Criminal Finances Bill (HC Bill 75)

Criminal Finances BillPage 90

22E Statements

(1) A statement made by a person in response to a further information
notice, or a further information order, may not be used in evidence
against the person in criminal proceedings.

(2) 5Subsection (1) does not apply—

(a) in the case of proceedings under this Part,

(b) on a prosecution for perjury, or

(c) on a prosecution for some other offence where, in giving
evidence, the person makes a statement inconsistent with the
10statement mentioned in subsection (1).

(3) A statement may not be used by virtue of subsection (2)(c) unless—

(a) evidence relating to it is adduced, or

(b) a question relating to it is asked,

by or on behalf of the person in the proceedings arising out of the
15prosecution.

(4) In subsection (2)(b) the reference to a prosecution for perjury is—

(a) in the case of England and Wales, a reference to a prosecution
for an offence under section 5 of the Perjury Act 1911;

(b) in the case of Northern Ireland, a reference to a prosecution for
20an offence under Article 10 of the Perjury (Northern Ireland)
Order 1979 (S.I. 1979/1714 (N.I. 19)S.I. 1979/1714 (N.I. 19)).

22F Appeals

(1) An appeal from a decision on an application for a further information
order lies to the relevant appeal court.

(2) 25An appeal under this section lies at the instance of any person who was
a party to the proceedings on the application.

(3) The “relevant appeal court” is—

(a) the Crown Court, in the case of a decision made by a
magistrates’ court in England and Wales;

(b) 30a county court, in the case of a decision made by a magistrates’
court in Northern Ireland;

(c) the Sheriff Appeal Court, in the case of a decision made by the
sheriff.

(4) On an appeal under this section the relevant appeal court may—

(a) 35make or (as the case may be) discharge a further information
order, or

(b) vary the order.

22G Supplementary

(1) A further information order does not confer the right to require a
40person to provide privileged information.

(2) “Privileged information” is information which a person would be
entitled to refuse to provide on grounds of legal professional privilege
in proceedings in the High Court or, in Scotland, legal privilege as
defined by section 412 of the Proceeds of Crime Act 2002.

Criminal Finances BillPage 91

(3) Information provided in pursuance of a further information notice, or
a further information order, is not to be taken to breach any restriction
on the disclosure of information (however imposed).

(4) An application for a further information order may be heard and
5determined in private.

(5) Rules of court may make provision as to the practice and procedure to
be followed in connection with proceedings relating to further
information orders.”

Civil recovery

32 10Forfeiture of certain personal (or moveable) property

Schedule 3 contains amendments to the Anti-terrorism, Crime and Security Act
2001 which enable the forfeiture of certain personal (or moveable) property
which—

(a) is intended to be used for the purposes of terrorism,

(b) 15consists of resources of a proscribed organisation, or

(c) is, or represents, property obtained through terrorism.

33 Forfeiture of money held in bank and building society accounts

Schedule 4 contains amendments to the Anti-terrorism, Crime and Security Act
2001 which enable the forfeiture of money held in a bank or building society
20account which—

(a) is intended to be used for the purposes of terrorism,

(b) consists of resources of a proscribed organisation, or

(c) is, or represents, property obtained through terrorism.

Accredited financial investigators

34 25Extension of powers to accredited financial investigators

(1) The Terrorism Act 2000 is amended in accordance with subsections (2) to (5).

(2) After section 63E insert—

“Designated financial investigators
63F Designation of accredited financial investigators

(1) 30A police officer of at least the rank of superintendent may designate an
accredited financial investigator who is—

(a) a member of the civilian staff of a police force in England and
Wales (including the metropolitan police force), within the
meaning of Part 1 of the Police Reform and Social Responsibility
35Act 2011;

(b) a member of staff of the City of London police force;

(c) a member of staff of the Police Service of Northern Ireland.

(2) A designation under subsection (1) may be made—

Criminal Finances BillPage 92

(a) in relation to this Act;

(b) in relation to the Anti-terrorism, Crime and Security Act 2001;

(c) in relation to particular provisions of those Acts.

(3) But the designation may be limited to specified purposes.

(4) 5A designation under subsection (1) may be made only by a police
officer who has been designated for the purposes of this section by the
relevant senior officer.

(5) The relevant senior officer is—

(a) in the case of a police officer who is a member of a police force
10in England and Wales, the chief officer of police under whose
direction or control he or she acts;

(b) in the case of a police officer who is a member of the Police
Service of Northern Ireland, the Chief Constable of the Police
Service of Northern Ireland.

(6) 15In this section “accredited financial investigator” means a person
accredited under section 3 of the Proceeds of Crime Act 2002
(accreditation and training).”

(3) In Part 1 of Schedule 5 (terrorist investigations: information: England and
Wales and Northern Ireland)—

(a) 20in paragraph 5—

(i) in sub-paragraph (1) for “A constable” substitute “An
appropriate officer”;

(ii) after sub-paragraph (1) insert—

(1A) Where the appropriate officer is a designated
25financial investigator, the officer may apply for an
order under this paragraph only for the purposes of a
terrorist investigation so far as relating to terrorist
property.”;

(iii) in sub-paragraph (3)(a) for “a constable” substitute “an
30appropriate officer”;

(iv) in sub-paragraph (3)(b) for “a constable” substitute “an
appropriate officer”;

(v) after sub-paragraph (5) insert—

(6) “Appropriate officer” means—

(a) 35a constable, or

(b) a designated financial investigator.”;

(b) in paragraph 6 after sub-paragraph (3) insert—

(4) In the case of an order sought by a designated financial
investigator, the first condition is satisfied only to the extent
40that the terrorist investigation mentioned in sub-paragraph
(2)(a) and (b) relates to terrorist property.”;

(c) in paragraph 7(2)(a) for “constable” substitute “appropriate officer (as
defined in paragraph 5(6))”;

(d) in paragraph 13 after sub-paragraph (1) insert—

(1A) 45A designated financial investigator may apply to a Circuit
Judge or a District Judge (Magistrates’ Courts) for an order
under this paragraph requiring any person specified in the

Criminal Finances BillPage 93

order to provide an explanation of any material produced or
made available to a designated financial investigator under
paragraph 5.”

(4) In paragraph 1 of Schedule 6 (financial information orders)—

(a) 5in sub-paragraph (1) after “constable” insert “or designated financial
investigator”;

(b) in sub-paragraph (2)(a) after “constable” insert “or designated financial
investigator”.

(5) In Schedule 6A (account monitoring orders)—

(a) 10in paragraph 1 after sub-paragraph (4)(a) insert—

(aa) a designated financial investigator, in England and
Wales or Northern Ireland;”;

(b) after paragraph 3(3) insert—

(4) If the application was made by a designated financial
15investigator, the description of information specified in it
may be varied by a different designated financial
investigator.”;

(c) after paragraph 4(2) insert—

(2A) If the application for the account monitoring order was made
20by a designated financial investigator, an application to
discharge or vary the order may be made by a different
designated accredited financial investigator.”

(6) In Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (forfeiture of
terrorist cash)—

(a) 25after paragraph 10(7) insert—

(7A) If the cash was seized by a designated financial investigator, the
compensation is to be paid as follows—

(a) in the case of a designated financial investigator who was—

(i) a member of the civilian staff of a police force
30(including the metropolitan police force), within
the meaning of Part 1 of the Police Reform and
Social Responsibility Act 2011, or

(ii) a member of staff of the City of London police force,

it is to be paid out of the police fund from which the
35expenses of the police force are met,

(b) in the case of a designated financial investigator who was a
member of staff of the Police Service of Northern Ireland, it
is to be paid out of money provided by the Chief Constable
of the Police Service of Northern Ireland.”;

(b) 40in paragraph 19(1)—

(i) in the definition of “authorised officer”, after “constable” insert
“, a designated financial investigator”;

(ii) at the appropriate place insert—

  • ““designated financial investigator” is to be read in
    45accordance with section 63F of the Terrorism Act
    2000,”.

Criminal Finances BillPage 94

35 Offences in relation to accredited financial investigators

(1) After section 120A of the Terrorism Act 2000 insert—

120B Offences in relation to designated financial investigators

(1) A person commits an offence if the person assaults a designated
5financial investigator who is acting in the exercise of a relevant power.

(2) A person commits an offence if the person resists or wilfully obstructs
a designated financial investigator who is acting in the exercise of a
relevant power.

(3) A person guilty of an offence under subsection (1) is liable—

(a) 10on summary conviction in England and Wales, to
imprisonment for a term not exceeding 51 weeks, or to a fine, or
to both;

(b) on summary conviction in Northern Ireland, to imprisonment
for a term not exceeding 6 months, or to a fine not exceeding
15level 5 on the standard scale, or to both.

(4) A person guilty of an offence under subsection (2) is liable—

(a) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 51 weeks, or to a fine, or
to both;

(b) 20on summary conviction in Northern Ireland, to imprisonment
for a term not exceeding 1 month, or to a fine not exceeding level
3 on the standard scale, or to both.

(5) In this section “relevant power” means a power exercisable under
Schedule 5 (terrorist investigations: information).

(6) 25In relation to an offence committed before the coming into force of
section 281(5) of the Criminal Justice Act 2003 (alteration of penalties
for certain summary offences: England and Wales)—

(a) the reference to 51 weeks in subsection (3)(a) is to be read as a
reference to 6 months;

(b) 30the reference to 51 weeks in subsection (4)(a) is to be read as a
reference to 1 month.”

(7) After paragraph 10Z7 of Schedule 1 to the Anti-terrorism, Crime and
Security Act 2001 insert—

Offences in relation to designated financial investigators

(1) A person commits an offence if the person assaults a designated
35financial investigator who is acting in the exercise of a power under
this Schedule.

(2) A person commits an offence if the person resists or wilfully
obstructs a designated financial investigator who is acting in the
exercise of a power under this Schedule.

(3) 40A person guilty of an offence under sub-paragraph (1) is liable—

Criminal Finances BillPage 95

(a) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 51 weeks, or to a fine,
or to both;

(b) on summary conviction in Northern Ireland, to
5imprisonment for a term not exceeding 6 months, or to a fine
not exceeding level 5 on the standard scale, or to both.

(4) A person guilty of an offence under sub-paragraph (2) is liable—

(a) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 51 weeks, or to a fine,
10or to both;

(b) on summary conviction in Northern Ireland, to
imprisonment for a term not exceeding 1 month, or to a fine
not exceeding level 3 on the standard scale, or to both.

(5) In relation to an offence committed before the coming into force of
15section 281(5) of the Criminal Justice Act 2003 (alteration of penalties
for certain summary offences: England and Wales)—

(a) the reference to 51 weeks in sub-paragraph (3)(a) is to be read
as a reference to 6 months;

(b) the reference to 51 weeks in sub-paragraph (4)(a) is to be read
20as a reference to 1 month.”

Part 3 Corporate offences of failure to prevent facilitation of tax evasion

Preliminary

36 Meaning of relevant body and acting in the capacity of an associated person

(1) 25This section defines expressions used in this Part.

(2) “Relevant body” means a body corporate or partnership (wherever
incorporated or formed).

(3) “Partnership” means—

(a) a partnership within the meaning of the Partnership Act 1890, or

(b) 30a limited partnership registered under the Limited Partnerships Act
1907,

or a firm or entity of a similar character formed under the law of a foreign
country.

(4) A person (P) acts in the capacity of a person associated with a relevant body (B)
35if P is—

(a) an employee of B who is acting in the capacity of an employee,

(b) an agent of B (other than an employee) who is acting in the capacity of
an agent, or

(c) any other person who performs services for or on behalf of B who is
40acting in the capacity of a person performing such services.

(5) For the purposes of subsection (4)(c) the question whether or not P is a person
who provides services for or on behalf of B is to be determined by reference to
all the relevant circumstances and not merely by reference to the nature of the
relationship between P and B.

Criminal Finances BillPage 96

Failure of relevant bodies to prevent tax evasion facilitation offences by associated persons

37 Failure to prevent facilitation of UK tax evasion offences

(1) A relevant body (B) is guilty of an offence if a person commits a UK tax evasion
facilitation offence when acting in the capacity of a person associated with B.

(2) 5It is a defence for B to prove that, when the UK tax evasion facilitation offence
was committed—

(a) B had in place such prevention procedures as it was reasonable in all
the circumstances to expect B to have in place, or

(b) it was not reasonable in all the circumstances to expect B to have any
10prevention procedures in place.

(3) In subsection (2) “prevention procedures” means procedures designed to
prevent persons acting in the capacity of a person associated with B from
committing UK tax evasion facilitation offences.

(4) In this Part “UK tax evasion offence” means—

(a) 15an offence of cheating the public revenue, or

(b) an offence under the law of any part of the United Kingdom consisting
of being knowingly concerned in, or in taking steps with a view to, the
fraudulent evasion of a tax.

(5) In this Part “UK tax evasion facilitation offence” means an offence under the
20law of any part of the United Kingdom consisting of—

(a) being knowingly concerned in, or in taking steps with a view to, the
fraudulent evasion of a tax by another person,

(b) aiding, abetting, counselling or procuring the commission of a UK tax
evasion offence, or

(c) 25being involved art and part in the commission of an offence consisting
of being knowingly concerned in, or in taking steps with a view to, the
fraudulent evasion of a tax.

(6) Conduct carried out with a view to the fraudulent evasion of tax by another
person is not to be regarded as a UK tax evasion facilitation offence by virtue
30of subsection (5)(a) unless the other person has committed a UK tax evasion
offence facilitated by that conduct.

(7) For the purposes of this section “tax” means a tax imposed under the law of any
part of the United Kingdom, including national insurance contributions
under—

(a) 35Part 1 of the Social Security Contributions and Benefits Act 1992, or

(b) Part 1 of the Social Security Contributions and Benefits (Northern
Ireland) Act 1992.

(8) A relevant body guilty of an offence under this section is liable—

(a) on conviction on indictment, to a fine,

(b) 40on summary conviction in England, to a fine,

(c) on summary conviction in Scotland or Northern Ireland, to a fine not
exceeding the statutory maximum.

38 Failure to prevent facilitation of foreign tax evasion offences

(1) A relevant body (B) is guilty of an offence if at any time—

Criminal Finances BillPage 97

(a) a person commits a foreign tax evasion facilitation offence when acting
in the capacity of a person associated with B; and

(b) any of the conditions in subsection (2) is satisfied.

(2) The conditions are—

(a) 5that B is a body incorporated, or a partnership formed, under the law
of any part of the United Kingdom;

(b) that B carries on business or part of a business in the United Kingdom;

(c) that any conduct constituting part of the foreign tax evasion facilitation
offence takes place in the United Kingdom,

10and in paragraph (b) “business” includes an undertaking.

(3) It is a defence for B to prove that, when the foreign tax evasion facilitation
offence was committed—

(a) B had in place such prevention procedures as it was reasonable in all
the circumstances to expect B to have in place; or

(b) 15it was not reasonable in all the circumstances to expect B to have any
prevention procedures in place.

(4) In subsection (3) “prevention procedures” means procedures designed to
prevent persons acting in the capacity of a person associated with B from
committing foreign tax evasion facilitation offences under the law of the
20foreign country concerned.

(5) In this Part “foreign tax evasion offence” means conduct which—

(a) amounts to an offence under the law of a foreign country;

(b) relates to a breach of a duty relating to a tax imposed under the law of
that country; and

(c) 25would be regarded by the courts of any part of the United Kingdom as
amounting to being knowingly concerned in, or in taking steps with a
view to, the fraudulent evasion of that tax.

(6) In this Part “foreign tax evasion facilitation offence” means conduct which—

(a) amounts to an offence under the law of a foreign country;

(b) 30relates to the commission by another person of a foreign tax evasion
offence under that law; and

(c) would, if the foreign tax evasion offence were a UK tax evasion offence,
amount to a UK tax evasion facilitation offence (see section 37(5) and
(6)).

(7) 35A relevant body guilty of an offence under this section is liable—

(a) on conviction on indictment, to a fine,

(b) on summary conviction in England, to a fine,

(c) on summary conviction in Scotland or Northern Ireland, to a fine not
exceeding the statutory maximum.

40Guidance about prevention procedures

39 Guidance about preventing facilitation of tax evasion offences

(1) The Chancellor of the Exchequer (“the Chancellor”) must prepare and publish
guidance about procedures that relevant bodies can put in place to prevent
persons acting in the capacity of an associated person from committing UK tax
45evasion facilitation offences or foreign tax evasion facilitation offences.

Criminal Finances BillPage 98

(2) The Chancellor may from time to time prepare and publish new or revised
guidance to add to or replace existing guidance published by the Chancellor
under this section.

(3) The Chancellor must consult the Scottish Ministers, Welsh Ministers and the
5Department for Justice in Northern Ireland when preparing any guidance to be
published under this section.

(4) Guidance prepared and published under this section does not come into
operation except in accordance with regulations made by the Chancellor by
statutory instrument.

(5) 10A statutory instrument containing such regulations is subject to annulment in
pursuance of a resolution of either House of Parliament.

(6) Where for the purposes of subsection (5) a copy of a statutory instrument
containing such regulations is laid before Parliament the Chancellor must also
lay a copy of the guidance to which the regulations relate.

(7) 15The Chancellor may approve guidance prepared by any other person if it
relates to any matters within the scope of subsection (1).

(8) Approval under subsection (7)—

(a) must be given in writing; and

(b) may only be given on the condition that the person who prepared it
20publishes the approved guidance while it remains in operation as
approved guidance.

(9) The Chancellor may withdraw approval under subsection (7) by a notice given
to the person who prepared the guidance.

Offences: general and supplementary provision

40 25Offences: extra-territorial application and jurisdiction

(1) It is immaterial for the purposes of section 37 or 38 (except to the extent
provided by section 38(2)) whether—

(a) any relevant conduct of a relevant body, or

(b) any conduct which constitutes part of a relevant UK tax evasion
30facilitation offence or foreign tax evasion facilitation offence, or

(c) any conduct which constitutes part of a relevant UK tax evasion offence
or foreign tax evasion offence,

take place in the United Kingdom or elsewhere.

(2) Proceedings for an offence under section 37 or 38 may be taken in any place in
35the United Kingdom.

(3) If by virtue of subsection (2) proceedings for an offence are to be taken in
Scotland, they may be taken in such sheriff court district as the Lord Advocate
may determine.

(4) In subsection (3) “sheriff court district” is to be read in accordance with section
40307(1) of the Criminal Procedure (Scotland) Act 1995.

Criminal Finances BillPage 99

41 Consent to prosecution under section 38

(1) In this section “proceedings” means proceedings for an offence under section
38.

(2) No proceedings may be instituted in England and Wales except by or with the
5consent of the Director of Public Prosecutions or the Director of the Serious
Fraud Office.

(3) No proceedings may be instituted in Northern Ireland except by or with the
consent of the Director of Public Prosecutions for Northern Ireland or the
Director of the Serious Fraud Office.

(4) 10The Director of Public Prosecutions and the Director of the Serious Fraud
Office must each exercise any function of giving consent under subsection (2)
or (3) personally unless—

(a) the Director concerned is unavailable, and

(b) there is another person designated in writing by the Director concerned
15acting personally as the person who is authorised to exercise the
function when the Director is unavailable.

(5) In that case the other person may exercise the function but must do so
personally.

(6) No proceedings may be instituted in Northern Ireland by virtue of section 36
20of the Justice (Northern Ireland) Act 2002 (delegation of functions of the DPP
for Northern Ireland to persons other than the Deputy Director) except with
the consent of the Director of Public Prosecutions for Northern Ireland to the
institution of the proceedings.

(7) The Director of Public Prosecutions for Northern Ireland must exercise
25personally any function of giving consent under subsection (3) or (6) unless the
function is exercised personally by the Deputy Director of Public Prosecutions
for Northern Ireland by virtue of section 30(4) or (7) of that Act.

42 Offences by partnerships: supplementary

(1) Proceedings for an offence under section 37 or 38 alleged to have been
30committed by a partnership must be brought in the name of the partnership
(and not in the name of any of the partners).

(2) For the purposes of such proceedings—

(a) rules of court relating to the service of documents have effect as if the
partnership were a body corporate, and

(b) 35the following provisions (which concern procedure in relation to
offences by bodies corporate) apply as they apply to a body corporate—

(i) section 33 of the Criminal Justice Act 1925 and Schedule 3 to the
Magistrates’ Courts Act 1980, and

(ii) section 18 of the Criminal Justice Act (Northern Ireland) 1945
40(c. 15 (N.I.)) and Schedule 4 to the Magistrates’ Courts
(Northern Ireland) Order 1981 (S.I. 1981/1675 (N.I. 26)S.I. 1981/1675 (N.I. 26)).

(3) A fine imposed on a partnership on its conviction for an offence under section
37 or 38 is to be paid out of the partnership assets.