I. Definition of account sealing
Account sealing means that financial institutions seal some accounts to prevent the funds in the accounts from being illegally transferred or misappropriated. There are two kinds of account sealing: one is to completely seal the account, that is, no operation is allowed; The other is partial account closure, that is, only partial operations are allowed.
Second, the reason for the account seal
1. The account holder violates laws and regulations.
The illegal acts of account holders, such as illegal and criminal acts, may lead to the illegal transfer or misappropriation of funds in the account, thus affecting the normal operation of financial institutions. Therefore, financial institutions will take sealing measures to prevent the funds in their accounts from being illegally transferred or misappropriated.
2. The account holder loses contact.
The account holder can't manage the account normally due to loss of contact or other reasons, which may lead to the illegal transfer or misappropriation of funds in the account, thus affecting the normal operation of financial institutions. Therefore, financial institutions will take sealing measures to prevent the funds in their accounts from being illegally transferred or misappropriated.
Third, the legal provisions of the account seal
1, banking regulations
The Regulations on Banking Management stipulates that banks should take necessary measures to seal up accounts that may suffer losses in accordance with relevant regulations to prevent the funds in the accounts from being illegally transferred or misappropriated.
2. Regulations on the Administration of Securities Investment Fund Industry
The Regulations on the Administration of Securities Investment Funds stipulates that securities investment fund companies shall take necessary measures to seal up accounts that may suffer losses in order to prevent the funds in the accounts from being illegally transferred or misappropriated.
Account sealing means that financial institutions seal some accounts to prevent the funds in the accounts from being illegally transferred or misappropriated. The account was blocked mainly because the account holder violated laws and regulations, and the account holder lost contact. The relevant laws and regulations include the Regulations on Banking Management and the Regulations on Securities Investment Fund Industry.
This paper introduces the definition, reasons and relevant legal provisions of account seal in detail, aiming at giving readers a comprehensive understanding and better protecting their property safety.