What is an Account Freezing Order?
An Account Freezing Order is a civil recovery measure under Part 5 of the Proceeds of Crime Act 2002. It can prevent withdrawals from a bank or building-society account while law-enforcement authorities investigate whether money is recoverable property or intended for use in unlawful conduct.
The order is distinct from a criminal conviction and can be pursued even where no criminal charge has been brought. That makes the evidential response particularly important: the court is dealing with the statutory civil-recovery test, not deciding criminal guilt.
The bank statement is only the starting point.
A convincing response usually needs the commercial or personal story behind the money: contracts, invoices, tax records, sale documents, loan agreements, gifts, payroll records, company accounts and a chronological explanation of significant credits and transfers.
Immediate priorities after an AFO
Read the order precisely
Identify the accounts affected, the maximum period, the return date, permitted transactions and any related disclosure or forfeiture application.
Preserve the banking trail
Secure statements, transaction records and supporting documents before records become difficult to obtain or counterparties disappear.
Explain source and purpose
Build a documentary account for the funds rather than relying on assertion. Large or unusual credits need particular attention.
Assess urgency and hardship
Where the order prevents ordinary living, business or legal expenditure, consider whether the order permits payments or whether variation should be sought.
Challenging, varying or discharging an order
The correct application depends on the procedural position and evidence. The court may be asked to vary or discharge an order where the statutory basis is not made out, the order is wider than justified, circumstances have changed or particular payments require permission. The evidential burden and tactical approach depend on the application before the court.
Extensions and delay
Authorities may seek to extend the period of an AFO while enquiries continue. An extension should not be treated as automatic. We examine what work remains outstanding, whether the investigation has progressed with reasonable diligence, the prejudice caused by continuing restraint and whether a narrower order would address the stated concern.
Account forfeiture
Freezing is often followed by an account forfeiture notice or application. At that stage it becomes especially important to understand the deadline for objecting and the evidence required to contest forfeiture. Missing a procedural deadline can materially prejudice the position.
Parallel criminal and money-laundering investigations
An AFO may sit alongside a criminal investigation, Suspicious Activity Report, money-laundering enquiry, restraint order or tax issue. Information supplied in civil-recovery proceedings can have wider consequences, so the response should be coordinated rather than prepared in isolation.
Frequently asked questions
Can I use money from a frozen account for living costs?
It depends on the terms of the order and any variation permitted by the court. Do not assume a payment is allowed simply because it is ordinary expenditure.
Do I need to have been charged with a crime?
No. An AFO is a civil recovery mechanism and can be sought without a criminal charge or conviction.
Can I challenge where the money came from?
Yes. Source-of-funds evidence is often central. The strength of the response depends on the records, chronology and the authority's stated case.
What should I send you first?
Send the order, any application or witness statement served with it, the affected account details, recent statements and a short explanation of the source of the disputed funds.