money transfer to a blocked account in germany

International students in Germany are facing financial problems after a blocked account provider stopped making monthly payments

Given the uncertainty of international students that Hamburg-based German escrow account provider BAM Nationwide Investment Management stops making €861 monthly paymentstransferred by students to purported accounts in their home country, Aareal Bank AG will finally transfer funds to all BAM customers living in Germany, including students, the Federal Financial Supervisory Authority (BaFin) announced.

The bank will transfer the payments for July and August 2021 to all foreign students living in Germany who opened blocked accounts with the relevant company and those who received monthly payments before June 1 of this year.

“Students who have only been in Germany since June 2021 and have not yet received any payments from their “blocked account” are requested to contact Aareal Bank AG at the following address and provide the domestic account number (name of the account holder, IBAN of the bank account and BIC of the bank) “according to the BaFin press release.

In addition, Aareal Bank asks students to attach some documents in digital form to verify their identity.

These documents include:

  • passport or identity document,
  • issued German visa or residence permit or confirmation of enrollment at a specific university (if you have not yet received a visa or residence permit)
  • Federal Police entry stamp
  • entry stamp of the federal police, as well as
  • Confirmation of blocked account from BAM a
  • Instructions for transferring a blocked account” from BAM.

In the same press release, BaFin emphasized that all BAM customers, including foreign students who already live in Germany or have not yet entered Germany due to visa delays, are asked to contact a new approved credit institution for a blocked account. In addition, Aareal Bank AG will transfer funds from the collective trust account for BAM customers to their new accounts.

“In order to avoid possible disadvantages in German residence law, students from third countries who allegedly opened a “blocked account” with BAM are requested to comply with the requirements set out in this notice”, it is also stated in the press release.

The federal states responsible for the implementation of the Residence Act have been informed of the situation by the Federal Ministry of the Interior, Construction and Community (BMI) and must ensure that BAM customers do not suffer any disadvantages in terms of residence rights if they can prove that they received their residence permit in time by opening a new blocked account with another provider.

International students from countries outside the EU or EEA who come to Germany must open a blocked account when applying for a student visa or residence permit to study in Germanydemonstrate that you have sufficient funds to cover living expenses, which is €10,332 for the first year of study.

The students decided to open a blocked account with BAM because they were offered low prices, the so-called all-round carefree package worth 60 euros for a blocked account with Aareal Bank in Wiesbaden. However, since June of this year, she cannot transfer fixed monthly payments to students.

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