Discovering that your bank account has been frozen can be a shocking and stressful experience. Whether you are an individual or a business owner, a frozen bank account can leave you unable to access funds, pay bills, or conduct normal financial activities.

 

In many cases, accounts are frozen because of a police investigation, often under the Proceeds of Crime Act 2002 (POCA). When this happens, understanding your legal rights and obligations is critical.

 

 

Why Has Your Account Been Frozen?

 

A bank will typically freeze an account after they detect suspicious activities with the account, for example large and unexplained inflow or outflow. An account may also be frozen when they receive a request from the police or other enforcement agency. This usually happens when there is a suspicion that the account has been used for criminal purposes, such as fraud, money laundering, or handling proceeds of crime.

 

Under POCA, the police can apply for an Account Freezing Order (AFO) if they have reasonable grounds to suspect that money in the account is linked to criminal activity. This is a civil matter application, meaning that it is not a criminal prosecution, but the consequences can still be severe. If the police successfully extend the freezing order, they may later apply for a Forfeiture Order, which allows them to seize the money in the account.

 

The Importance of Providing the Right Evidence

 

When an account is frozen, the account holder is often asked to provide evidence explaining the source of funds and the legitimacy of transactions. This is a critical stage, as the information provided can determine whether the account is released or whether further legal action is taken.

 

If you are asked to provide evidence, it is essential to be thorough and organised. You should assist the investigating agency to understand your specific circumstances. Bank statements, invoices, contracts, business records, and correspondence with clients or suppliers can all help prove that the funds in the account are legitimate. However, it is just as important to be strategic about the evidence you provide. Giving incomplete, inconsistent, or mistaken information can harm your case.

 

Although this is a civil application and not a criminal investigation, many people make the mistake of rushing to explain themselves without fully understanding the nature of the investigation. Anything you provide to the police at this stage can later be used in court if forfeiture proceedings are initiated. Even if you believe you are innocent, poorly presented evidence or contradictory statements can create suspicion and strengthen the case against you.

 

While it is important to cooperate with the authorities, doing so without legal advice can be risky. The police are not obligated to release your funds simply because you provide some evidence. If they believe there are still unanswered questions, they can apply to extend the freezing order, meaning you could be left without access to your money for months.

 

At the same time, outright refusal to engage with the police may be seen as suspicious and could be used as a reason to extend the order.

 

Seeking Legal Advice Early Can Make a Difference

 

Many people only seek legal help after their situation has worsened—when the freezing order has already been extended or when forfeiture proceedings are underway. By this stage, the police may have gathered significant evidence against them, making it much harder to challenge the case.

 

Obtaining legal advice at the first sign of trouble can help prevent mistakes and improve the chances of getting the account unfrozen quickly. A solicitor can:

 

• Assess the situation and advise on the best response: Understanding the exact nature of the allegations is crucial before submitting any evidence.

 

• Help prepare and present evidence effectively: A lawyer can ensure that financial records and explanations are structured in a way that strengthens your case.

 

• Engage with the police on your behalf: Having a legal professional manage communications can prevent misunderstandings and reduce the risk of self-incrimination.

 

• Challenge an extended freezing order: If the police try to extend the order, legal representation can help argue against it in court.

 

 Final Thoughts

 

Having your bank account frozen is more than just an inconvenience. The way you respond in the early stages can determine whether the issue is resolved quickly or escalates into a full forfeiture case.

 

Providing the right evidence is essential, but doing so without legal guidance can be dangerous. A solicitor can help you navigate the situation, ensuring you cooperate with the police without compromising your rights. Seeking legal advice early is the best way to protect yourself and prevent a temporary issue from becoming a long-term financial disaster.

 

If your account has been frozen or you are under investigation, don’t wait for the situation to escalate. Contact our legal team for expert guidance on how to protect your assets and challenge the freezing order effectively.

 

Have questions? Get in touch today!

 

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