A custodian bank has a client which is an investment arranger.
The funds of the investment arranger's clients are held at the custodian.
The custodian has flagged one of the investment arranger's clients as being a money laundering risk and has now frozen the individual client's account (including their funds).
The investment arranger's client is understandably upset about this.
In order to avoid 'tipping the customer off', the investment arranger's client should not be given further information regarding this.
Is there any legal reason why the custodian must however inform the investment arranger of the details around freezing the investment arranger's client's account?
