Restraint Orders and Account Freezing Orders 

The key difference between Restraint Orders and Account Freezing Orders is that a Restraint Order runs alongside a criminal investigation whereas an Account Freezing Order relates to suspicious monies even if there is no criminal investigation.

Account Freezing Orders

Account Freezing Orders and Account Forfeiture Notices and Orders (introduced under the Criminal Finances Act 2017) allow authorities to seize funds, without requiring a prosecution or criminal conviction.

Regional police forces, the Serious Fraud Office and the National Crime Agency (NCA), can apply to freeze accounts if funds are suspected to be either the proceeds of criminal conduct or intended for use in unlawful conduct.

An order lasts for up to two years allowing an investigation to be conducted into the provenance of the money in the account. The investigation may or may not trigger a wider criminal investigation. An Account Freezing Order focuses on specific accounts and places the onus upon the holder of the account to prove the provenance of the frozen monies.

At the conclusion of their investigation, the prosecuting authority may apply for an Account Forfeiture Order which allows for frozen sums to be forfeited. Crucially there is no requirement for a criminal conviction or even a criminal investigation to have ever taken place.

Restraint Orders

A Restraint Order once imposed makes it extremely difficult for a restrained individual to operate their businesses or discharge normal outgoings.

An Order can be made with no prior notice (ex parte) which means an individual has no chance to object to the order. Often, individuals only become aware that they are under criminal investigation because a Restraint Order has been made.

What sets Olliers apart is the proactive, front footed approach we adopt during a criminal investigation. The Olliers team has considerable experience dealing with applications to vary and discharge restraint orders, they often feature during pre-charge cases where fraud is alleged. The strategy of fighting Restraint Orders often goes hand in hand with the strategy for preventing a prosecution.

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We are ranked as a Top Tier Crime and Fraud Firm by the Legal 500 2025 as well as Chambers Directory 2025. We are a Times Top 200 law firm. We are the current Manchester Legal Awards Crime Team of the Year, an award we have won seven times in just over 10 years.

We have a team of over 25 defence lawyers. Eight of our Partners are recommended Legal 500 lawyers, including Matt Corn, Gareth Martin, Toby Wilbraham and Richard Cornthwaite. Our Managing Director, Matthew Claughton is a recent Legal 500 Northern Powerhouse Criminal Lawyer of the Year. 

What is the purpose of a Restraint Order?

A restraint order is intended to restrain assets ensuring they are preserved in the event of a criminal conviction. Upon conviction assets are then available to satisfy any Confiscation or Compensation Order. A restraint order prevents such assets being dissipated prior to a conviction.

Conditions to be satisfied before a Restraint Order can be met

The power to make a restraint order is contained in  Section 40(2) of the Proceeds of Crime Act 2002  allows for the making of an Order if a criminal investigation has been started (in England and Wales), and there is ‘reasonable course to believe that the alleged offender has benefited from his criminal conduct’.

What are the duties of the Court and the Prosecution?

The prosecution has a high duty of disclosure, and they should place before the court not only all the necessary material justifying an order being made but also and disclosure of anything that might militate against the grant. This is precisely because the application is being made in the absence of the suspect.

The prosecution advocate must “put on his defence hat and ask himself, what, if he was representing the defendant or a party with a relevant interest, he would be saying to the Judge” (Stanford International Bank Ltd, Re; CA 25 Feb 2010)

And, the court should be satisfied that a suspect has benefited from identifiable criminal conduct, the Judge should not merely accept what the prosecution says at face value.

How do Restraint Orders affect company assets?

It needs to be understood that a company has an independent legal identity/personality of its own and its assets do not belong to its directors, but to the company itself.

There are circumstances, however, where the court will treat the assets of a company as the assets of an individual. In any event, and even if the court is prepared to treat the company assets as the assets of the restrained individual, there needs to be an expressed order restraining the assets of the company.

Interplay between an investigation and a Restraint Order

Fortunately, the law contains safeguards and places requirements upon the prosecution and the court which if exercised properly should ensure that orders are used appropriately and proportionately, particularly when businesses are involved. And higher levels of disclosure are required to secure restraint orders than might ordinarily be provided to the defence in an investigation where no assets restrained.

There is an ongoing obligation upon the prosecution to update the Court as to progress regarding the criminal investigation.  An important way of tracking an investigation is by ensuring that this requirement is adhered to.

Additionally, often because of defence applications to vary or discharge an order, then the defence are better placed to understand the direction of the investigation and to consider what proactive steps can be undertaken during the investigation.

How can Restrained Individuals pay legal fees?

A restrained individual cannot meet legal expenses from restrained funds, to do so would be a contempt of court. However, a third party can meet legal expenses. Moreover, a company, even if owned by the restrained individual, may be able to meet expenses provided company assets are not restrained (see above). 

Contact Olliers Solicitors – specialist fraud lawyers

If you or your company face investigation or prosecution please contact Matthew Claughton or one of our team – we can help.

We have offices in both London and Manchester and our specialist team of lawyers can advise and represent you in relation to your case.