Back account closed no reason

Ed-1

born_again said:

SAR's are filled in by bank staff when they feel that something is not right with a account and passed to the team that deal with checking accounts.
If the system flags up a account, there is NO SAR. A SAR does not have to be passed onto other parties either, as they are internal documents. They would only be passed on if it was felt that ML or financial crime was being committed, and that would not be anything that anyone but one of the team that deal with fraud would send on.
Breech of internal process or T/C do not need one.

But is one needed to indefinitely withhold funds in the blocked account that has been "closed"? Not allowing access to the funds in the account is illegal unless correct processes are followed.

born_again

No. As I said a system generated check will not generate a SAR.
It's all covered in the T/C and financial regs.

[Deleted User]

All these "why has my money been frozen" posts are pointless because no one will know except the bank (and the OP, who will know if they have committed offences or not).
Banks can't hold your money without good reason, but if they suspect fraud or money laundering, they can hold it until you have provided evidence of legitimate funds. If a bank suspects money laundering, they can file a DAML (defence against money laundering) SAR with the NCA. The NCA will then decide if the bank can release the funds or not. 
Sometimes, the NCA will allow a transaction even if its part of an investigation so not to tip off the account holder they are being investigated.
A bank will never, ever tell the customer if they have suspicions of money laundering, as that is a criminal offence in itself. A bank can close an account for commercial reasons and they don't need to provide a reason other than that generic term. They can also close accounts if fraud is suspected, and usually they put a CIFAS notice up too.
As mentioned, all the legislation (POCA mainly) and FCA rules are public, so anyone can look them up and read about them.

Eco_Miser

camelot1971 said:

All these "why has my money been frozen" posts are pointless because no one will know except the bank (and the OP, who will know if they have committed offences or not).

Not entirely pointless, since they  provide some reassurance, and maybe pointers, to those who have innocently triggered a bank's alert system.