What to do next
Ask in writing for the reason and the status of your funds
Request confirmation of whether this is a hold, a closure, or a garnishment, and when funds will be released. Banks may be legally restricted from explaining an AML-related decision, but they can confirm the process and the timeline.
Check whether a garnishment or court order is behind it
A creditor with a judgment, or a tax authority exercising statutory powers, can attach an account. If that is the cause, the dispute is with the creditor or the authority, not the bank - and there may be exemptions protecting some funds.
Escalate through the bank's own complaint process
Ask for the designated complaints officer and a written final response. Completing this stage is a prerequisite for external escalation, so do not skip it.
Escalate externally
For federally regulated banks, the Financial Consumer Agency of Canada handles market-conduct obligations, and OBSI provides free independent review of the complaint. In Quebec the AMF oversees provincially regulated institutions.
Protect the practical fallout
Redirect payroll, cancel pre-authorised debits and document every payment that failed and every fee incurred. That record is what supports a claim for consequential loss.
Frequently asked questions
Can a bank close my account without telling me why?
Often yes. Account agreements generally permit closure on notice, and anti-money-laundering rules can prohibit the bank from explaining. That does not remove your right to your funds.
How do I get my money back?
It depends on the cause. A routine closure means the balance is remitted after any clearing period. A garnishment or statutory hold has to be addressed with the creditor or authority. Ask which applies.
Who do I complain to?
The bank first, in writing. Then OBSI for independent review, and the Financial Consumer Agency of Canada for conduct concerns. Both are free.
What kind of lawyer handles this?
A banking or commercial litigation lawyer, or a debt and enforcement lawyer if a garnishment is involved. For smaller amounts the ombudservice route is usually proportionate before litigation.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.