If a bank suspects fraud, they can tell other banks about their suspicion, which will cause all banks to freeze your accounts and none will be able to tell you why.
Especially if/when a person or business goes into the ChexSystems "blacklist" [1] where that individual or business can't have a bank account in the US, Canada, and EU for five to seven years.
Would this also apply to credit unions? I feel like a credit union is less likely to give a f*** about what some bank tells them, and a bank probably doesn't want to help credit unions anyway. Am I wrong?
I think most are scared about the law. "You had information that X was linked to a terrorist organisation, and yet you still let them open an account and transfer $Ym?. Big fine and/or prison".
If a bank suspects fraud, they can tell other banks about their suspicion, which will cause all banks to freeze your accounts and none will be able to tell you why.