I received an email saying that my account is suspended as I need to arrange contact information and policies.
Is this affecting me in the normal google search as well? or are they (with google merchant) different things?
Your comments will be much appreciated. Thanks
Re: Account suspended
No, they are separate. An AdWords suspension does not impact your organic indexing in any way.
However, be aware that if you were suspended for a quality, usefulness or abuse etc. reason, the spam team on organic search will usually root this out too and you can be suspended/penalized there too. They are not linked though.
Hope that answers your question.
Best of luck getting the suspension sorted.