Bank account frozen: why it happens and how long it lasts

Why has my bank account been frozen?

The Financial Ombudsman Service says banks may freeze an account if they suspect it is being used for fraudulent activity such as a scam, for money laundering or for other illegal activity, or if a court orders it.

Which kind of freeze applies decides how long it can last and what you can do about it. The sections below take each in turn.

What is a bank’s own freeze or block?

This is the bank acting on its own decision, without a court order. The Financial Ombudsman Service groups these together as frozen accounts and blocked payments.

The ombudsman says these measures are in most cases temporary, but it does not set a fixed number of days.

What does the ombudsman look at in a complaint?

When you complain, the Financial Ombudsman Service looks at things such as:

• the reasons the bank gave for the block
• the account terms and conditions and the bank’s own policies
• whether the bank offered any help to access your money
• the financial harm or inconvenience the freeze caused you
• call recordings

If the ombudsman thinks you lost money because of the freeze, it tells the bank to put things right. It can also tell the bank to pay compensation for distress or inconvenience.

What happens when the bank asks the NCA for consent?

Sometimes a bank reports a suspicion to the National Crime Agency and asks for consent to carry on with an act. This is the “SAR” and consent process under the Proceeds of Crime Act 2002. It is a process between the bank and the authorities, not a court order.

How long can the bank hold your money while it waits?

Two time periods matter, and both are set out in section 335 of the Act:

• The notice period is seven working days, starting with the first working day after the bank makes the disclosure. If no refusal arrives within it, the bank is treated as having consent.
• The moratorium period is 31 days, starting with the day the bank receives notice that consent is refused. If it expires, the bank is treated as having consent.

Only the moratorium period can be extended.

Can a court extend the moratorium period?

Yes, but only on an application made by a senior officer before the moratorium period ends. The account holder cannot make this application.

Under section 336A, the court can extend the period if it is satisfied that an investigation is ongoing, is being conducted diligently, needs more time, and that an extension is reasonable.

Each extension can run for no more than 31 days. The total extension cannot exceed 186 days beginning the day after the initial 31-day period ends.

Under section 336C, the moratorium period is also extended automatically while such an application or an appeal is pending, subject to a limit of 31 days.

Can the bank still let me use some of my money?

The Home Office guidance says that banks, building societies and e-money and payment institutions have an exemption for certain acts when “operating an account”, such as paying expenses like mortgage payments, where the amount is below a threshold. The threshold rose to £3,000 on 31 July 2025. The guidance also says this exemption does not cover other actions, such as returning funds when ending a customer relationship.

This is a technical exemption for the bank. Whether it applies to an account, and whether the bank chooses to use it, is a matter for the bank.

What is an account freezing order?

An account freezing order is a court order under the Proceeds of Crime Act 2002. It is different from the other two because a court makes it. It prohibits each person by or for whom the account is operated from making withdrawals or payments from it, subject to any exclusions.

How long does an account freezing order last?

The order’s period can be no more than two years from the day it is made (section 303Z3). The period can be varied under section 303Z4, and the order can end earlier or later in the cases set out in other sections of the Act (section 303Z3(3)).

Can I still get at some of the money?

Yes, in some cases. Under section 303Z5, an order can include exclusions that let a person meet their reasonable living expenses or carry on a trade, business, profession or occupation. Exclusions can be made when the order is made or by a later variation (section 303Z4).

The rules on legal expenses differ by court. A magistrates’ court exclusion is limited to reasonable legal expenses with a specified total, and the court must have regard to the desirability of the person being represented. In Scotland, a sheriff cannot use this power to let anyone meet legal expenses.

Can I challenge an account freezing order?

Section 303Z4 says the court may at any time vary or set aside an account freezing order on an application by an enforcement officer or by any person affected by the order. Before it does so, it must give an opportunity to be heard to anyone who may be affected. To find a solicitor, see the directory.

Who can apply for one, and on what test?

The detail, for those who want it:

• Who applies: an enforcement officer, which includes officers of Revenue and Customs, constables, Serious Fraud Office officers and certain accredited financial investigators (section 303Z1).
• The test: the officer must have reasonable grounds for suspecting that money in the account is recoverable property, or is intended by any person for use in unlawful conduct. The court must be satisfied that there are reasonable grounds for that suspicion before it makes the order (section 303Z3).
• Notice: the application can be made without notice to you if notice would prejudice the taking of steps to forfeit the money (section 303Z1). The order itself must provide for notice to be given to people affected by it (section 303Z3).

How do I tell which kind of freeze I have?

A bank may be limited in what it can say (see section 333A above). A few pointers, none of them conclusive:

• A court order should come with notice to people affected by it, so a court document is a sign of an account freezing order.
• A bank’s own block is not a court process, and the Financial Ombudsman Service route below applies to it.

What can I do about a frozen account?

For a bank’s own block, you can complain. The Financial Ombudsman Service says you can complain about unusual-activity flags you think were wrong, lack of advance notice, and blocks that could have been resolved with a call.

For complaints about blocked payments and frozen accounts, the Financial Ombudsman Service says the bank must, within 15 days, either respond or explain why it cannot yet, and then send a response within 35 days.

For an account freezing order, the route is an application to the court under section 303Z4. To find a solicitor, see the directory.

A freeze is also different from an account being closed. For closure, notice periods and reasons, see de-banking explained. If a fraud marker is involved, see what a CIFAS marker is and banking with a CIFAS marker.