The Mystery Behind Banks' Sudden Account Closures

Banks are increasingly closing customer accounts without providing clear explanations, leaving individuals, families, and small-business owners in a state of confusion and financial distress. The closures, known as "exiting" or "de-risking," are part of a broader effort by banks to crack down on fraud, terrorism, money laundering, and other crimes. Red flags, such as unusual transactions, trigger algorithmically generated alerts that are reviewed by human employees. While banks file suspicious activity reports (SARs) to comply with regulations, they rarely disclose how often they close accounts or how often they get it wrong. Customers are left with damaged credit scores, difficulty paying bills, and uncertainty about future banking relationships.