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Clifford Chance

Clifford Chance

Briefings

European Account Preservation Orders are coming - 10 September 2014

10 September 2014

The EU has passed a Regulation that will allow a court in one member state to freeze bank accounts in another. These orders will, however, be significantly less readily available, less easily obtainable and less uniform in application than under the Commission's original proposal. The claimant will have to show that there is a real risk that the defendant will dissipate its assets through unusual action outside the normal course of business. The claimant will also usually need to provide security unless it has already obtained judgment. The scope of bank accounts covered by the Regulation is restricted to cash accounts, and only claimants who already have judgment will be able to search across Europe for bank accounts held by the defendant. The effect, including the ranking, of these orders will not be the same in each EU member state since it will depend upon national law.

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