The UAE has unmatchable and lucrative opportunities for everyone. The professionals, entrepreneurs, investors, visitors, and job seekers are attracted considering the opportunities. The prime question that arises here is whether the residents of the UAE, especially the expatriates, can use their bank accounts after visa cancellation.
Banks need the customers to maintain a valid residency status. The process mainly depends on the situation and does vary from person to person. UAE banks have their own set of policies and regulations that they adhere to. Moreover, here, the UAE bank laws, immigration laws, and central bank regulations all become active to navigate this matter.
Reasons for visa cancellation in the UAE:
Once the visa of a resident is cancelled in the Emirates, this marks the official time to leave the country. Once the visa cancellation takes place, the individual has no legal and valid right to reside and work inside the UAE.
Some of the main causes of visa cancellation include job termination, relocation, business closure, switching employers, Retirement, and many other reasons. Once the visa is canceled, the individual is granted a 30 to 90-day grace period.
The 30-day grace period is provided for various reasons, such as exiting the UAE, obtaining a new visa, or adjusting the status.
Mainly, the banks are notified using the electronic sources about visa cancellations. The updates are provided through the Emirates ID and Central Bank systems.
The Response from UAE banks over the matter
The general rule across most that is followed is that the personal bank account should be associated with an active resident visa or an emirate ID.
Besides, once the visa cancellation takes place, the banks must inform the customers. The notification is sent to the customer directly from the bank in the UAE.
Moreover, the banks may choose to freeze, shut down, or downgrade the account after visa cancellation in the UAE. In case no update is provided within a reasonable time, the bank will take stern action.
Nonetheless, the banks give a grace period of almost 30 to 90 days to the account holders. The days are finalized considering the bank’s internal policy and some other factors.
During the grace period, the account holder is permitted to withdraw or transfer their funds into the account. Besides, they get regular updates about the visa and its paperwork. Thirdly, the account should be closed properly according to the formal way.
In many cases, the UAE banks permit individuals who lose their residency to convert their accounts into a non-resident account. This facility is provided to facilitate individuals facing visa cancellation in the UAE.
Normally, the process of downgrading the account involves certain steps. The account holder should provide a copy of a valid passport along with updates of the overseas address.
Contact information is also provided along with revised account terms. They must comply with FATCA and CRS regulations for the purpose of tax reporting.
This facility is not provided by all UAE banks. It is provided by a few banks, and many factors are taken into consideration based on the case.
What happens when a UAE resident fails to notify UAE Banks
In case, the customer fails to notify the bank after visa cancellation takes place, this will lead to some serious repercussions. The banks may choose to freeze the accounts without giving any prior notice.
Additionally, the standing instructions, including loan payments, salary transfers, and automatic debits, may fail. Access to online banking services will be restricted as a result.
Furthermore, the banks can legally and lawfully shut the bank accounts in case of failure to notify the bank. They might return the remaining funds by using cheques or remittance from s foreign bank account.
In some cases, the banks may choose to launch a police complaint against the customer. This is mostly done if the customer has unpaid loan payments, credit card dues, or involvement in bounced cheques. They can file fraud against the client.
Legal consultancy from a Lawyer in Dubai will assist in fulfilling the financial obligations without inviting more problems. They can suggest the possible ways to meet obligations at the time of visa cancellation in the UAE.
Seek the assistance of a professional lawyer in Dubai
The situation is complex, and thus, the UAE resident must seek professional services of a lawyer in Dubai. They provide useful knowledge to the residents regarding the bank regulations, Immigration laws, and a possible way out.
By engaging a well-versed lawyer in Dubai, the banks show more flexibility towards the matter and also provide the option of downgrading the bank account. They will negotiate with the banks to ensure the smooth transition.
Here, the role of professional lawyers is pivotal. They can provide legal guidance on the legitimate procedure. They will ensure that the communication takes place between the account holder and the customer with the bank. The crucial steps are necessary to avoid a sudden account freeze.
