When the bank takes its time: What you need to know about the OLG ruling on money laundering prevention

In June 2023, a woman received two large transfers totaling almost one million euros into her bank account. However, the bank reacted with great caution and refused to pay out the money. The reason: suspicion of money laundering. But what happens if the bank blocks access to your money on the basis of such suspicions? Is it liable if the suspicion later turns out to be unfounded? The Frankfurt/Main Higher Regional Court recently ruled in a case that could be of importance to many bank customers.

The bank has a good reason to hesitate

According to the Money Laundering Act (GwG), banks are obliged to report certain transactions if money laundering is suspected and to wait for the transaction to be cleared. In this case, the bank immediately reported the large transfers to the Financial Intelligence Unit (FIU), an authority that checks financial transactions for possible illegal activities. As long as there is no clear confirmation from the FIU or the public prosecutor's office, the bank can delay the payout - a measure that is legally protected.

After the delay, the customer demanded payment of the money and reimbursement of her legal fees. However, the Frankfurt Higher Regional Court ruled in favor of the bank: even if the suspicion of money laundering cannot be confirmed, the bank has the right to take a few days to review the transaction. In a situation involving such large sums and a potential risk for the financial institution, a cautious approach is certainly justified.

The bank does not have to pay for your legal fees

One important question remains: Does the bank have to pay the lawyer's fees if its delay forces the customer to seek legal help? The Higher Regional Court ruled that the bank does not have to pay the lawyer's costs. This is because there is no question of a breach of duty on the part of the bank before the specified deadline has expired. This means that a bank that withholds a transaction on the basis of suspicion cannot necessarily be held liable for all legal fees - even if the suspicion later turns out to be unfounded.

Banks can take their time - and customers are left with their costs
The decision of the Frankfurt Higher Regional Court shows how much responsibility banks have in relation to suspected cases of money laundering and how far they must go to protect themselves. Protection against illegal financial transactions is a high priority, but customers must also expect to be held liable in such cases if there are delays. The bank is not obliged to pay the lawyer even if the suspicion is not subsequently confirmed.

Customers have to pay: Is this a fair solution to bank delays?

The OLG's decision may be understandable from a legal perspective, but the question remains as to whether it is fair that customers are left to pay their legal fees in such a case, especially if the suspicion turns out to be completely unfounded. A more balanced solution could be demanded from the courts here. After all, it should not be the customer's responsibility to pay for a bank's delay and cautious actions - especially when it comes to large sums of money that are of considerable importance to many people's everyday lives.