Lauren Bowkett has successfully ended the investigation into a Manchester business, which was at risk of an Account Freezing Order (AFO), after demonstrating to the Police that the funds held in the company account were not recoverable property.

The client’s problem:  The client had their company account frozen

The client, who was the sole director of two connected companies under common ownership and control, instructed JMW to advise, assist and respond to questions raised by the Police in relation to a financial investigation into the company bank account. 

If the company did not respond, the Police had informed the business that they would be at risk of an AFO as the Police suspected that the funds in the bank account were ‘recoverable property’ under Section 304 POCA 2002.

The correspondence from the Police caused not only significant stress to its director, but also impacted the company’s ability to trade and pay its overheads.  The balance of the accounts in full had been frozen by the bank, and a suspicious activity report (SAR) had been submitted.  JMW were instructed only two days before the Police deadline to respond to the questions posed to the business.

The client instructed JMW to review and advise on company documentation, and in addition draft a response to the Police to discharge their suspicion that the funds were recoverable property, and apply for the company account to be released.

How JMW helped

The client instructed JMW to review the questions raised by the Police, and prepare an evidential pack to be served demonstrating the legitimacy of the funds.  We conducted a thorough review of the documents provided by the company, and advised on what further information and evidence should be served to strengthen their response.

Lauren made representations to the officers that the funds held in the company account were not recoverable property, which was ultimately successful.  This was only possible due to her expert understanding of the Proceeds of Crime Act 2002, and of the client’s specific situation, which needed to be handled quickly and effectively due to the strict Police deadline and issues faced by the company whilst the account was frozen.

The detailed response prepared meant that the account was released after only seven days of JMW instruction and illustrates the importance of instructing specialist solicitors early on in financial investigations. In this particular case, instructing JMW stopped the risk of an AFO being imposed for up to two years.

Outcome: Financial investigation concluded without AFO

We are pleased that the Police reviewed the detailed evidence provided and accepted our submissions.

By instructing JMW, we handled the matter expeditiously, saving the company significant damage both financially and reputationally.  The accounts were frozen by the bank and did not conclude with an AFO being granted, which could have taken years to resolve.

In securing expert legal representation from JMW, the client has avoided having to apply to the court for the release of the company accounts, a lengthy period with the accounts being frozen and a contested court hearing in relation to the frozen funds, which would ultimately have incurred further costs.