Judicially Crafted SOP: Kerala High Court on Bank Powers to Freeze Suspicious Accounts under PMLA

Bank account freezes: limited temporary freezes permitted on reasonable suspicion, with strict notice, review and three month cap.

A narrow implied power exists for banks to impose a temporary debit freeze without prior notice when there are reasonable grounds to suspect use of an account for money laundering or cyber fraud; this power must be exercised with same day communication to the accountholder, mandatory intimation to investigative authorities with proof, a one week window for accountholder explanation and bank decision, and a maximum three month continuation absent directions from competent authorities, after which the freeze must be lifted and access to the credit balance restored.