Freezing injunctions and interim protection are serious legal measures that can stop businesses and individuals from accessing their money or assets.
Our webinar with Edward Miller from Madison Legal and Viktoria Soltesz from PSP Angels explored how these orders work, what risks they bring, and how they affect the payment and banking flows.
What are These?
A freezing injunction is a court order that prevents someone from moving or hiding their assets when a legal claim is made against them. This can include freezing bank accounts, property, or even valuables like artwork. It is often used in cases involving fraud or unpaid debts, especially when there is a risk that the person might transfer money out of reach.
Edward explained how these orders are applied in real life. If a business gets hit with a freezing injunction, it may struggle to pay employees, suppliers, or even rent. Banks also have a tough job, as they must freeze accounts quickly while ensuring legal transactions aren’t blocked by mistake. This creates extra work and risk for financial institutions.
Risk for Banks and Financial Institutions
When a bank or payment provider receives such an order, they face the complex task of determining which funds or assets can be released and which must remain frozen. Every decision carries legal responsibility, making mistakes potentially costly. Compliance teams must act quickly while balancing legal obligations with operational realities—a process that can overwhelm even well-prepared institutions.
Risk for Businesses
If your business is subject to a freezing order, having an expert on your side is essential. You must clearly declare what funds are critical for running your operations, such as paying salaries, covering essential supplier costs, or maintaining business continuity. Misjudging these needs could disrupt your entire operation, causing irreparable harm.
Solution
Having a payment and banking professional isn’t expensive, but the price of not having one during an urgent need can be significant.
Watch the full webinar at the Soltesz Institute solteszinstitute.com