Tiago Coelho Magalhães and Catarina Martins Morão write article on bank account freezes

In an article published in Observador, entitled “When the bank informs us that we are suspects”, lawyers Tiago Coelho Magalhães and Catarina Martins Morão examine the growing phenomenon of bank account freezes based on suspicions of money laundering, warning of the impact this measure has on individuals who, in many cases, have not even been formally named as suspects.

According to the authors, “the account holder becomes aware of the freeze when they contact the bank to carry out a specific transaction”, only to be informed that there is a “court order” in place—often following a report made by the bank itself to the Public Prosecutor’s Office. This decision may be taken even before any formal step has been taken in criminal proceedings.

The lawyers highlight the paradox of the situation: “the account holder learns that they are suspected of having committed a crime, but they have not yet been named as a suspect […] and do not have access to the evidence in the case”. They therefore advocate a proactive approach: “it is in the account holder’s best interest […] to engage proactively with the investigation, providing explanations and context”.

The article also notes the possibility of partial unfreezing of funds: “such as for the payment of creditors and/or employees’ wages”, provided these are properly justified.

They conclude with a note on the importance of timing: “the sooner the better”, reminding readers that criminal proceedings are lengthy and that an effective defence begins in the earliest stages.

Read the full article here.