The EAPO Regulation, will introduce a new and additional kind of bank freezing order, which is intended to be available, throughout the European Union.
On the 25 July 2011, the European Commission released the proposed European Account Preservation Order (EAPO) Regulation (“the EAPO Regulation”), which has been submitted for consideration by the European Parliament, and the Council of European Union.
The EAPO, will be a freezing attachment order, available throughout Europe, and can be applied by letter, fax or e-mail.
A claimant, who can invoke the special jurisdiction of the EU Regulation 44/2001, for his action on the merits, he may be able to apply for the EAPO in his own court, which will be enforced in banks in another European Country, virtually automatically.
The application can be made (without the involvement of a lawyer), by means of a simple form, which can be completed by e-mail, and sent with supporting documents.
The applicant for EAPO, shall show that:
(i) His case is well founded; and
(ii) There is a risk of disposal of assets, by debtor.
The application for the issue of EAPO, will be adjudicated ex parte, and it’s up to the discretion of the Court to order the applicant to file a counter-security.
There is no provision, imposing any duty of full and frank disclosure on the applicant.
If the EAPO Regulation is adopted, will bring a drastic change in the legal systems of the Member States of EU (including Cyprus), because it will impose new requirements on the infrastructure of the Court systems.
By: Soteris Pittas & Co LLC
