The client sought to obtain a C settlement permit, as it would grant him more extensive rights than his existing B residence permit. He had submitted the corresponding application to the competent authority in his canton of residence and had received a provisional residence certificate for the duration of the proceedings, which was valid for three months. As experience has shown that the relevant procedures can take a certain amount of time, such a certificate will be extended on request if the procedure with the competent authority is still ongoing. The client claimed that based on Art. 59 para. 2 VZAE (Federal Ordinance on Admission, Residence and Employment) he was allowed to stay in Switzerland during the proceedings and enjoyed all the rights associated with a residence permit.

Despite the circumstances described and the clear legal situation, the bank blocked the client’s account because his original residence permit B expired during the proceedings and did not respond to his clearly formulated complaints. This caused the client great difficulties, as he needed the blocked account for his usual living expenses and had no other bank account.

After reviewing the documents submitted by the client, the Ombudsman contacted the bank. He asked it to check whether the client complaint had actually remained unprocessed. Should this be the case, he asked the bank to dealt with it. He also asked it to examine the possibility of releasing at least some of the client’s assets for the duration of the procedure of obtaining a C settlement permit. The bank subsequently lifted the block after a few days. It informed the Ombudsman that a re-examination of the dossier had revealed an error in the analysis of the client’s situation. The bank contacted the client and informed him that he could dispose of his account without any special restrictions until a settlement permit C was issued to him.

There are situations in which strong evidence makes an account freeze unavoidable. There can be many reasons for this. Since blocking is a serious infringement of the client’s rights, the Ombudsman believes that the bank should be able to clarify the relevant situations quickly and, if the suspicions that gave rise to the blocking are not substantiated, the account should be unblocked immediately.