Freezing Injunctions & Freezing Orders Solicitors

The Criminal Finances Act 2017 has empowered UK law enforcement and given them an array of new powers designed to make it easier to freeze and forfeit property held in the UK that is alleged to have been obtained from criminal conduct committed overseas.

The Act calls property obtained by crime “recoverable property”. An Account Freezing Order, a precursor to an Asset Forfeiture Order, concerns one type of recoverable property; a credit balance held in a UK bank account. If there is a reasonable suspicion that the balance is recoverable property any magistrates’ court can order it to be frozen for up to two years. If the court is later satisfied that the funds were obtained by or via unlawful conduct, then it can order the forfeiture of the entire balance.

These orders are intended to be used by law enforcement to forfeit large sums of money without needing to prosecute anyone and prove their guilt to the criminal standard of proof. They are therefore relatively easy for UK authorities to obtain and require a careful strategy in order to challenge them.  The sums involved can be substantial, and prompt action is often advisable to ensure that the order is appropriately challenged and the funds in question are not ultimately forfeited as part of a broader investigation.

Our dedicated team of criminal defence lawyers handles every case with expertise, diligence, and tenacity to reduce the impact these orders may have on your business operations and daily life.

What is an Asset Freezing Order?

An asset freezing order, granted by a court, is a preliminary measure designed to prevent the dispersion or disposal of assets before a judgement is enforced. Such orders are extensive, empowering authorities to restrain all types of assets, including bank accounts, shares, land, homes and vehicles. Moreover, asset freezing orders impact third parties who manage the respondent’s assets. These third parties are compelled to comply with the terms of the Court order and they must neither assist the respondent, nor allow the respondent, to breach the order.

If your assets have been placed under a freezing order or forfeiture, you must act urgently and seek legal advice. Our professional and knowledgeable team will provide clear and practical advice to resolve the matter quickly and smoothly.

What Is An Account Freezing Order?

Account freezing orders (AFOs) are an increasingly common mechanism being used by investigative authorities to target cash held in bank accounts or building societies.

Accounts are targeted when it is believed the money is recoverable property or intended for use in unlawful conduct. If you have had your funds frozen suddenly as a result of an account freezing order, you should immediately instruct a specialist solicitor.

By preventing you or your business from having access to frozen funds, this can cause huge personal disruption, may impact on your ability to continue with your business and could cause further problems with settling liabilities that are due.

Many different types of assets can be subject to a freezing order, including bank and building society accounts, investments, shares, property, and land. The court will usually allow the respondent to access reasonable living expenses, and a freezing order may not be used to force the respondent to cease trading.

What Is An Account Forfeiture Order?

An account forfeiture order may be made in cases where the court is satisfied that the monies in the defendant’s account are the proceeds of crime or that the funds are intended to be used unlawfully.

Once an account forfeiture order has been served, the respondent has 30 days to object. If an objection is made, the matter will be sent to a hearing, whereby the court must decide whether the money amounts to recoverable property or is intended to be used for unlawful conduct.

If an account forfeiture order is granted, the following may occur:

• The funds may be transferred to an alternative nominated account.
• The account freezing order ceases to be of effect, except when there is an application for it to persist pending an appeal.
• The Respondnet has 30 days to lodge an appeal with the Crown Court.

If an account forfeiture is not granted or an account freezing order is discharged for any reason, the account owner may apply for financial compensation. If you have any questions about the account forfeiture process and what might happen to your assets, please don’t hesitate to contact us.

When Will The Court Grant A Freezing Order?

An application for a freezing order must adhere to the duty of full and frank disclosure.

The applicant has to be able to show that:

• They have a good arguable case
• There is a real risk of dissipation
• The assets concerned are within the jurisdiction of the court
• It is just and right to grant the order

When the court is deliberating over the decision, they will apply the ‘balance of convenience’ test, meaning all relevant factors will be taken into account to evaluate the disadvantage which may be caused to the respondent, weighed up against the benefit to the applicant of the injunction being granted.

Can I Challenge An Account Freezing Order?

Yes, it is possible to challenge an account freezing order. There are several ways you can respond to an account freezing order, and the right strategy depends on your individual circumstances. The best step you can take is to seek expert advice from the knowledgeable account freezing order solicitors a We can discuss your circumstances, offer practical advice and give you realistic expectations about the possible outcomes of your case.

If you are seeking to vary the terms of the freezing order or have it discharged, you need to identify as accurately and quickly as possible the loss you are likely to suffer due to the order. You must provide evidence that persuades the court that such loss is likely and explain the impact of it upon you and/or your business.

Some of the most common challenges to the granting on an injunction include:

• The injunction is too oppressive
• The injunction terms are unreasonably strict
• The cap on the living expenses of the respondent is too low
• The respondent requires more time to gather evidence of assets
• There exist no arguable cases against the respondent
• The courts in England have no jurisdiction to make the order
• The applicant has caused an unreasonable delay in their application
• The applicant failed to give notice of the application to the respondent
• The duties of full and frank disclosure have not been met by the applicant

Challenging an account freezing order is complex and strict deadlines apply.

A freezing injunction is effective from the moment it is notified to the respondent. Failure to comply with the freezing order will result in contempt of court proceedings. It is essential, therefore, that legal advice is sought by those bringing or defending a freezing order at all stages of the process.

Contact us today

We have 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  disruptive and, in some cases, catastrophic — both financially as well as reputationally.  We understand the need for swift action, in addition to a  careful and considered strategy.

When challenging these types of orders, the burden of proof is on the applicant. Even though the civil standard applies, namely the balance of probabilities, in practice it is necessary to demonstrate with compelling evidence the “clean” origins of the money.

If you are facing an account freezing order or forfeiture order, you should act quickly. The effects of these orders can be significant, affecting your finances, reputation, and daily activities. At Clifford Johnston & Co, we provide expert advice and strong representation to challenge these orders. Our team is well-versed in the intricacies of criminal finance law and is dedicated to achieving the best result for you and your business.

Do not let asset freezing and forfeiture actions disrupt your life and business operations. Contact our experienced Proceeds of Crime Act solicitors today to discuss your situation and explore your options. Our approach is always client-focused, providing clear, practical advice and a strategy tailored to your unique circumstances. Let us help you safeguard your assets and protect your rights.