Account freezing orders, cash seizure and civil forfeiture
Under the Proceeds of Crime Act 2002 Part 5, magistrates can freeze money in a bank or similar account for up to 2 years (s.303Z3) on reasonable grounds to suspect it is criminal property or intended for crime, and later forfeit it if satisfied on the balance of probabilities. Cash of £1,000 or more and cryptoassets can be seized and forfeited under similar powers, without any charge or conviction.
Civil, not criminal
These Proceeds of Crime Act 2002 Part 5 powers apply whether or not anyone is charged or convicted (s.240(2)). At forfeiture, the court decides facts on the balance of probabilities (s.241(3)).
Account freezing orders
- Police, HMRC, SFO officers and accredited financial investigators can apply, with senior officer authority (s.303Z2), and often without notice (s.303Z1).
- The court may freeze money in a bank, building society, e-money or payment institution account if there are reasonable grounds to suspect it is recoverable property (obtained through unlawful conduct) or is intended by anyone for use in unlawful conduct (s.303Z3). The suspected sum must be at least £1,000 (ss.303Z2, 303Z8).
- An order can last up to 2 years (s.303Z3(4)). Anyone affected can apply to vary or set it aside (s.303Z4).
- The court can release money for reasonable living expenses, to carry on a business, and for reasonable legal expenses in the proceedings (s.303Z5).
Account forfeiture notices
- A senior officer can give notice proposing forfeiture without a hearing (s.303Z9). The objection period must be at least 30 days.
- An objection makes the notice lapse; the freeze then ends after 48 hours (not counting weekends and public holidays) unless the officer applies to extend it or for forfeiture (s.303Z11).
- With no objection the money is forfeited. An aggrieved person can apply to set this aside within 30 days after the objection period ends, or later in exceptional circumstances (s.303Z12).
Forfeiture hearing and appeal
- Magistrates may forfeit the money or part of it if satisfied it is recoverable property or intended for use in unlawful conduct (s.303Z14).
- Either party can appeal to the Crown Court within 30 days (s.303Z16).
- If nothing is forfeited, compensation may be ordered for loss in exceptional circumstances (s.303Z18).
Cash seizure
- Cash includes notes, coins, postal orders, cheques, bankers' drafts, bearer bonds and shares, gaming vouchers, fixed-value casino tokens and betting receipts (s.289(6)). The minimum is £1,000.
- Officers may seize it on reasonable suspicion (s.294) and hold it for 48 hours (not counting weekends and public holidays). Magistrates can extend detention by up to 6 months at a time, up to 2 years from the first order (s.295).
- Forfeiture is by court order (s.298) or a cash forfeiture notice (s.297A), with appeal to the Crown Court within 30 days (s.299).
Cryptoassets
The Economic Crime and Corporate Transparency Act 2023 added similar powers, in force in England and Wales since 26 April 2024, to seize cryptoassets and items giving access to them, freeze crypto wallets held with UK-connected providers (s.303Z36) and forfeit them.
In practice
Deadlines are strict and evidence of a lawful source is usually central. Early advice matters, especially before an objection period ends.
Authorities: Proceeds of Crime Act 2002 ss.240, 241, 289, 294, 295, 297A, 298, 299, 303Z1, 303Z2, 303Z3, 303Z4, 303Z5, 303Z8, 303Z9, 303Z11, 303Z12, 303Z14, 303Z16, 303Z18, 303Z36; Proceeds of Crime Act 2002 (Recovery of Cash in Summary Proceedings: Minimum Amount) Order 2006 (SI 2006/1699) art.2; Economic Crime and Corporate Transparency Act 2023 Sch.9 (SI 2024/269)