DEBANKING, ACCOUNT AND ASSET FREEZING

DEBANKING, ACCOUNT AND ASSET FREEZING: PROTECTING YOUR FINANCIAL RIGHTS

Facing debanking or an account or asset freezing order can be a distressing and complex experience. These orders, often issued by regulatory or law enforcement agencies, can significantly impact your financial stability and reputation. At Gherson, we provide expert legal advice and robust representation to individuals affected by debanking, account or asset freezes, helping you challenge unjust actions and protect your financial interests. We have extensive and demonstrable experience in obtaining successful results for clients, whether through ensuring the release of frozen funds or negotiating a positive outcome. 

For those faced with the unfortunate scenario of being debanked, by successfully engaging with banks and forcing them, as far as possible, to be more transparent with regard to their processes, we enable our clients to at least retain some control of the situation and launch a more targeted response, if appropriate. We also regularly advise clients on steps to take to decrease the chances of this occurring in the first place.

WHAT ARE ACCOUNT AND ASSET FREEZING ORDERS?

Account and Asset Freezing Orders (AFOs) are legal tools used by authorities to restrict access to funds or assets suspected of being linked to unlawful activity. These orders may arise in various contexts, including:

• Proceeds of Crime Act 2002 (POCA): To prevent the use or transfer of assets believed to be the proceeds of crime.
• Sanctions Enforcement: As part of measures to enforce international sanctions.
• Unexplained Wealth Orders (UWOs): Where there is suspicion that assets were obtained unlawfully.

While these measures are designed to combat financial crime, they can sometimes be applied unfairly or without sufficient evidence, causing undue hardship to individuals.

WHAT ARE THE WIDER IMPLICATIONS OF DEBANKING, BANK ACCOUNT FREEZING AND CLOSURES?

Unfortunately, the freezing or closure of accounts can have further-reaching consequences for the targeted individual than just a limited access to funds. It can cause devastating reputational damage and the creation of an adverse profile by firms specialising in Know Your Customer (KYC) services, which may lead to inability to open accounts or improve credit score in the future.

Our team successfully works with clients to correct or rectify their media profile by utilising the Data Protection Act 2018 to force the correction of any inaccurate or misleading information that may be published by firms specialising in KYC services. We have also assisted many clients with finding alternative banking arrangements. We have recently started a series of blogs for those who fear that such compliance firms might be displaying incorrect or misleading information about them.

HOW GHERSON CAN HELP

Our team of financial crime experts provides comprehensive legal support for those facing de-banking, account or asset freezing orders. Our services include:

1. Challenging Bank Account Closures (debanking)
   • Assessing the legality of the bank account closure decision and/or decision to block funds and identifying grounds for any challenges.
   • Representing clients against the bank, with the Financial Ombudsman Service (“FOS”) and, if applicable, the Courts to overturn closure and freezing decisions.
2. Negotiating with Banks
   • Liaising with banks to arrange for the release of frozen funds or the re-opening of accounts.
   • Demonstrating compliance to avoid further closures and/or freezing of funds.
3. Appealing Debanking Decisions
   • Pursuing appeals where bank’s decisions have been issued unfairly or without due process.
   • Challenging and correcting inaccurate information on compliance databases
   • Liaising and negotiating with relevant compliance databases to ensure the removal of inaccurate and/or incorrect information.
4. Challenging Freezing Orders
   • Assessing the legality of the order and identifying grounds for any challenges.
   • Representing clients in court to overturn unjust freezes.
5. Negotiating with Authorities
   • Liaising with regulatory and law enforcement agencies to seek the release of frozen funds or assets.
   • Demonstrating compliance to avoid further enforcement actions.
6. Appealing Decisions
   • Pursuing appeals where freezing orders have been issued unfairly or without due process.
7. Advice on Compliance
   • Helping clients navigate their obligations under freezing orders to ensure compliance and thereby avoid penalties.
   • Providing guidance on securing access to funds for essential living expenses or legal fees.

WHY CHOOSE GHERSON?

• Specialist Expertise: Our team has extensive experience handling AFOs and related financial crime matters.
• Tailored Strategies: We provide bespoke legal solutions based on your unique circumstances.
• Proven Success: We have successfully overturned freezing orders, allowing clients to regain access to their assets.
• Comprehensive Support: From initial advice to court representation, we guide you through every stage of the process.

ACCOUNT ACCESS ISSUES AND RESOLUTION

Our team has a strong track record in successfully supporting clients with account-related challenges, including:

• Assisting individuals in significantly reducing the time it took for financial institutions to lift account restrictions.
• Representing both individuals and companies to secure the prompt release of funds held under administrative freezes.
• Supporting clients in using data protection laws to understand the reasons behind account closures and pursue focused appeals.
• Advising a high-net-worth client on the removal of inaccurate data from an international compliance database.
• Successfully challenging a client’s misclassification in a compliance database, including the removal of an incorrect high-risk designation.
• Assisting various individuals by utilising data protection legislation in obtaining a bank’s reasoning for closing an account and launching a targeted challenge.
• Acting for a successful Russian businessman to remove incorrect / inaccurate information displayed on World-check database.
• Acting for a successful businessman to remove incorrect / inaccurate information displayed on World-check database (including incorrect characterisation as PEP).
• Acting for successful businessman to remove incorrect / inaccurate information displayed on World-check database.

ACCOUNT FREEZING AND FORFEITURE ORDERS

• Advising two individuals who found their accounts made subject to account freezing orders further to allegations that there was reasonable suspicion that the funds deposited were the proceeds of crime. This complex case spanned multiple jurisdictions and required a technical understanding of relatively novel areas of law.
• Advising two HNW individuals whose various accounts were made subject to account freezing orders due to allegations in a separate jurisdiction.

POCA AND MONEY LAUNDERING

• Representing a client in relation to the UK’s first UWO and successfully defending the UWO for over five years before negotiating a settlement, whilst successfully defending her in a request for her extradition from her home state.
• Representing an individual residing in the UK with their family in respect of a multi-million pound account freezing/forfeiture proceeding.
• Advising multiple clients who found their accounts made subject to account freezing orders further to allegations that there was reasonable suspicion that the funds deposited were the proceeds of crime.
• Advising in relation to account freezing orders and associated civil forfeiture proceedings.
• Advising individuals in relation to cash forfeiture proceedings.

WHEN TO SEEK LEGAL ADVICE

It is essential to seek legal advice as soon as you become aware of a debanking or an account or asset freezing order. Early intervention allows us to:

• Review the evidence and legality of the debanking decision
• Review the evidence and legality of the order.
• Develop a robust defence strategy.
• Mitigate the impact on your financial stability.

CONTACT US

If you are facing an account or asset freezing order, contact Gherson today. Our expert legal team will provide strategic advice and representation to protect your rights and secure a fair outcome.