Banks vs. Entrepreneurs: Which One Drives Us Crazier?

Banks are the ever-present “financial friends” without whom businesses can hardly operate. Yet sometimes these “friends” feel more like strict wardens than supportive partners. Entrepreneurs around the world—particularly in emerging markets like MENA (Middle East and North Africa)—encounter a barrage of annoying banking restrictions, from delayed or frozen payments to sudden account closures. Let’s explore all these “delights” in a frank, fact-based, and somewhat cheeky manner.

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Money Transfers as a Lottery: Delays, Freezes, and Zero Predictability

Every entrepreneur has sighed in frustration at least once while staring at an online banking screen showing a payment stuck in limbo. A seemingly simple transfer just doesn’t reach its recipient—sometimes not in minutes, sometimes not in hours, and occasionally not for days. This problem becomes especially acute if the sum is large. People joke that “the bigger the amount, the longer the bank gets to use your money.” And it’s not exactly comforting to realize that your own funds can be stranded on a server somewhere without any immediate explanation.

Why Transfers Get Delayed or Blocked

1. Technical Glitches
   The “official version” might be: “Our system is undergoing maintenance; please wait.” In practice, your money could be stuck due to internal bank problems that customers only discover after the fact.
2. Vigilance or Overcaution?
   Banks are legally required to track suspicious transactions (per AML regulations in many countries, including the MENA region). If your transaction triggers an internal compliance alarm, it might get frozen. For example, in Russia, new rules mandate banks to halt transfers if a recipient is on a “blacklist” (e.g., flagged for fraudulent activity). The bank must freeze the payment for two days to investigate. The aim—preventing illegal schemes—may be noble, but for a legitimate business, a sudden hold can be devastating.
3. Manual Compliance Checks
   Sometimes automated systems aren’t enough: the bank places your transaction on hold and demands you explain why or how the funds are being used. A simple payment to a supplier can morph into an interrogation: “What are you paying for? Please provide contracts or invoices.” Meanwhile, your payment deadline is ticking.
4. No Explanation Given
   The most frustrating scenario: the transfer is simply stuck, and the bank provides no reason at all. Your account shows the funds debited, but the recipient hasn’t received anything. When you call support, they calmly tell you to “wait five business days,” citing legal allowances for internal review. You watch the days go by while your partner loses patience.

In the end, financial planning starts to feel like a gamble. One day your payment goes through instantly, the next day a similarly routine payment is flagged or blocked. It’s hard to predict—and the stress is real.

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Your Own Money, Someone Else’s Limits: “Absurd” Restrictions on Transfers and Cash

“What do you mean I can’t withdraw that much from my own account? Aren’t these my funds?” Entrepreneurs often ask this in disbelief the first time they hit a bank-imposed limit. The harsh truth is: once your money is in the bank, it must abide by the bank’s rules. Transfer and withdrawal limits can seem downright absurd.

Infamous Limit Examples

1. Daily Transfer Caps
   Many banks set a daily limit on how much you can transfer online—for example, \$10,000 per day without additional authorization. Need to send \$15,000 at once? You might have to split it over two days or physically visit a branch. Not convenient.
2. Cash Withdrawal Limits
   Withdrawing a large sum can turn into a quest. ATMs have limits per transaction or per day. Even in relatively stable economies, governments can impose caps. For example, in Kazakhstan, the state introduced monthly cash withdrawal limits for businesses: up to 20 million KZT (around \$40,000) for small businesses and 120 million KZT (around \$240,000) for medium ones. If you suddenly need more for payroll or other expenses, you must either justify it to the bank or split the sum into multiple months or accounts.
3. Hard Currency Ceiling
   Many entrepreneurs in Russia discovered a “draconian” rule: from 2022 onward, you can only withdraw a maximum of \$10,000 in hard currency (e.g., USD) from your own foreign-currency account, with the remainder forcibly converted to local currency at the bank’s rate. This limit has been repeatedly extended, creating a situation where large dollar holdings remain inaccessible in USD.
4. Cross-Border Transfer Caps
   Sending money abroad can be an adventure. Banks in certain countries (including some in MENA) enforce monthly ceilings on outgoing payments to non-residents. Once you exceed that threshold, the payment simply won’t go through. Often these rules come from local legislation or from the bank being extra cautious about international sanctions. In the UAE, for example, some banks impose stringent checks—or even outright refusals—if they consider you a “high-risk” client (e.g., Russian nationals post-2022).
   (Reference on UAE compliance framework)

Entrepreneurs label these limits “absurd” because they rarely reflect real business needs. You might have millions in the bank, yet you can’t freely access or move those funds without a dance of approvals. Businesses are forced to plan months ahead, fragment large transactions, and notify the bank days in advance if they want a sizable withdrawal. It’s a sad reality: the account owner is reduced to politely requesting access to their own money.

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KYC, AML, and Other “Humbling” Procedures: The Bank as Big Brother

Anyone who has opened a business bank account has run into KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures. In practice, these acronyms often mean intrusive investigations into your personal and corporate life. The checks can become so overbearing and subjective that entrepreneurs end up feeling like suspects by default.

The Onboarding Marathon

It all starts when you open an account. Expect to fill out thick application forms and supply a mountain of paperwork. Every bank has its own list of requirements: one might only need the company’s charter and the CEO’s ID, another might demand lease contracts, tax returns, reference letters, or even a utility bill from your personal residence. This can get borderline absurd—some entrepreneurs talk about bringing in piles of documents, right down to grocery receipts, to prove their residential ties. It feels less like a standard check and more like a farce.

The Endless Queries

Banks often demand proof of the origin of funds—everything from pay stubs to real estate sales contracts. They have the legal right to do so (for instance, under Russia’s Federal Law No. 115-FZ, under the UAE’s Federal Decree-Law No. (20) of 2018 on AML, under Saudi Arabia’s Anti-Money Laundering Law (Royal Decree No. M/31), etc.). If you fail to provide the requested documentation, the bank can suspend or even close your account. Essentially, there’s no presumption of innocence here: prove you’re not laundering money, or else.

Subjectivity and Secrecy in Compliance

One of the worst parts is that each compliance department has its own opaque internal rules. A contract copy might be enough for one bank, but another demands a notarized original. One bank welcomes you with open arms, another slams the door—without disclosing why. You learn their reasons only indirectly, if at all.

Expats and “high-risk” industries have it especially hard. In the UAE, for instance, Russians and other nationalities deemed “sanctioned” or “risky” often face extra scrutiny. Some banks require a minimum balance of \$2 million just to consider opening your account if you’re from certain industries. That’s a price tag few entrepreneurs can pay.

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Changing Rules on the Fly: When the Bank Unilaterally Alters the Contract

You might assume that once you’ve signed a bank service agreement, the rules are set. Think again. The fine print often states that the bank can modify the terms unilaterally. Many businesses experience sudden notifications of higher fees or a reduced overdraft limit, leaving them with two choices: comply or scramble to find another bank.

The Surprise Fees

A classic example: a new “withdrawal fee” is introduced for a service that used to be included. Or a maintenance fee that didn’t exist before shows up without warning. Recently, Russia’s Supreme Court ruled that banks can’t unilaterally add new fees to existing credit agreements with individuals, declaring such practices unlawful. However, that ruling mostly addresses consumer loans, not business accounts. For corporate clients, “by-appointment” tariff changes remain common practice in many regions, including MENA, where banks typically reserve the right to alter fees with 30 days’ notice.

No Stability Guaranteed

In short, you can’t plan too far ahead. One day your corporate account might be free of monthly charges; the next day you get a notice imposing a monthly service fee. Worse, you might suddenly face a transaction commission on incoming transfers that used to be free. You’re forced to monitor the bank’s “updates” like a weather forecast, hoping there’s no financial storm brewing this month.

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“We Don’t Want You Here”: Bank Account Refusals Without Explanation

Imagine you’re legally present in a country, running a legitimate business. You walk into a bank with all your paperwork, only to hear: “Sorry, we can’t open an account for you.” Why? “You don’t meet our internal policy.” End of story. No further details provided.

Banks are generally not obligated to justify their refusals. In some jurisdictions, like the UAE, it’s even prohibited for banks to disclose the reason (they must provide only a vague explanation if any). In Russia and Kazakhstan, the law doesn’t require banks to detail the reason either, though it’s less common to see official disclaimers. Still, entrepreneurs share stories about being rejected because of “undesirable nationality,” a past criminal record of a business partner, or simply “mismatched risk profile.”

Possible Unofficial Reasons

• Negative Background
  Maybe the bank’s database flagged your partner or your name incorrectly matches someone on a terrorism list. The bank would rather refuse you than investigate further.
• Suspicious or Unclear Business Model
  High-risk industries (e.g., crypto, gaming, currency exchanges) often struggle to secure accounts, even if fully licensed.
• No Local Ties
  A foreigner without residence or a local office might be denied because the bank prefers fully domiciled clients.
• Internal Quotas
  Some banks impose quotas on how many “risky” accounts they’ll open. Once that quota is reached, they reject everyone else.

The most frustrating part is the lack of transparency. You won’t know if it’s your citizenship, your business type, or something else entirely. You’re left guessing—and possibly paying third-party “fixers” who know which banks are more lenient at that moment.

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Frozen Funds and Online Banking Lockouts: The Nightmare With No Warning

What’s worse than being denied an account? Having your active, functioning account suddenly blocked. One moment you’re paying salaries and closing deals; the next, your online banking is disabled and your funds frozen. You discover this only after frantic calls from suppliers who say their payments bounced back.

Common Triggers for Account Freezes

1. Atypical Transaction
   Example: a small business suddenly receives a massive prepayment and withdraws most of it in cash. To the bank, this might look like money laundering, prompting an immediate freeze.
2. Large Transfer to a Private Individual or Overseas
   Sending a big sum to a personal account or to a foreign entity often raises red flags. The bank may demand contracts or invoices to prove the payment’s legitimacy.
3. Mass Suspensions
   Sometimes the freeze is due to a broad sweep—maybe law enforcement instructed the bank to freeze thousands of accounts, with no public details disclosed. Innocent businesses get caught in the crossfire.

The Deadly Silence

Banks rarely rush to clarify why they locked your account. You might get a curt request for more documents, or a note citing “internal investigation.” Meanwhile, your money remains inaccessible for days or weeks. Legal guidelines can allow a 30-day hold—or even longer if government agencies get involved. During this period, you can’t pay taxes, salaries, or suppliers. The bank simply says it’s following AML directives, leaving you to deal with the operational crisis.

Forced Return to the Stone Age: DBO Shutdown

In some cases, the bank doesn’t fully freeze the account but disables your online banking. You lose all remote access—no balance checks, no online transfers. To initiate any transaction, you must visit the branch in person with written instructions. In a digital era, it feels like a regression to the 1970s. This can happen if the bank suspects unauthorized access to your login or simply decides it no longer trusts you. Either way, it’s a massive disruption for entrepreneurs, especially those located far from a branch.

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The Final Lap: A Satirical Conclusion With No Right of Appeal

So, from the perspective of business owners, the banking system often functions like a stern teacher handing out punishments for the smallest infractions—even if no one explains what “infraction” you allegedly committed. You can meticulously follow every rule, but still:

• Transfers arrive on their own schedule,
• Access to your money is subject to bizarre limits,
• Compliance checks force you to prove your innocence again and again,
• The rules change unexpectedly at the bank’s discretion,
• An account can be refused for no stated reason,
• And it can also be frozen or closed just as abruptly.

Banks claim these measures ensure financial security, combat money laundering, and fulfill regulatory mandates. Fair enough—nobody wants to enable fraud or terrorism financing. However, in practice, these measures often make life difficult for ordinary, law-abiding entrepreneurs who feel trapped in an endless cycle of proving their legitimacy.

Is There Any Solution?

• Diversify Accounts and Jurisdictions
  Consider maintaining multiple banking relationships—possibly in different countries—to spread your risk.
  (ICC Banking Commission resources)
• Prepare All Documents in Advance
  Compile thorough evidence of your company’s activities, revenue sources, and valid contracts to expedite compliance checks.
• Stay “By the Book”
  File taxes on time, keep robust accounting records, and be ready to answer KYC and AML inquiries without delay. This doesn’t guarantee immunity, but it can speed up the resolution process if issues arise.
• Monitor Policy Changes
  Banks can modify terms at will, so stay alert for emails or official notices that could affect your fees, limits, or account status.

Ultimately, the banking system remains a bureaucratic beast, and entrepreneurs have little choice but to adapt. A healthy dose of irony can help you stay sane—plus a solid backup plan in case your “friendly” bank decides to show its teeth. At least now you know what to expect, and sometimes being prepared is the only weapon we truly have.