Criminal Finances Bill (HC Bill 75)

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Consequential amendments and interpretation

43 Consequential amendments

(1) In section 61(1) of the Serious Organised Crime and Police Act 2005 (offences
to which investigatory powers etc apply) after paragraph (h) insert—

(i) 5any offence under section 37 or 38 of the Criminal Finances Act
2017 (failure to prevent the facilitation of UK tax evasion
offences or foreign tax evasion offences).”

(2) In Schedule 1 to the Serious Crime Act 2007 (serious offences)—

(a) in Part 1 (serious offences in England and Wales), in the heading before
10paragraph 8 insert “etc” at the end and in paragraph 8 at the end
insert—

(6) An offence under section 37 or 38 of the Criminal Finances
Act 2017 (failure to prevent the facilitation of UK tax evasion
offences or foreign tax evasion offences).”;

(b) 15in Part 1A (serious offences in Scotland) in the heading before
paragraph 16G insert “etc” at the end and in paragraph 16G at the end
insert—

(5) An offence under section 37 or 38 of the Criminal Finances
Act 2017 (failure to prevent the facilitation of UK tax evasion
20offences or foreign tax evasion offences).”;

(c) in Part 2 (serious offences in Northern Ireland) in the heading before
paragraph 24 insert “etc” at the end and in paragraph 24 at the end
insert—

(6) An offence under section 37 or 38 of the Criminal Finances
25Act 2017 (failure to prevent the facilitation of UK tax evasion
offences or foreign tax evasion offences).”

(3) In Part 2 of Schedule 17 to the Crime and Courts Act 2013 (offences in relation
to which a deferred prosecution agreement may be entered into) after
paragraph 26 insert—

26A 30An offence under section 37 or 38 of the Criminal Finances Act 2017
(failure to prevent the facilitation of UK tax evasion offences or
foreign tax evasion offences).”

44 Interpretation of Part 3

(1) In this Part—

  • 35“conduct” includes acts and omissions;

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

  • “foreign tax evasion facilitation offence” has the meaning given by section
    38(6);

  • 40“foreign tax evasion offence” has the meaning given by section 38(5);

  • “partnership” has the meaning given by section 36(3);

  • “relevant body” has the meaning given by section 36(2);

  • “tax” includes duty and any other form of taxation (however described);

  • UK tax evasion facilitation offence” has the meaning given by section
    4537(5) and (6);

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  • UK tax evasion offence” has the meaning given by section 37(4).

(2) References in this Part to a person acting in the capacity of a person associated
with a relevant body are to be construed in accordance with section 36(4).

Part 4 5General

45 Minor and consequential amendments

Schedule 5 contains minor and consequential amendments.

46 Power to make consequential provision

(1) The Secretary of State may by regulations made by statutory instrument make
10provision in consequence of any provision made by or under Part 1 or 2.

(2) The Scottish Ministers may by regulations make provision in consequence of
any provision made by or under Part 1 or 2 that extends only to Scotland.

(3) The Department of Justice in Northern Ireland may by regulations make
provision in consequence of any provision made by or under Part 1 or 2 that
15extends only to Northern Ireland.

(4) Regulations under subsections (1) to (3) may include transitional, transitory or
saving provision.

(5) Regulations under subsection (1) may repeal, revoke or otherwise amend any
provision of primary or subordinate legislation (including legislation passed or
20made on or before the last day of the session in which this Act is passed).

(6) Regulations under subsection (2) may repeal, revoke or otherwise amend any
provision of—

(a) an Act of the Scottish Parliament (including an Act passed on or before
the last day of the session in which this Act is passed), or

(b) 25an instrument made under an Act of the Scottish Parliament.

(7) Regulations under subsection (3) may repeal, revoke or otherwise amend any
provision of—

(a) Northern Ireland legislation (including legislation passed or made on
or before the last day of the session in which this Act is passed) so far
30as dealing with a transferred matter, or

(b) an instrument made under Northern Ireland legislation so far as
dealing with a transferred matter.

(8) In this section and in section 47—

  • “primary legislation” means—

    (a)

    35an Act;

    (b)

    an Act of the Scottish Parliament;

    (c)

    a Measure or Act of the National Assembly for Wales;

    (d)

    Northern Ireland legislation;

  • “subordinate legislation” means—

    (a)

    40subordinate legislation within the meaning of the Interpretation
    Act 1978;

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    (b)

    an instrument made under an Act of the Scottish Parliament;

    (c)

    an instrument made under a Measure or Act of the National
    Assembly for Wales;

    (d)

    an instrument made under Northern Ireland legislation;

  • 5“transferred matter” has the meaning given by section 4(1) of the
    Northern Ireland Act 1998.

47 Section 46: procedural requirements

(1) Before making regulations under section 46(1) the Secretary of State must—

(a) if the regulations contain provision that would fall within the
10legislative competence of the Scottish Parliament if included in an Act
of that Parliament, consult the Scottish Ministers;

(b) if the regulations contain provision that would fall within the
legislative competence of the Northern Ireland Assembly if included in
an Act of that Assembly, consult the Department of Justice in Northern
15Ireland;

(c) if the regulations contain provision that would fall within the
legislative competence of the National Assembly for Wales if included
in an Act of that Assembly, consult the Welsh Ministers.

(2) Before making regulations under section 46(2) the Scottish Ministers must
20consult the Secretary of State.

(3) Before making regulations under section 46(3) the Department of Justice in
Northern Ireland must consult the Secretary of State.

(4) A statutory instrument containing (whether alone or with other provision)
regulations under section 46 made by the Secretary of State that repeal, revoke
25or otherwise amend any provision of primary legislation is not to be made
unless a draft of the instrument has been laid before, and approved by a
resolution of, each House of Parliament.

(5) Any other statutory instrument containing regulations under that section
made by the Secretary of State is subject to annulment in pursuance of a
30resolution of either House of Parliament.

(6) Regulations under section 46 made by the Scottish Ministers that repeal or
otherwise amend any provision of an Act of the Scottish Parliament are subject
to the affirmative procedure (see Part 2 of the Interpretation and Legislative
Reform (Scotland) Act 2010 (asp 10)2010 (asp 10)).

(7) 35Any other regulations under that section made by the Scottish Ministers are
subject to the negative procedure (see Part 2 of that Act).

(8) Regulations under section 46 made by the Department of Justice in Northern
Ireland that repeal, revoke or otherwise amend any provision of Northern
Ireland legislation are not to be made unless a draft of the instrument has been
40laid before, and approved by a resolution of, the Northern Ireland Assembly.

(9) Any other regulations under that section made by the Department of Justice in
Northern Ireland are subject to negative resolution (within the meaning of
section 41(6) of the Interpretation Act (Northern Ireland) 1954).

(10) A power of the Department of Justice in Northern Ireland to make regulations
45under section 46 is exercisable by statutory rule for the purposes of the
Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)S.I. 1979/1573 (N.I. 12)).

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48 Financial provision

The following are to be paid out of money provided by Parliament—

(a) any expenditure incurred under or by virtue of this Act by a Minister of the
Crown or a government department, and

(b) 5any increases attributable to this Act in the sums payable under any other Act
out of money so provided.

49 Extent

(1) Except as provided by subsections (2) to (6), this Act extends to England and
Wales, Scotland and Northern Ireland.

(2) 10The following provisions extend to England and Wales only—

(a) section 14, so far as relating to paragraphs 3 to 6 of Schedule 1, and
those paragraphs;

(b) section 21;

(c) section 26(2);

(d) 15section 28(2) and (6);

(e) section 43(3).

(3) The following provisions extend to England and Wales and Northern Ireland
only—

(a) sections 1 to 3;

(b) 20section 7;

(c) section 14, so far as relating to paragraphs 24 and 25 of Schedule 1, and
those paragraphs;

(d) section 15(3);

(e) section 16(3) to (6);

(f) 25section 17;

(g) section 18;

(h) paragraph 3 of Schedule 2;

(i) section 34(3);

(j) section 35.

(4) 30The following provisions extend to Scotland only—

(a) sections 4 to 6;

(b) section 8;

(c) section 23;

(d) section 25;

(e) 35paragraph 4 of Schedule 2.

(5) The following provisions extend to Northern Ireland only—

(a) section 14, so far as relating to paragraphs 7 to 10 of Schedule 1, and
those paragraphs;

(b) section 22;

(c) 40section 26(3).

(6) An amendment made by Schedule 5 has the same extent as the provision
amended.

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50 Commencement

(1) Except as provided by subsections (2) to (6), this Act comes into force on
whatever day or days the Secretary of State appoints by regulations made by
statutory instrument.

(2) 5Sections 23 and 25 come into force on whatever day or days the Scottish
Ministers appoint by regulations after consulting the Secretary of State.

(3) Sections 22 and 26(3) comes into force on whatever day or days the Department
of Justice in Northern Ireland appoints by regulations after consulting the
Secretary of State.

(4) 10Sections 34 and 35 come into force two months after the day on which this Act
is passed.

(5) Part 3 comes into force on whatever day or days the Treasury appoints by
regulations made by statutory instrument.

(6) The following provisions come into force on the day on which this Act is
15passed—

(a) sections 46 to 49;

(b) this section;

(c) section 51;

(d) any other provision of this Act so far as necessary for enabling the
20exercise on or after the day on which this Act is passed of any power to
make provision by subordinate legislation (within the meaning of the
Interpretation Act 1978).

(7) Regulations under subsection (1), (2), (3) or (5) may appoint different days for
different purposes.

(8) 25The Secretary of State may by regulations made by statutory instrument make
transitional, transitory or saving provision in connection with the coming into
force of any provision of this Act other than—

(a) the provisions mentioned in subsections (2) and (3), and

(b) Part 3.

(9) 30The Scottish Ministers may by regulations make transitional, transitory or
saving provision in connection with the coming into force of a provision
mentioned in subsection (2).

(10) The Department of Justice in Northern Ireland may by regulations make
transitional, transitory or saving provision in connection with the coming into
35force of a provision mentioned in subsection (3).

(11) The Treasury may by regulations made by statutory instrument make
transitional, transitory or saving provision in connection with the coming into
force of Part 3.

(12) No regulations may be made under subsection (1) bringing into force any of
40the following provisions, so far as they extend to Scotland, unless the Secretary
of State has consulted the Scottish Ministers—

(a) sections 4 and 5;

(b) section 8;

(c) section 12;

(d) 45section 13;

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(e) section 19;

(f) section 24;

(g) section 27;

(h) section 28(5).

(13) 5No regulations may be made under subsection (1) bringing into force any of
the following provisions, so far as they extend to Northern Ireland, unless the
Secretary of State has consulted the Department of Justice in Northern
Ireland—

(a) sections 1 and 2;

(b) 10section 7;

(c) section 12;

(d) section 13;

(e) section 14 and Schedule 1;

(f) sections 15 and 16;

(g) 15sections 17 to 19;

(h) section 27;

(i) section 28(5).

(14) Consultation for the purposes of this section may be, or include, consultation
before the day on which this Act is passed.

(15) 20The power to make regulations under subsections (8) to (11) includes power to
make different provision for different purposes.

(16) The power of the Department of Justice in Northern Ireland to make
regulations under subsection (3) or (10) is exercisable by statutory rule for the
purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573S.I. 1979/1573
25(N.I. 12)).

51 Short title

This Act may be cited as the Criminal Finances Act 2017.

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SCHEDULES

Section 14

SCHEDULE 1 Powers of members of staff of Serious Fraud Office

1 The Proceeds of Crime Act 2002 is amended as follows.

2 (1) 5Section 2C (prosecuting authorities) is amended as follows.

(2) In subsection (2) after “Part” insert “2, 4,”.

(3) In subsection (3) after “Part” insert “2, 4,”.

3 In section 47A (meaning of “appropriate officer” for purposes of search and
seizure powers under Part 2 of that Act), in subsection (1)—

(a) 10omit “or” at the end of paragraph (b), and

(b) after that paragraph insert—

(ba) an SFO officer, or”.

4 In section 47G (meaning of “appropriate approval” for purposes of section
47C etc), in subsection (3) after paragraph (ab) insert—

(ac) 15in relation to the exercise of a power by an SFO officer, the
Director of the Serious Fraud Office,”.

5 In section 47M (further detention in other cases where property is detained
under section 47J), in subsection (3) after paragraph (b) insert—

(ba) an SFO officer,”.

6 20In section 47S (codes of practice), after subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about
the draft in its application to the exercise of powers by SFO officers
and the Director General of the Serious Fraud Office.”

7 In section 195A (meaning of “appropriate officer” for purposes of search and
25seizure powers under Part 4 of that Act), in subsection (1)—

(a) omit “or” at the end of paragraph (b), and

(b) after that paragraph insert—

(ba) an SFO officer, or”.

8 In section 195G (meaning of “appropriate approval” for purposes of section
30195C etc), in subsection (3) after paragraph (ab) insert—

(ac) in relation to the exercise of a power by an SFO officer, the
Director of the Serious Fraud Office,”.

9 In section 195M (further detention in other cases where property is detained
under section 195J), in subsection (3) after paragraph (b) insert—

(ba) 35an SFO officer,”.

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10 (1) Section 195S (codes of practice: Secretary of State) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a) for “and immigration officers” substitute “,
immigration officers and SFO officers”, and

(b) 5in paragraph (c) after “immigration officers” insert “, SFO officers”.

(3) In subsection (1A), after paragraph (b) insert—

(c) the Director of the Serious Fraud Office.”

(4) After subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about
10the draft in its application to the exercise of powers by SFO officers
and the Director General of the Serious Fraud Office.”

11 (1) Section 289 (searches) is amended as follows.

(2) In subsection (1) after “constable” insert “, an SFO officer”.

(3) In subsection (1A)—

(a) 15in paragraph (a) after “constable” insert “, an SFO officer”;

(b) in paragraph (b)—

(i) after “officer” insert “of Revenue and Customs”;

(ii) after “constable” insert “, SFO officer”.

(4) In subsection (1C)—

(a) 20after “constable”, in both places where it occurs, insert “, SFO
officer”;

(b) after “officer”, in the second place where it occurs, insert “of Revenue
and Customs”.

(5) In subsection (1D)—

(a) 25after “constable”, in both places where it occurs, insert “, SFO
officer”;

(b) after “officer”, in the second place where it occurs, insert “of Revenue
and Customs”.

(6) In subsection (2) after “constable” insert “, an SFO officer”.

(7) 30In subsection (3) after “constable” insert “, SFO officer”.

(8) In subsection (4) after “constable” insert “, SFO officer”.

(9) In subsection (5), in paragraph (c) after “an” insert “SFO officer or”.

12 (1) Section 290 (prior approval) is amended as follows.

(2) In subsection (4), after paragraph (a) insert—

(aa) 35in relation to the exercise of a power by an SFO officer, the
Director of the Serious Fraud Office,”.

(3) In subsection (6), after “constable” insert “, SFO officer”

13 In section 291 (report on exercise of powers), in subsection (2) after
“constable” insert “, SFO officer”.

14 (1) 40Section 292 (code of practice) is amended as follows.

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(2) In subsection (1) after “Customs” insert “, SFO officers”.

(3) After subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about
the draft in its application to the exercise of powers by SFO officers
5and the Director General of the Serious Fraud Office.”

(4) In subsection (6) after “Customs,” insert “an SFO officer,”.

15 (1) Section 294 (seizure of cash) is amended as follows.

(2) In subsection (1) after “constable” insert “, an SFO officer”.

(3) In subsection (2) after “constable” insert “, an SFO officer”.

(4) 10In subsection (4) after “by” insert “an SFO officer or”.

16 (1) Section 295 (detention of seized cash) is amended as follows.

(2) In subsection (1) after “constable” insert “, SFO officer”.

(3) In subsection (4)(a) after “constable” insert “, an SFO officer”.

17 In section 296 (interest), in subsection (2) after “constable” insert “, SFO
15officer”.

18 In section 297 (release of detained cash), in subsection (4) after “constable”
insert “, SFO officer”.

19 In section 297A (forfeiture notice), in subsection (6)—

(a) omit “or” at the end of paragraph (b), and

(b) 20after that paragraph insert—

(ba) the Director of the Serious Fraud Office, or”.

20 In section 297D (detention following lapse of notice), in subsection (3) after
“constable” insert “, an SFO officer”.

21 In section 297F (release of cash subject to forfeiture notice), in subsection (4)
25after “constable” insert “, SFO officer”.

22 In section 298 (forfeiture), in subsection (1)(a) for “or a constable” substitute
“, a constable or an SFO officer”.

23 (1) Section 302 (compensation) is amended as follows.

(2) After subsection (7) insert—

(7ZA) 30If the cash was seized by an SFO officer, the compensation is to be paid by
the Director of the Serious Fraud Office.”

(3) In subsection (7A) for “or a constable” substitute “, a constable or an SFO
officer”.

24 In section 377A (code of practice of Attorney General etc), in subsection
35(1)(a) after “Prosecutions” insert “, SFO officers”.

25 (1) Section 378 (appropriate officers and senior appropriate officers for the
purposes of investigations under Part 8 of that Act) is amended as follows.

(2) In subsection (1) after paragraph (c) insert—

(ca) an SFO officer;”.

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(3) In subsection (2) after paragraph (b) insert—

(ba) the Director of the Serious Fraud Office;”.

(4) In subsection (3A) after paragraph (a) insert—

(aa) an SFO officer;”.

(5) 5In subsection (3AA) after paragraph (a) insert—

(aa) the Director of the Serious Fraud Office;”.

(6) In subsection (4) after paragraph (b) insert—

(ba) an SFO officer;”.

(7) In subsection (6) after paragraph (a) insert—

(aa) 10the Director of the Serious Fraud Office;”.

26 After section 454 insert—

454A Serious Fraud Office

For the purposes of this Act “SFO officer” means a member of staff of
the Serious Fraud Office.”

Section 29

15SCHEDULE 2 Disclosure orders

1 The Terrorism Act 2000 is amended as follows.

2 After section 37 insert—

37A Disclosure orders in relation to terrorist financing investigations

20Schedule 5A (terrorist financing investigations: disclosure orders)
has effect.”

3 After Schedule 5 insert—

“Schedule 5A Terrorist financing investigations: disclosure orders

Part 1 25England and Wales and Northern Ireland

Interpretation

1 This paragraph applies for the purposes of this Part of this
Schedule.

2 A disclosure order is an order made under paragraph 9.

3 30A judge is—

(a) in England and Wales, a judge entitled to exercise the
jurisdiction of the Crown Court;

(b) in Northern Ireland, a Crown Court judge.