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Question
CTS (CrescentTech Solutions, Inc.) is under suspicion of moving large sums through Bank Polaris to a foreign supplier, signaling possible money laundering. Acting on credible information, the AMLC issues an ex parte freeze order over CTS’s accounts at Bank Polaris and over the proceeds of a recently completed international wire transfer, taking effect immediately without prior notice to CTS. Bank Polaris complies. After 23 days, the AMLC seeks a forfeiture order in the trial court to forfeit the frozen assets as proceeds of money laundering. A third party, Globex Security Corp., claims a perfected security interest over part of the funds, while Apex Lending Corp. contends that some portion of the funds originated from a legitimate CTS loan transaction. (a) Identify the governing doctrine applying to the AMLC’s authority to inquire, freeze, and forfeit under the Anti-Money Laundering Act (as amended). (b) Describe the proper procedure for issuing and maintaining a freeze order, including who may issue it, whether it is ex parte, its duration, and how it may be challenged or lifted. (c) Apply the doctrine to the facts: Is the ex parte freeze order valid under the AMLA as described? Was the subsequent forfeiture properly sought and could Globex Security Corp.’s security interest or Apex Lending Corp.’s loan-origin claim affect or defeat the freeze or the forfeiture?