by Sam Healey, Partner in Business Crime, Regulatory and Criminal Defence, JMW Solicitors
An Account Freezing Order (AFO) is a legal tool used by certain investigating authorities in the UK. It is used to block access to a bank or building society account belonging to an individual or business while an investigation is underway. By blocking the account owner from withdrawing, transferring or spending money, the authorities that use AFOs have more time to determine the sources of any funds in the account and prevent the funds from being used.
An AFO will typically be used in cases where authorities believe the assets in an account are the proceeds of criminal activity, or are intended for use in perpetrating a crime. As such, the assets may also be frozen so that the relevant authority can seek to recover them at the conclusion of the investigation or criminal proceedings.
However, while this is the intended use of an AFO and represents a typical case in which they might be used, these are not the only circumstances in which someone might find themselves subject to an AFO. Agencies such as the police, the Financial Conduct Authority and the Serious Fraud Office can secure an AFO against your account without accusing you of a crime, starting an investigation, or giving you any notice. That sometimes means people are left without the living expenses they need, and with no idea as to why their funds have been frozen.
In these cases, it is vital to understand your rights and the steps you can take to free up your account. The law recognises that AFOs may leave people without any access to their funds, and provides some specific exceptions that might apply to your circumstances. Here, the expert Account Freezing Order solicitors from JMW’s Business Crime and Regulatory team explain your options when you are subject to an AFO and the steps you can take to secure living expenses and pay for the legal support you may need.
How should you respond to an AFO?
It is easier than ever for investigators in the UK to secure AFOs against the subjects of their investigations, and this has led to an increase in their use recently. As a result, more people and companies are unexpectedly hit with these orders, and suddenly find themselves unable to afford daily living costs, the operational expenses to keep their business afloat, or the legal help they need to fight back.
Thankfully, there are two responses to an AFO that can free up funds: to have it varied, or discharged. There is never a guarantee that you will be able to achieve either of these results, but speaking to an expert solicitor about your circumstances can help you to understand the options available in your specific situation, evaluate your chances of success, and provide legal advice that will help you to achieve the best possible outcome.
Varying an AFO
You may be able to vary an AFO by applying to the Magistrate’s Court. The law allows for exceptions to an AFO on the grounds of the person needing to pay their living expenses or the overhead costs to keep their business in operation. The Magistrate’s Court can grant an exception provided your application is reasonable and legally compliant.
Even if you intend to have the order discharged, it may help to have it varied first. This removes some of the financial pressure on you and will create the space you need to plan your next move.
It is vital to work with a solicitor if you decide to move ahead with this process, as they will be able to support your application and make sure it has a realistic chance of being approved by the court. If varying the AFO is not likely to work in your case, they may be able to suggest a more effective approach or discuss other options with you.
Discharging an AFO
There are a few ways to approach discharging an AFO. If you discover that an investigating authority applied for an AFO against your account, you may be able to challenge this at the application stage. This may prevent the AFO from being granted in the first place, which is typically the best-case scenario. However, in most cases you will not be notified about the AFO until it has been granted, meaning that it is rare for people in this position to be able to take this approach.
If the investigating body has ceased to make progress in its investigation, or if your case no longer meets the conditions to justify the AFO, this may be another opportunity to have the order discharged. In fact, there are various other scenarios in which you can have an AFO discharged, so it is vital to work with a solicitor to determine the approach that will work best for you. An expert solicitor in this area of law can guide you on the best course of action, and potentially save you a considerable amount in legal fees by steering you away from ineffective tactics.
Your chances of having the AFO discharged or varied will always depend on your specific circumstances, but the sooner you act, the more options will be available to you. With a careful strategy, you can avoid the more serious consequences that can otherwise arise when your access to your financial assets is frozen.
*The information in this article does not necessarily reflect the views of The Global Hues. We make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this article.*
