Michelle Sloane and Keziah Mastin consider HMRC’s dramatic increase in the use of Account Freezing Orders (AFOs) and Forfeiture Orders (FOs) over the past three years, as part of its crackdown on suspected criminal behaviour.
Account Freezing Orders (AFOs) and Account Forfeiture Orders (FOs) were introduced into Part 3B, Proceeds of Crime Act 2002 (POCA) in January 2018, as part of the wide- ranging powers provided to law enforcement agencies in the Criminal Finances Act 2017.
AFOs are granted by a Magistrates’ Court on application of an officer and do not require authorisation by a senior judge, or indeed a qualified lawyer. AFOs freeze the monies in a bank or building society account to enable a full investigation to be conducted as to whether the monies in that account are the proceeds of crime. AFOs can apply to accounts with balances over £1,000 and enable authorities to preserve funds for subsequent forfeiture.
FOs and Account Forfeiture Notices (AFNs) are the two procedures by which monies already frozen may be forfeit as being the proceeds of crime.
Since their introduction, AFOs and FOs have been adopted by all eligible investigators, including HMRC officers. They are wide reaching and can, if granted, significantly impact a party with assets in the UK both financially as well as reputationally.
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