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Facing an Account Freezing Orders (AFrOs) can be hugely disruptive to your business and have a significant impact on your day-to-day operations. So, it is essential to seek expert advice as early as possible.
If you or someone within your business is suspected of using business funds to assist in criminal activity, then law enforcement agencies may apply to freeze your funds.
The Proceeds of Crime Act 2002 gives many law enforcement agencies the opportunity to obtain an Account Freezing Order (AFrO) if an enforcement officer has reasonable grounds for suspecting that money held in an account:
(a) is recoverable property (i.e. obtained through unlawful conduct) or
(b) is intended by any person for use in unlawful conduct.
The minimum amount that may be frozen is currently £1,000 (or equivalent if a different currency), and freezing orders can be applied for without notice.
Although the applications are made in the Magistrates Court they are done so under civil legislation and so are subject to the balance of probabilities.
If you suspect that you or someone within your business is currently being targeted for an Account Freezing Order, then Primas Law can help. Whilst these matters might seem intimidating, our specialist solicitors can guide you through the legal process to demonstrate that the funds are legitimate.
Contact our Head of Business Crime and Regulation, John Hartley, today to discuss your matter.
In most cases an AFrO will follow on from the relevant bank making a Suspicious Activity Report (SAR) to the National Crime Agency (NCA). Other regulated businesses such as law firms and accountants may also make a SAR.
This may follow an unusual pattern of cash deposits and withdrawals, an allegation of fraud or notification of sanctions or trade breaches – there any many potential causes and there is no definitive list.
There is an initial 7 working day period for the NCA to respond. If the NCA have any concerns, then this will be extended by 31 days so the matter may be investigated. During that time the bank will freeze the account and are very unlikely to offer any explanation due to the ‘tipping off’ provisions.
If, after the initial investigation, law enforcement considers that the funds may be derived from unlawful conduct, then they will apply for an AFrO. If the application is successful, the account may be frozen for up to 2 years whilst the matter is investigated.
To talk about your situation
John Hartley heads up Primas’ Business Crime and Regulation department and has more than 20 years’ worth of experience working across a broad range of legal matters.
Account Forfeiture Orders (AFOs) are legal instruments used by law enforcement agencies to seize funds from bank accounts that are believed to be the proceeds of crime. Unlike Account Freezing Orders (AFrOs), which temporarily freeze accounts during an investigation, AFOs are used to permanently confiscate the funds.
If, an Account Freezing Order has been put in place, and after the 2 years (or earlier), the investigating agency is satisfied that the frozen funds are derived from criminality, then they will apply for an Account Forfeiture Order (AFO). If successful, then the relevant amount (or entire contents of the account) will be forfeited. The respondent to the application (or an interested third party) may contest the application at any time.
As the traditional criminal justice system becomes more overburdened, the AFrO and AFO option has become more and more popular with law enforcement as:
As such, it’s crucial that any person or business who is the subject of such proceedings should seek expert legal advice as soon as possible.
Contact our Head of Business Crime and Regulation, John Hartley, today to discuss your matter.
If law enforcement suspects that funds may be linked to illegal activities following an initial investigation, they will seek an Account Freezing Order (AFrO). If granted, the account can be frozen for up to two years while the investigation continues.
A respondent may seek a variation to the initial AFrO to meet reasonable living expenses and legal expenses.
Yes, expert legal advisors can challenge Account Freezing Orders on your behalf. Investigations typically start with exploring the accuracy of the accusation. AFrO’s are relatively easy to obtain and authorities may sometimes pursue Account Freezing Orders (AFOs) with minimal or no substantial evidence suggesting that the funds are linked to criminal activity. So, legal advisors may first examine whether the enforcement agency involved in the investigation has:
If it can be demonstrated that the investigating authority has not complied with one or more of these criteria, the AFrO may be overturned.
However, even if it is not possible to lift the AFrO at the initial stage, there are still ways to challenge the order, such as through challenging the investigation’s progress and the thoroughness of the authority’s efforts. Continuously scrutinising the investigative body’s accountability and procedures can be an effective strategy for reclaiming business funds.
If you receive an AFO application, it’s important to seek legal advice to understand your options. While the process may seem overwhelming, especially if it’s your first time dealing with an AFO, you do have options. Solicitors can apply to the court to have the AFO lifted or to modify its terms. Courts have the authority to vary or exclude freezing orders, which could allow you access to funds for legal expenses, business operations, or reasonable living costs. To achieve this, you’ll likely need to provide full disclosure of your financial situation to the court. Additionally, it’s possible to negotiate with the investigating authority to reach a compromise on the terms of the AFO.
Primas Law’s specialist regulatory solicitors can guide you on how to persuade courts to lift AFOs. However, at the early stages, it’s often most effective to focus on building a strong defence, as AFOs are sometimes granted with minimal supporting evidence.
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