An Account Freezing Order can prevent you accessing funds for months while an investigation runs. This article explains what an AFO is, why it may be made, and what steps can be taken in response.
An Account Freezing Order, or AFO, is a civil court order that freezes money held in a bank, building society account or payment institution. In England and Wales, these orders are made under the Proceeds of Crime Act 2002 and are used when there are reasonable grounds to suspect that money (where the balance exceeds £1,000.00) is the proceeds of unlawful conduct, or is intended for use in unlawful conduct.
In practice, an AFO allows the authorities to stop money being moved for up to 2 years while they investigate provenance of the funds. That might happen after suspicious activity is flagged by a bank, or as part of a wider investigation in relation to proceeds of any criminal conduct. If the Magistrates’ Court grants the order, the account holder may suddenly find that some or more likely all of the funds can no longer be accessed.
What makes AFOs so significant is that they are civil in nature and can run parallel to a criminal investigation or indeed without any criminal investigation ever being pursued. They are designed to preserve funds first and allow the investigation to continue afterwards. Sometimes the money is ultimately released. In other cases, the authorities may later apply to forfeit either the whole balance or a specified amount.
If an AFO is made, it is not necessarily the end of the road. The order can be challenged, varied or discharged, depending on the circumstances. The account holder may be able to show that the funds came from a legitimate source, that there are no proper grounds for suspicion, or that the amount frozen goes too far. In some cases, an application can also be made for access to funds for specific purposes, such as ordinary living expenses or business needs, where the court considers that appropriate.
In short, an AFO is a powerful investigative tool with immediate practical consequences. It does not prove wrongdoing, but it can place serious pressure on anyone affected. Understanding how the order works, and what steps can be taken in response, is often crucial from the outset.
If you have been presented with an AFO and would like to discuss with us how we can help, feel free to contact one of our specialist lawyers immediately by using our online enquiry form or calling us on 0207 183 8838.
