Since 2017 the Serious Fraud Office (SFO) has had the power to forfeit money in bank accounts through Account Forfeiture Orders.

What money can be forfeited?

The SFO can forfeit money that they suspect is either intended for use in unlawful conduct, or is categorised as ‘recoverable property’ i.e. property obtained through unlawful conduct.

As a basic rule, the SFO is allowed to seize money that believe to be proceeds of crime.

What is the process?

The SFO will receive information about suspicious funds through ‘Suspicious Activity Reports’. These are usually submitted to them by banks, or professional advisers.

The enforcement officer then makes an application to court for a freezing order and a forfeiture order. The Magistrates Court will decide whether or not to grant the Account Forfeiture Order.

The court must be satisfied that it is more likely than not that the money held in the account is indeed intended for use in unlawful conduct, or that the money is recoverable property.

In some cases, there may be a criminal prosecution first. The SFO will put forward the case that the defendant’s funds were the proceeds of crime, bribery or corruption. However, the SFO has the power get an Account Freezing Order without first securing a criminal conviction.

The other way to do it is to apply to the High Court for a freezing order. This usually isn’t the preferred option though, as the process is more complex, more expensive and takes longer to finalise.

Challenging an order

If an Account Forfeiture Order has been awarded against you, the enforcement officer will serve a ‘notice of intention’ to forfeit the money in your account.

You have 30 days to object. If you do object, there will be a hearing in the Magistrates Court. If you do not object within 30 days, the account is automatically declared forfeit.

If you believe that the SFO has got the wrong end of the stick, then you can make an application to set aside the order.  To do this, you’ll need to gather compelling evidence that the money was obtained by you through lawful means and that it is in fact ‘clean’.

You could also make an appeal against the forfeiture. The appeal will be another hearing in your local Crown Court. Again, you’ll need to prepare evidence about the origins of the money.

At any stage of the process, it’s a good idea to engage with investigators if you think they have the wrong idea about the money. You can seek to persuade them that the funds are legitimate and the order is unnecessary.

What happens to forfeited money?

Forfeited money is transferred to a nominated enforcement account. It’s then returned to the Treasury and invested in public projects. The idea is that it goes into the public purse to be put towards good causes.

How can a lawyer help?

Facing an Account Forfeiture Order is a stressful experience. A lawyer can guide you through the process and engage constructively with the SFO. We can also help you challenge the order if the funds in your account are obtained through legitimate means.

If you’d like to speak to an expert in this area, please get in touch with us at Harewood Law. We cover across Leeds, Bradford, Halifax, Wakefield, Huddersfield, Keighley across West Yorkshire and the UK.

Contact Harewood Law today.

0333 3448377 | info@harewoodlaw.com