Account Freezing Orders
Account Freezing Orders and Account Forfeiture Orders
Account Freezing Orders (AFOs) are used to seize assets which are suspected to be the proceeds of crime. Our specialist solicitors can help at every stage of any investigation and proceedings.
An increasing feature of criminal investigations is the ability of the police and other agencies to seize, restrain or freeze assets that they say are the proceeds of crime. This can be the first sign that you are suspected of a criminal offence.
At David Gray Solicitors, we specialise in protecting clients’ rights in complex criminal cases, including those involving AFOs. With years of experience in financial crime at ever stage from investigation through to court proceedings, our team is here to guide you through this challenging process.
Understanding Account Freezing Orders: What You Need to Know
Account Freezing Orders (AFOs) are powerful tools used by law enforcement agencies to tackle financial crime. While they serve an important purpose, they can also have a significant and immediate impact on individuals and businesses. If you receive an application or an order, it is essential to act quickly and seek expert legal advice.
What is an Account Freezing Order?
An AFO is a court order that prevents an individual or business from accessing funds in a specified bank or building society account. An application is made under the Proceeds of Crime Act when there is suspicion that the money in the account is linked to criminal activity, such as fraud, money laundering, or drug dealing.
Authorities can freeze accounts holding a balance as low as £1,000.
How is an Account Freezing Order Obtained?
Application by a Law Enforcement Agency:
Agencies like the police, HMRC, or the National Crime Agency (NCA) can apply to the magistrates’ court for an AFO.
Grounds for the Order:
The agency must demonstrate “reasonable grounds to suspect” that the funds are recoverable property or intended for unlawful use.
Application to Court:
If the court is satisfied with the application, it will issue an AFO, freezing the account for up to 2 years while investigations take place. An application can be made without notice – which means you would only be told once the AFO is already in place.
For businesses and individuals, this can result in immediate cash flow problems, reputational harm, and significant stress.
What Happens After an AFO is Granted?
Once an account is frozen:
- Access is Restricted: The account holder cannot withdraw or transfer funds
- Investigation: The authorities will continue their investigation to determine whether the funds should be forfeited and/or criminal charges should follow
- Possible Forfeiture: If evidence supports the claim, authorities may seek a Forfeiture Order to permanently seize the money.
Challenging an Account Freezing Order
Being subjected to an AFO can be distressing and may leave you with no access to funds. You have the right to challenge the order. Here’s how:
- Apply to set the order aside. By presenting evidence of legitimate fund sources, we can apply to the court for a full or partial release of the funds. We can assist with making the necessary application to the court.
- Apply to vary the order. The court may (amongst other things) make provision to:
- meet the person’s reasonable living expenses, or
- carry on any trade, business, profession or occupation
- Arrange representation at any interviews by the police or other agencies.
What to Do if Your Account Has Been Frozen
- Stay Calm: Panicking can lead to rash decisions. Take a moment to assess the situation
- Gather Documentation: Collect evidence to prove the legitimacy of your funds
- Contact Us Immediately: We can offer confidential consultations with our specialist solicitors at short notice and remotely if needed, call us on 0191 232 9547 to make an appointment.
