HMRC’s powers to freeze bank accounts

Imagine that an HMRC officer could apply to freeze your bank account based on a suspicion. Imagine that once frozen the HMRC officer could then send you a notice telling you that unless you write and object they will forfeit all of the money in your account.

Well you do not need to imagine as that is how the powers contained in s 303Z1 to s 303Z8 of the Proceeds of Crime Act 2002 (POCA 2002) operate.

Account freezing orders (AFOs) and forfeiture orders (FOs) were introduced on 31 January 2018 by the Criminal Finances Act 2017. Prosecutors and law enforcement agencies such as HMRC regularly turn to these powers due to the low evidential threshold and relative lack of judicial scrutiny.

Once granted an AFO prevents the holder of a bank or building society account with a balance...