Freeze Order

What is a freeze order?

A freeze order is a legal instruction that stops money moving in or out of a bank account while authorities investigate. The account still exists and the balance usually still shows, but transactions are blocked. It is a temporary hold, not a finding that you did anything wrong.

A freeze can be the first sign of an investigation. The order goes to the bank and the bank applies it. That is why branch staff may not be able to give you a reason: they are following an instruction from elsewhere.

Who can issue a freeze order?

Under AMLA section 50, the Public Prosecutor can order a bank not to let suspected proceeds of unlawful activity be dealt with. ^[f1] An enforcement agency, such as the police, can also issue a freeze under section 44.

The 2024 amendment also added a faster police power. Under section 116D of the Criminal Procedure Code, a police officer of Sergeant rank or above can freeze an account straight away, without a court order, on suspicion of a link to unlawful activity. ^[f3]

How long does it last?

A freeze is meant to be temporary, but the limit depends on the power used. An AMLA seizure or Public Prosecutor order lapses if you are not charged within 18 months. ^[f2]

A section 44 freeze ends after 90 days if you are not charged. A police freeze under section 116D lapses 18 months after the order if nobody is prosecuted over the money. A calm first step is to ask which order was used and keep every letter and reference number.

Can I ask for a freeze to be changed?

Yes. For a section 44 freeze, you apply in writing to the agency that issued it, and a more senior officer decides. For a section 116D freeze, you apply to the Sessions Court.

Do not ignore a freeze and do not panic. Gather your bank letters, note the dates and read our guide to account holder rights. A lawyer can prepare the application for you.

Sources

1. AMLA 2001, Section 50(1)
2. AMLA 2001, Section 52A
3. CPC (Amendment) Act 2024, Section 116D