Don't worry, it'll be like when Nigel Farage had his account closed, there will be a lot of outrage and they'll get them back. They are not a PEP, have no links to Russian money, or anything questionable about "consulting" gigs so it's an easy fix right ...
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Possibly related to them having a donate to Palestine Action button on their website, although they say they removed that after proscription of PA.
Perhaps their account was automatically flagged because of the previous transaction, or something transactions went through after the proscription. I wouldn't be surprised if the bank was afraid of legal repercussions on their end if they acted as a middle man in funding a proscribed terrorist group.
Regardless, the bank not giving a clear and concrete reason why the funds are frozen is frustrating, and IMO not right. How hard would it have been to say "This account has been flagged as financially supporting Palestine Action. Funds are temporarily frozen pending investigation." I hate lack of transparency.
E: people want a lack of transparency from banks, I guess?