The use of Account Freezing Orders (AFOs) by police and criminal investigators to combat money laundering and economic crime is growing in popularity. When illegal conduct is suspected, they are a strong and efficient instrument that authorities can use to freeze and take money from bank accounts owned by people or businesses.
The Illicit Finances Act of 2017 created AFOs by amending certain provisions of the Proceeds of Crime Act 2002 (POCA) and granting the Magistrates’ Court more authority to freeze bank accounts that contain money thought to be illicit proceeds.
How Do Orders to Freeze Accounts Get Granted?
Since HSE Investigations & Prosecutions do not need to provide evidence that an individual is engaged in or has benefited from illegal activity to justify freezing an account, account freezing orders are comparatively simple to obtain. When there is a suspicion that funds in a bank account are proceeds of criminal activity or are meant to be used in criminal activity, an account freezing order is typically granted. An underlying criminal probe is not even required. An account freezing order must have a minimum balance of £1,000.
In contrast to the criminal standard of “beyond all reasonable doubt,” the civil standard of proof, sometimes known as the “balance of probabilities” test, is used to decide if an AFO should be granted. This implies that police can now freeze a bank account far more easily without having to go through the hassle of getting a restraining order.
Based on the civil standard of proof, the authorities will typically have no trouble convincing the Magistrates’ Courts that there is a suspicion that funds are either derived from criminal activity or are intended for use in criminal activity when they receive an application for an Account Freezing Order.
Duration of Funds Freezing
While the authorities look into where the money came from, frozen bank accounts may remain frozen for up to two years. An additional application for cash seizure of the frozen monies may be submitted to the Magistrates’ Court if the authorities believe the money in question is the proceeds of crime or will be used for illegal activity.
What Effects Might an Order to Freeze an Account Have?
Account Freezing Orders can have a devastating impact on a person’s or business’s finances because of how simple they are to get. For instance, your daily banking services (online banking, bill payment, and cash withdrawals) will be discontinued, and your direct debits and standing orders will be terminated. To survive, you would be permitted to take out tiny amounts every week, but you would have to apply to the court.
Defending A Freezing Order on An Account
Anyone impacted by an Account Freezing Order has the right to contest it. As previously said, the effects on people and businesses can be disastrous. In order to take strong and successful action to contest the AFO and final forfeiture application, it is crucial to move quickly and seek legal counsel from TQ Legal for assistance.
Conclusion
Since agencies favor AFOs, we expect more applications, especially till a new law is passed. Receiving an AFO application or court order requires you to obtain independent legal counsel. You must act quickly whether you fight this or request a revision in the AFO to acquire money for living needs or to maintain running your business.
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