Lauren Bowkett and Daniel McGlashan of JMW’s Business Crime and Regulation team successfully opposed an application by the Police for an Account Freezing Order over the funds held in a company bank account.

The Magistrates’ Court refused the application after finding that the evidence was insufficient to establish the necessary grounds for suspicion.

The client’s problem: Police applied for an Account Freezing Order

The client, a limited company, instructed JMW after learning that the Police had applied for an Account Freezing Order under section 303Z1(2) of the Proceeds of Crime Act 2002.

The Police sought an order freezing the full balance of the company’s bank account for six months. They suspected that the funds were recoverable property or intended for use in unlawful conduct.

The application raised concerns about the increase in activity on the account, customer payments processed through third-party payment platforms, declined and test payments, transfers to third parties and the nature of the company’s business.  The Police suspected credit card fraud, and money laundering.

The company maintained that the funds represented legitimate payments made by genuine customers in the ordinary course of its business.

The client had only recently become aware of the Police concerns two days before the hearing and immediately instructed JMW. This meant that the company’s instructions and supporting evidence had to be obtained, reviewed and presented to the court in only 24 hours.

How JMW helped

JMW took detailed instructions from the company’s director and identified the evidence required to address the concerns raised by the Police.

The team urgently reviewed the Police application alongside the company’s financial and business records. JMW urgently prepared detailed written representations including a paginated evidential bundle explaining the legitimate source of the funds, and responding directly to the Police case.

The representations and supporting evidence were served on the court, and the Police before the hearing. The court was invited to refuse the application on the basis that the statutory threshold for making an Account Freezing Order had not been met.

 Outcome: Account Freezing Order refused

The Magistrates’ Court refused the application after finding that there was insufficient evidence to establish the necessary grounds for suspicion.  This was based on the representations, and evidence bundle prepared and submitted by JMW.

The decision prevented the company’s account from being subject to the six-month court order sought by the Police. It also avoided the continuing commercial disruption, legal expense and potential reputational damage that an Account Freezing Order could have caused.

This successful outcome demonstrates the importance of instructing specialist solicitors as soon as an Account Freezing Order application is received. Even if it is only a few days before.  A prompt and properly evidenced response can be crucial in testing whether the statutory threshold for an order has been met.