Which rules apply?

[lostforwords]

Hi, I hope somebody can help.
I run a small business and my bank recently froze all my bank accounts due to an unfounded suspicion of fraud.

This cost me £1600 in lost earnings which I’d like to reclaim but the bank say they were acting in accordance with regulations.

I raised a case with the financial ombudsman who agreed with the bank and explained to me that banks are duty bound to freeze accounts im these circumstances but I think they have discretion.

can anyone tell me which regulations the banks have to follow and if possible the specific sections that apply in this case.

Thanks

[des8]

I think your answer lies within the Proceeds of Crime Act 2002, the Terrorism Act 2000 and Money Laundering Regulations 2017 (including The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017)

Afraid I do not know which, if any specific sections apply to your circumstances

[lostforwords]

Thanks that’s very useful, I would stress that it was simple case of a customer who paid me a small some of money via bank transfer then didn’t recognise the transaction a few weeks later when he saw his bank statement.
i appreciate that the bank needed to investigate I just find it hard to believe that they were justified in freezing my personal current account, my personal savings account and my credit card as well as my business account.
I’ll look through the regulations and thanks again

[des8]

As the bank have stated they "acted in accordance with the regulations" ask them to specify the regulations to which they refer, and the section(s) within those regulations