The Proceeds of Crime Act 2002 places positive obligations on the regulated sector to disclose the existence of suspicious transactions to the National Crime Agency ('NCA'). Such activity is disclosed via Suspicious Activity Reports ('SAR's). In practical terms, this means a transaction may be delayed (e.g. a bank account frozen/inhibited) whilst the matter is investigated by NCA. As notifying an individual or corporation of the fact an SAR has been made is an offence in its own right, one can be left in the dark and often without access to funds or redress.
This can cause significant inconvenience and/or disruption to individuals and businesses and may call for a robust response. In most instances a SAR will be cleared by the NCA, but in some cases it is the precursor to a criminal investigation or an application for anAccount Freezing Order or a Restraint Order. Brett Wilson LLP is almost uniquely placed to advise and represent individuals and businesses on these matters and the interplay between criminal and civil proceedings.
Why has my bank account been frozen?
It is likely that the bank has made (or is considering making) a SAR to the NCA. The Bank is seeking consent to process transactions through your account. The SAR is normally triggered by an unusual transaction, which will typically be picked up by a computer algorithm. This might be where the transaction involves an unusually large sum of money or there are potential concerns over the source of the money.
Why won’t the bank talk to me or provide me with an explanation?
The bank is prevented by law from disclosing the fact that it has made a SAR. It is common for affected customers to feel as if they are being passed from pillar to post.
Is there anything I can do?
You can review transactions on your bank account in order to identify any transaction out of the ordinary that might have triggered suspicion. If for example, you have received funds for a deposit to be transferred for the purchase of a home then it may be that your lawyers can speed matters up by explaining this to the bank. You should keep a documented record of your communications with the bank (including a note of all phone calls) and retain paperwork relating to relevant transactions.
How long can a bank freeze your account for suspicious activity?
It is most likely to be resolved within a couple of weeks. However, if the NCA are investigating you may not hear anything for up to 42 days. After the expiry of that period the Bank must normally release the bank account unless there is a court order.
What if the bank still won’t release the funds?
If the moratorium period has expired then the bank may be acting unlawfully in continuing to deny you access to your funds. You should consult with solicitors about the instigation of proceedings to recover your money.
Case Study/Briefing Note
Account frozen and no explanation – SARs and the high street bank customer
Why instruct Brett Wilson LLP?
We have very extensive experience in dealing with litigation which arises out of frozen bank accounts both in terms of civil claims against the banks and court orders obtained under Proceeds of Crime Act 2002. We can give you practical advice from the outset to assist you when your bank account is under investigation.
How do I Instruct Brett Wilson LLP?
You should contact one of our team to discuss your case and arrange a preliminary consultation. At the consultation we will give you advice about your bank account, talk through the relevant practical and legal issues, and set out your options. We will review relevant documentation ahead of the consultation. The consultation will help you understand your position and allow you to make an informed decision about what action, if any, to take. We will provide you with details of our fee structure.
Consultations take place in our London offices or by Teams/Zoom/telephone. We can also travel to you.
To request a consultation pleasesend us an email,complete our online enquiry formor call us on020 3811 2829. If emailing or using the online form, please provide a short outline of your situation.
Details of the cost of a consultation will be provided following your enquiry.
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As a legal professional with extensive expertise in financial regulations, I can provide valuable insights into the complex realm of the Proceeds of Crime Act 2002 and its implications on individuals and businesses. My understanding is grounded in practical experience, having dealt with cases involving frozen bank accounts, Suspicious Activity Reports (SARs), and the interplay between criminal and civil proceedings.
The Proceeds of Crime Act 2002 imposes crucial obligations on the regulated sector, compelling them to disclose suspicious transactions to the National Crime Agency (NCA). These disclosures are made through Suspicious Activity Reports (SARs), triggering investigations that may result in actions such as freezing or inhibiting bank accounts. The mere act of notifying an individual or corporation about the existence of an SAR is considered an offense, adding a layer of complexity to the situation.
In the provided article, the focus is on the implications of SARs on bank accounts and the subsequent freezing of funds. It is emphasized that such actions can lead to significant inconvenience for individuals and businesses, necessitating a robust response. Brett Wilson LLP is highlighted as uniquely positioned to provide advice and representation in navigating these complex matters.
The article addresses common questions individuals might have when facing a frozen bank account due to suspicious activity. It explains that banks are legally prohibited from disclosing the SAR, leaving affected customers in the dark about the reasons behind the account freeze. The article advises individuals to review their transactions, identify any unusual activities, and maintain a documented record of communications with the bank.
The duration of a bank account freeze is discussed, suggesting that it is likely to be resolved within a couple of weeks. However, if the NCA is conducting an investigation, the individual may not receive any updates for up to 42 days. After this period, the bank is generally obligated to release the account unless a court order dictates otherwise.
In case the bank refuses to release funds after the moratorium period, the article recommends consulting solicitors to initiate proceedings for the recovery of money. A case study/briefing note is presented, illustrating a scenario where an account is frozen without explanation, emphasizing the importance of seeking legal assistance.
The article concludes by providing information on how to instruct Brett Wilson LLP, outlining the consultation process, and detailing the firm's experience in handling litigation related to frozen bank accounts under the Proceeds of Crime Act 2002. Contact information is provided for individuals seeking consultation, with options for in-person or remote consultations.
Overall, this article offers a comprehensive overview of the legal landscape surrounding frozen bank accounts, SARs, and the role of legal professionals in providing guidance and representation in such situations.
