Account Freezing Order Solicitors
Challenge Account Freezing Orders & Forfeiture Orders
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Contact our experienced team for prompt and professional legal support
Steps to take if your account has been frozen
Many legitimate individuals and businesses find themselves subject to investigation and require immediate specialist legal representation to challenge the allegations being made.
- If your account has been frozen:
- Do not ignore correspondence from the bank or investigating authority.
- Do not provide explanations or documents without obtaining legal advice.
- Preserve all records relating to the source of funds.
- Identify any urgent financial commitments including wages, rent, mortgage payments and supplier obligations.
Our specialist solicitors offer legal advice regarding possible challenges to the Order and applications for the release of funds. Early strategic intervention may have an impact upon the outcome of proceedings.
Business Account Frozen?
The freezing of a business bank account can have immediate and far‑reaching consequences, placing significant pressure on the day‑to‑day operation of a business.
Businesses may find themselves unable to meet essential financial commitments, such as:
- pay employees or suppliers,
- settle VAT and other tax liabilities,
- complete customer transactions, and
- continue normal trading activities.
In appropriate circumstances, applications can be made for the release of funds in order to meet essential expenditure and maintain the ongoing viability of the business.
Our freezing order solicitors have many years of experience in assisting companies faced with account freezing orders and adopts a proactive, strategic approach to minimise commercial disruption and protect our clients’ interests.
How Can KANGS Help You
With a deep understanding of financial regulations, asset protection and criminal law, our account freezing order solicitors are uniquely equipped to navigate the complexities of your case, protect your assets and restore your financial freedom.
Our team can:
- challenge the Account Freezing Order,
- apply to vary or discharge an existing Order,
- oppose Account Forfeiture proceedings,
- seek the release of funds for living or business expenses,
- advise in relation to HMRC, NCA and police investigations,
- prepare evidence demonstrating the legitimate provenance of funds, and
- represent clients in proceedings before the Court.
We have acted in numerous complex and high-value cases involving domestic and international financial investigations and have secured the release and return of substantial sums on behalf of our clients.
Whether your bank account has been frozen due to suspicious activity, allegations of funds originating from the Proceeds of Crime (POCA), accusations of fraud or any other related reasons, trust KANGS to be your defender and advocate during these challenging times.
For further information regarding AFOs, please see our Frequently Asked Questions.
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Account Freezing Order FAQs
Why has my account been frozen?
In many cases, account holders are unaware that concerns have arisen until their account has already been frozen.
Common reasons include:
- Allegations of tax fraud or tax evasion.
- Suspicious Activity Reports (SARs).
- Money laundering investigations.
- Unexplained large cash deposits.
- Cryptocurrency transactions.
- International transfers.
- Third-party payments through business accounts.
- Alleged fraud offences.
KANGS can help you
Experienced Legal Support for Account Freezing Orders
Since the introduction of the Account Freezing Order and Account Forfeiture Order powers, there has been a steady increase in the use of such powers by law enforcement agencies.
Our team has been involved in representing clients in a number of such cases and has a considerable record of success in defending such matters and securing the return of frozen funds.
A number of cases have involved a significant international dimension and our team is experienced in handling complex multi-jurisdictional issues.
We have also been successful in securing the release of monies from the frozen accounts to fund the ongoing legal costs of challenging either the grant of the initial Account Freezing Order or costs of contesting the Account Forfeiture application.
The team at KANGS are highly regarded and recognised nationally for its work in financial crime at all levels. Our team is ranked in the highest categories in both the leading directories, namely, the Legal 500 and Chambers UK.
Contact KANGS
The expert account freezing order solicitors at KANGS are available to assist you. We can arrange initial consultations in person, by video call or telephone.
Please contact one of our experts listed below or contact us at:
What is an Account Freezing Order (AFO)?
An AFO is a court order enabling law enforcement agencies (such as HMRC) to freeze a bank account, and prohibit withdrawals or payments from the account for a period of up to two years.
How long can a bank account be frozen?
Up to two years. The initial AFO must either be discharged within two years and the funds returned to the account holder or the law enforcement agency must make an application for the forfeiture of the money within this period of time.
Can I challenge an AFO?
Yes. The account holder is entitled to make representations to the court against the granting or extension of an Account Freezing Order. The account holder can also go to court to oppose any subsequent application for forfeiture of the money.
Is the money in a frozen bank account automatically forfeited?
No. In order for the money to be forfeited the law enforcement agency must satisfy the court on a balance of probabilities that the money represents the proceeds of crime or that is intended for use in unlawful conduct. If this cannot be proven, the money must be returned to the account holder.
How are AFOs obtained?
A law enforcement agency (such as HMRC) may apply to a Magistrates’ Court for such an order without providing any notice of the application to the account holder. The account holder will be provided with a date to attend court subsequently to make any representations.
Can money be paid into a frozen bank account?
Yes, in certain agreed circumstances. However, in contrast no debit transactions will be permitted whilst the bank account remains frozen.
Can I withdraw money from a frozen account?
A frozen account remains inaccessible until it is unfrozen, which happens once the underlying issue is resolved.
When suspicious activity is detected, is frozen and the bank typically removes the freeze after completing an investigation. However, if illegal activity is confirmed, or if the account holder is found to be involved in any fraudulent activities, the account may be permanently closed, and any remaining funds could be seized.
While the account is frozen, automatic bill payments will be halted, but you may apply for a validation order. A validation order authorises certain payments to be made from a frozen account.
For more information about the validation order application process and potential outcomes, contact us and speak to one of our solicitors.
What is a 303Z1 Application for Account Freezing Order?
(1) This section applies if an enforcement officer has reasonable grounds for suspecting that money held in an account maintained with a bank or building society—
(a) is recoverable property, or
(b) is intended by any person for use in unlawful conduct.
(2) Where this section applies (but subject to section 303Z2) the enforcement officer may apply to the relevant court for an account freezing order (AFO) in relation to the account in which the money is held.
(3) For the purposes of this Chapter—
(a) an AFO is an order that, subject to any exclusions (see section 303Z5), prohibits each person by or for whom the account to which the order applies is operated from making withdrawals or payments from the account;
(b) an account is operated by or for a person if the person is an account holder or a signatory or identified as a beneficiary in relation to the account.
(4) An application for an AFO may be made without notice if the circumstances of the case are such that notice of the application would prejudice the taking of any steps under this Chapter to forfeit money that is recoverable property or intended by any person for use in unlawful conduct.
What is an Account Forfeiture Order?
A court will make such an order effectively confiscating the money in the bank account if the court is satisfied that the monies in the account represent the proceeds of crime or are intended for use in unlawful conduct.
Throughout the duration of an AFO, application may be made for an Account Forfeiture Order (‘Forfeiture Order’).
Once properly served, the recipient party has thirty days from the day after notice is effectively given to object.
Upon an objection being received, the matter will be set down for a hearing at which the court will have to decide whether:
- The money which it is sought to forfeit is recoverable property or
- Is intended to be used by any person for unlawful conduct
- The funds should be divided in the event of a claim by a legitimate joint owner of the account
Effects Of A Forfeiture Order
If granted:
- The funds may be transferred to another nominated account
- The AFO ceases to be of effect, unless there is an application to continue pending an appeal
- An Appeal may be made to the Crown Court within thirty days
If not granted or an AFO is discharged for any reason:
- The owner of the account may apply for financial compensation
What is the Criminal Finances Act 2017?
The Criminal Finances Act 2017 (‘the Act’), came into operation on 31st January 2018, and introduced additional powers to the Proceeds of Crime Act 2002 which bolstered the powers of the UK enforcement agencies. These additional powers enable UK law enforcement to freeze and recover the alleged proceeds of crime by way of procedures which take a considerable step towards moving such enforcement into the civil courts.
There are two procedural steps to be taken in respect of seizing funds held in any suspicious account:
- The freezing of its operation
- The forfeiture of the assets held within it
What happened Prior To The Criminal Finances Act 2017?
In recent years, the number of Suspicious Activity Reports (‘SARs’), processed by banks, building societies and other bodies has run into many thousands each year.
As a result, the law enforcement agencies have struggled to deal with SARs effectively and achieve any meaningful recovery of the substantial amount of the monies discovered in ‘suspect’ accounts.
Once a financial institution had suspended a suspicious account, the procedure for law enforcement agencies to freeze the account and to seek forfeiture of the funds was both cumbersome and uncertain. It would normally necessitate a hearing in the Crown Court to secure a Restraint Order or, if proceedings were further advanced, to secure a Confiscation Order.
Recovery through the civil courts was a slow process which was only available where the monies available for seizure exceeded ten thousand pounds.
The Criminal Finances Act 2017
- Section 16 of the Act enables law enforcement, if there are reasonable grounds to believe that money held in a UK bank or building society is recoverable property, to seek an Account Freezing Order (‘AFO’) upon application to a Magistrates’ Court
- Section 16 provides for the following to be inserted into the Proceeds of Crime Act 2002:
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