If you are suspected of being a financial beneficiary of a crime, the authorities can apply to the court to place your money and your assets under restraint. This process is known as imposing a Restraint Order under the Proceeds of Crime Act.

What is a Restraint Order?

As the name indicates, a Restraint Order prevents an individual from selling or consuming an asset. It does not matter whether that asset is cash or otherwise. If a Restraint Order is granted against a an asset(s), the individual in question will not be able to access any online banking services or make payments from the account.

Restraint Orders are usually granted without alerting the person under restraint until the court makes the order. This is to prevent the person under restraint acting improperly in anticipation of the Restraint Order.

The Restraint Order document will set out the assets under restraint.

What is the test applied?

There are many routes to apply for a Restraint Order however the standard application made is:  

• A criminal investigation has been started in England and Wales;
• There are reasonable grounds to suspect that the individual has benefitted from their criminal conduct.

The purpose of the Restraint Order is to preserve assets in anticipation of any asset recovery proceedings in the future.

Why have I had a Restraint Order made against me?

If the court grants a Restraint Order against your assets, they will do so because they believe there is a chance that the assets were gained through criminal behaviour. The court must also be satisfied that there is a risk you will ‘dissipate’ the assets, meaning either spend them or hide them from the authorities.

This will naturally be distressing for whoever is subject to restraint.

A Restraint Order often precedes a criminal charge. The Restraint Order will usually be accompanied by a witness statement which provides initial details of the alleged criminality.

How will I pay my bills if I am under restraint?

Some Restraint Orders will only apply to a portion of your assets, where some will apply to all of your assets. If the order restricts all of your assets and bank accounts, you will be automatically granted £250-a-week as living expenses, or this can be higher in London. This is usually insufficient to meet ordinary household expenses.

If you require more than £250 per week to live, your legal representative can agree a higher allowance with the prosecuting authority. The test is whether the living expense figure is reasonable in the circumstances. The restraint order should not impoverish you and your family. If it does, your representative can apply to the court to have it altered.

How do I alter the Restraint Order?

There are two ways to alter a Restraint Order

1. On application to the court, where your order will be assessed;
2. Administratively, by agreement with the prosecuting authority.

We can help you make arrangements to challenge a Restraint Order.

Call ABV Solicitors on 0344 587 9996 and ask for one of our financial order specialists. We have a wealth of experience defending those under restraint and can help you get your life back on track.