Your Money Isn't Gone. But You Can't Touch It.
I spoke to a Founder yesterday who runs a $3M/year marketing agency. He logged into his Chase business account to run payroll. Access Denied. He called support. The agent read a script: "We have made a business decision to end our relationship. Your funds will be mailed to you via cashier's check in 30 days."
He didn't commit fraud. He didn't launder money. He just transferred $50,000 to a contractor in Dubai and paid a large Amex bill twice in one week. The AI flagged him as a risk. In 2026, banks don't investigate. They "De-Risk." They close the account first and ask questions never.
Here is the mechanics of the "Compliance Purge" and why you might be blacklisted from opening a new account anywhere.
1. The "SARs" Bot Explosion
In 2025, banks replaced human compliance officers with AI Agents. These bots are programmed to file Suspicious Activity Reports (SARs) with the Treasury Department at the slightest anomaly.
- The Trigger: "Velocity." If you move money too fast.
- The Trigger: "Structuring." If you make three deposits of $9,000 (to avoid the $10k reporting limit).
- The Trigger: "Crypto Interfacing." If you send money to Coinbase, even if it's legal.
Once a SAR is filed, the bank is legally forbidden from telling you why they closed your account. That is why they stonewall you. "Tipping off" a suspect is a federal crime.
2. The "ChexSystems" Blacklist (The Silent Killer)
You think: "Fine, Chase sucks. I'll go to Wells Fargo." You walk in. They reject you. Why? Because Chase reported you to ChexSystems (or Early Warning Services). This is the "Credit Bureau" for bank accounts. If you have a "Closure for Cause" on your ChexSystems report, 80% of US banks will auto-reject your application for 5 years. You are effectively unbanked. You are forced to use predatory "Second Chance" banks that charge 5% fees.
3. The "Money Rotation" Red Flag
Many founders play the "Credit Card Points" game.
- You pay a vendor via Credit Card.
- The vendor wires the money back to you (or a holding company).
- You pay off the card. You keep the points.
In 2026, tax authorities and banks call this "Manufactured Spending" or "Money Rotation." Recent audits in late 2025 (see Tax Cliff article) have targeted this aggressively. Banks now treat "cycling" your credit limit more than 2x a month as a sign of impending bust-out fraud. They will shut you down to avoid being left holding the bag.
The Checklist: The "Treasury Triad" Defense
Never, ever keep all your operational cash in one bank. Build this stack today.
| Layer | The Bank | Why You Need It |
|---|---|---|
| Tier 1 (The Fortress) | Chase / BoA / Wells | High Trust. Use this only for receiving client wires and paying tax. Keep it boring. |
| Tier 2 (The Speed) | Mercury / Brex | High Tech. Use this for paying contractors, software, and international wires. They are friendlier but prone to "Partner Bank" freezes. |
| Tier 3 (The Backup) | Local Credit Union | High Loyalty. Go physically to a branch. Meet the manager. If Chase bans you, the Credit Union (which often doesn't check ChexSystems) keeps your payroll alive. |
How to Check Your Status
- Request Your ChexSystems Report:
- It is free once a year. Go to
chexsystems.com. - Look for "Involuntary Closure."
- If you see an error, dispute it immediately.
- It is free once a year. Go to
- Stop "Structuring":
- Never break up deposits. If you have $12,000, deposit $12,000.
- Depositing $9,000 and then $3,000 is a felony (structuring). Depositing $12,000 is just a Tuesday.
Frequently Asked Questions (That Bankers Won't Answer)
Can I sue the bank to reopen it?
No. Your Deposit Account Agreement (DAA) says they can close it "at any time, for any reason." You have no right to a bank account.
How long does the "Cashier's Check" take?
30 to 60 days. They hold the funds to cover any potential "late" chargebacks. If that money was for tomorrow's payroll, you are dead. This is why you need the Treasury Stack—so you can toggle to Bank B instantly.
Does this affect my Personal Account?
Yes. If you used your personal SSN as the guarantor for the business account (which you likely did), the "Risk Flag" attaches to you. They will often close your personal checking and credit cards 24 hours after closing the business account. Move your personal money now.
Leon Consulting helps founders set up "Resilient Finance" operations. We know which banks are currently purging tech companies and which are safe. Get a banking referral.