If your account has been frozen under an Account Freezing Order (AFO), the next question is whether the authorities will try to keep the money permanently. This guide explains how account forfeiture works and what you can do in response.
If your account has been frozen under an Account Freezing Order (AFO), the next question is whether the authorities will try to keep the money permanently. That is where account forfeiture comes in.
In simple terms, forfeiture is the legal process by which funds in a frozen bank or building society account can be taken if they are said to be the proceeds of unlawful conduct, or intended for such use. Freezing is temporary; forfeiture is permanent.
Forfeiture often follows an AFO, but the two are legally distinct.
An AFO is granted where there are reasonable grounds for suspicion. It allows time for investigation. If, during that period, the authority concludes the funds are recoverable property (property obtained through unlawful conduct) or intended for use in unlawful conduct, it may move to forfeiture by:
An AFN is a formal notice stating that the authority intends to forfeit some or all of the funds. It will usually set out:
If an objection is filed, the authority must decide whether to:
A Forfeiture Order is a court decision permanently depriving a person of the funds.
Unlike the AFO stage (based on suspicion), forfeiture requires evidence. The court must be satisfied that the money is:
Applications are made in the Magistrates’ Court, and affected parties have the right to respond.
Property is recoverable if it derives from unlawful conduct—directly or indirectly.
Importantly, funds do not need to be criminal proceeds to be at risk. Money can also be forfeited if it is intended for use in unlawful conduct.
Account forfeiture falls under the civil recovery regime of the Proceeds of Crime Act 2002. This means:
The authority must present a proper evidential basis — not just unusual account activity.
Yes. Challenges often focus on:
Documentation is key. This may include:
In many cases, the issue is not illegality, but insufficient explanation.
If no objection is made to an AFN within the deadline, the funds may be forfeited administratively.
It may be possible to apply to set this aside later, but only in limited and exceptional circumstances. Ignoring the notice can have serious consequences.
If forfeiture is ordered:
There is a right of appeal to the Crown Court, usually within 30 days. The court can reconsider the case and order the release of some or all funds.
Forfeiture cases are rarely straightforward. A legal team will typically:
They may also identify where the authority has:
Account forfeiture is a powerful tool. It allows authorities to take money without a criminal conviction if the legal test is met.
However, forfeiture is not automatic. Even after an account is frozen, the authority must justify why the funds should be permanently removed — and that case can be challenged.
Account forfeiture is the point where a temporary freeze can become a permanent loss.
While it often follows an AFO, it requires a stronger evidential foundation. Whether through an AFN or a court application, the central question remains: can the authority prove the money is recoverable property or intended for use in unlawful conduct?
If you would like to discuss any issue detailed above and how we may be able to help, feel free to contact one of our specialist lawyers immediately by using our online enquiry form or calling us on 0207 183 8838.
