The Proceeds of Crime Act places an obligation on banks and building societies to make a Suspicious Activity Report (SAR), if they are concerned about irregular activity in the account.
What happens when a Suspicious Activity Report (SAR) is made?
The SAR is made to the National Crime Agency (NCA). On making the report, a moratorium period of 7 working days is initiated. Restrictions will be placed on the account during this period, which are likely to prevent any incoming or outgoing payments.
The NCA may respond within the initial 7 working day period to confirm that they are satisfied there are no grounds to be suspicious and the restrictions can be lifted. However, there is provision for this period to be extended by a further 31 calendar days if the NCA wishes to investigate the origin of the funds more extensively. Therefore the account can remain restricted for up to a maximum of 42 days.
Why won’t the bank tell me anything?
It is a criminal offence for the bank or building society to alert the account holder to the fact that an SAR has been made. Therefore, an account holder will often be left in the dark as to why they cannot use their account, with the customer services department of the financial institution telling them very little and being unresponsive to complaints.
What happens after the 42 day moratorium period?
The bank must either lift the restrictions or release the funds in the account to the account holder.
However, sometimes, the NCA may apply to a Court for an Account Freezing Order. This should be done on notice to the account holder but frequently very little notice is given of the Court hearing. In some circumstances, an Account Freezing Order application is made without giving notice to the account holder.
It is strongly advised that an account holder obtains legal advice if restrictions remain in place after 42 days.
Please click HERE to speak to a solicitor about a frozen bank account.
