting rights of a legal entity.
• Identification of the Purpose and nature of the business relationship: They will collect information from their clients in order to know the nature of their professional activity and will adopt measures aimed at verifying the veracity of said information.
• Continuous monitoring of the business relationship: The obligated subjects will apply continuous monitoring measures to the business relationship, controlling the origin of the funds and guaranteeing that the documents and information available are updated.

Regarding periodicity, it is established that those clients with greater risk, such as public officials, must update their data annually.

Banking entities must have sufficient means to prove to the authorities that the measures adopted are appropriate to avoid the risk of money laundering or terrorist financing.

That is why, if you do not provide the documentation required by your banking entity, the bank could block your account until you present the updated documentation.

If you want to know more about this topic or have any questions, do not hesitate to leave us a comment on this post.