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(10) Where an application for an order under sub-paragraph (1) relates
to an item of property seized under paragraph 10B(2), the court,
sheriff or justice may make the order if satisfied that—

(a) the item of property is a listed asset,

(b) 5condition 1, 2 or 3 is met in respect of part of the item, and

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

(11) An order under sub-paragraph (1) must provide for notice to be
given to persons affected by it.

10E Testing and safekeeping of property seized under paragraph 10B

(1) 10An authorised officer may carry out (or arrange for the carrying
out of) tests on any item of property seized under paragraph 10B
for the purpose of establishing whether it is a listed asset.

(2) An authorised officer must arrange for any item of property seized
under paragraph 10B to be safely stored throughout the period
15during which it is detained under this Part of this Schedule.

10F Release of detained property

(1) This paragraph applies while any property is detained under this
Part of this Schedule.

(2) A magistrates’ court or (in Scotland) the sheriff may direct the
20release of the whole or any part of the property if satisfied, on an
application by the person from whom the property was seized,
that the conditions in paragraph 10C or 10D (as the case may be)
for the detention of the property are no longer met in relation to
the property to be released.

(3) 25An authorised officer or (in Scotland) a procurator fiscal may, after
notifying the magistrates’ court, sheriff or justice under whose
order property is being detained, release the whole or any part of
it if satisfied that the detention of the property to be released is no
longer justified.

(4) 30But property is not to be released under this paragraph—

(a) if an application for its release under paragraph 10O is
made, until any proceedings in pursuance of the
application (including any proceedings on appeal) are
concluded;

(b) 35if (in the United Kingdom or elsewhere) proceedings are
started against any person for an offence with which the
property is connected, until the proceedings are
concluded.

See also paragraph 10G(4).

10G 40Forfeiture

(1) While property is detained under this Part of this Schedule, an
application for the forfeiture of the whole or any part of it may be
made—

(a) to a magistrates’ court, by the Commissioners for Her
45Majesty’s Revenue and Customs or an authorised officer;

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(b) to the sheriff, by the Scottish Ministers.

(2) The court or sheriff may order the forfeiture of the property or any
part of it if satisfied that—

(a) the property is a listed asset, and

(b) 5what is to be forfeited is within subsection (1)(a) or (b) of
section 1 or is property earmarked as terrorist property.

(3) Sub-paragraph (2) ceases to apply on the transfer of an application
made under this paragraph in accordance with paragraph
10J(1)(a) or (b).

(4) 10Where an application for the forfeiture of any property is made
under this paragraph, the property is to be detained (and may not
be released under any power conferred by this Part of this
Schedule) until any proceedings in pursuance of the application
(including any proceedings on appeal) are concluded.

(5) 15Where the property to which the application relates is being
detained under this Part of this Schedule as part of an item of
property, having been seized under paragraph 10B(2), sub-
paragraph (4) is to be read as if it required the continued detention
of the whole of the item of property.

10H 20Associated and joint property

(1) Paragraphs 10I and 10J apply if—

(a) an application is made under paragraph 10G in respect of
property detained under this Part of this Schedule,

(b) the court or sheriff is satisfied that the property is a listed
25asset,

(c) the court or sheriff is satisfied that all or part of the
property is within subsection (1)(a) or (b) of section 1 or is
property earmarked as terrorist property, and

(d) there exists property that is associated with the property in
30relation to which the court or sheriff is satisfied as
mentioned in paragraph (c).

(2) Paragraphs 10I and 10J also apply in England and Wales and
Northern Ireland if—

(a) an application is made under paragraph 10G in respect of
35property detained under this Part of this Schedule,

(b) the court is satisfied that the property is a listed asset,

(c) the court is satisfied that all or part of the property is
property earmarked as terrorist property, and

(d) the property in relation to which the court or sheriff is
40satisfied as mentioned in paragraph (c) belongs to joint
tenants and one of the tenants is an excepted joint owner.

(3) In this paragraph and paragraphs 10I and 10J “associated
property” means property of any of the following descriptions
that is not itself the forfeitable property—

(a) 45any interest in the forfeitable property;

(b) any other interest in the property in which the forfeitable
property subsists;

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(c) if the forfeitable property is a tenancy in common, the
tenancy of the other tenant;

(d) if (in Scotland) the forfeitable property is owned in
common, the interest of the other owner;

(e) 5if the forfeitable property is part of a larger property, but
not a separate part, the remainder of that property.

References to property being associated with forfeitable property
are to be read accordingly.

(4) In this paragraph and paragraphs 10I and 10J the “forfeitable
10property” means the property in relation to which the court or
sheriff is satisfied as mentioned in sub-paragraph (1)(c) or (2)(c)
(as the case may be).

(5) For the purposes of this paragraph and paragraphs 10I and 10J

(a) an excepted joint owner is a joint tenant who obtained the
15property in circumstances in which it would not (as
against him or her) be earmarked, and

(b) references to the excepted joint owner’s share of property
are to so much of the property as would have been his or
hers if the joint tenancy had been severed.

10I 20Agreements about associated and joint property

(1) Where—

(a) this paragraph applies, and

(b) the person who applied for the order under paragraph 10G
(on the one hand) and the person who holds the associated
25property or who is the excepted joint owner (on the other
hand) agree,

the magistrates’ court or sheriff may, instead of making an order
under paragraph 10G(2), make an order requiring the person who
holds the associated property or who is the excepted joint owner
30to make a payment to a person identified in the order.

(2) The amount of the payment is (subject to sub-paragraph (3)) to be
the amount which the persons referred to in sub-paragraph (1)(b)
agree represents—

(a) in a case where this paragraph applies by virtue of
35paragraph 10H(1), the value of the forfeitable property;

(b) in a case where this paragraph applies by virtue of
paragraph 10H(2), the value of the forfeitable property less
the value of the excepted joint owner’s share.

(3) The amount of the payment may be reduced if the person who
40applied for the order under paragraph 10G agrees that the other
party to the agreement has suffered loss as a result of the seizure
of the forfeitable property and any associated property under
paragraph 10B and its subsequent detention.

(4) The reduction that is permissible by virtue of sub-paragraph (3) is
45such amount as the parties to the agreement agree is reasonable,
having regard to the loss suffered and any other relevant
circumstances.

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(5) An order under sub-paragraph (1) may, so far as required for giving effect
to the agreement, include provision for vesting, creating or extinguishing
any interest in property.

(6) If there is more than one item of associated property or more than
5one excepted joint owner, the total amount to be paid under sub-
paragraph (1), and the part of that amount which is to be provided
by each person who holds any such associated property or who is
an excepted joint owner, is to be agreed between both (or all) of
them and the person who applied for the order under paragraph
1010G.

(7) If the person who applied for the order under paragraph 10G was
an authorised officer, that person may enter into an agreement for
the purposes of this paragraph only with the prior approval of a
senior officer.

(8) 15An amount received under an order under sub-paragraph (1)
must be applied as follows—

(a) first, it must be applied in payment or reimbursement of
any reasonable costs incurred in storing or insuring the
forfeitable property and any associated property whilst
20detained under this Part of this Schedule;

(b) second, it must be paid—

(i) if the order was made by a magistrates’ court, into
the Consolidated Fund;

(ii) if the order was made by the sheriff, into the
25Scottish Consolidated Fund.

(9) For the purposes of sub-paragraph (7), a “senior officer” means—

(a) in relation to an application made by a constable or
a  designated financial investigator, a senior police officer;

(b) in relation to an application made by an officer of Revenue
30and Customs, such an officer of a rank designated by the
Commissioners for Her Majesty’s Revenue and Customs
as equivalent to that of a senior police officer;

(c) in relation to an application made by an immigration
officer, such an officer of a rank designated by the
35Secretary of State as equivalent to that of a senior police
officer.

(10) In sub-paragraph (9), a “senior police officer” means a police
officer of at least the rank of inspector.

10J Associated and joint property: default of agreement

(1) 40Where this paragraph applies and there is no agreement under
paragraph 10I, the magistrates’ court or sheriff—

(a) must transfer the application made under paragraph 10G
to the relevant court if satisfied that the value of the
forfeitable property and any associated property is £10,000
45or more;

(b) may transfer the application made under paragraph 10G to
the relevant court if satisfied that the value of the

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forfeitable property and any associated property is less
than £10,000.

(2) The “relevant court” is—

(a) the High Court, where the application under paragraph
510G was made to a magistrates’ court;

(b) the Court of Session, where the application under
paragraph 10G was made to the sheriff.

(3) Where (under sub-paragraph (1)(a) or (b)) an application made
under paragraph 10G is transferred to the relevant court, the
10relevant court may order the forfeiture of the property to which
the application relates, or any part of that property, if satisfied
that—

(a) the property is a listed asset, and

(b) what is to be forfeited is within subsection (1)(a) or (b) of
15section 1 or is property earmarked as terrorist property.

(4) The relevant court may, as well as making an order under sub-
paragraph (3), make an order—

(a) providing for the forfeiture of the associated property or
(as the case may be) for the excepted joint owner’s interest
20to be extinguished, or

(b) providing for the excepted joint owner’s interest to be
severed.

(5) Where (under sub-paragraph (1)(b)) the magistrates’ court or
sheriff decides not to transfer an application made under
25paragraph 10G to the relevant court, the magistrates’ court or
sheriff may, as well as making an order under paragraph 10G(2),
make an order—

(a) providing for the forfeiture of the associated property or
(as the case may be) for the excepted joint owner’s interest
30to be extinguished, or

(b) providing for the excepted joint owner’s interest to be
severed.

(6) An order under sub-paragraph (4) or (5) may be made only if the
relevant court, the magistrates’ court or the sheriff (as the case
35may be) thinks it just and equitable to do so.

(7) An order under sub-paragraph (4) or (5) must provide for the
payment of an amount to the person who holds the associated
property or who is an excepted joint owner.

(8) In making an order under sub-paragraph (4) or (5), and including
40provision in it by virtue of sub-paragraph (7), the relevant court,
the magistrates’ court or the sheriff (as the case may be) must have
regard to—

(a) the rights of any person who holds the associated property
or who is an excepted joint owner and the value to that
45person of that property or (as the case may) of that
person’s share (including any value that cannot be
assessed in terms of money), and

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(b) the interest of the person who applied for the order under
paragraph 10G in realising the value of the forfeitable
property.

(9) If the relevant court, the magistrates’ court or the sheriff (as the
5case may be) is satisfied that—

(a) the person who holds the associated property or who is an
excepted joint owner has suffered loss as a result of the
seizure of the forfeitable property and any associated
property under paragraph 10B and its subsequent
10detention, and

(b) the circumstances are exceptional,

an order under sub-paragraph (4) or (5) may require the payment
of compensation to that person.

(10) The amount of compensation to be paid by virtue of sub-
15paragraph (9) is the amount the relevant court, the magistrates’
court or the sheriff (as the case may be) thinks reasonable, having
regard to the loss suffered and any other relevant circumstances.

(11) Compensation to be paid by virtue of sub-paragraph (9) is to be
paid in the same way that compensation is to be paid under
20paragraph 10P.

10K Paragraphs 10G and 10J: appeals

(1) Any party to proceedings for an order for the forfeiture of
property under paragraph 10G may appeal against—

(a) the making of an order under paragraph 10G;

(b) 25the making of an order under paragraph 10J(5);

(c) a decision not to make an order under paragraph 10G
unless the reason that no order was made is that an order
was instead made under paragraph 10I;

(d) a decision not to make an order under paragraph 10J(5).

30Paragraphs (c) and (d) do not apply if the application for the order
under paragraph 10G was transferred in accordance with
paragraph 10J(1)(a) or (b).

(2) An appeal under sub-paragraph (1) lies—

(a) in relation to England and Wales, to the Crown Court;

(b) 35in relation to Scotland, to the Sheriff Appeal Court;

(c) in relation to Northern Ireland, to a county court.

(3) An appeal under sub-paragraph (1) must be made before the end
of the period of 30 days starting with the day on which the court
makes the order or decision.

(4) 40Sub-paragraph (3) is subject to paragraph 10L.

(5) The court hearing the appeal may make any order it thinks
appropriate.

(6) If the court upholds an appeal against an order forfeiting property,
it may order the release of the whole or any part of the property.

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10L Extended time for appealing in certain cases where deproscription order made

(1) This paragraph applies where—

(a) a successful application for an order under paragraph 10G
relies (wholly or partly) on the fact that an organisation is
5proscribed,

(b) an application under section 4 of the Terrorism Act 2000
for a deproscription order in respect of the organisation is
refused by the Secretary of State,

(c) the property forfeited by the order under paragraph 10G
10was seized under this Part of this Schedule on or after the
date of the refusal of that application,

(d) an appeal against that refusal is allowed under section 5 of
the Terrorism Act 2000,

(e) a deproscription order is made accordingly, and

(f) 15if the order is made in reliance on section 123(5) of the
Terrorism Act 2000, a resolution is passed by each House
of Parliament under section 123(5)(b) of that Act.

(2) Where this paragraph applies, an appeal under paragraph 10K
against the making of an order under paragraph 10G, and against
20the making (in addition) of any order under paragraph 10J(5), may
be brought at any time before the end of the period of 30 days
beginning with the date on which the deproscription order comes
into force.

(3) In this paragraph a “deproscription order” means an order under
25section 3(3)(b) or (8) of the Terrorism Act 2000.

10M Realisation of forfeited property

(1) If property is forfeited under paragraph 10G or 10J, an authorised
officer must realise the property or make arrangements for its
realisation.

(2) 30But the property is not to be realised—

(a) before the end of the period within which an appeal may
be made (whether under paragraph 10K or otherwise), or

(b) if an appeal is made within that period, before the appeal
is determined or otherwise disposed of.

(3) 35The realisation of property under sub-paragraph (1) must be
carried out, so far as practicable, in the manner best calculated to
maximise the amount obtained for the property.

10N Proceeds of realisation

(1) The proceeds of property realised under paragraph 10M must be
40applied as follows—

(a) first, they must be applied in making any payment
required to be made by virtue of paragraph 10J(7);

(b) second, they must be applied in payment or
reimbursement of any reasonable costs incurred in storing
45or insuring the property whilst detained under this Part of
this Schedule and in realising the property;

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(c) third, they must be paid—

(i) if the property was forfeited by a magistrates’ court
or the High Court, into the Consolidated Fund;

(ii) if the property was forfeited by the sheriff or the
5Court of Session, into the Scottish Consolidated
Fund.

(2) If what is realised under paragraph 10M represents part only of an
item of property seized under paragraph 10B and detained under
this Part of this Schedule, the reference in sub-paragraph (1)(b) to
10costs incurred in storing or insuring the property is to be read as a
reference to costs incurred in storing or insuring the whole of the
item of property.

10O Victims

(1) A person who claims that any property detained under this Part of
15this Schedule, or any part of it, belongs to him or her may apply
for the property or part to be released.

(2) An application under sub-paragraph (1) is to be made—

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

(b) 20in Scotland, to the sheriff.

(3) The application may be made in the course of proceedings under
paragraph 10D or 10G or at any other time.

(4) The court or sheriff may order the property to which the
application relates to be released to the applicant if it appears to
25the court or sheriff that—

(a) the applicant was deprived of the property to which the
application relates, or of property which it represents, by
criminal conduct,

(b) the property the applicant was deprived of was not,
30immediately before the applicant was deprived of it,
property obtained by or in return for criminal conduct and
nor did it then represent such property, and

(c) the property belongs to the applicant.

10P Compensation

(1) 35If no order under paragraph 10G, 10I or 10J is made in respect of
any property detained under this Part of this Schedule, the person
to whom the property belongs or from whom it was seized may
make an application for compensation.

(2) An application under sub-paragraph (1) is to be made—

(a) 40in England and Wales or Northern Ireland, to a
magistrates’ court;

(b) in Scotland, to the sheriff.

(3) If the court or sheriff is satisfied that the applicant has suffered loss as a
result of the detention of the property and that the circumstances are
45exceptional, the court or sheriff may order compensation to be paid to the
applicant.

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(4) The amount of compensation to be paid is the amount the court or sheriff
thinks reasonable, having regard to the loss suffered and any other
relevant circumstances.

(5) If the property was seized by an officer of Revenue and Customs, the
5compensation is to be paid by the Commissioners for Her Majesty’s
Revenue and Customs.

(6) If the property was seized by a constable, the compensation is to be paid
as follows—

(a) in the case of a constable of a police force in England and Wales,
10it is to be paid out of the police fund from which the expenses of
the police force are met;

(b) in the case of a constable of the Police Service of Scotland, it is to
be paid by the Scottish Police Authority;

(c) in the case of a police officer within the meaning of the Police
15(Northern Ireland) Act 2000, it is to be paid out of money
provided by the Chief Constable of the Police Service of Northern
Ireland.

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

(a) 20in the case of a designated financial investigator who was—

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

(ii) 25a member of staff of the City of London police force,

it is to be paid out of the police fund from which the expenses 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
30be paid out of money provided by the Chief Constable of the Police
Service of Northern Ireland.

(8) If the property was seized by an immigration officer, the compensation is
to be paid by the Secretary of State.

(9) If an order under paragraph 10G, 10I or 10J is made in respect only
35of a part of any property detained under this Part, this paragraph
has effect in relation to the other part.

(10) This paragraph does not apply if the court or sheriff makes an
order under paragraph 10O.”

3 In paragraph 19 (general interpretation), in sub-paragraph (1), at the
40appropriate place insert—

  • ““listed asset” has the meaning given by paragraph 10A,”.

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Section 33

SCHEDULE 4 Forfeiture of money held in bank and building society accounts

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

2 5After paragraph 10P (inserted by Schedule 3 above) insert—

“Part 4B Forfeiture of terrorist money held in bank and building society
accounts

10Q Application for account freezing order

(1) 10This paragraph applies if an enforcement officer has reasonable
grounds for suspecting that money held in an account maintained
with a bank or building society—

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(2) 15Where this paragraph applies the enforcement officer may apply
to the relevant court for an account freezing order in relation to the
account in which the money is held.

(3) But an enforcement officer may not apply for an account freezing
order unless the officer is a senior officer or is authorised to do so
20by a senior officer.

(4) For the purposes of this Part of this Schedule—

(a) an account freezing order is an order that, subject to any
exclusions (see paragraph 10U), prohibits each person by
or for whom the account to which the order applies is
25operated from making withdrawals or payments from the
account;

(b) an account is operated by or for a person if the person is an
account holder or a signatory or identified as a beneficiary
in relation to the account.

(5) 30An application for an account freezing order may be made
without notice if the circumstances of the case are such that notice
of the application would prejudice the taking of any steps under
this Part of this Schedule to forfeit money that is within subsection
(1)(a) or (b) of section 1 or is property earmarked as terrorist
35property.

(6) The money referred to in sub-paragraph (1) may be all or part of
the credit balance of the account.

(7) In this Part of this Schedule—

  • “bank” has the meaning given by paragraph 10R;

  • 40“building society” has the same meaning as in the Building
    Societies Act 1986;

  • “enforcement officer” means—

    (a)

    a constable, or

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    (b)

    a designated financial investigator;

  • “relevant court”—

    (a)

    in England and Wales and Northern Ireland, means a
    magistrates’ court, and

    (b)

    5in Scotland, means the sheriff;

  • “senior officer” means a police officer of at least the rank of
    inspector.

10R Meaning of “bank”

(1) “Bank” means an authorised deposit taker, other than a building
10society, that has its head office or a branch in the United Kingdom.

(2) In sub-paragraph (1), “authorised deposit taker” means—

(a) a person who has permission under Part 4A of the
Financial Services and Markets Act 2000 to accept deposits;

(b) a person who—

(i) 15is specified, or is within a class of persons specified,
by an order under section 38 of that Act (exemption
orders), and

(ii) accepts deposits;

(c) an EEA firm of the kind mentioned in paragraph 5(b) of
20Schedule 3 to that Act that has permission under
paragraph 15 of that Schedule (as a result of qualifying for
authorisation under paragraph 12(1) of that Schedule) to
accept deposits.

(3) A reference in sub-paragraph (2) to a person or firm with
25permission to accept deposits does not include a person or firm
with permission to do so only for the purposes of, or in the course
of, an activity other than accepting deposits.

10S Making of account freezing order

(1) This paragraph applies where an application for an account
30freezing order is made under paragraph 10Q in relation to an
account.

(2) The relevant court may make the order if satisfied that there are
reasonable grounds for suspecting that money held in the account
(whether all or part of the credit balance of the account)—

(a) 35is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(3) An account freezing order ceases to have effect at the end of the
period specified in the order (which may be varied under
paragraph 10T) unless it ceases to have effect at an earlier or later
40time in accordance with the provision made by paragraphs
10W(6)(c), 10Y(2) to (7), 10Z2(6) to (8) and 10Z3.

(4) The period specified by the relevant court for the purposes of sub-
paragraph (3) (whether when the order is first made or on a
variation under paragraph 10T) may not exceed the period of 2
45years, starting with the day on which the account freezing order is
(or was) made.

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(5) An account freezing order must provide for notice to be given to
persons affected by the order.

10T Variation and setting aside of account freezing order

(1) The relevant court may at any time vary or set aside an account
5freezing order on an application made by—

(a) an enforcement officer, or

(b) any person affected by the order.

(2) But an enforcement officer may not make an application under
sub-paragraph (1) unless the officer is a senior officer or is
10authorised to do so by a senior officer.

(3) Before varying or setting aside an account freezing order the court
must (as well as giving the parties to the proceedings an
opportunity to be heard) give such an opportunity to any person
who may be affected by its decision.

(4) 15In relation to Scotland, the references in this paragraph to setting
aside an order are to be read as references to recalling it.

10U Exclusions

(1) The power to vary an account freezing order includes (amongst
other things) power to make exclusions from the prohibition on
20making withdrawals or payments from the account to which the
order applies.

(2) Exclusions from the prohibition may also be made when the order
is made.

(3) An exclusion may (amongst other things) make provision for the
25purpose of enabling a person by or for whom the account is
operated—

(a) to meet the person’s reasonable living expenses, or

(b) to carry on any trade, business, profession or occupation.

(4) An exclusion may be made subject to conditions.

(5) 30Where a magistrates’ court exercises the power to make an
exclusion for the purpose of enabling a person to meet legal
expenses that the person has incurred, or may incur, in respect of
proceedings under this Schedule, it must ensure that the
exclusion—

(a) 35is limited to reasonable legal expenses that the person has
reasonably incurred or that the person reasonably incurs,

(b) specifies the total amount that may be released for legal
expenses in pursuance of the exclusion, and

(c) is made subject to the same conditions as would be the
40required conditions (see section 286A of the Proceeds of
Crime Act 2002) if the order had been made under section
245A of that Act (in addition to any conditions imposed
under sub-paragraph (4)).

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(6) A magistrates’ court, in deciding whether to make an exclusion for
the purpose of enabling a person to meet legal expenses in respect
of proceedings under this Schedule—

(a) must have regard to the desirability of the person being
5represented in any proceedings under this Schedule in
which the person is a participant, and

(b) must disregard the possibility that legal representation of
the person in any such proceedings might, were an
exclusion not made—

(i) 10be made available under arrangements made for
the purposes of Part 1 of the Legal Aid, Sentencing
and Punishment of Offenders Act 2012, or

(ii) be funded by the Northern Ireland Legal Services
Commission.

(7) 15The sheriff’s power to make exclusions may not be exercised for
the purpose of enabling any person to meet any legal expenses in
respect of proceedings under this Schedule.

(8) The power to make exclusions must, subject to sub-paragraph (6),
be exercised with a view to ensuring, so far as practicable, that
20there is not undue prejudice to the taking of any steps under this
Part of this Schedule to forfeit money that is within subsection
(1)(a) or (b) of section 1 or is property earmarked as terrorist
property.

10V Restriction on proceedings and remedies

(1) 25If a court in which proceedings are pending in respect of an
account maintained with a bank or building society is satisfied
that an account freezing order has been applied for or made in
respect of the account, it may either stay the proceedings or allow
them to continue on any terms it thinks fit.

(2) 30Before exercising the power conferred by sub-paragraph (1), the
court must (as well as giving the parties to any of the proceedings
concerned an opportunity to be heard) give such an opportunity
to any person who may be affected by the court’s decision.

(3) In relation to Scotland, the reference in sub-paragraph (1) to
35staying the proceedings is to be read as a reference to sisting the
proceedings.

10W Account forfeiture notice: England and Wales and Northern Ireland

(1) This paragraph applies while an account freezing order made by
a magistrates’ court has effect.

(2) 40A senior officer may give a notice for the purpose of forfeiting
money held in the frozen account (whether all or part of the credit
balance of the account) if satisfied that the money—

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

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(3) A notice given under sub-paragraph (2) is referred to in this Part
of this Schedule as an account forfeiture notice.

(4) An account forfeiture notice must—

(a) state the amount of money held in the frozen account
5which it is proposed be forfeited,

(b) confirm that the senior officer is satisfied as mentioned in
sub-paragraph (2),

(c) specify a period for objecting to the proposed forfeiture
and an address to which any objections must be sent, and

(d) 10explain that the money will be forfeited unless an objection
is received at that address within the period for objecting.

(5) The period for objecting must be at least 30 days starting with the
day after the notice is given.

(6) If no objection is made within the period for objecting, and the
15notice has not lapsed under paragraph 10Y

(a) the amount of money stated in the notice is forfeited
(subject to paragraph 10Z),

(b) the bank or building society with which the frozen account
is maintained must transfer that amount of money into an
20interest-bearing account nominated by an enforcement
officer, and

(c) immediately after the transfer has been made, the account
freezing order made in relation to the frozen account
ceases to have effect.

(7) 25An objection may be made by anyone (whether a recipient of the
notice or not).

(8) An objection means a written objection sent to the address
specified in the notice; and an objection is made when it is received
at the address.

(9) 30An objection does not prevent forfeiture of the money held in the
frozen account under paragraph 10Z2.

10X Giving of account forfeiture notice

(1) The Secretary of State must by regulations made by statutory
instrument make provision about how an account forfeiture notice
35is to be given.

(2) The regulations may (amongst other things) provide—

(a) for an account forfeiture notice to be given to such person
or persons, and in such manner, as may be prescribed;

(b) for circumstances in which, and the time at which, an
40account forfeiture notice is to be treated as having been
given.

(3) The regulations must ensure that where an account forfeiture
notice is given it is, if possible, given to every person to whom
notice of the account freezing order was given.

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(4) A statutory instrument containing regulations under this
paragraph is subject to annulment in pursuance of a resolution of
either House of Parliament.

10Y Lapse of account forfeiture notice

(1) 5An account forfeiture notice lapses if—

(a) an objection is made within the period for objecting
specified in the notice under paragraph 10W(4)(c),

(b) an application is made under paragraph 10Z2 for the
forfeiture of money held in the frozen account, or

(c) 10an order is made under paragraph 10T setting aside the
relevant account freezing order.

(2) If an account forfeiture notice lapses under sub-paragraph (1)(a),
the relevant account freezing order ceases to have effect at the end
of the period of 48 hours starting with the making of the objection
15(“the 48-hour period”).

(3) If within the 48-hour period an application is made—

(a) for a variation of the relevant account freezing order under
paragraph 10T so as to extend the period specified in the
order, or

(b) 20for forfeiture of money held in the frozen account under
paragraph 10Z2,

the order continues to have effect until the relevant time (and then
ceases to have effect).

(4) In the case of an application of the kind mentioned in sub-
25paragraph (3)(a), the relevant time means—

(a) if an extension is granted, the time determined in
accordance with paragraph 10S(3), or

(b) if an extension is not granted, the time when the
application is determined or otherwise disposed of.

(5) 30In the case of an application of the kind mentioned in sub-
paragraph (3)(b), the relevant time is the time determined in
accordance with paragraph 10Z2(6).

(6) If within the 48-hour period it is decided that no application of the
kind mentioned in sub-paragraph (3)(a) or (b) is to be made, an
35enforcement officer must, as soon as possible, notify the bank or
building society with which the frozen account is maintained of
that decision.

(7) If the bank or building society is notified in accordance with sub-
paragraph (6) before the expiry of the 48-hour period, the relevant
40account freezing order ceases to have effect on the bank or
building society being so notified.

(8) In relation to an account forfeiture notice—

(a) “the frozen account” is the account in which the money to
which the account forfeiture notice relates is held;

(b) 45“the relevant account freezing order” is the account
freezing order made in relation to the frozen account.

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(9) In calculating a period of 48 hours for the purposes of this
paragraph no account is to be taken of—

(a) any Saturday or Sunday,

(b) Christmas Day,

(c) 5Good Friday, or

(d) any day that is a bank holiday under the Banking and
Financial Dealings Act 1971 in the part of the United
Kingdom in which the account freezing order was made.

10Z Application to set aside forfeiture

(1) 10A person aggrieved by the forfeiture of money in pursuance of
paragraph 10W(6)(a) may apply to a magistrates’ court for an
order setting aside the forfeiture of the money or any part of it.

(2) The application must be made before the end of the period of 30
days starting with the day on which the period for objecting ended
15(“the 30-day period”).

(3) But the court may give permission for an application to be made
after the 30-day period has ended if it thinks that there are
exceptional circumstances to explain why the applicant—

(a) failed to object to the forfeiture within the period for
20objecting, and

(b) failed to make an application within the 30-day period.

(4) On an application under this paragraph the court must consider
whether the money to which the application relates could be
forfeited under paragraph 10Z2 (ignoring the forfeiture
25mentioned in sub-paragraph (1)).

(5) If the court is satisfied that the money to which the application
relates or any part of it could not be forfeited under that paragraph
it must set aside the forfeiture of that money or part.

(6) Where the court sets aside the forfeiture of any money—

(a) 30it must order the release of that money, and

(b) the money is to be treated as never having been forfeited.

10Z1 Application of money forfeited under account forfeiture notice

(1) Money forfeited in pursuance of paragraph 10W(6)(a), and any
interest accrued on it whilst in the account referred to in
35paragraph 10W(6)(b), is to be paid into the Consolidated Fund.

(2) But it is not to be paid in—

(a) before the end of the period within which an application
under paragraph 10Z may be made (ignoring the
possibility of an application by virtue of paragraph
4010Z(3)), or

(b) if an application is made within that period, before the
application is determined or otherwise disposed of.

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10Z2 Forfeiture order

(1) This paragraph applies while an account freezing order has effect.

(2) An application for the forfeiture of money held in the frozen
account (whether all or part of the credit balance of the account)
5may be made—

(a) to a magistrates’ court, by an enforcement officer, or

(b) to the sheriff, by the Scottish Ministers.

(3) The court or sheriff may order the forfeiture of the money or any
part of it if satisfied that the money or part—

(a) 10is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(4) But in the case of property earmarked as terrorist property which
belongs to joint tenants, one of whom is an excepted joint owner,
an order by a magistrates’ court may not apply to so much of it as
15the court thinks is attributable to the excepted joint owner’s share.

(5) For the purposes of sub-paragraph (4)

(a) an excepted joint owner is a joint tenant who obtained the
property in circumstances in which it would not (as
against him or her) be earmarked, and

(b) 20references to the excepted joint owner’s share of property
are to so much of the property as would have been his or
hers if the joint tenancy had been severed.

(6) Where an application is made under sub-paragraph (2), the
account freezing order is to continue to have effect until the time
25referred to in sub-paragraph (7)(b) or (8).

(7) Where money held in a frozen account is ordered to be forfeited
under sub-paragraph (3)

(a) the bank or building society with which the frozen account
is maintained must transfer that amount of money into an
30interest-bearing account nominated by an enforcement
officer, and

(b) immediately after the transfer has been made the account
freezing order made in relation to the frozen account
ceases to have effect.

(8) 35Where, other than by the making of an order under sub-paragraph
(3), an application under sub-paragraph (2) is determined or
otherwise disposed of, the account freezing order ceases to have
effect immediately after that determination or other disposal.

10Z3 Continuation of account freezing order pending appeal

(1) 40This paragraph applies where, on an application under sub-
paragraph (2) of paragraph 10Z2 in relation to an account to which
an account freezing order applies, the court or sheriff decides—

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(a) to make an order under sub-paragraph (3) of that
paragraph in relation to part only of the money to which
the application related, or

(b) not to make an order under sub-paragraph (3) of that
5paragraph.

(2) The person who made the application under paragraph 10Z2(2)
may apply without notice to the court or sheriff that made the
decision referred to in sub-paragraph (1)(a) or (b) for an order that
the account freezing order is to continue to have effect.

(3) 10Where the court or sheriff makes an order under sub-paragraph
(2) the account freezing order is to continue to have effect until—

(a) the end of the period of 48 hours starting with the making
of the order under sub-paragraph (2), or

(b) if within that period of 48 hours an appeal is brought
15under paragraph 10Z4 against the decision referred to in
sub-paragraph (1)(a) or (b), the time when the appeal is
determined or otherwise disposed of.

(4) Sub-paragraph (9) of paragraph 10Y applies for the purposes of
sub-paragraph (3) as it applies for the purposes of that paragraph.

10Z4 20Appeal against decision under paragraph 10Z2

(1) Any party to proceedings for an order for the forfeiture of money
under paragraph 10Z2 who is aggrieved by an order under that
paragraph or by the decision of the court not to make such an
order may appeal—

(a) 25from an order or decision of a magistrates’ court in
England and Wales, to the Crown Court;

(b) from an order or decision of the sheriff, to the Sheriff
Appeal Court;