When a prosecutor instructs a bank to freeze the assets and bank accounts held by one of its clients, the bank must take the following actions:
Ensure the client and beneficiaries are unable to access any frozen assets during the freeze order. This means the bank must prevent any withdrawals, transfers, payments, or other transactions from the frozen accounts or assets. The bank must also notify the client and beneficiaries of the freeze order and the reason for it. The bank must comply with the freezeorder until it is lifted by the court or the prosecutor12.
An affidavit must accompany the freeze order for the bank to comply with the request. An affidavit is a sworn statement that provides the legal basis and evidence for the freeze order. The affidavit must specify the name of the client, the amount and location of the assets to be frozen,the nature and source of the funds, the suspected criminal activity, and the legal authority for the freeze order3 .
The institution should obtain a copy of the court order to freeze the assets of the named individuals. A court order is a legal document that authorizes the bank to freeze the assets and accounts of the client. The court order must be signed by a judge or a magistrate and must include the same information as the affidavit. The bank should keep a copy of the court order for its records and to verify its validity .
Frozen Bank Account: Here’s What You Need to Know
Why Is My Bank Account Frozen? - Investopedia
What Is a Frozen Account? What Causes It and How toUnfreeze It
[Freezing Orders - Practical Law]
[Freezing Orders - The Law Society]
[Freezing Orders - LexisNexis]
