Account Freezing Orders: Navigating Criminal and Civil Implications

The landscape of Account Freezing Orders (AFOs) is significantly evolving. Traditionally associated with the resolution of criminal cases, AFOs are now increasingly being used through civil channels, without requiring a criminal conviction. They are being actively employed to target the suspected proceeds of unlawful activity. 

What Are Account Freezing Orders?

AFOs are civil injunctions that enable authorities to freeze funds in a bank or building society account, alleged to be associated with unlawful conduct, for a specified duration of up to two years. These orders are tools designed to prevent the dissipation of illicitly gained funds, thereby the Proceeds of Crime Act 2002 allows for the obtainment of AFOs if an enforcement offer has reasonable grounds to believe:

A.     that money in an account is recoverable property or

B.     that it is intended for use in unlawful conduct.

Criminal vs. Civil Routes for AFOs

1. Criminal Route:

In the criminal context, AFOs are often employed as part of broader proceedings aimed at prosecuting criminal activity. The process involves a higher evidential threshold, requiring proof beyond reasonable doubt. Previously, authorities deferred AFO proceedings until the conclusion of a criminal case. This approach allowed for a clear establishment of guilt beforehand and a streamlined process for asset recovery. However more recently we are seeing a trend for use of the civil route to secure funds prior to the conclusion of criminal proceedings.

2. Civil Route:

Civil AFOs operate under a lower evidential threshold, namely the balance of probabilities. They are increasingly being used independently of, or parallel to, criminal investigations. These are typically pursued when authorities aim to act swiftly to preserve suspected funds, even in cases where criminal charges have not yet been brought. The threshold to be met is low and they can be applied for without any notice given.

The Shift to Civil AFOs During Criminal Investigations

Recent trends reveal a growing preference for the civil route, particularly in cases where criminal investigations are still underway. This shift can create a dual-track scenario where:

• Accounts are frozen through civil proceedings to prevent dissipation.

• Criminal investigations continue, potentially leading to later prosecution.

While this approach enhances asset preservation, it also means that AFOs are becoming more common and so imposing significant financial burdens on individuals or entities whose accounts are frozen. Further, the lower evidential threshold for civil AFOs could potentially lead to premature action that can have serious implications. It disrupts operations and affects daily living expenses.

How Winley Ford Can Help

At Winley Ford, we have extensive experience in advising and representing clients in challenging account freezing orders. Our team offers:

Expert Guidance: Comprehensive advice on the legal and procedural aspects of AFOs.

Strategic Representation: Skilled knowledge in challenging AFOs and navigating dual-track proceedings.

Reputation Protection: Tailored strategies to mitigate reputational risks.

We understand the complexities and pressures that AFOs impose. Our commitment is to provide clear, practical, and effective solutions, ensuring our clients' rights are protected every step of the way.

Contact Us

If you are dealing with an account freezing order or require guidance on related issues, contact Winley Ford today. We are here to help you navigate the legal landscape with our refreshing and bespoke service.