The customary recommendation for expats is to close their accounts with banks or other financial institutions before leaving the UAE. There are occasions when expats leave the UAE without taking the time to close their bank accounts, though. Account holders must close their accounts online if they are unable to travel back to the United Arab Emirates.
There is a sizable expat community in the UAE, and the Covid 19 outbreak has taken a toll on them when they have been forced to return home because of lockdowns, visa rejections, and other issues. It is highly advised by our experts that you may close the Bank Account if you don't plan to return to the UAE anytime soon. Even though it is usually recommended to physically visit the bank to close a Bank Account, if you are out of the country you can still contact your bank and get this problem resolved.
The account will be frozen by the banks when there is activity on it, such as when there have been no incoming or outgoing transactions for a predetermined amount of time. When an account is dormant for six months, the majority of banks in the UAE freeze it. After the account has been frozen, they look at the fees and charges assessed against the account and ask the account holder to pay the fee to cancel or reactivate the account.
Thus in today’s blog, Dhanguard will extensively discuss how to close a Bank Account from abroad. So without any further ado, let's learn!
How to Close a UAE Bank Account from abroad?
If you have left the UAE and don't plan to return or have ceased business here then you should follow this process.
The process for closing the UAE Bank Account from abroad is mentioned below-
Call the bank and make a request
To perform certain actions on the account, the account holder must go to the bank. If, however, you are unable to travel to the United Arab Emirates, you can get in touch with the bank's representatives and let them know why. They might grant your request if the rationale is good. Your account name, account number, and bank branch information must be included in an official email sent from your registered email address to the bank's official email address.
Some banks may request that you fax a signed letter instead of sending it by email. Alternatively, see if any of your close friends or relatives will be able to hand-deliver a letter from you that is signed.
Settle your Debts
Check to see whether any fees have been assessed after your request to close your account has been processed. Some banks levy an account maintenance fee or a cost for failing to maintain a minimum balance. Verify the cost and inquire with the bank about the available payment options. Typically, you are required to deposit these into your bank account, at which point the associated fees will be deducted.
Additionally, if you close the account within a year of account opening, some banks may levy a small fee. Overall, make sure to review all the costs and pay them however you are able to do so in accordance with the bank's instructions.
Obtain the letter of account closure
The bank will process your request for closure once the outstanding debt has been paid. At the time of account closure, the account holder often needs to provide the bank their unused cheque book and debit cards. However, if you don't give them to them, the bank will deactivate them and you won't be able to use them again for anything.
Banks must process and close an account closure request within 3-5 working days. When the account is closed, the bank will send you a text message or email with a formal confirmation of the closure. If you don't hear from the bank, get in touch with them to find out how your account is doing.
What should you keep in mind while closing a Bank Account in the UAE from abroad?
Make sure you don't disclose any passwords in the letter requesting the cancellation of your account since that has nothing to do with it.
Obtain a crystal clear official confirmation from the bank indicating the account closure and save it. It might serve as a future reference.
Before shutting the account, make sure all outstanding debt has been satisfied. Once the debt has been satisfied, you should obtain a formal confirmation of the closure.
Although your debit cards and cheque books will be deactivated, it is still advisable to destroy the cards and cheques.
Verify that you did not issue somebody a check that has not yet been cleared before ending the account. You could be charged with a cheque bounce case if you have written a check to someone and your account is closed before it clears.
Take out all of the funds in the account before it closes, but keep a little amount for costs (if any)
Along with the account closure email, include a copy of your ID.
What are the Documents required to close the UAE Bank Account from abroad?
The Documents required for this process are mentioned below-
Your Photo ID
Your Debit and Credit Cards linked to the Account
Your Unused Cheques or Cheque Book
How to close the ADCB Bank Account from abroad?
The process is for closing the ADCB Bank Account from abroad is mentioned below-
Complete the Account Closure Form of Abu Dhabi Commercial Bank Account
The Account Closure Form must initially be completed in order to close a bank account. You can obtain the account closure form from your local branch by visiting the location and correctly filling out the form, or you can download it from the bank's website. The branch manager or officer in charge must then receive it, sign it, and sign it again. Please take note that the account closure form must be signed by all joint holders if there is/are any in your account.
Attach your Know Your Customer (KYC) documentation
The KYC documents, which include a copy of your PAN, which also serves as your proof of identification and a proof of address, must be attached by all account holders to the account closure form. It may also be necessary for the account holders to attest these documents themselves.
Return your bank branch the remaining cheques, debit card and passbook
You must hand up your Passbook, Debit Card, and any remaining Balance Cheque Leaves. Only when you have turned in all of these items will your application for account closure be accepted for processing.
Your request for the closing of a bank account will be processed
If the banker confirms that the documents you submitted are accurate, you will be asked to withdraw the remaining funds from your account and file a request to close it.
Take the remaining money out of your Bank Account
Upon request, you have three options: withdraw cash, have the bank issue a check or demand deposit (DD) in your favor, or have the money transferred to another account so that your account can be closed.
You could easily close your bank account if you adhere to the preceding instructions. After your account is terminated, banks often send an email or SMS to your registered email address and mobile.
At some Banks, the procedure of closing an account is straightforward and easy, but it can often be challenging. It entirely relies on the bank's policies. Whatever the case may be, tell your bank the truth about it without causing any legal issues. We therefore hope that this blog gives you useful knowledge. Please feel free to visit our office or our website for further details on other related topics.