Frozen Bank Accounts & Asset Restraint

How accounts can be frozen in Canada

In Canada, bank accounts may be restrained through civil court orders — such as Mareva injunctions and preservation orders under provincial rules of court — through restraint orders in criminal proceedings under the Criminal Code, or through provincial civil forfeiture legislation. Banks may also impose their own compliance holds, which are contractual measures rather than court orders.

We organise personal and commercial account records for legal review, distinguishing a court order from a bank's separate compliance hold. Your appointed lawyer advises on the applicable legal test, jurisdiction and response.

Evidence for living and business expense review

Where counsel considers a variation or carve-out appropriate, we can collate household budgets, tenancy or mortgage documents, payroll schedules, supplier obligations and supporting invoices. Each item is cross-referenced to the relevant account activity and documented financial need.

Your lawyer determines whether an application can be made and presents it to the court. Evidence preparation does not itself permit payments or guarantee a variation.

What does a freezing or restraint order do?

A freezing or restraint order stops money being paid out of an account for a defined period or until further order, while a claim or investigation proceeds. The exact scope depends on the wording of the order and the legislation or court rules behind it.

An order does not, by itself, establish guilt or prove that every affected asset is connected to unlawful conduct.

Impact on personal and business funds

A freeze may affect salary payments, household bills, supplier payments and payroll. Understanding exactly which accounts and balances are covered is an important early step.

Bank statements and transaction records

Complete statements for the relevant period, alongside explanations for significant or unusual transactions, allow a coherent account of activity to be presented.

Documenting source of funds and legitimate business activity

Invoices, contracts, payroll records, tax returns and correspondence with customers or suppliers can help demonstrate the legitimate origin of funds and the normal pattern of business.

Ownership evidence and third-party interests

Where money in an account belongs to someone else — a client, a family member or a business partner — evidence of that interest should be gathered and kept separately.

Relevant dates and deadlines

Orders specify durations and may be extended or followed by further proceedings. Recording each date and acting promptly with legal support is essential.

Supporting qualified legal review

Where an appropriately qualified lawyer determines they may be available, legal routes can include applications to vary an order, to permit carve-outs for reasonable living or business expenses, or to set aside the order. DLO Associates does not make those applications; we prepare organised supporting material for your adviser.