# Will employers notify the bank after canceling an employee's residence?



## Sean2008 (Sep 9, 2008)

Is it true that the employer will have to notify the employee’s bank when a residence visa gets cancelled and thus the employee might not be able to access his account afterwards? Please advise. I read that on this site: 



It states:

It would be unusual for an employer to allow you to keep an account open once you're off their sponosrship. As soon as you inform your employer that you will be leaving, it is common for them to notify your bank of your departure, and it is possible that your account gets frozen. Therefore you may want to withdraw any cash before you let your employer know of your departure, unless you're fairly certain that access to your account won't be denied. You could also consider opening a second account at another bank before you inform your employer of your departure. A company may only be interested in the bank account where your salary is deposited.


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## Madam Mim (Jul 1, 2008)

Sean2008 said:


> Is it true that the employer will have to notify the employee’s bank when a residence visa gets cancelled and thus the employee might not be able to access his account afterwards? Please advise. I read that on this site:
> 
> 
> 
> ...


The company do not have to notify the bank it is a final payment. They only do this I understand when they have been involved in you getting a loan etc., which is attached to the account where your salary is transferred into. You should ask your company what they will do. Mind you I know someone who asked their company and HR said no way would they notify the bank then the accounts clerk put final payment on it as he didnt really think about it. Luckily they had arranged to get their final payment paid into an overseas account so it did not matter - maybe something you could do?


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## Sean2008 (Sep 9, 2008)

My company hasn't been involved in getting me a loan. And I don't have any debts. But I'm still wondering whether I should withdraw my money from the bank, just in case. On the other hand, I feel uncomfortable keeping a large sum of money in my apartment 



Madam Mim said:


> The company do not have to notify the bank it is a final payment. They only do this I understand when they have been involved in you getting a loan etc., which is attached to the account where your salary is transferred into. You should ask your company what they will do. Mind you I know someone who asked their company and HR said no way would they notify the bank then the accounts clerk put final payment on it as he didnt really think about it. Luckily they had arranged to get their final payment paid into an overseas account so it did not matter - maybe something you could do?


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## Sumair (Aug 16, 2008)

Sean2008 said:


> My company hasn't been involved in getting me a loan. And I don't have any debts. But I'm still wondering whether I should withdraw my money from the bank, just in case. On the other hand, I feel uncomfortable keeping a large sum of money in my apartment


It is obligatory to a company to inform the bank about the cancellation/resignation/termination of employee, to all banks in which the employee has opened the account ,if the company has official knowledge about that.

Official knowledge means company provides introduction, salary transfer , issued NOC to Bank, any loan arrangements whether funded or not.

On intimation the Bank has right to block / suspend/ flag employee account or demand full settlement of loans if any from the employee. To resume the operation employee must provide new valid residency visa to bank, bank on his discretion amend/change or cancel the facilities provided to the employee.

this is because any individual open the bank account by providing the residency visa sponsor by some employer, once the sponsorship is revoked the visa is no longer valid.


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## Sean2008 (Sep 9, 2008)

Thanks for your reply. My employer said today that they do not notify the bank when a visa is cancelled. Anyway, I don't have any loans or debts. Should I withdraw my money just to be safe in case my account gets blocked? Please advise.



Sumair said:


> It is obligatory to a company to inform the bank about the cancellation/resignation/termination of employee, to all banks in which the employee has opened the account ,if the company has official knowledge about that.
> 
> Official knowledge means company provides introduction, salary transfer , issued NOC to Bank, any loan arrangements whether funded or not.
> 
> ...


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## ohlala (Aug 29, 2009)

Sean - for goodness sake you can not expect people in this forum to make that decision for you. Take the advice and use your judgments...these threads get so long and tedious otherwise.


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## Sumair (Aug 16, 2008)

Sean2008 said:


> Thanks for your reply. My employer said today that they do not notify the bank when a visa is cancelled. Anyway, I don't have any loans or debts. Should I withdraw my money just to be safe in case my account gets blocked? Please advise.


If this is your salary account or at time of opening account you submitted the NOC from your company , then its better to open a new account and transfer your money in it. If this is not the case then leave your money there will be no problem!


Cheers!


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## xdude (Dec 8, 2008)

ur company is not going to notify the bank.
you do not have any debts
so what's the issue??


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## Elphaba (Jan 24, 2008)

Sean2008 said:


> Is it true that the employer will have to notify the employee’s bank when a residence visa gets cancelled and thus the employee might not be able to access his account afterwards? Please advise. I read that on this site:
> 
> 
> 
> ...




Right - and now the facts. 

It is standard practice for employers to advise a bank if they are making a final salary payment, but they don't have to. The giveaway is when gratuity is paid in as the large sum will alert the bank and they will often ask what is going on.

Many banks will, as a matter of course, freeze an account at this time, but if you have no debts then the ban will be lifted immediately. If you don't owe them anything they have no concerns and the worst case scenario is that they revoke a credit card.

_


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## Elphaba (Jan 24, 2008)

ohlala said:


> Sean - for goodness sake you can not expect people in this forum to make that decision for you. Take the advice and use your judgments...these threads get so long and tedious otherwise.


That attitude is unnecessary. Especially on a 2nd post.

It appears that you aren't even in the UAE yet, so you may not appreciate the seriousness of the question or the possible consequences.

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