The bank has closed your business account – what now?

Start by establishing whether the bank has actually terminated the whole relationship, whether only certain services have been blocked, or whether it is asking for more documentation before it decides. The three situations have different rules and different solutions. Ask for a written clarification if the letter is unclear.

Find out exactly what the bank has decided

Read the bank's message and establish which accounts and services are covered, whether the account still works, when any termination takes effect, whether the bank is missing specific customer information, whether individual services are blocked while the rest continues, and what has to be provided for the bank to reconsider. At the same time, secure the bank statements, payment history and other documentation the business needs for its accounts and to keep trading.

A bank can end a customer relationship on different grounds

Under section 4-43 of the Financial Contracts Act, the starting point is that a bank can terminate an open-ended account agreement where the agreement provides for it and there is proper cause. The Act's default is written notice and two months. For business customers, though, section 4-43 can be departed from. The specific bank agreement may contain different rules on termination and notice periods, so check both the bank's reasoning and the terms of the business agreement. This is what separates business customers from consumers, who have stronger, non-waivable protection.

When the bank is missing information it has to have

Banks are subject to the Anti-Money Laundering Act and have to know their customers on an ongoing basis. Among other things they must understand who owns and controls the business, what it actually does, how the banking services will be used, the expected transaction pattern, any relevant cross-border transactions, the use of cash, and where the funds come from where that is necessary. If the bank cannot carry out the required customer due diligence, the Act says the relationship is to be ended. That does not necessarily mean the whole banking relationship has to close immediately. The regulations also allow individual products and services to be limited or blocked, and ending basic services has to be considered separately. Finanstilsynet, the Norwegian financial supervisory authority, emphasises that full termination is an intrusive measure.

Why does the bank not always explain what is wrong?

The bank should normally give the customer information about the termination and, where possible, fuller reasons. But there are limits. Where the bank is investigating something that may indicate money laundering or terrorist financing, a separate prohibition on disclosure applies. The bank cannot tell the customer that it is carrying out such enquiries or that information has been passed on. That is why the reasons given can feel very general in some cases. It does not necessarily mean the bank has concluded that the customer has done anything unlawful.

What documentation should the business send?

Start by finding out what the bank is actually missing. Do not send hundreds of documents at random – a tidy package answering directly the questions the bank has asked is usually better. Relevant documentation might include an overview of the company and ownership structure, documentation of beneficial owners, an up-to-date company certificate and share register, the latest annual accounts or updated interim accounts, invoices and contracts explaining particular transactions, documentation of loans or capital contributions, documentation of asset sales, and an explanation of cross-border transactions. The bank's measures have to be risk-based and proportionate. It is not entitled to collect more information than the rules require.

Beneficial owners are more than shareholders above 25%

More than 25% direct or indirect ownership or voting rights are important criteria. But someone who controls the company in another way – through agreements, or a right to appoint a majority of the board – can also be a beneficial owner. Complicated ownership structures are therefore best described with a simple organisation chart showing the whole chain of control down to the natural persons.

Look for a new bank before the old account disappears

If it looks as though the relationship really will end, start looking for a new bank straight away. A new bank will carry out its own due diligence, and that can take time – particularly where ownership is complicated, there is a lot of cash turnover, or there is activity abroad. So have a documentation pack ready from the start. At the same time, map everything connected to the old account: customer payments in, payment arrangements and standing orders, supplier payments, payroll, payment cards, card and payment acquirers, the accounting system, the web shop and public-sector payments. Do not stop everything indiscriminately – the aim is to move or plan the payments before the old account becomes unavailable.

What happens to the money in the account?

The general rule is that the customer's money is returned when the relationship ends. But there is an important exception. Where the termination is because the bank cannot complete the required due diligence, it can temporarily block the money while it waits for sufficient information, or for acceptable instructions from the customer on how the money should be returned. So the bank does not necessarily need a formal seizure for the money to be temporarily unavailable. Ask the bank specifically what it needs in order to return the balance, as far as it is permitted to explain that.

Remember payroll, tax and public reporting

A blocked or terminated bank account does not change the company's other obligations. The a-melding still has to be filed by the ordinary deadline, and employer's national insurance contributions, VAT and other liabilities still have to be dealt with. From 2026 the separate tax withholding account has been abolished. Advance tax deductions have to be paid directly to Skatteetaten by the first working day after the salary payment, and the former bank guarantee arrangement has ended. If the business has no working bank account, that has to be part of the planning before the next payroll run.

This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.

Is it urgent?

We can work out what actually has to be done, what documentation exists and how quickly it can be sorted. You can also reach us in the evenings and at weekends.

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