JMW’s Business Crime & Regulatory team represented an individual whose three personal bank accounts were subject to Account Freezing Orders (AFOs), restricting access to more than £65,000.

Our client was a sole trader who earned part of his income from dealing in scrap metal and supported a large family. Freezing his accounts therefore caused significant financial hardship.

JMW was instructed to challenge the orders and secure the release of our client’s funds, which we successfully achieved without the need for a contested hearing.

Background

Our client earned part of his income by buying and selling scrap metal. The industry is subject to a licensing regime, including requirements for:

• A scrap metal dealer’s licence, required to operate as a scrap metal dealer; and
• A waste carrier licence, required to transport waste, including scrap metal.

The police initially obtained AFOs from the Magistrates’ Court for all three accounts. The threshold for an AFO is relatively low: the police needed only to show reasonable suspicion that the funds were recoverable property linked to criminal conduct. They relied particularly on our client’s scrap metal activities without the required dealer’s licence.

JMW was then instructed to challenge the restrictions and seek the return of our client’s funds.

Key legal and factual issues

Although the facts underlying the AFO application were not disputed, the case raised several technical legal issues about the licensing requirements. It therefore required close analysis of the law and consideration of other relevant factors.

A key objective was to identify which funds in the frozen accounts came from scrap metal trading and distinguish them from other legitimate income and monies held in the accounts.

Our client also had difficulties with reading and writing, alongside other neurological conditions. These circumstances were important when considering why he had not obtained the correct scrap metal licence.

JMW’s proactive approach

Detailed financial analysis

The team reviewed our client’s financial records to identify the source of funds to exclude sums from other legitimate sources.

This analysis helped assess the police’s case and identify only those sums linked to the admitted scrap metal trading.

Early representations and negotiation

Before the matter reached a contested forfeiture hearing, we sought to resolve it without further litigation and costs to both sides.

We served detailed without prejudice representations setting out our client’s position and sought to negotiate a proportionate, cost-effective route to recover as much of our client’s money as possible without a contested hearing.

The police initially refused our representations and proceeded with a forfeiture application.

Effective preparation for forfeiture hearing

In preparing for the forfeiture proceedings, JMW took detailed instructions about our client’s previous interactions with the police. Of particular significance were several occasions when he had been stopped while driving a vehicle containing scrap metal. We sought disclosure of the relevant police records, including details of the checks officers had carried out.

This material raised important questions about the police’s prior knowledge of our client’s activities. The police disclosed the requested material but then applied to adjourn the contested hearing, arguing that it raised matters requiring further investigation.

Opposing further delay

By then, the AFO had been in place for almost a year, so we strongly opposed the adjournment.

The court refused the application. During the hearing, the police conceded that, without further investigation of the newly disclosed evidence, they had no case. They then confirmed that they would withdraw the forfeiture application and release the funds.

Why instruct JMW?

If your account has been frozen, early specialist advice can be critical. JMW can scrutinise the legal and factual basis of an AFO, analyse the source of funds, seek key disclosure and challenge unjustified delay. Instructing JMW at an early stage allows us to protect your position, pursue the release of legitimate funds and work towards the quickest possible resolution.