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<p>The Proceeds of Crime Act 2002 permits an application for a restraint order to
be made to “freeze” assets of an alleged offender, which includes a company, if there
is reasonable cause to suspect that an offender has benefitted from their criminal
conduct. A restraint order has the effect of freezing property that may be liable
to confiscation following a trial and the subsequent making of a confiscation order.
There is no legal requirement for a police force to freeze the assets of a company
they are investigating, although it is good practice to do so in cases in which assets
need to be preserved for confiscation at a later date. A restraint order may be made
by a Crown Court if any of the following conditions are satisfied:</p><p>(1) A criminal
investigation has been started in England and Wales and there is reasonable grounds
to suspect that the alleged offender has benefitted from criminal conduct</p><p>(2)
Proceedings for an offence have been commenced in England and Wales and not concluded
and there is reasonable grounds to believe that an alleged offender has benefitted
from criminal conduct.</p><p>In addition to the statutory conditions, there must be
a real risk that the assets will be dissipated.</p><p>A restraint order can be varied
or discharged upon application by a person affected by the order. The Proceeds of
Crime Act also provides that the court is required to discharge any restraint order
at the conclusion of proceedings. If an order is made under condition (1) above, the
court is also required to monitor progress with the investigation, and if a decision
to charge is not made within a reasonable time, the court may discharge the restraint
order.</p>
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