When a bank blocks or holds a transfer from a crypto sale, it usually needs more information to complete its anti-money laundering checks: ask in writing what it requires, then answer promptly with documents that trace the funds from their origin to the transfer. Avoid moving the funds elsewhere or sending partial, inconsistent explanations, which tend to increase suspicion. If the bank has reported the case to the authorities it may be legally unable to tell you, so having a lawyer handle the communication can help.
Why banks hold transfers
Common triggers are an amount that does not fit your known profile, an exchange or counterparty the bank considers risky, on-chain exposure to flagged services found by the bank's analytics, or simply missing information. National anti-money laundering laws require the bank to clarify the background of unusual transactions. If its doubts are not resolved, it may have to file a suspicious transaction report with the national financial intelligence unit (FATF Recommendation 20). The law then usually restricts what the bank may tell the client (Recommendation 21) and may allow or require the assets to be frozen.
What to do now
- Ask the bank in writing which documents it needs and by when.
- Do not try to transfer the funds to another account or bank in the meantime.
- Collect exchange statements, wallet addresses, the original acquisition evidence and tax returns.
- Answer once, completely and consistently, ideally with a structured report rather than scattered emails.
- Involve a lawyer if the account is frozen, if the questions suggest a criminal concern, or if deadlines are short.
What not to do
Do not fabricate or alter documents, do not split the amount into smaller transfers to stay under thresholds, and do not route the funds through other people's accounts. Each of these can turn a documentation problem into a legal one. Honest gaps, explained, are far less damaging than inconsistencies discovered later.
If the bank still refuses
A bank may decide not to accept the funds even after a complete file, and return them to their origin or end the relationship. That is its right. The documentation is not wasted: another bank will ask the same questions, and a signed report you can hand over immediately shortens the process.
How Advisorn helps
Advisorn prepares a signed source of funds report with verifiable annexes and can handle the correspondence with the bank and its follow-up questions. The same report can be handed to another bank if the relationship ends.
FATF Recommendations 10, 20 and 21
Updated November 2026 · General information, not legal or tax advice on your specific case.