Why some Spanish bank accounts are being blocked

Accounts are not being blocked because of anything to do with Brexit; account holders must re-affirm their identity every 2 years regardless of nationality

Recently some readers have been expressing concerns over their Spanish bank accounts being blocked, particularly at branches of Bankia in the Region of Murcia.

After speaking to the bank concerned, it can be confirmed that this is due to account holders not having signed official documentation which requires renewal every two years, and NOT connected in any way to the UK leaving the EU.

Brexit has nothing to do with the action being taken by Bankia and other banks.

All account holders must complete a bi-annual Declaration of Residence for Purposes of Cross-Border Economic Transactions and Capital Transfers, and Spanish law, responding to European Central Bank regulations, makes it a statutory requirement. The legislation relates to Spanish nationals as well as both resident and non-resident Spaniards, and the certificate is part of the measures introduced to clamp down on international money laundering within the EU.

Sources at Bankia have confirmed to Murcia Today that the bank is possibly more conscientious in abiding by the law than others due to the company being more closely scrutinized than some on account of irregularities which have been detected in the past, but at the same time emphasizes that in no way is harsher treatment being reserved for non-Spaniards. In fact, Bankia say that they go out of their way to notify clients by email of the need to renew the declaration and supply the form in English, and are willing to accept forms completed and submitted by email from those living in the UK who have Spanish accounts here to control their properties, but do not live here full time, without clients visiting their branch in person, at least on a temporary basis, until clients can visit the bank on their next visit to Spain.

But unfortunately the same sources explain that many people are not in the country, and either fail to read the email correspondence or are suspicious of bank communications having received other fake communications from scammers attempting to obtain bank details and passwords.

As a result of receiving no response at all, the bank is obliged by law to block any transfer of funds into the account from abroad.

Some readers insist that they have not been contacted by their banks before accounts have been frozen. That may well be the case, as it is logical that letters sent to Spanish addresses may not have reached the account holders who are currently in other countries.

Many other readers have commented on the social media post about this article that they have experienced significant problems attempting to unblock their accounts, and many have also commented that their accounts were blocked without them having received any communication from the bank beforehand. Others have never received notification from the bank and have never had their account blocked, and some readers have commented that they have incurred significant bank charges as a result of their account being frozen so no money could be paid in, but mortgages and payments still taken out, pushing their account into a negative value.

For as long as funds remain in your Spanish account standing orders and regular bills will be paid, but topping the account up from outside Spain is not possible until the paperwork is in order, so logically, some people will incur bank charges as a result.

However, the message from the banks is to contact your branch and talk to them if you are unable to go into the branch in person and resolve the situation; they will help you to sort this out and comply with the legislation as far as possible.

The only documentation which is needed to accompany the form is passport or NIE details and a signature, plus in some cases a P-60 or equivalent.

Account holders who have received notification that their accounts with Bankia or other banks in Spain could be blocked for this reason are therefore advised to contact their branch if they have any doubts: most branches in areas where there is a sizeable British population have English speakers among their staff, and those consulted by Murcia Today at Bankia have expressed their commitment to reassuring customers and making the procedure as easy as possible.

Finally, if your Spanish bank has not notified you of the need to sign a similar certificate there are several possible reasons: either the notification simply hasn’t reached you, the bank is not as conscientious as Bankia in complying with the 2-year renewal period, or you may have signed other documentation within the two year period and signed this declaration without even realising it's been done.

In all cases, if you live here in Spain and are going into the bank for some reason, check whether the bank requires the signature of any such documentation in order to avoid any future problems or delays.

Please click here for Bankia PDF Form

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