Apple Pay permanently locked

You got told wrong or you misunderstood what was being said. Apple is not a bank. Apple does not run Apple Cash, the operation of Apple Cash and the support for Apple Cash is done by Green Dot Bank. This is all contained in the terms and conditions you agreed to when you opened the account.

You don’t have to be a scammer to have your account restricted or locked. All you need to do is engage in risky behaviors or receive or send funds to people that engage in risky or suspicious behavior. Here’s probably the section you violated.

>>(vii) we believe that your use of the Services could expose us, Apple, or other persons involved in providing the Services to increased risk or be placed in a false or derogatory light;<<

In other words, your transactions, either sending or receiving or both, present a risk that Green Dot Bank is comfortable with. There are other sections too, that may apply, and be a part of the issue. You can read the terms and conditions at the link below.

https://applecash.greendot.com/termsconditions/

Contact an Apple Cash Specialist at Green Dot Bank by calling (877)-233-8552

Banks are regulated by multiple federal and state agencies for compliance with banking regulations and requirements. They are following guidelines based on your past behaviors and investigated by FinCen (Financial Crimes Enforcement Network).

You don’t have to be a scammer to have your account restricted or locked. All you need to do is engage in risky behaviors or receive or send funds to people that engage in risky or suspicious behavior. Here’s probably the section you violated. However, the terms and conditions list other conditions that could have contributed to your account being locked.

>>(vii) we believe that your use of the Services could expose us, Apple, or other persons involved in providing the Services to increased risk or be placed in a false or derogatory light;<<

In other words, your transactions, either sending or receiving or both, present a risk that Green Dot Bank is not comfortable with. There are other sections too, that may apply, and be a part of the issue. You can read the terms and conditions at the link below.

https://applecash.greendot.com/termsconditions/

Contact an Apple Cash Specialist at Green Dot Bank by calling (877)-233-8552.

Have you contacted an Apple Cash Specialist at Green Dot Bank yet? If not, their contact information is below.

Accounts are locked when your spending, transferring and depositing practices match the same patterns as money launderers, drug dealers etc. I’m not accusing you, just saying federal banking regulations are getting stricter and all banks are being forced to clamp down.

Apple Cash is a service that’s administered by Green Dot Bank. Contact an Apple Cash Specialist at Green Dot Bank by calling (877)-233-8552 or by calling 1-800-MY-APPLE

https://applecash.greendot.com/termsconditions/

If your Apple Pay Cash account is restricted or locked, read this support article --> If your Apple Cash account is restricted or locked - Apple Support

"Still need help? Contact us." Click here --> https://getsupport.apple.com/?caller=kbase&PGF=PGF90000&category_id=SC0287&symptom_id=23287

Permanently locking your Apple Cash account is permanent. Green Dot Bank, issuer and servicer of Apple Cash accounts is required to by law to take action when certain suspicious activities take place. They are not required by law to disclose their suspicions or your activities that triggered the permanent closure.

>>If your Apple Cash account is locked

Your account may be locked if there's suspected fraud on the account, or if additional security checks need to be completed. If your account is locked, you can't use Apple Cash to make purchases, send or receive money, add money to your account, or transfer money to your bank.<<

If your Apple Cash account is restricted or locked - Apple Support

Here is the most likely scenario. A scammer sending you funds is a bad thing for multiple reasons. What they are usually doing is money laundering. The federal government has strict Anti Money Laundering Laws (AML).

The suspicious activity on your account forced the bank to file a SAR (Suspicious Activity Report) with the Financial Crimes Enforcement Network (FinCEN), a federal agency. They have 30 days in most case to investigate the situation including the account activity and tell the bank their decision. During this time the account will be locked and any funds frozen.

If FinCEN had further suspicions or additional information on account activity it was revealed to the bank. The bank has made the decision they don’t want you as a customer and have concerns about the funds. If the funds are part of a larger money laundering scheme, the bank is responsible for returning funds that aren’t rightfully yours. Claims can be made on those funds sometimes 1 to 1 1/2 years from now. In many cases I’ve seen, the funds are immediately seized and that’s the end of the story.

Lower level support people at Green Dot, including supervisors typically don’t have access to any of that level of information and do not have the training etc. The banks internal fraud unit was involved and they don’t come to the phone. So, when you start asking question, they have no answers to give and demanding answers won’t get you anywhere. The people that know aren’t coming to the phone.

Why and how do banks get away doing this? Fair question and one that everyone that has been in your shoes has asked. The answer is very simple. Federal laws prevent the bank from revealing what they know and also prevent the bank from talking about it to the account holder. The Bank Secrecy Act of 1970 and the Patriot Act of 2001 (enacted after 9/11) have strict regulations and language about what the bank can and can’t do. And one of those things is talk to you about your account. So, when I said the support people don’t know, they literally don’t know because the bank hasn’t told them a thing. The bank probably gives them a script to read when they have to tell the customer the account is locked and that’s all they know. Getting mad at them doesn’t accomplish a thing other than making them reconsider their job.

Apple’s role in this? Literally none. Banking laws and privacy laws prohibit Green Dot from telling Apple any of this. Your bank may know a little and can also suspect what the situation is. FinCEN was looking at your bank accounts and deposits and withdrawals and the source of your funds.

The fact that the funds weren’t seized is a positive and so is the fact they will let the account go dormant and you’ll have a chance to claim the funds.

https://applecash.greendot.com/termsconditions/

It is GreenDot bank that makes those decisions. Apple is not a bank and not holding your money. Read the information provided by Jeff Donald from the CFPB for filling complaints and resolving disputes.

What appears suspicious to the bank, may not appear suspicious to you at all. Banks are required to Know Your Customers by federal laws.

>>Why is KYC important in banking?

KYC is a legal requirement for financial institutions and financial services companies to establish a customer’s identity and identify risk factors. KYC procedures help prevent identity theft, money laundering, financial fraud, terrorism financing, and other financial crimes. Failure to meet KYC requirements can result in steep fines and penalties. 

AML regulations were introduced in 1970 to fight money laundering. Following the 9/11 attacks, the U.S. passed stricter KYC requirements as part of the Patriot Act. While these changes were in the works for several years, the terrorist attacks provided the political momentum needed to enact them.

Title III of the Patriot Act requires financial institutions to meet two core KYC components: the Customer Identification Program (CIP) and Customer Due Diligence (CDD). Current KYC procedures embrace a risk-based approach to counteract identity theft, money laundering, and financial fraud:

• Identity Theft: KYC helps financial institutions establish proof of a customer’s legal identity. This can prevent fake accounts and identity thefts from forged documents or stolen identity documents. 
• Money Laundering: Both organized and unorganized criminal sectors use dummy accounts in banks to store funds for narcotics, human trafficking, smuggling, racketeering, and more. KYC limits their ability to avoid suspicion by spreading money out across several accounts. 
• Financial Fraud: KYC helps prevent fraudulent financial activities, such as using fake or stolen IDs to apply for a loan and then receive funding with fraudulent accounts.<<

https://plaid.com/resources/banking/what-is-kyc/

Federal law and regulations actually prohibit the bank from telling you the reason(s) for locking an account.

Accounts are shared, you and the bank that holds your funds. It’s more of a partnership.

Banks are prohibited by law from revealing the details when fraud and money laundering are suspected. These are basically known as Anti Money Laundering (AML) laws. It may not even be you that’s done suspicious transactions. Banks are required to Know Your Customer (KYC) laws and even further. They need to know their customers customer.

In other words somebody sent you funds. You’re potentially innocent, but the funds you received are suspected of being involved in illegal, fraudulent or being money laundered. Your account is closed because you received those funds.

I know, it doesn’t seem fair. But no one here knows why your account was closed. Your bank is prohibited by law, Bank Secrecy Act, from telling you. You and the bank have a partnership and your partner is terminating your relationship. I suggest you move on.

I made a comment/post above this in the forum that has suggestions if you want to pursue getting funds in the account. Just scroll up.

Just to add to the excellent explanation provided by Jeff Donald, after the SAR has been initiated, banks cannot tell you any information about what is going on. I can see where this would lead to being frustrated, but there is nothing that can be done about it. It is true that the person you talked to probably had no idea because they are not even told about it. You can find more information about that here:

The financial institution must not notify a customer that he/she has been included on a 314(a) Request. Furthermore, the financial institution must not tell the customer that he/she is under investigation or that he/she is suspected of criminal activity.

https://www.fdic.gov/resources/supervision-and-examinations/examination-policies-manual/section8-1.pdf

I am not saying you are a criminal or have even done anything wrong and the reason for this happening to you will most likely remain unknown. You may have received money from someone who has provided false identification information or even scammed by someone requesting money from you and were caught up in a much bigger investigation.

If your Apple Cash account is locked

Your account may be locked if there's suspected fraud on the account, or if additional security checks need to be completed. If your account is locked, you can't use Apple Cash to make purchases, send or receive money, add money to your account, or transfer money to your bank.

If your account is locked and there are no instructions provided, contact Apple Support.

If you need assistance on possibly recovering funds please file a complaint with the CFPB (Consumer Financial Protection Bureau) and Comptroller of Currency.

https://www.consumerfinance.gov/complaint/

https://www.occ.treas.gov/topics/supervision-and-examination/dispute-resolution/consumer-complaints/index-consumer-complaints.html

Federal law/regulations prevent the bank from disclosing or discussing that information.

https://www.irs.gov/businesses/small-businesses-self-employed/bank-secrecy-act

Depending on the amount you can file in your states small claims court. If the amount is too large you need to hirer an attorney and the court will want to trace where the funds came from.

So I sent a complaint to the CFPB .

I did it for digital wallet and can’t access fund I told them what bank and the problem and how corrupted they are and green dot got my complaint and simply told me they will hold my money until my account is dormant (2-5 years ) from their they will send me a letter with a claim form that I have to add my valid id

then in 6 -8 weeks they will send a refund check . It’s **** that they can do that but it’s hope .

No, you cannot. Apple says that their policy is you cannot take any money out when your account is locked.