What to Do If Your Bank Closes Your Account

Published: 2026-05-07
reading time: 5 minutes
topics: bank accounts, FI, payment services, businesses

The Swedish Financial Inspectorate's (FI) investigation has revealed that 54,000 bank accounts were denied or closed by the four major banks during 2024. A shocking figure that has now prompted the authority to take action. But what do you do if your bank suddenly cuts you off as a customer?

What does it mean when your bank closes your account?

When a bank decides to close your account, it means you lose access to all banking services including payments, transfers, and any credit facilities. FI's mapping shows that 54,000 accounts were affected during 2024, representing a 17% increase compared to previous years.

"This is a genuine conflict of interest," says Financial Markets Minister Niklas Wykman (M) in an interview with Realtid. "Banks have continued to send mail via services that require BankID to customers whose BankID has been closed – a loop that becomes increasingly problematic."

Most common reasons for account closures

FI's Head of Payment Supervision, Mithra Sundberg, confirms that the authority is now launching an investigation into account closures. The most common reasons identified by FI are:

• Limited customer knowledge: Especially people without traditional Swedish ID documents are affected
• Money laundering regulations: Banks' strict interpretations of the regulations lead to customer rejections
• Automated decision-making: Many banks have replaced experienced handlers with automated systems

Your rights under the law

According to the Payment Services Act, banks have a statutory obligation to offer payment accounts. This is a fundamental part of the Swedish payment infrastructure.

"Banks have a statutory obligation to offer payment accounts under the Payment Services Act," points out FI's Sundberg. "What we're asking for is more individual assessments instead of general rejections."

What you should do immediately

1. Contact your bank immediately

Ask specifically:

• Why is the account being closed?
• Is there a possibility to appeal?
• What time frame applies for transferring money?

2. Request a transition period

Ask for a reasonable period (at least 14 days) to arrange alternative payment solutions. It's important to have time to switch salary deposits, direct debits, and other fixed payments.

3. Find a new bank

According to FI, it may be worth:

• Contacting other banks directly – some may be more flexible
• Bringing documentation that proves your information
• Requesting to speak with a handler rather than just the systems

4. Notify all relevant parties

Inform immediately:

• Employers about salary deposits
• Companies that have direct debits from your account
li>Customers who pay to you

FI's proposals and new guidance

FI is currently working on new guidance for the application of money laundering regulations. The authority suggests risk-reducing measures such as enhanced transaction monitoring instead of complete rejections.

"The problem is not the strictness of the regulations, but the lack of clarity," says Wykman. "FI is expected to present concrete proposals in May 2026."

The role of bank staff

It's not only customers who are affected – bank staff are caught between strict regulations and customer service.

"Money laundering regulations are what affects the working environment the most," says Camilla Linder, Chair of the Swedish Financial Employees' Union. "Experienced handlers have been laid off and replaced with automated solutions. Staff are working 'hidden overtime' where they work extra without telling anyone."

Questions to ask your bank

When contacting your bank, ask specifically:

• Which regulations are you citing for the closure?
• Do I have the opportunity to supplement my information?
• What documentation is needed to open a new account with you?
• Can you help me with the transition to a new bank?

Long-term solutions

FI's investigation points to the need for better balance between money laundering work and customer access to payment services. The state's e-identification, which will be introduced on December 1, 2026, may also provide alternatives for those who today have difficulty getting BankID.

"The state has a debt here," concludes Wykman. "We should have had a state e-identification long ago. The fact that 80-90 percent of all services require BankID is a technical vulnerability that could paralyze the country."