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Closing a Bank Account in the UAE

Article image: Closing a Bank Account in the UAE

There can be different reasons to close a bank account in the United Arab Emirates. For example, in the case when the dissolution of an offshore or onshore company is planned, or if you want to change one bank to another which offering more attractive conditions, or you simply do not need a bank account anymore.

By the way, in accordance with the UAE legislation, if you are planning to close an offshore or onshore company, you cannot just forget about it. Closing a corporate banking account is one of the mandatory conditions of company dissolution.

You can close a banking account anytime. For this purpose, it is necessary to apply to a bank and file a necessary application.

Closing a Banking Account by a Private Person

The first thing you should do is to withdraw money from your account or to transfer it to an account in another bank. If you do not withdraw money by yourself, the bank has a right to give money out during a 7-day period. It is much simpler and faster to withdraw money yourself. You should also check whether you have a bank debt, for example for account maintenance.

The next step is writing a banking account closing letter. You can do it at any office of your bank. The only thing you will need is a passport.

If there is no money on your account, it will be closed the next day you file the application. If there is some money on the account, it will be closed the next day after debiting the account. Ask a financial adviser to check the presence of debts to the bank (it is usually a fee for account maintenance) in order to avoid possible problems.

The account can be also closed upon an initiative of a bank, if no activities have been carried out for more than 2 years. In this case, a written warning is sent to you, and if there is no response within 2 months, the account is closed.

Closing a Banking Account by a Company

The requirements to the corporate account closure can vary depending on a bank. However, the basic set of documents is always almost the same: company documents and an identity card of a person applying for an account closure.

A standard procedure of corporate account closure in the UAE banks requires a personal filing of an application and all the necessary documents. It is advisable to contact a bank representative in advance, and clarify what is necessary to close an account.

If you close an account within the first six months or a year of its opening, be ready that you may also have to pay an additional service fee. For example, you have to pay 100 dirhams in the Emirates NBD, and 500 dirhams in Mashreq Bank if you close an account within the first half year of its opening. Noor Bank charges a fee only in a case if you close an account within the first year of its opening.

As you can see, it is not difficult to close a banking account in the UAE. You have a right to cancel an agreement with a bank at any time, by applying to a bank with the corresponding application.

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