Criminal Finances Bill (HC Bill 75)

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4 A terrorist financing investigation is a terrorist investigation
into—

(a) the commission, preparation or instigation of an offence
under any of sections 15 to 18, or

(b) 5the identification of terrorist property or its movement or
use.

5 An appropriate officer is—

(a) a constable, or

(b) a designated financial investigator.

6 10A senior police officer is a police officer of at least the rank of
superintendent.

7 “Document” means anything in which information of any
description is recorded.

8 “Excluded material”—

(a) 15in relation to England and Wales, has the same meaning as
in the Police and Criminal Evidence Act 1984;

(b) in relation to Northern Ireland, has the same meaning as in
the Police and Criminal Evidence (Northern Ireland)
Order 1989 (S.I. 1989/1341 (N.I. 12)S.I. 1989/1341 (N.I. 12)).

20Disclosure orders

9 (1) A judge may, on the application of an appropriate officer, make a
disclosure order if satisfied that each of the requirements for the
making of the order is fulfilled.

(2) The application must state that a person or property specified in
25the application is subject to a terrorist financing investigation and
the order is sought for the purposes of the investigation.

(3) A disclosure order is an order authorising an appropriate officer
to give to any person the officer considers has relevant
information notice in writing requiring the person to do any or all
30of the following with respect to any matter relevant to the terrorist
financing investigation concerned—

(a) answer questions, either at a time specified in the notice or
at once, at a place so specified;

(b) provide information specified in the notice, by a time and
35in a manner so specified;

(c) produce documents, or documents of a description,
specified in the notice, either at or by a time so specified or
at once, and in a manner so specified.

(4) Relevant information is information (whether or not contained in
40a document) which the appropriate officer concerned considers to
be relevant to the investigation.

(5) A person is not bound to comply with a requirement imposed by
a notice given under a disclosure order unless evidence of
authority to give the notice is produced.

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(6) An appropriate officer may not make an application under this
paragraph unless the officer is a senior police officer or is
authorised to do so by a senior police officer.

Requirements for making of disclosure order

10 (1) 5These are the requirements for the making of a disclosure order.

(2) There must be reasonable grounds for suspecting that a person has
committed an offence under any of sections 15 to 18 or that the
property specified in the application is terrorist property.

(3) There must be reasonable grounds for believing that information
10which may be provided in compliance with a requirement
imposed under the order is likely to be of substantial value
(whether or not by itself) to the terrorist financing investigation
concerned.

(4) There must be reasonable grounds for believing that it is in the
15public interest for the information to be provided, having regard
to the benefit likely to accrue to the investigation if the information
is obtained.

Offences

11 (1) A person commits an offence if without reasonable excuse the
20person fails to comply with a requirement imposed under a
disclosure order.

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

(a) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 51 weeks, or to a
25fine, 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 level 5 on the standard scale, or to both.

(3) A person commits an offence if, in purported compliance with a
30requirement imposed under a disclosure order, the person—

(a) makes a statement which the person knows to be false or
misleading in a material particular, or

(b) recklessly makes a statement which is false or misleading
in a material particular.

(4) 35A person guilty of an offence under sub-paragraph (3) is liable—

(a) on conviction on indictment, to imprisonment for a term
not exceeding 2 years, or to a fine, or to both;

(b) on summary conviction in England and Wales, to
imprisonment for a term not exceeding 12 months, or to a
40fine, or to both;

(c) on summary conviction in Northern Ireland, to
imprisonment for a term not exceeding 6 months, or to a
fine not exceeding the statutory maximum, or to both.

(5) In relation to an offence committed before the coming into force of
45section 281(5) of the Criminal Justice Act 2003 (alteration of

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penalties for certain summary offences), the reference in sub-
paragraph (2)(a) to 51 weeks is to be read as a reference to 6
months.

(6) In relation to an offence committed before the coming into force of
5section 282 of the Criminal Justice Act 2003 (increase in maximum
sentence on summary conviction of offence triable either way), the
reference in sub-paragraph (4)(b) to 12 months is to be read as a
reference to 6 months.

Statements

12 (1) 10A statement made by a person in response to a requirement
imposed under a disclosure order may not be used in evidence
against that person in criminal proceedings.

(2) Sub-paragraph (1) does not apply—

(a) in the case of proceedings under this Part of this Act
15(including paragraph 11(1) or (3)),

(b) on a prosecution for an offence under section 5 of the
Perjury Act 1911 or Article 10 of the Perjury (Northern
Ireland) Order 1979 (S.I. 1979/1714 (N.I. 19)S.I. 1979/1714 (N.I. 19)) (false
statements), or

(c) 20on a prosecution for some other offence where, in giving
evidence, the person makes a statement inconsistent with
the statement mentioned in sub-paragraph (1).

(3) A statement may not be used by virtue of sub-paragraph (2)(c)
against a person unless—

(a) 25evidence 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
prosecution.

Further provisions

13 (1) 30A disclosure order does not confer the right to require a person—

(a) to answer any privileged question,

(b) to provide any privileged information, or

(c) to produce any privileged document or other material,

except that a lawyer may be required to provide the name and
35address of a client.

(2) For the purposes of sub-paragraph (1)—

(a) a privileged question is a question which the person would
be entitled to refuse to answer on grounds of legal
professional privilege in proceedings in the High Court;

(b) 40privileged information is any information which the
person would be entitled to refuse to provide on grounds
of legal professional privilege in proceedings in the High
Court;

(c) a privileged document or other material is any document
45or material which the person would be entitled to refuse to

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produce on grounds of legal professional privilege in
proceedings in the High Court.

(3) A disclosure order does not confer the right to require a person to
produce excluded material.

(4) 5A disclosure order has effect in spite of any restriction on the
disclosure of information (however imposed).

(5) An appropriate officer may take copies of any documents
produced in compliance with a requirement to produce them
imposed under a disclosure order.

(6) 10The documents may be retained for so long as is it is necessary to
retain them (as opposed to a copy of them) in connection with the
terrorist financing investigation for the purposes of which the
order was made.

(7) But if an appropriate officer has reasonable grounds for believing
15that—

(a) the documents may need to be produced for the purposes
of any legal proceedings, and

(b) they might otherwise be unavailable for those purposes,

they may be retained until the proceedings are concluded.

(8) 20An appropriate officer may retain documents under sub-
paragraph (7) only if the officer is a senior police officer or is
authorised to do so by a senior police officer.

Supplementary

14 (1) An application for a disclosure order may be made without notice
25to a judge in chambers.

(2) Rules of court may make provision as to the practice and
procedure to be followed in connection with proceedings relating
to disclosure orders.

(3) An application to discharge or vary a disclosure order may be
30made to the Crown Court by—

(a) the person who applied for the order;

(b) any person affected by the order.

(4) The Crown Court may—

(a) discharge the order;

(b) 35vary the order.

(5) An application to discharge or vary a disclosure order need not be
made by the same appropriate officer that applied for the order.

(6) References to a person who applied for a disclosure order are to be
construed accordingly.

(7) 40An appropriate officer may not make an application to discharge
or vary a disclosure order unless the officer is a senior police
officer or is authorised to do so by a senior police officer.”

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4 After Part 1 of Schedule 5A (as inserted by paragraph 3 above) insert—

“Part 2 Scotland

15 Interpretation

5This paragraph applies for the purposes of this Part of this
Schedule.

A disclosure order is an order made under paragraph 19.

A terrorist financing investigation is a terrorist investigation
into—

(a) 10the commission, preparation or instigation of an offence
under any of sections 15 to 18, or

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

“Document” means anything in which information of any
15description is recorded.

19 Disclosure orders

(1) The High Court of Justiciary may, on the application of the Lord
Advocate, make a disclosure order if satisfied that each of the
requirements for the making of the order is fulfilled.

(2) 20The application must state that a person or property specified in
the application is subject to a terrorist financing investigation and
the order is sought for the purposes of the investigation.

(3) A disclosure order is an order authorising the Lord Advocate to
give to any person the Lord Advocate considers has relevant
25information notice in writing requiring the person to do any or all
of the following with respect to any matter relevant to the terrorist
financing investigation concerned—

(a) answer questions, either at a time specified in the notice or
at once, at a place so specified;

(b) 30provide information specified in the notice, by a time and
in a manner so specified;

(c) produce documents, or documents of a description,
specified in the notice, either at or by a time so specified or
at once, and in a manner so specified.

(4) 35Relevant information is information (whether or not contained in
a document) which the Lord Advocate considers to be relevant to
the investigation.

(5) A person is not bound to comply with a requirement imposed by
a notice given under a disclosure order unless evidence of
40authority to give the notice is produced.

20 Requirements for making of disclosure order

(1) These are the requirements for the making of a disclosure order.

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(2) There must be reasonable grounds for suspecting that a person has
committed an offence under any of sections 15 to 18 or that the
property specified in the application is terrorist property.

(3) There must be reasonable grounds for believing that information
5which may be provided in compliance with a requirement
imposed under the order is likely to be of substantial value
(whether or not by itself) to the terrorist financing investigation
concerned.

(4) There must be reasonable grounds for believing that it is in the
10public interest for the information to be provided, having regard
to the benefit likely to accrue to the investigation if the information
is obtained.

21 Offences

(1) A person commits an offence if without reasonable excuse the
15person fails to comply with a requirement imposed under a
disclosure order.

(2) A person guilty of an offence under sub-paragraph (1) is liable on
summary conviction to—

(a) imprisonment for a term not exceeding 6 months,

(b) 20a fine not exceeding level 5 on the standard scale, or

(c) both.

(3) A person commits an offence if, in purported compliance with a
requirement imposed under a disclosure order, the person—

(a) makes a statement which the person knows to be false or
25misleading in a material particular, or

(b) recklessly makes a statement which is false or misleading
in a material particular.

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

(a) on summary conviction, to imprisonment for a term not
30exceeding 6 months or to a fine not exceeding the statutory
maximum or to both, or

(b) on conviction on indictment, to imprisonment for a term
not exceeding two years or to a fine or to both.

22 Statements

(1) 35A statement made by a person in response to a requirement
imposed under a disclosure order may not be used in evidence
against that person in criminal proceedings.

(2) Sub-paragraph (1) does not apply—

(a) in the case of proceedings under this Part of this Act
40(including paragraph 21(1) or (3)),

(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 statement mentioned in sub-paragraph (1).

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(3) A statement may not be used by virtue of sub-paragraph (2)(c)
against a person unless—

(a) evidence relating to it is adduced, or

(b) a question relating to it is asked,

5by or on behalf of the person in the proceedings arising out of the
prosecution.

23 Further provisions

(1) A disclosure order does not confer the right to require a person—

(a) to answer any question,

(b) 10to provide any information, or

(c) to produce any document,

which the person would be entitled to refuse to answer, provide
or produce on grounds of legal privilege.

(2) A disclosure order has effect in spite of any restriction on the
15disclosure of information (however imposed).

(3) The Lord Advocate may take copies of any documents produced
in compliance with a requirement to produce them imposed
under a disclosure order.

(4) The documents may be retained for so long as is it is necessary to
20retain them (as opposed to a copy of them) in connection with the
terrorist financing investigation for the purposes of which the
order was made.

(5) But if the Lord Advocate has reasonable grounds for believing
that—

(a) 25the documents may need to be produced for the purposes
of any legal proceedings, and

(b) they might otherwise be unavailable for those purposes,

they may be retained until the proceedings are concluded.

24 Supplementary

(1) 30An application for a disclosure order may be made without notice
to a judge of the High Court of Justiciary.

(2) Provision may be made in rules of court as to the discharge and
variation of disclosure orders.

(3) An application to discharge or vary a disclosure order may be
35made to the High Court of Justiciary by—

(a) the Lord Advocate;

(b) any person affected by the order.

(4) The High Court of Justiciary may—

(a) discharge the order;

(b) 40vary the order.”

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Section 32

SCHEDULE 3 Forfeiture of certain personal (or moveable) property

1 Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (forfeiture of
terrorist cash) is amended as follows.

2 5After paragraph 10 insert—

“Part 4A Forfeiture of terrorist assets

10A Definition of “listed asset”

(1) In this Part of this Schedule, a “listed asset” means an item of
10property that falls within one of the following descriptions of
property—

(a) precious metals;

(b) precious stones;

(c) watches;

(d) 15artistic works;

(e) face-value vouchers;

(f) postage stamps.

(2) The Secretary of State may by regulations made by statutory
instrument amend sub-paragraph (1)

(a) 20by removing a description of property;

(b) by adding a description of tangible personal (or corporeal
moveable) property.

(3) A statutory instrument containing regulations under sub-
paragraph (2) may not be made unless a draft of the instrument
25has been laid before and approved by a resolution of each House
of Parliament.

(4) In this paragraph—

(a) “precious metal” means gold, silver or platinum (whether
in an unmanufactured or a manufactured state);

(b) 30“artistic work” means a piece of work falling within section
4(1)(a) of the Copyright, Designs and Patents Act 1988;

(c) “face-value voucher” means a voucher in physical form
that represents a right to receive goods or services to the
value of an amount stated on it.

10B 35Seizure of listed assets

(1) An authorised officer may seize any item of property if the
authorised officer has reasonable grounds for suspecting that—

(a) it is a listed asset, and

(b) it is within subsection (1)(a) or (b) of section 1 or it is
40property earmarked as terrorist property.

(2) An authorised officer may also seize any item of property if—

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(a) the authorised officer has reasonable grounds for
suspecting the item to be a listed asset,

(b) the authorised officer has reasonable grounds for
suspecting that part of the item is within subsection (1)(a)
5or (b) of section 1 or is property earmarked as terrorist
property, and

(c) it is not reasonably practicable to seize only that part.

10C Initial detention of seized property

(1) Property seized under paragraph 10B may be detained for an
10initial period of 48 hours.

(2) Sub-paragraph (1) authorises the detention of property only for so
long as an authorised officer continues to have reasonable
grounds for suspicion in relation to that property as described in
paragraph 10B(1) or (2) (as the case may be).

(3) 15In calculating a period of hours for the purposes of this paragraph,
no account shall be taken of—

(a) any Saturday or Sunday,

(b) Christmas Day,

(c) Good Friday,

(d) 20any day that is a bank holiday under the Banking and
Financial Dealings Act 1971 in the part of the United
Kingdom within which the property is seized, or

(e) any day prescribed under section 8(2) of the Criminal
Procedure (Scotland) Act 1995 as a court holiday in a
25sheriff court in the sheriff court district within which the
property is seized.

10D Further detention of seized property

(1) The period for which property seized under paragraph 10B, or any
part of that property, may be detained may be extended by an
30order made—

(a) in England and Wales or Northern Ireland, by a
magistrates’ court;

(b) in Scotland, by the sheriff.

(2) An order under sub-paragraph (1) may not authorise the
35detention of any property—

(a) beyond the end of the period of 3 months beginning with
the date of the order, and

(b) in the case of any further order under this paragraph,
beyond the end of the period of 2 years beginning with the
40date of the first order.

(3) A justice of the peace may also exercise the power of a magistrates’
court to make the first order under sub-paragraph (1) extending a
particular period of detention.

(4) An application to a justice of the peace or the sheriff to make the
45first order under sub-paragraph (1) extending a particular period
of detention—

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(a) may be made and heard without notice of the application
or hearing having been given to any of the persons affected
by the application or to the legal representatives of such a
person, and

(b) 5may be heard and determined in private in the absence of
persons so affected and of their legal representatives.

(5) An application for an order under sub-paragraph (1) may be
made—

(a) in relation to England and Wales and Northern Ireland, by
10the Commissioners for Her Majesty’s Revenue and
Customs or an authorised officer;

(b) in relation to Scotland, by a procurator fiscal.

(6) The court, sheriff or justice may make the order if satisfied, in
relation to the item of property to be further detained, that—

(a) 15it is a listed asset, and

(b) condition 1, condition 2 or condition 3 is met.

(7) Condition 1 is that there are reasonable grounds for suspecting
that the property is intended to be used for the purposes of
terrorism and that either—

(a) 20its continued detention is justified while its intended use is
further investigated or consideration is given to bringing
(in the United Kingdom or elsewhere) proceedings against
any person for an offence with which the property is
connected, or

(b) 25proceedings against any person for an offence with which
the property is connected have been started and have not
been concluded.

(8) Condition 2 is that there are reasonable grounds for suspecting
that the property consists of resources of an organisation which is
30a proscribed organisation and that either—

(a) its continued detention is justified while investigation is
made into whether or not it consists of such resources or
consideration is given to bringing (in the United Kingdom
or elsewhere) proceedings against any person for an
35offence with which the property is connected, or

(b) proceedings against any person for an offence with which
the property is connected have been started and have not
been concluded.

(9) Condition 3 is that there are reasonable grounds for suspecting
40that the property is property earmarked as terrorist property and
that either—

(a) its continued detention is justified while its derivation is
further investigated or consideration is given to bringing
(in the United Kingdom or elsewhere) proceedings against
45any person for an offence with which the property is
connected, or

(b) proceedings against any person for an offence with which
the property is connected have been started and have not
been concluded.