Account Freezing Orders and Account Forfeiture Orders

Forfeiture Orders

Applications can be made by the claimant pursuant to s.303Z14 of the Proceeds of Crime Act 2002. If successful, the claimant (the Police. SFO, HMRC) seizes the monies which are currently frozen in the bank accounts.

Appeal against decision under section 303Z14

If the Account Forfeiture Order is successfully made an appeal against that Order can be made to the Crown Court within 30 days. Therefore, it is vital to act quickly if you as an individual or as a company have been affected by a decision relating to a Forfeiture. The appeal is made pursuant to s.303Z16 of the Act.

Other Types of Freezing Orders

Another option available to investigatory authorities are Interim Freezing Orders, which are relatively new tools available following their creation by The Criminal Finances Act 2017. These types of Orders are applied for when the NCA or other investigatory bodies are pursuing an individual in relation to an Unexplained Wealth Order. These changes to the law provide the possibility for property believed to be obtained via unlawful conduct to be recovered by using civil proceedings opposed to the need to obtain a criminal conviction and then pursue a confiscation order under the Proceeds of Crime Act. For more information in respect of Unexplained Wealth Orders please click here to see our UWO page.

AFOs are undoubtedly potent tools in combating financial crime. Their swift and targeted nature helps recover ill-gotten gains and disrupt future criminal activity. However, concerns regarding their potential for misuse and disproportionate impact on individuals cannot be ignored.

Here are some of the ongoing debates surrounding AFOs:

• Threshold of Suspicion: Determining the precise level of “reasonable suspicion” required for an AFO presents a challenge. Striking the right balance between effective crime-fighting and protecting individual rights is essential.
• Transparency and Scrutiny: Strengthening oversight mechanisms and ensuring timely disclosure to account holders can enhance transparency and minimise potential for abuse.
• Proportionality and Impact: The potential disruption to personal finances and livelihoods through AFOs necessitates careful consideration of their proportionality and exploring alternative options when less intrusive measures might suffice.

Remember, if you find yourself on the receiving end of an AFO, seek legal advice immediately. Understanding your rights and navigating the legal process can help you protect your interests and ensure a fair outcome.

Our expert lawyers are here to advise and assist you if your company or personal account is subject to either of the orders described above. We will protect your personal position and make every effort to reverse the freezing of bank accounts and to avoid you ultimately losing the funds within them.