https://www.taxtmi.com/caselaws?id=782168 A bank may temporarily freeze a suspicious account without prior notice where it has reasonable grounds to suspect financial fraud or laundering, because immediate restraint may be necessary to prevent dissipation of suspected proceeds of crime. The power is limited to a protective measure and must be exercised with safeguards: the account holder must be informed on the date of freezing, the matter must be reported to the competent authorities, and the account holder must be given an opportunity to explain the transactions. If the explanation is satisfactory, the account must be de-frozen; if no authority acts within a reasonable period, fixed at three months, the freeze cannot continue indefinitely. en-us Wed, 19 Nov 2025 00:00:00 +0530 Wed, 26 Nov 2025 21:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782168 A bank may temporarily freeze a suspicious account without prior notice where it has reasonable grounds to suspect financial fraud or laundering, because immediate restraint may be necessary to prevent dissipation of suspected proceeds of crime. The power is limited to a protective measure and must be exercised with safeguards: the account holder must be informed on the date of freezing, the matter must be reported to the competent authorities, and the account holder must be given an opportunity to explain the transactions. If the explanation is satisfactory, the account must be de-frozen; if no authority acts within a reasonable period, fixed at three months, the freeze cannot continue indefinitely. Case-Laws Money Laundering Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782168