Partial Freeze vs Full Freeze Explained

What does a full freeze block?

A full freeze stops every transaction on your bank account. ^[f1] You cannot withdraw cash, transfer money, pay bills online or use your debit card. Usually incoming money is blocked too, so salary, refunds and other payments may not reach your balance.

Your money stays in the account. It has not been seized or taken. You just cannot use it until the freeze is lifted or varied.

A full freeze can come from an enforcement agency under AMLA Section 44, from the Public Prosecutor under AMLA Section 50 or from the police under CPC Section 116D. Who issued it, and under which law, decides how you can challenge or vary it.

What does a partial freeze still allow?

A partial freeze restricts your account but does not block everything. ^[f2] What still works depends on the terms of the order.

Common examples are salary coming in, withdrawals up to a set monthly limit, and payments for approved essentials. Each order is written for its own case, so the exact terms differ.

A partial freeze can be written that way from the start, or come from a successful variation application that loosened a full freeze. Either way, find out exactly what is allowed and what is blocked before you plan your money.

How do I find out which type I have?

Contact your bank. Ask the branch manager or compliance department to put in writing which transactions are allowed and which are blocked.

Ask for the freeze order’s reference number and the name of the authority that issued it. This tells you whether the freeze came from the police, another enforcement agency or the Public Prosecutor.

If the bank’s answers are unclear or contradict each other, a lawyer can write to the issuing authority directly. A formal letter may get a clearer answer than repeated calls to the bank.

How do I apply for a variation under AMLA Section 44A?

If your account is fully frozen, the law gives you a way to reach money for essentials. AMLA Section 44A lets you apply for a variation of a freeze order. ^[f3] For a freeze by an enforcement agency under section 44, the application is made in writing to that agency.

A variation asks for set amounts to be released for living costs. Your application must state each amount and what it is for. ^[f4]

A typical application lists monthly rent or mortgage, utility bills, food and household costs, medical bills, children’s school fees and any loan repayments that would otherwise fall behind. Each item needs proof.

What is weighed when a variation is decided?

Your need for living money is weighed against the purpose of the freeze, which is to keep the funds in place during the investigation. Reasonable amounts backed by real bills count.

Clear paperwork helps an application. Include your tenancy agreement, recent utility bills, school fee receipts, medical records and bank statements showing your normal spending.

A variation can release a set amount each month for approved costs. The rest of the balance stays frozen.

What if my salary goes into a frozen account?

If your salary account is frozen, your employer may keep paying as normal. If incoming money is not blocked, it arrives but you cannot touch it, which leaves daily costs unpaid.

You have two practical options. First, if you already have another account in your own name, ask your employer whether it can pay your salary into that one. Do not use someone else’s account. Your employer does not have to agree.

Second, apply for a variation that allows salary withdrawals. A lawyer can prepare and send it to the agency for you, with the bills and payslips that support it.

Does a full freeze mean I lose the money?

No. A freeze is a temporary step to keep the money in place while the account is examined. It is not a penalty and not a forfeiture.

An AMLA Section 44 freeze lapses after 90 days unless you are charged. Under AMLA Section 52A, a seizure or Section 50 order lapses if no one is charged within 18 months. ^[f3]

A freeze may end sooner if the account holder shows where the money legitimately came from. A lawyer can help you prepare that evidence and deal with the investigating authority.

What should I do now?

Confirm the type of freeze with your bank. Write down everything they tell you, including the reference number and the issuing authority.

If the freeze is full and you need money to live on, speak to a qualified lawyer about a variation application. The sooner you apply, the sooner it can be considered.

Gather your proof now: tenancy agreement, utility bills, school fees, medical bills and payslips. These are what a variation application rests on.

Sources

1. Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), Section 44A
2. Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), Section 50(1), 52A
3. Criminal Procedure Code (Amendment) Act 2024, Section 116D
4. Raj, Ong & Yudistra, “Unveiling the Mystery: When Your Bank Account Gets Frozen by the Law” (2024)
5. Low & Partners, “Keldai Accounts: When Helping a Friend Becomes a Criminal Offence” (2024)