Both freezing and seizure are provisional measures that stop funds or criminal property from being moved or dealt with, but they differ in who keeps control of the assets. Freezing is a prohibition on transferring, converting, disposing of, moving or transporting funds while they remain in the possession of their owner, manager or holder, for the duration of the order. Seizure goes further: the authority issuing the order takes actual control and management of the assets.
Under the law the Chief of the Financial Intelligence Unit may, without prior notice, freeze suspected funds held with regulated entities for up to 30 days, extendable by the Attorney General. Public prosecutors and courts have broader powers to seize, freeze and prohibit dealing in criminal property during investigation or trial. Understanding the distinction matters operationally, because a freeze leaves assets with the customer under a legal prohibition, whereas a seizure removes them from the customer’s control.
Both stop funds from moving, but they differ on who keeps hold of them. Freezing is the prohibition on transferring, converting, disposing of, moving or transporting funds or criminal property under a decision of a competent authority, while the funds remain in the possession of their owner, manager or holder. The money stays where it is and the person holding it simply cannot deal with it.
Seizure is the same prohibition imposed by a competent authority that takes actual control and management of the funds or property for the duration of the measure. Control passes to the authority. The practical difference for a regulated business is what it must do: a freeze usually means blocking the account or transaction and leaving the asset in place, whereas a seizure involves handing control across. Breaching an order regarding seizure, freezing or other precautionary measures, deliberately or through gross negligence, is itself an offence.
Legal Reference (UAE):
· Federal Decree-Law No. 10 of 2025, Article 1, which defines Freezing as a prohibition on dealing while funds remain with their owner, manager or holder, and Seizure as a prohibition where the competent authority assumes actual control and management.