What this is
Acting when assets stop moving: an exchange freezes an account, a bank closes a relationship, or a law-enforcement or FIU hold is placed on funds.
The first question
Who has actually frozen what, and under what power. An exchange acting on its own terms of service is a contractual matter. A hold placed under the AML framework is not, and the response is different. Getting this wrong wastes the period in which action is most effective.
What the work involves
Establishing the basis for the freeze. Preserving evidence and position. Making representations to the institution or the authority. Where proceedings are needed, choosing the forum — the DIFC and ADGM courts, or the onshore courts — which depends on the contract, the parties and where the assets sit.
Speed
These matters are decided in the first weeks. The single most useful thing a business can do is call early, before positions harden and before a response has been sent that cannot be unsent.
Régulateurs
Questions fréquentes
Can frozen funds be recovered?
Sometimes, and it depends heavily on the basis for the freeze and how quickly it is addressed. An honest assessment in the first meeting is more useful than an optimistic one.
Sources
- Scope of work described here reflects our practice, not a regulatory requirement — Regulatory statements on these pages carry the same review status as elsewhere on the site