Eversheds Sutherland’s Global Guide to Freezing Order Regimes

The opinions expressed in this blog are those of the authors.  They do not necessarily reflect the views or positions of AFB or its members.

As freezing order regimes become increasingly complex around the world, AFB members and banks in general must ensure they understand these requirements and their duties to comply with such orders across jurisdictions.

A freezing order is an interim injunction granted by a court to prevent a party from being able to dispose of or deal with their assets in that jurisdiction before a judgment has been enforced. The type of assets covered can be wide-ranging, including bank accounts, shares, and property. In certain cases, freezing orders may be granted that cover a party’s assets around the world, known as a Worldwide Freezing Order (WFO).

As third parties who may hold respondents’ assets, banks are often impacted by freezing orders. Once notified of an order, banks are required to not knowingly assist or permit the respondent from dealing with their assets under the conditions of the order.

To help navigate these complex regimes, Evershed Sutherlands’ new guide provides a fully interactive overview of civil freezing orders and their local law equivalents in 90 jurisdictions worldwide. For each jurisdiction, the guide sets out the process and requirements for obtaining freezing orders, and the types of assets which can be frozen, amongst other things. It also clarifies whether freezing orders approved in each jurisdiction can be enforced abroad and whether orders from overseas jurisdictions can be enforced in the relevant jurisdiction.

For banks, the guide provides helpful information on the duties of third parties to freezing orders and the penalties for breaching such orders, including whether each jurisdiction considers banks to have a legal ‘duty of care’ to the claimant. The guide also sets out the standard exceptions granted by each jurisdiction, which may allow the respondent to continue drawing on their assets under certain conditions.