Criminal Finances Bill (HC Bill 75)

Criminal Finances BillPage 80

confiscation orders), in subsection (3) before paragraph (a) insert—

(za) a confiscation order made under the Drug Trafficking Offences
Act 1986,”.

Part 2 5Terrorist property

Disclosures of information

29 Disclosure orders

Schedule 2 contains amendments to the Terrorism Act 2000 which enable the
making of disclosure orders in connection with investigations into terrorist
10financing offences.

30 Sharing of information within the regulated sector

After section 21C of the Terrorism Act 2000 insert—

21CA Disclosures within the regulated sector

(1) A person (A) may disclose information to one or more other persons
15if—

(a) conditions 1 to 4 are met, and

(b) where applicable, condition 5 is also met.

(2) Condition 1 is that—

(a) A is carrying on a business in the regulated sector as a relevant
20undertaking,

(b) the information on which the disclosure is based came to A in
the course of carrying on that business, and

(c) the person to whom the information is to be disclosed (or each
of them, where the disclosure is to more than one person) is also
25carrying on a business in the regulated sector as a relevant
undertaking (whether or not of the same kind as A).

(3) Condition 2 is that—

(a) a constable has requested A to make the disclosure, or

(b) the person to whom the information is to be disclosed (or at
30least one of them, where the disclosure is to more than one
person) has requested A to do so.

(4) Condition 3 is that, before A makes the disclosure, the required
notification has been made to a constable (see section 21CB(5) to (7)).

(5) Condition 4 is that A is satisfied that the disclosure of the information
35will or may assist in determining any matter in connection with—

(a) a suspicion that a person is involved in the commission of a
terrorist financing offence, or

(b) the identification of terrorist property or of its movement or use.

(6) Condition 5 is that, before making the disclosure request, the person
40making the request (or at least one of them, where the request is made

Criminal Finances BillPage 81

by more than one person) has notified a constable that the request is to
be made.

(7) Condition 5 does not apply where the disclosure request concerned is
made by a constable.

(8) 5A person may disclose information to A for the purposes of making a
disclosure request if, and to the extent that, the person has reason to
believe that A has in A’s possession information that will or may assist
in determining any matter of the kind mentioned in paragraph (a) or (b)
of subsection (5).

21CB 10Section 21CA: disclosure requests and notifications

(1) A disclosure request must—

(a) state that it is made in connection with—

(i) a suspicion that a person is involved in the commission
of a terrorist financing offence, or

(ii) 15the identification of terrorist property or of its
movement or use,

(b) identify the person or property (so far as known),

(c) describe the information that is sought from A, and

(d) specify the person or persons to whom it is requested that the
20information is disclosed.

(2) Subsections (3) and (4) apply where the disclosure request is made by a
person mentioned in section 21CA(3)(b).

(3) If the request states that it is made in connection with a suspicion that
a person is involved in the commission of a terrorist financing offence,
25the request must also—

(a) set out the grounds for the suspicion, or

(b) provide such other information as the person making the
request thinks appropriate for the purposes of enabling A to
determine whether the information requested ought to be
30disclosed under section 21CA.

(4) If the request states that it is made in connection with the identification
of terrorist property or of its movement or use, the request must also
provide such other information as the person making the request
thinks appropriate for the purposes of enabling A to determine
35whether the information requested ought to be disclosed under section
21CA.

(5) A required notification for the purposes of section 21CA(4) must be
made—

(a) in the case of a disclosure request made by a constable, by the
40person who is to disclose information under section 21CA as a
result of the request;

(b) in the case of a disclosure request made by a person mentioned
in section 21CA(3)(b), by the person who made the request.

(6) In a case within subsection (5)(a), the required notification must state
45that information is to be disclosed under section 21CA.

(7) In a case within subsection (5)(b), the required notification must—

(a) state that a disclosure request has been made;

Criminal Finances BillPage 82

(b) specify the person to whom the request was made;

(c) where the disclosure request to which the notification relates is
made in connection with a suspicion of a person’s involvement
in the commission of a terrorist financing offence, identify the
5person (so far as known);

(d) where the disclosure request to which the notification relates is
made in connection with the identification of terrorist property
or of its movement or use, identify the property and the person
who holds it (if known).

(8) 10A notification for the purposes of condition 5 in subsection (6) of section
21CA must—

(a) state that a disclosure request is to be made;

(b) specify the person to whom it is to be made;

(c) describe the information to be sought in the request;

(d) 15explain why the request is being made.

21CC Section 21CA: effect on disclosures under section 21A

(1) This section applies if in any proceedings a question arises as to
whether the required disclosure has been made—

(a) by a person (A) who discloses information under section
2021CA(1) as a result of a disclosure request,

(b) by a person (B) who makes a required notification in accordance
with section 21CB(5)(b), or

(c) by any other person (C) to whom A discloses information under
section 21CA(1) as a result of that request.

(2) 25The making of a required notification in good faith is to be treated as
satisfying any requirement to make the required disclosure on the part
of A, B and C.

This is subject to section 21CD(1) to (8).

(3) The making of a joint disclosure report in good faith is to be treated as
30satisfying any requirement to make the required disclosure on the part
of the persons who jointly make the report.

This is subject to section 21CD(10).

(4) A joint disclosure report is a report to a constable that—

(a) is made jointly by A and B (whether or not also jointly with
35other persons to whom A discloses information under section
21CA(1)),

(b) satisfies the requirements as to content mentioned in subsection
(5) or (as the case may be) subsection (6),

(c) is prepared after the making of a disclosure by A to B under
40section 21CA(1) in connection with—

(i) a suspicion of a person’s involvement in the commission
of a terrorist financing offence, or

(ii) the identification of terrorist property or of its
movement or use, and

(d) 45is sent to the constable before the end of the applicable period.

(5) In the case of a joint disclosure report prepared in connection with a
suspicion of a person’s involvement in the commission of a terrorist

Criminal Finances BillPage 83

financing offence, the requirements as to content are that the report
must—

(a) explain the extent to which there are continuing grounds to
suspect that the person is involved in the commission of the
5offence,

(b) identify the person (if known),

(c) set out the grounds for the suspicion, and

(d) provide any other information relevant to the matter.

(6) In the case of a joint disclosure report prepared in connection with the
10identification of terrorist property or of its movement or use, the
requirements as to content are that the report must—

(a) explain the extent to which there are continuing grounds to
suspect that the property is terrorist property,

(b) identify the property and the person who holds it (if known),

(c) 15provide details of its movement or use (if known), and

(d) provide any other information relevant to the matter.

(7) The applicable period is—

(a) in a case where the disclosure under section 21CA was made as
a result of a request from a constable by virtue of subsection
20(3)(a) of that section, whatever period may be specified by the
constable when making the request;

(b) in a case where the disclosure was made as a result of a request
from another person by virtue of subsection (3)(b) of that
section, the period of 28 days beginning with the day on which
25the notification is made for the purposes of condition 3 in
section 21CA(4).

(8) A constable may vary the period of 28 days (whether by lengthening or
shortening it) by giving written notice to the person who made the
required notification.

(9) 30A joint disclosure report must be—

(a) approved by the nominated officer of each person that jointly
makes the report, and

(b) signed by the nominated officer on behalf of each such person.

If there is no nominated officer the report must be approved and signed
35by another senior officer.

(10) References in this section to A, B or C include—

(a) a nominated officer acting on behalf of A, B or C, and

(b) any other person who is an employee, officer or partner of A, B
or C.

21CD 40Limitations on application of section 21CC(2) and (3)

(1) Subsections (2) and (3) apply in a case where the required notification
is made by A (notification made as a result of disclosure request
received from a constable).

(2) Section 21CC(2) has effect in the case of A, B or C only so far as relating
45to—

(a) the suspicion in connection with which the required notification
is made, and

Criminal Finances BillPage 84

(b) matters known, suspected or believed as a result of the making
of the disclosure request concerned.

(3) Accordingly, section 21CC(2) does not remove any requirement to
make the required disclosure in relation to anything known, suspected
5or believed that does not result only from the making of the disclosure
request.

(4) Subsections (5) to (8) apply in a case where the required notification is
made by B (notification made as a result of disclosure request received
from another undertaking in the regulated sector).

(5) 10Section 21CC(2) has effect in the case of A or C only so far as relating
to—

(a) the suspicion in connection with which the notification by B is
made, and

(b) matters known, suspected or believed by A or C as a result of
15the making of that notification.

(6) Accordingly, section 21CC(2) does not remove any requirement to
make the required disclosure in relation to anything known, suspected
or believed that does not result only from the making of the
notification.

(7) 20Section 21CC(2) has effect in the case of B only so far as relating to—

(a) the suspicion in connection with which the notification is made,
and

(b) matters known, suspected or believed by B at the time of the
making of the notification.

(8) 25If a joint disclosure report is not made before the end of the applicable
period (whether the required notification was made by A or B), section
21CC(2)

(a) has effect only so far as relating to any requirement to make the
required disclosure that would have otherwise arisen within
30that period, and

(b) does not remove a requirement to make the required disclosure
so far as arising after the end of that period on the part of any
person in respect of matters that may become known, suspected
or believed by the person after the time when the required
35notification was made.

(9) If a joint disclosure report is not made before the end of the applicable
period, the person who made the required notification must notify a
constable that a report is not being made as soon as reasonably
practicable after the period ends.

(10) 40Section 21CC(3) has effect only so far as relating to—

(a) the suspicion in connection with which the report is made, and

(b) matters known, suspected or believed at the time of the making
of the report.

(11) Terms used in this section have the same meanings as in section 21CC.

21CE 45 Section 21CA: supplementary

(1) A relevant disclosure made in good faith does not breach—

Criminal Finances BillPage 85

(a) an obligation of confidence owed by the person making the
disclosure, or

(b) any other restriction on the disclosure of information,

however imposed.

(2) 5But a relevant disclosure may not include information obtained from a
UK law enforcement agency unless that agency consents to the
disclosure.

(3) In a case where a person is acting on behalf of another (“the
undertaking”) as a nominated officer—

(a) 10a relevant disclosure by the undertaking must be made by the
nominated officer on behalf of the undertaking, and

(b) a relevant disclosure to the undertaking must be made to that
officer.

(4) In this section—

  • 15“relevant disclosure” means any disclosure made by virtue of
    section 21CA;

  • UK law enforcement agency” means—

    (a)

    the National Crime Agency;

    (b)

    a police force in England, Scotland, Northern Ireland or
    20Wales;

    (c)

    any other person operating in England, Scotland,
    Northern Ireland or Wales charged with the duty of
    preventing, detecting, investigating or prosecuting
    offences.

21CF 25 Sections 21CA to 21CE: interpretation

(1) This section applies for the purposes of sections 21CA to 21CE.

(2) References to a constable include references to a National Crime
Agency officer authorised for those purposes by the Director General of
that Agency.

(3) 30References to a business in the regulated sector are to be construed in
accordance with Schedule 3A.

(4) “Disclosure request” means a request made for the purposes of
condition 2 in section 21CA(3).

(5) “Nominated officer” means a person nominated to receive disclosures
35under section 21A.

(6) “Relevant undertaking” means any of the following—

(a) a credit institution;

(b) a financial institution;

(c) a professional legal adviser;

(d) 40a relevant professional adviser;

(e) other persons (not within paragraphs (a) to (d)) whose business
consists of activities listed in paragraph 1(1) of Schedule 3A.

(7) “Required disclosure” means a disclosure that is made—

(a) to a constable in connection with a suspicion that a person is
45involved in the commission of a terrorist financing offence, and

Criminal Finances BillPage 86

(b) for the purposes of avoiding the commission of an offence
under section 21A by virtue of not satisfying the third condition
in subsection (4) of that section.

(8) “Required notification” means a notification made for the purposes of
5condition 3 in section 21CA(4).

(9) For the purposes of subsection (6)

(a) “credit institution” has the same meaning as in Schedule 3A;

(b) “financial institution” means an undertaking that carries on a
business in the regulated sector by virtue of any of paragraphs
10(b) to (i) of paragraph 1(1) of that Schedule;

(c) “relevant professional adviser” has the meaning given by
section 21H(5).

(10) “Terrorist financing offence” means an offence under any of sections 15
to 18.”

31 15Further information notices and orders

After section 22A of the Terrorism Act 2000 insert—

“Further information notices and orders
22B Further information notices: disclosures under this Part

(1) This section applies where a person makes a disclosure under section
2021A to—

(a) a constable, or

(b) a National Crime Agency officer authorised for the purposes of
a provision of this Part by the Director General of that Agency.

(2) A law enforcement officer may give a further information notice under
25this section to—

(a) the person who made the disclosure, or

(b) any other person carrying on a business in the regulated sector.

(3) A further information notice is a notice directing the person to whom it
is given to provide to the law enforcement officer further information
30in relation to anything contained in the disclosure.

(4) A further information notice must be given in writing.

(5) A further information notice must—

(a) specify or describe the further information that is to be
provided,

(b) 35specify how the further information is to be provided,

(c) specify a date by which it is to be provided, and

(d) explain that failure to comply with the notice may result in the
making of a further information order.

(6) In this section “law enforcement officer” means—

(a) 40a constable,

(b) a National Crime Agency officer authorised for the purposes of
this section by the Director General of that Agency,

Criminal Finances BillPage 87

(c) a designated financial investigator,

(d) a procurator fiscal, or

(e) the Scottish Ministers.

(7) For the purposes of this section and section 22C, Schedule 3A has effect
5for determining what is a business in the regulated sector.

22C Further information notices: disclosures under foreign law

(1) This section applies where the National Crime Agency receives an
external request asking for further information to be provided in
connection with a disclosure made under a corresponding disclosure
10requirement.

(2) An external request is a request by an authority of a foreign country
which has responsibility in that country for carrying out investigations
into whether a corresponding terrorist financing offence has been
committed.

(3) 15An NCA authorised officer may give a further information notice
under this section to a person carrying on a business in the regulated
sector.

(4) But a further information notice under this section may be given only if
the NCA authorised officer is satisfied that there are reasonable
20grounds to believe that—

(a) the information that is the subject of the external request relates
to a disclosure made under a corresponding disclosure
requirement,

(b) the person to whom the notice is to be given is in possession of
25all or part of the information, and

(c) the information is likely to be of substantial value to the
authority that made the request in determining any matter in
connection with the disclosure.

(5) A further information notice under this section is a notice directing the
30person to whom it is given to provide to the NCA authorised officer all
or part of the further information that was the subject of the external
request concerned.

(6) A further information notice under this section must be given in
writing.

(7) 35A further information notice under this section must—

(a) specify or describe the further information that is to be
provided,

(b) specify how the further information is to be provided,

(c) specify a date by which it is to be provided, and

(d) 40explain that failure to comply with the notice may result in the
making of a further information order.

(8) In this section—

  • “corresponding disclosure requirement” means a requirement to
    make a disclosure under the law of the foreign country
    45concerned that corresponds to a requirement imposed by virtue
    of this Part;

  • Criminal Finances BillPage 88

  • “corresponding terrorist financing offence” means an offence
    under the law of the foreign country concerned that would, if
    done in the United Kingdom, constitute an offence under any of
    sections 15 to 18;

  • 5“foreign country” means a country or territory outside the United
    Kingdom;

  • NCA authorised officer” means a person authorised for the
    purposes of this section by the Director General of the National
    Crime Agency.

22D 10 Further information orders

(1) A magistrates’ court or (in Scotland) the sheriff must, on an application
made by a law enforcement officer, make a further information order if
satisfied that the requirements for making the order are met (see
subsection (5) or (as the case may be) subsection (6)).

(2) 15A further information order is an order requiring a person to whom a
further information notice has been given under section 22B or 22C to
provide—

(a) the further information specified or described in the notice, or

(b) such other information as the court or sheriff making the order
20thinks appropriate.

(3) The order must specify—

(a) how the further information is to be provided, and

(b) the date by which it is to be provided.

(4) An application for a further information order may not be made before
25the end of—

(a) the date specified in the further information notice as the date
by which the further information referred to in the notice is to
be provided, or

(b) if later, 7 working days beginning with the first working day
30after the day on which the notice is given.

(5) The requirements for making a further information order, where the
further information notice to which the order relates was given under
section 22B, are that—

(a) the further information required to be given under the order
35would relate to a matter arising from a disclosure made under
section 21A,

(b) the further information would assist in—

(i) investigating whether a person is involved in the
commission of an offence under any of sections 15 to 18
40or in determining whether an investigation of that kind
should be started, or

(ii) identifying terrorist property or its movement or use,

(c) the person to whom the further information notice concerned
was given has failed to comply with the notice by the later of the
45times mentioned in subsection (4), and

(d) it is reasonable in all the circumstances for the further
information required under the order to be provided.

Criminal Finances BillPage 89

(6) The requirements for making a further information order, where the
further information notice to which the order relates was given under
section 22C, are that—

(a) the court or sheriff is satisfied that there are reasonable grounds
5to believe the matters mentioned in section 22C(4)(a) to (c),

(b) the person to whom the notice was given has failed to comply
with it by the later of the times mentioned in subsection (4), and

(c) it is reasonable in all the circumstances for the further
information required under the order to be provided.

(7) 10If a person fails to comply with a further information order the
magistrates’ court or (as the case may be) the sheriff may order the
person to pay an amount not exceeding £5,000.

(8) In the case of an order made by a magistrates’ court, the sum
mentioned in subsection (7) is to be treated as adjudged to be paid by a
15conviction of the court for the purposes of the Magistrates’ Courts Act
1980 or (as the case may be) the Magistrates’ Courts (Northern Ireland)
Order 1981 (S.I. 1981/1675 (N.I. 26)S.I. 1981/1675 (N.I. 26)).

(9) In order to take account of changes in the value of money the Secretary
of State may by regulations made by statutory instrument substitute
20another sum for the sum for the time being specified in subsection (7).

(10) A statutory instrument containing regulations under subsection (9) is
subject to annulment in pursuance of a resolution of either House of
Parliament.

(11) A law enforcement officer who falls within paragraphs (a) to (c) of
25section 22B(6) may not make an application under this section unless
the officer is a senior law enforcement officer or is authorised to do so
by a senior law enforcement officer.

(12) In this section—

  • “law enforcement officer” has the same meaning as in section 22B;

  • 30“senior law enforcement officer” means—

    (a)

    a police officer of at least the rank of superintendent;

    (b)

    the Director General of the National Crime Agency;

    (c)

    any other National Crime Agency officer authorised by
    the Director General (whether generally or specifically)
    35for this purpose;

  • “working day” means a day other than—

    (a)

    a Saturday,

    (b)

    a Sunday,

    (c)

    Christmas Day,

    (d)

    40Good Friday, or

    (e)

    a day which is a bank holiday under the Banking and
    Financial Dealings Act 1971 in the part of the United
    Kingdom in which the person is when the further
    information notice concerned is given.