Account Freezing Orders, or AFO for short, are a court order, usually obtained by law enforcement. It prohibits the account holder from accessing funds in a bank or building society account if it’s suspected of being linked to criminal activity.
You won’t be able to make payments, withdrawals or transfers from a frozen account. While it doesn’t mean you’re a criminal in the eyes of the law, an AFO is something you want to get immediate legal advice for.
You must be able to argue a case for the release of the funds, for the sake of living costs, or to challenge the order in general.
With that in mind, this guide will explain everything that has to do with AFOs and how to navigate them once they’ve been actioned.
So why are AFOs obtained in the first place? Why do authorities need to freeze accounts? There are often several reasons why authorities will go to the extent of freezing a person’s account, and here are just some examples of why.
There are a number of criminal investigations that would require account freezing to be put in place.
Money laundering and fraud can often require authorities to freeze accounts, especially when they suspect money within them has been acquired from criminal activities such as drug dealing, fraud or money laundering.
Other criminal activities include terrorist financing, where accounts are frozen if the funds are intended for unlawful purposes like financing terrorism.
Asset recovery may also require the need to preserve assets and enable the eventual forfeiture and recovery too.
There are often unpaid debts and legal actions that require account freezing orders. For example, those who don’t pay their taxes may have their accounts frozen in order to collect any taxes that have gone unpaid.
There may be court orders in place so that a bank or court can freeze an account to satisfy the debts owed to any creditors.
In some situations where accounts are frozen, it’s typically done when there’s a suspected identity theft. This helps to prevent any fraudulent activity from taking place in order to protect the account holder in question.
So what’s involved with an Account Freezing Order? What’s the process? Here’s everything you need to know about how it works and how it’s obtained, and then carried out. An understanding of this process is important to know what to expect should you ever receive one.
An AFO is often followed after a SAR has been made by the bank or other regulated business with the National Crime Agency
Law enforcement agencies like the police, NCA or HMRC will apply to a Magistrates’ Court for an AFO.
If the court is satisfied with the application, it’ll grant the AFO. The court can also issue the order without needing to first notify the account holder.
The order is then served on the account holder and the financial institution in question. This allows the order to take effect and prohibits the account holder from being able to move or use the funds.
The AFO freezes the account for up to two years, which allows the agency to investigate the source of the funds.
The freezing of funds can have a direct impact on the account holder themselves, as well as any family members or individuals they’re supporting or responsible for financially.
There is a lot in the way of immediate impacts that come from account freezing orders, some more obvious than others. Here are some of the downsides to being subjected to an AFO.
An inability to access funds can be detrimental to a household, especially if it’s a main bank account that’s relied on.
All transactions are blocked, and that includes online banking, cash withdrawals and card payments.
Cancellation of payments will occur with AFOs, which can disrupt essential services that you pay for, as well as create further financial obligations.
Individuals and families may be unable to pay for housing, food and other living expenses due to the account they regularly use being frozen. That can lead to hardship and stress for all those directly and indirectly involved.
For businesses that have an AFO put onto their accounts, this can halt operations and prevent the payment of staff. As such, it can end up jeopardising contractual obligations too.
In order to challenge an order effectively, you need the right people fighting your corner. As fraud solicitors, ABV are well-knowledged when it comes to AFOs and how to navigate the process when challenging one.
Firstly, you should seek legal advice through services like ours. You’ll then want to apply to the court for essential funds so that you have money for necessary living expenses.
Once that’s been achieved, you’ll have the right to challenge the order, and that’s where we come in. You can apply to the court to vary the AFO further or challenge it so that you can hopefully get rid of it.
If you’ve been presented with an AFO and you’re not quite sure what you need to do first, then ABV solicitors are who you should be calling. We provide all the helpful legal advice you could need to help challenge an AFO and get back your finances as soon as possible.
You have the right to challenge the order, but you’ll want legal guidance and advice from those who know what they’re dealing with. We can help you with your AFO, no matter what the reason for it may be.
Get in touch with us today, and let’s help relieve the stress and financial strain that can come with receiving an AFO.
Out of the Frying Pan and into the Fire? Handling Investment Fraud Allegations
Accused of Bitcoin Fraud
03445879996
EMAIL US