If you have a personal or business account that is currently subject to an Account Freezing Order (AFO) or you have been notified of an impending AFO application, you should seek immediate legal advice.
Our expert guidance can be instrumental in navigating the legal and procedural complexities of AFOs and in accessing and recovering your funds and protecting your financial interests.
We have decades of experience in successfully challenging AFOs throughout the UK.
Initial Discussion – Call Now
Contact our lawyers by calling us on 07935268112.
Why Has Your Account Been Frozen?
Account Freezing Orders (AFOs) have become a prevalent tool used by investigating authorities to temporarily freeze funds. Applications for AFO’s typically follow the making of a Suspicious Activity Report (SAR) by a financial institution, such as a bank or building society, in relation to perceived unusual account activity.
Criteria for Granting an AFO
An AFO can be issued if there are “reasonable grounds” to suspect that the funds in question are either proceeds of crime or intended for use in criminal activities, as defined in the Proceeds of Crime Act 2002. Significantly, there does not need to be an ongoing criminal investigation, and the account holder does not need to be under any suspicion.
How Long Will Your Accounts Be Frozen For?
An AFO can remain in place for up to two years. Usually, the initial AFO application will request that the account is frozen for a period of six months; however, applications can be made at any stage thereafter to forfeit funds permanently. As such, it is important to obtain legal advice as soon as possible.
Impact of AFOs on Personal and Business Finances
The imposition of an AFO can significantly disrupt personal and business finances, often giving rise to bankruptcy, liquidity and solvency concerns.
Gaining Access To Frozen Funds
It is possible for account holders to gain access to funds held in frozen accounts for personal, business and/or legal expenses. It is also possible for affected persons, including businesses, shareholders and executives to gain access to funds held in frozen accounts.
Understanding the Process and Implications of AFOs
AFOs are often issued ‘ex parte’, which means that they are granted without prior notice to the account holder. In those circumstances, the applicant authority has a duty of candour to the Court and is obliged to provide full and frank disclosure, which includes providing the Court with information that might serve to undermine their application.
Challenging an AFO
It is possible to mount a technical challenge to an AFO based exclusively on procedural grounds; however, challenges are more commonly based on the asserted absence of “reasonable grounds” (see above), which invariably involves providing evidence of the legitimate provenance.
Time limits
The Proceeds of Crime Act 2002 prescribes various time limits in relation to AFOs, including periods for objecting, applying to set aside and appealing. As such, it is crucial to obtain expert legal intervention as soon as possible after you first become aware of an issue with your account(s).
Paying Legal Fees
In certain circumstances, it might be possible to use funds held in a frozen account to meet the legal fees associated with challenging an AFO. This is typically the case if the account holder has no other assets with which to pay legal fees.
Initial Discussion – Call Now
Contact our lawyers by calling us on 07935268112.
It is important to contact us as soon as possible, so we can help advise on key steps to take, before key time limits expire.
