Frozen Bank Account and Money Laundering Suspicion

If a bank suspects money laundering, it may restrict/freeze your account and submit a Suspicious Activity Report (SAR) to the NCA; the report itself does not freeze the account.

If your bank account has suddenly been frozen, it is often linked to a Suspicious Activity Report made to the National Crime Agency, and this can happen without any warning and before you have been charged with anything.

This guide explains why accounts get frozen, how long it can last, and what you can do to try to get access to your money again.

Has your bank account been frozen? Call Moeen & Co. Solicitors now on 0203 959 7755 for confidential legal advice.

Table of Contents

Why has my bank account been frozen for suspected money laundering?

A bank account is usually frozen because the bank has identified unusual or suspicious activity and has submitted a Suspicious Activity Report to the National Crime Agency, or because law enforcement has applied for an account freezing order.

• Large or unusual cash deposits that do not match your normal account activity
• Transfers linked to another account or person already under investigation
• Patterns that resemble money mule activity, such as money arriving and being quickly moved on
• Concerns raised during the bank's routine monitoring or a customer due diligence review
• A direct request from the police, HMRC or the NCA connected to an ongoing investigation

The first step is to find out what type of restriction applies. It may be a bank-imposed restriction, a court-issued account freezing order (AFO), or a restraint order connected with a criminal investigation or proceedings. The rules and ways to challenge each one differ.

What is an account freezing order?

An account freezing order is a court order under the Proceeds of Crime Act 2002 (POCA). An enforcement officer can apply for one where there are reasonable grounds to suspect that money in a bank or building society account is recoverable property or is intended for use in unlawful conduct. The order can prohibit withdrawals or payments from all or part of the account.

An AFO is a civil recovery measure; it does not itself mean the account holder has been charged or convicted of a crime. Under POCA, an order can last for a period set by the court, up to a maximum of two years. Read the relevant POCA provisions, introduced by the Criminal Finances Act 2017.

What is a Suspicious Activity Report?

A Suspicious Activity Report, or SAR, is a report that banks and other regulated businesses are legally required to submit to the National Crime Agency when they know or suspect that money may be linked to crime.

• Banks can freeze funds and submit a SAR without telling you in advance
• Once a SAR is submitted, the NCA can either give "consent" for a transaction to go ahead, or withhold it
• Withholding consent effectively freezes the relevant funds for a set period while the NCA considers the report
• You are not usually entitled to see the SAR itself, since it forms part of the investigation

How long can my bank account stay frozen?

There is no fixed timescale, but freezes connected to a Suspicious Activity Report typically last a matter of weeks, while a formal account freezing order can keep funds frozen for up to two years.

• An initial SAR-related freeze is often reviewed within a set number of working days, though this can be extended
• A court-ordered account freezing order is usually reviewed periodically and can run for up to two years
• Delays are common, particularly in complex investigations involving multiple accounts or people
• A solicitor can help apply pressure for a decision and challenge unreasonable delay

What is the difference between an account freezing order and a restraint order?

An account freezing order applies to money held in a specified bank or building society account and may be used where funds are suspected to be recoverable property or intended for unlawful conduct.

A restraint order is generally connected with a criminal investigation or proceedings and can prevent a person from dealing with property that may be needed to satisfy a future confiscation order. It can affect assets beyond a single bank account.

The order itself should identify the legal power being used. A solicitor can review it and advise what restrictions apply and what steps may be available.

Can I challenge a frozen bank account?

Potentially, yes. The available route depends on whether the restriction was imposed by the bank or ordered by a court.

For an AFO, an affected person may be able to apply to the court to vary or set aside the order. If the authorities seek forfeiture of the money, there may be a deadline to object or make representations. Read any notice carefully and get legal advice quickly, because missing a deadline can affect your options.

If a bank has restricted your account, ask it for the process to provide information or challenge its decision. A solicitor can help you understand the bank’s response and whether any court order or other legal restriction is also in place.

Can I get money released to cover essential expenses?

It may be possible to ask for an order to be varied or for funds to be released, depending on the type of freeze, the terms of the order and your circumstances. Provide clear evidence of essential costs, such as rent, mortgage payments, utilities or business expenses, and obtain legal advice before making an application.

There is no automatic right to have funds released. The decision depends on the legal basis for the restriction and the available evidence.

Frozen bank account and money laundering compensation

Compensation may be available in limited circumstances after an account freezing order. Under POCA, a person who operates the account may apply to the relevant court if none of the money subject to the order is forfeited. The court must be satisfied that the applicant suffered loss because of the order and that the circumstances are exceptional. Any award is discretionary and based on the loss and other relevant circumstances.

This statutory compensation route does not automatically apply whenever a bank freezes an account or whenever funds are later released. The legal basis for the freeze and how it ended matter. See section 303Z18 of POCA, inserted by the Criminal Finances Act 2017.

Will I get my money back if the investigation finds nothing wrong?

In most cases, yes. If an account freezing order expires or is discharged and no forfeiture order is made, the funds are released back to you, though this can take time.

What should I do if my account is frozen?

• Ask the bank for written details of the restriction and any order or notice.
• Keep bank statements, transaction records and messages about the funds.
• Gather documents that explain the source and purpose of relevant payments.
• Do not try to move, withdraw or spend funds that may be subject to a restriction.
• Do not ignore court documents or objection deadlines.
• Speak to a solicitor before responding to investigators or making a formal application.

Do not delete or alter relevant records. If you are also under investigation, get advice before attending a police interview.

How can a solicitor help with a frozen account?

A specialist money laundering defence solicitor can identify the type of freeze, explain what the order permits and review possible ways to challenge it. Depending on the circumstances, they may help you:

• Understand the legal basis and scope of the restriction
• Prepare an application to vary or set aside an account freezing order
• Respond to an account forfeiture notice or court application
• Gather documents showing the legitimate source or purpose of funds
• Make an application for the release of funds, where available
• Assess whether a compensation application may be possible

The right approach depends on the order, the evidence and the deadlines in your case. No particular outcome can be guaranteed.

Speak to a solicitor about your frozen bank account

If your bank account has been frozen or closed in connection with suspected money laundering, call Moeen & Co. Solicitors on 0203 959 7755 to get advice as early as possible to protect your access to funds and your position.