Account Freezing Orders and Account Forfeiture Orders

How Account Freezing Orders work

Relevant agencies, including regional police forces, the Serious Fraud Office (SFO) and the National Crime Agency (NCA), can apply to freeze accounts held with a bank, building society, e-money provider or payment institution where balances exceed £1,000 if the funds are suspected to be either the proceeds of criminal conduct (allegedly committed anywhere in the world) or intended for use in unlawful conduct. A magistrates’ court may grant the order whereby the account(s) in question is frozen for up to two years in order to allow an investigation to be conducted into the provenance of the money in the account.

Similar powers can be exercised in respect of cash – for more details, see our dedicated cash and seizure and detention page.

Account Forfeiture Orders

At the conclusion of, or indeed at any point during, the period of cash detention or account freezing, the authorities may apply for the relevant sums to be forfeited. Although there is a higher evidence bar to be satisfied as compared with an Account Freezing Order, crucially there is no requirement for a criminal conviction to have been obtained against any party (or even a criminal investigation to have been opened), and the courts routinely make forfeiture orders.

How we can help

We have extensive experience of:

• Advising on the lawfulness of any order;
• Mounting successful challenges to a freezing order: this may involve making an application to set aside the order or contesting an application to extend such an order. Alternatively, it is sometimes possible to engage with the relevant investigators to persuade them that the funds are clean and that the order is unnecessary;
• Appeals against forfeiture.

Our approach

We understand that the loss of access to funds can be highly disruptive and, in some cases catastrophic — financially as well as reputationally. Yet we recognise that the need for swift action should be tempered by a careful and considered strategy.

When challenging a freezing or detention order, or appealing an Account Forfeiture Order, the burden of proof is on the applicant. Even though the civil standard – the balance of probabilities – applies, in practice it is necessary to demonstrate with compelling evidence the “clean” origins of the money.  This may take some time to assemble and requires skilful submissions to the court.

It can also be important to guard against adverse implications for third parties that may arise through any challenge to an order.