A bank account restriction, commonly known as a freeze or blocked account, can be a serious inconvenience, limiting access to your funds. In Nigeria, account restrictions generally require exceptions. This article explains the legal steps involved in lifting such restrictions and offers a clear guide to navigating the process

Understanding Account Restrictions

A restriction on your bank account means you can’t withdraw, transfer, or use the funds in your account. This can happen due to various reasons, including:

• Court Orders: A court may issue an order to freeze your account due to ongoing legal proceedings, such as fraud investigations, money laundering allegations, or debt disputes.
• Regulatory Actions: Government agencies like the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), or the Central Bank of Nigeria (CBN) may instruct a bank to restrict an account under specific legal provisions.
• Security Issues: Banks themselves may restrict an account if they detect suspicious activity, such as a sudden change in transaction patterns, to protect the account holder from fraud.

Identifying the Reason for the Restriction

The first and most crucial step in removing a restriction is to determine why it was placed. This will dictate the subsequent course of action. You can find this out by:

• Contacting Your Bank: Reach out to your bank’s customer service department and inquire about the reason for the restriction. They should provide you with information about the authority that placed the restriction.
• Checking for Official Notices: Review your mail and email for any letters or notifications from the bank, a court, or a regulatory agency informing you of the restriction and the reasons for it.

Removing the Restriction

The process for removing a restriction varies depending on the source of the restriction:

1. Restriction Based on a Court Order

If a court order is the reason for the account restriction, you must apply to the same court to have the order lifted or set aside. This typically involves the following steps:

• Engage a Lawyer: It is highly advisable to engage the services of a legal practitioner experienced in litigation.
• File an application: Your lawyer will file a formal application (motion or summons) in the court that issued the initial order. The application will request the court to vacate or set aside the restriction order.
• Supporting Documents: The application must be supported by an affidavit providing evidence and legal arguments as to why the restriction should be removed. This could include:
• • Proof that the underlying legal issue has been resolved.
  • Evidence that the restriction is causing undue hardship.
  • Legal arguments that the initial order was obtained improperly.

 

• Serve the Parties: The application must be served on all parties involved in the case, including the bank and the agency that obtained the initial order.
• Court Hearing: The court will schedule a hearing to hear the application. You or your lawyer will present your case, and the other parties will have an opportunity to respond.
• Court Ruling: The court will consider the evidence and arguments presented and issue a ruling. If the application is successful, the court will issue an order directing the bank to remove the restriction.
• Serve the Order on the Bank: Serve the new court order on the bank.
• Follow Up: Follow up with the bank to ensure that the restriction is removed promptly.

 

2. Restriction by a Regulatory Agency

If a regulatory agency, such as the EFCC or CBN, placed the restriction, the process for removal may involve:

• Contacting the Agency: Engage a lawyer to formally engage the agency that placed the restriction, requesting its removal. This is a very crucial step as contacting the Agency directly may expose you to an unlawful arrest which would lead to many inconveniences and costs in time, money and resources.
• Providing Documentation: Provide all necessary documentation and evidence to support your case, such as:
  • Proof of the source of funds in the account.
  • Evidence that you are not involved in any illegal activity.
  • Any other relevant information that may assist your case.
• Legal Representation: If the agency is unwilling to remove the restriction, you may need to file a lawsuit in court to challenge the restriction.

 

3. Restriction by the Bank

If your bank placed the restriction due to suspected fraud or suspicious activity, you should:

• Contact the Bank Immediately: Provide the bank with any information or documentation they require to clarify the situation.
• Cooperate with Investigations: Cooperate fully with any investigation the bank conducts.
• Seek Legal Advice: If the bank is unwilling to remove the restriction, you may need to consult a lawyer to explore your legal options.

 

How We Can Help

OLAMIDE OYETAYO & CO has a team of experienced lawyers who can assist you in navigating the complexities of removing restrictions on your bank accounts. We can:

• Advise you on the best course of action based on your specific circumstances.
• Prepare and file all necessary legal documents.
• Represent you in court or in negotiations with regulatory agencies.
• Work diligently to ensure that the restriction on your account is lifted as quickly as possible.

If you are facing a bank account restriction, Contact us