Bulgarian business bank account closed: KYC, directors abroad and the questions to ask

A Bulgarian company has an operating bank account. Its director lives abroad. Then the bank gives notice that it will close the account without naming a specific reason in the letter. That notice alone does not tell us whether this is ordinary contractual termination, missing documents or something else. Residence outside Bulgaria neither proves a breach nor establishes the bank's reason on its own.

For the company, the first questions are practical: What is the deadline? Which payments are affected? Are any documents still needed? How will it obtain statements and the remaining balance? This article explains possible routes using published bank terms and customer due-diligence rules. These are examples, not a diagnosis of an individual case.

What does a bank check under “know your customer”?

Know your customer (KYC) means identifying and continually reviewing a business relationship. For a company, this includes the legal entity, its representatives and beneficial owners, the ownership and control structure, the purpose of the relationship and the expected business activity. Depending on risk, the bank also examines transactions and the source of funds. The review does not end when the account opens: EU anti-money-laundering rules require existing customers to be reviewed when appropriate and when relevant circumstances change. If a bank cannot fulfil essential due-diligence duties, those rules require the relationship to end.

A concrete example is UBB's 6 April 2026 list for reviewing smaller companies. It includes a business identification questionnaire, a beneficial-owner declaration, a politically exposed person declaration and identity documents for representatives, owners and authorised persons. The relevant bank must specify what it needs in a particular case.

Is living outside Bulgaria the reason for closure?

Residence abroad alone does not establish that. A bank must understand and keep current the identity, address and control of the company. UniCredit Bulbank's business account terms effective 1 January 2026, for example, include permanent-residence country and address among the identification details for beneficial owners and authorised persons. If someone involved lives abroad, additional information or a suitable identity-verification route may therefore matter in practice. The bank itself must clarify whether it offers remote verification and how it assesses the individual relationship.

Keep the distinctions clear: A request for updated KYC documents is not yet a termination. A termination does not prove suspicion of money laundering or that residence abroad caused it.

What other reasons are possible?

Bank terms set out different routes. UniCredit Bulbank's published terms, section III paragraph 9, for example, refer to notice from the bank, certain cases involving a zero balance or unpaid fees, and termination after breaches or where customer due diligence cannot be completed. UBB publishes separate terms for its own business customers. A notice period or reason in one bank's terms cannot simply be applied to another bank.

The terms point to categories of possible explanations: ordinary termination under the contract, incomplete or outdated KYC information, breach of obligations, unpaid charges or an account opened for a limited period. The basis in a particular case is the company's agreement and the terms applicable at the time. If the letter does not specify it, ask the bank directly.

What should the company clarify now?

1. Authenticity and deadline: Contact the bank through a number or secure inbox on its official website, rather than a link in an unexpected message. Ask in writing for the closure date, final usable date and contractual provision relied upon.
2. Outstanding review: Ask whether information or documents are missing, the deadline and a secure way to provide them. Check changes in management, ownership, address and activity against the bank's records.
3. Business continuity: List incoming payments, direct debits, wages, taxes and supplier payments that depend on the account. Save statements and transaction records; clarify in writing how the remaining balance can be transferred.
4. Explore another account early: Ask a different bank about requirements for this particular company and its representatives abroad. A new account involves its own KYC decision and is not guaranteed. Our independent business account comparison helps structure questions on applications, fees and documents.
5. If there is a dispute: Request a clear written explanation or use the bank's complaint route. Seek qualified legal advice on the particular contract if the consequences are significant.

Start in BG is an information portal and does not open bank accounts. This article is not individual legal or financial advice. Its sources are the EU anti-money-laundering directive, especially Articles 13 and 14, the bank documents linked above and Bulgarian National Bank guidance. Reviewed 30 October 2026. We will update this article when banks clarify their general procedures or the terms change.