What an Account Freezing Order Means and How to Challenge One

Your Bank Account Has Been Frozen: What Happens to Your Money Now?

Article Summary

If you have suddenly lost access to money in your bank account, you may not immediately understand why it has happened or what you can do about it.

An account freezing order can prevent withdrawals and payments while an enforcement authority investigates whether money in the account represents recoverable property or is intended for use in unlawful conduct.

Importantly, the making of an order does not itself mean you have been convicted, charged or even accused of a criminal offence. You can challenge the order, ask for it to be varied and, in appropriate circumstances, seek access to money while it remains in place.

The first few days can be particularly disruptive. Direct debits may be affected, business payments may be interrupted and you may be unsure whether you can meet mortgage, household or other essential costs.

If you have received court documents, or your bank has told you that an account has been frozen, obtaining legal advice promptly can help you establish exactly what has happened and decide how to respond. Contact us as early as possible for specialist advice.

What Is an Account Freezing Order, and Who Can Apply for One?

An account freezing order (AFO) is a court order made under the Proceeds of Crime Act 2002, allowing certain funds to be frozen while an enforcement authority investigates whether they may represent recoverable property or be intended for unlawful conduct.

If you are facing a wider financial investigation, our guide to the Proceeds of Crime Act explains the other powers that may be used and what they could mean for you.

In England and Wales, an application is made to the Magistrates’ Court. The legislation permits applications by specified enforcement officers, including police, HMRC and Serious Fraud Office officers and accredited financial investigators. The provisions have also been extended beyond traditional bank and building society accounts to relevant accounts with electronic money institutions and payment institutions.

An application can sometimes be made without advance notice where giving notice could prejudice subsequent steps to forfeit the money. This means you may become aware of the action only once the order has been made and access to funds has already been restricted.

For the court to make an AFO, it must be satisfied that there are reasonable grounds for suspecting that money held in the account is recoverable property or is intended by any person for use in unlawful conduct. The statutory minimum amount for the account freezing provisions is £1,000.

Why Does a Bank Account Get Frozen, and What Does It Mean About the Account Holder?

AFOs are designed to preserve certain funds while their origins or intended use are investigated. They may therefore arise where an enforcement agency suspects that money is connected with criminal conduct, including suspected fraud, money laundering or other unlawful activity.

However, the freezing of funds is not the same as a criminal conviction. Nor does an AFO, by itself, establish that the account holder has committed a crime. Account forfeiture is part of POCA’s civil recovery framework, and civil recovery mechanisms can be used even where a criminal conviction has not been obtained.

This distinction can be extremely important if you have discovered that your account has been frozen and immediately fear that criminal charges will follow.

The focus at the AFO stage is on the money. The relevant question is whether the statutory grounds exist for restricting access while its status is investigated. What happens next will depend upon the particular evidence and circumstances.

For an individual, the practical consequences can nevertheless be immediate. For a company, the impact can extend to salaries, suppliers, tax liabilities and normal trading. Establishing which accounts and which funds are covered should therefore be an early priority.

How Long Does an Account Freezing Order Last, and Can It Be Extended?

• An AFO is not indefinite. The Magistrates’ Court determines the period for which the order applies, subject to a maximum overall period of two years.
• That does not mean every account will remain frozen for two years. The duration should be stated in the order, and circumstances can change while it remains in force.
• The court has the power to vary or set aside an AFO at any time following an application by an enforcement officer or a person affected by the order.
• This is one reason why early attendance to the issue matters. Rather than treating the expiry date as something you must simply endure, your solicitor can consider whether there are grounds to seek an earlier change to the restrictions.
• An AFO can also be a precursor to separate forfeiture proceedings. An enforcement authority may, where the statutory requirements are met, seek forfeiture of frozen money through an account forfeiture notice or apply for an account forfeiture order.

What Can and Cannot You Do With the Money While the Account Is Frozen?

An AFO generally prevents withdrawals or payments from the account covered by the court order. The money remains with the financial institution while the restrictions apply.

This can create obvious problems if the account is used for everyday expenditure or to operate a business. However, a freezing order does not necessarily mean that there can be no access to funds whatsoever.

The court can make exclusions from the restrictions. These may allow money to be released for:

• reasonable living expenses;
• carrying on a trade, business, profession or occupation; and
• reasonable legal expenses connected with the proceedings.

Conditions can be attached to any exclusion, and the amount or purpose of permitted payments may be controlled by the court.

If essential payments are due, it is therefore important to identify them quickly and gather evidence of your financial circumstances. Simply attempting to work around a court order is not an appropriate solution. The correct course is to understand precisely what the order permits and, where necessary, seek a formal variation.

How Can I Challenge An Account Freezing Order? What Is the First Step?

Defending an account freezing order starts with understanding why it was made and the evidence relied upon by the enforcement authority. If you are affected by an AFO, you can apply to the court for the order to be varied or set aside. The appropriate approach will depend on why the order was granted, the evidence relied upon by the enforcement authority and the explanation and evidence available concerning the funds.

The first step should be to obtain and review the order and any available supporting documentation. This allows your lawyers to establish the scope of the restrictions, the authority responsible, the allegations or suspicions underlying the application and any deadlines requiring immediate attention.

A challenge may involve providing evidence demonstrating the legitimate source or intended use of the money, examining whether the statutory test for the order has been met or seeking a narrower restriction where the current terms are causing unnecessary financial or commercial harm.

It is particularly important not to provide rushed explanations or incomplete financial information before understanding the basis of the case. Bank statements, contracts, invoices, company records, tax documentation and evidence showing the source of significant transfers may all become relevant.

Experienced Representation in Financial Investigations

As CEO, Senior Solicitor and Head of White Collar Crime and Corporate Disputes, Simon Caltagirone advises individuals and businesses facing complex financial investigations and enforcement action.

His experience includes fraud, money laundering, HMRC investigations, FCA regulation and other high-stakes corporate and financial matters.

Twelve Tabulae’s established approach is to become involved early, understand the client’s position and develop a strategy around the specific investigation rather than treating every financial crime matter in the same way.

Twelve Tabulae does not accept Legal Aid. We act privately for clients requiring specialist advice and representation.

The latest Home Office figures show that Account freezing orders reached a six-year high in the financial year ending March 2025, with 2,182 orders processed and £221.6 million frozen. This represented an 18% increase in the number of AFOs compared with the previous year.

Challenge an Account Freezing Order With Twelve Tabulae

Having your bank account frozen can affect almost every aspect of your financial life, but an order should not be treated as an irreversible decision. The court has powers to vary or set aside an AFO, permit specified payments and ultimately determine whether the restrictions should continue.

The sooner you understand the basis for the order, the sooner you can begin gathering evidence, addressing immediate access-to-funds issues and determining whether a challenge should be made.

If your account has been frozen, contact Twelve Tabulae as soon as possible. We can review the order, advise you on your options and act decisively to protect your financial, business and legal position.

Account Freezing Order FAQs

Simon Caltagirone
CEO and Senior Solicitor