Lauren Bowkett, instructing successfully opposed an Account Freezing Order (“AFO”) extension on behalf of a client totalling over £73,000, after demonstrating to the Court that the Home Office had failed to set out its case and meet the evidential test for extending AFOs.

The client’s problem: The sole business account was frozen

The client, an agricultural company, instructed JMW to advise, assist and make representations in relation to the AFO that had been made with limited evidence to suggest that the account held recoverable property.  The application, which was made by the Home Office and ordered by the Court, was made prior to JMW's instruction and caused not only a substantial burden on its director and the company but also impacted the company’s ability to trade.

In relation to the AFOs, the Home Office said it had intelligence that the money held in the business account was from money laundering and was recoverable property.  The Court granted the initial applications and froze the company account for six months, leading the client to seek the assistance of JMW in setting aside the orders.

How JMW helped

The client instructed JMW in relation to the AFO.  After detailed submissions to the Court, the application to extend the AFO was refused.  

We prepared a comprehensive application to contest the extension of the AFO, which was only possible due to our expert understanding of the Proceeds of Crime Act 2002 and of the client’s specific situation.  The detailed application outlined numerous legal arguments and highlighted flaws in the Home Office application, which included how they had not set out a proper basis for their suspicions and that there was no evidence to conclude that the account was being used for money laundering and therefore the relevant test had not been met.

It was our view that, having determined that the Home Office had not reached the appropriate burden of proof, the AFO’s should be set aside or left to expire.

Outcome: The application to extend the AFO was refused and the account released

Despite outlining to the Home Office before the hearing that they had provided no proper basis to conclude that the funds in the account were recoverable property, they carried on with their application to extend the AFO.

We are pleased that the Court accepted our submissions and rejected the Home Office’s application to keep the business account frozen for any longer. After only a few months of instruction, the business account will now be released.

In securing expert legal representation from JMW, the client has avoided having to go through potential years of investigation, a lengthy period with the account being frozen, and a contested court hearing in relation to the frozen funds, which would ultimately have incurred further costs for the client and possibly loss of his business. 

Lauren Bowkett has been commended by the client for her great work in this matter and for securing the release of the business bank account without having to attend court.