Policy background Proceeds of crime: account freezing orders
Account freezing and forfeiture provisions were created by the Criminal Finances Act 2017 ("CFA"), which inserted new provisions into the Proceeds of Crime Act 2002 ("POCA"). Those powers enable certain law enforcement officers to apply to the court for an account freezing order. The court can only make such an order where there are reasonable grounds for suspecting that the money present in an account is the proceeds of crime, or that it is intended for use in unlawful conduct. Once money is subject to an account freezing order, then law enforcement may seek to have it forfeited.
	The CFA account freezing and forfeiture provisions applied to money held in accounts maintained with banks and building societies. The Financial Services Act 2021 further amended POCA to make provision for money held in accounts maintained by electronic money institutions ("EMIs") and payment institutions ("PIs"), in England and Wales and Scotland, keeping pace with technological advancements in the financial sector. Legislative consent to make similar provision for Northern Ireland in what is now the Financial Services Act 2021 could not be secured within the time available. Section 59 of the Act addresses the outstanding difference. It provides for consistency of powers across the UK by ensuring that they can also be used in respect of EMI and PI accounts in Northern Ireland.