UK Banks Freeze & Close Crypto PR Agency’s Accounts

Table of Contents

• Are Banks Too Harsh on Crypto Payments?

Two UK banks have frozen and closed the bank accounts of Imperium Comms, a PR agency which specialises in the crypto and blockchain space.

In a letter sent to the crypto PR agency’s founder in mid-August, Metro Bank said it would be closing the bank account in 60 days and wouldn’t be reviewing its decision.

They also said they are unable to provide any explanation as to why they decided to close the account. 

Around the same time, HSBC froze the bank account of the company’s founder and managing consultant.

In an interview, Suliman Mulhem, the founder of Imperium Comms, said both letters came as a surprise – and he believes the banks decided to close/freeze his accounts due to his company’s involvement in the cryptocurrency industry.

He noted that the closures came off the back of him transferring over $90,000 to his bank accounts from crypto exchanges (as many of his company’s clients pay him in crypto) in the span of a couple of months.

And he believes these transfers are responsible for the predicament he now finds himself in.

Speaking to Crypto Daily on Thursday, an AML consultant said it is “almost certain” that the banks decided to close the accounts due to Mulhem moving a significant amount of funds from crypto exchanges into his bank account.

“Banks are very vigilant about large inbound transfers coming from crypto exchanges, as these platforms can be used for money laundering or bank fraud,” he said.

“It should be noted that in the majority of cases, account holders are not committing a crime. They are simply withdrawing profits from crypto investments or withdrawing payments for legitimate commercial activity.

“While their decision seems harsh, you have to keep in mind that it looks suspicious and extraordinary for a 22-year-old to make close to $100,000 in the space of three months.

“However, banks usually request supporting documents when they detect potentially suspicious transfers, so it is disappointing that Metro Bank decided to instead suspend the account without an investigation.”

Mulhem has filed a complaint with the Financial Ombudsman against both Metro Bank and HSBC.

For the time being, he plans to open a foreign currency account with the Commercial Bank of Dubai, as he is currently based in the UAE.

The bank closures haven’t impacted his business’ operations, and Imperium Comms is continuing to service both crypto and non-crypto clients.

Are Banks Too Harsh on Crypto Payments?

Thousands of bank accounts are closed in the UK every year due to account holders withdrawing funds from crypto exchanges, and in 99% of cases, no money laundering has been committed.

However, some UK-based banks, such as Metro Bank, have gained a reputation for being overly harsh when it comes to restricting and blocking crypto-linked accounts, even without there being any evidence of them being used for illegal activity.

In the coming years, as crypto payments become more mainstream, it is likely that banks will become less restrictive regarding crypto payments.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.