Criminal Finances Bill (HC Bill 75)

Section 45

SCHEDULE 5 Minor and consequential amendments

Civil Jurisdiction and Judgments Act 1982 (c. 27)Civil Jurisdiction and Judgments Act 1982 (c. 27)

1 In section 18 of the Civil Jurisdiction and Judgments Act 1982 (enforcement
5of UK judgments in other parts of UK), in subsection (2)(g)—

(a) after “investigation” insert “, a detained property investigation or a
frozen funds investigation”;

(b) for “meaning” substitute “meanings”.

Criminal Justice Act 1987 (c. 38)1987 (c. 38)

2 10In section 1 of the Criminal Justice Act 1987 (establishment of the Serious
Fraud Office), in subsection (6A)—

(a) for “Part 5” substitute “Part 2, 4, 5, 7”;

(b) for the words in brackets substitute “confiscation proceedings in
England and Wales and Northern Ireland, civil recovery
15proceedings, money laundering and investigations”.

Data Protection Act 1998 (c. 29)1998 (c. 29)

3 The Data Protection Act 1998 is amended as follows.

4 In Schedule 2 (conditions relevant for purposes of the first principle:
processing of any personal data), after paragraph 6 insert—

“7 20The processing is necessary for the purposes of making a
disclosure in good faith under a power conferred by—

(a) section 21CA of the Terrorism Act 2000 (disclosures
between certain entities within regulated sector in relation
to suspicion of commission of terrorist financing offence or
25for purposes of identifying terrorist property), or

(b) section 339ZB of the Proceeds of Crime Act 2002
(disclosures between certain entities within regulated
sector in relation to money laundering suspicion).”

5 In Schedule 3 (conditions relevant for purposes of the first principle:
30processing of sensitive personal data), after paragraph 7A insert—

“7B The processing is necessary for the purposes of making a
disclosure in good faith under a power conferred by—

(a) section 21CA of the Terrorism Act 2000 (disclosures
between certain entities within regulated sector in relation
35to suspicion of commission of terrorist financing offence or
for purposes of identifying terrorist property), or

(b) section 339ZB of the Proceeds of Crime Act 2002
(disclosures within regulated sector in relation to money
laundering suspicion).”

40Terrorism Act 2000 (c. 11)2000 (c. 11)

6 The Terrorism Act 2000 is amended as follows.

7 In section 21G (tipping off: other permitted disclosures)—

(a) omit “or” at the end of paragraph (a);

(b) after that paragraph insert—

“(aa) made in good faith by virtue of section 21CA
5(disclosures within the regulated sector); or”.

8 In section 115 (officers’ powers)—

(a) for “sections 25 to 31” substitute “Schedule 1 to the Anti-terrorism,
Crime and Security Act 2001 (forfeiture of terrorist property)”;

(b) after “Schedule 7” insert “to this Act (port and border controls)”.

9 10In section 121 (interpretation), insert at the appropriate place—

• “““designated financial investigator” is to be read in accordance
  with section 63F;”.

10 In Schedule 14 (exercise of officers’ powers)—

(a) for “terrorist cash”, in each place, substitute “terrorist property”;

(b) 15in paragraph 1(a), after “provisions” insert “(including when
referred to in those provisions as an “enforcement officer” or a
“senior officer”)”.

Anti-terrorism, Crime and Security Act 2001 (c. 24)Anti-terrorism, Crime and Security Act 2001 (c. 24)

11 The Anti-terrorism, Crime and Security Act 2001 is amended as follows.

12 (1) 20Section 1 (forfeiture of terrorist cash) is amended as follows.

(2) In the heading, for “cash” substitute “property”.

(3) In subsection (1), in the words before paragraph (a), for “cash” substitute
“property”.

(4) In subsection (2)—

(a) 25for “any cash” substitute “property”;

(b) for “the cash” substitute “the property”.

13 (1) Schedule 1 (forfeiture of terrorist cash) is amended as follows.

(2) In the heading of the Schedule, for “cash” substitute “property”.

(3) In the heading of Part 1, after “Introductory” insert “: forfeiture of terrorist
30cash”.

(4) In paragraph 1(1), after “Schedule” insert “(other than Parts 4A and 4B)”.

(5) In the heading of Part 2, after “Detention” insert “of terrorist cash”.

(6) In the heading of Part 3, after “Forfeiture” insert “of terrorist cash”.

(7) In the heading of Part 4, after “Miscellaneous” insert “: terrorist cash”.

35Proceeds of Crime Act 2002 (c. 29)2002 (c. 29)

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

15 (1) Section 2A (contribution to the reduction of crime) is amended as follows.

(2) In subsection (2)—

(a) omit “or” before paragraph (e);

(b) after paragraph (e) insert—

“(f) Her Majesty’s Revenue and Customs, or

(g) the Financial Conduct Authority.”

(3) In subsection (3)—

(a) 5omit “and” at the end of paragraph (b);

(b) after paragraph (c) insert “, and

(d) in the case of Her Majesty’s Revenue and Customs or
the Financial Conduct Authority, the Treasury.”

16 In section 2C (prosecuting authorities), in subsection (2) after “5,” insert “7”.

17 10In section 7 (recoverable amount for purposes of confiscation order in
England and Wales), in subsection (4)—

(a) in paragraph (b), after “section 297A” insert “or an account forfeiture
notice under section 303Z9”;

(b) omit “and” at the end of paragraph (b);

(c) 15in paragraph (c), after “298(2)” insert “, 303O(3) or 303Z14(4)”;

(d) after paragraph (c) insert “, and

(d) any property which is treated as though it has been
forfeited by virtue of section 303Q(6).”

18 (1) Section 82 (meaning of free property for purposes of Part 2) is amended as
20follows.

(2) In subsection (2)(f), for “or 298(2)” substitute “, 298(2), 303L(1), 303O(3),
303Z3 or 303Z14(4)”.

(3) In subsection (3)—

(a) in paragraph (a), after “section 297A” insert “or an account forfeiture
25notice under section 303Z9”;

(b) in paragraph (b) (as amended by section 28 of this Act), for “or
298(4)” substitute “, 298(4) or 303O(4)”;

(c) after paragraph (b) insert—

“(c) it is treated as though it has been forfeited by virtue of
30section 303Q(6).”

19 In section 93 (recoverable amount for purposes of confiscation order in
Scotland), in subsection (4)—

(a) in paragraph (b), after “section 297A” insert “or an account forfeiture
notice under section 303Z9”;

(b) 35omit “and” at the end of paragraph (b);

(c) in paragraph (c), after “298(2)” insert “, 303O(3) or 303Z14(4)”;

(d) after paragraph (c) insert “, and

(d) any property which is treated as though it has been
forfeited by virtue of section 303Q(6).”

20 (1) 40Section 148 (meaning of free property for purposes of Part 3) is amended as
follows.

(2) In subsection (2)(f), for “or 298(2)” substitute “, 298(2), 303L(1), 303O(3),
303Z3 or 303Z14(4)”.

(3) In subsection (3)—

(a) in paragraph (a), after “section 297A” insert “or an account forfeiture
notice under section 303Z9”;

(b) after paragraph (b) insert—

“(c) it is treated as though it has been forfeited by virtue of
5section 303Q(6).”

21 In section 157 (recoverable amount for purposes of confiscation order in
Northern Ireland), in subsection (4)—

(a) in paragraph (b), after “section 297A” insert “or an account forfeiture
notice under section 303Z9”;

(b) 10omit “and” at the end of paragraph (b);

(c) in paragraph (c), after “298(2)” insert “, 303O(3) or 303Z14(4)”;

(d) after paragraph (c) insert “, and

(d) any property which is treated as though it has been
forfeited by virtue of section 303Q(6).”

22 (1) 15Section 230 (meaning of free property for purposes of Part 4) is amended as
follows.

(2) In subsection (2)(f), for “or 298(2)” substitute “, 298(2), 303L(1), 303O(3),
303Z3 or 303Z14(4)”.

(3) In subsection (3)—

(a) 20in paragraph (a), after “section 297A” insert “or an account forfeiture
notice under section 303Z9”;

(b) after paragraph (b) insert—

“(c) it is treated as though it has been forfeited by virtue of
section 303Q(6).”

23 25In section 240 (general purpose of Part 5), in subsection (1)(b)—

(a) for “cash” substitute “property”;

(b) at the end insert “and, in certain circumstances, to be forfeited by the
giving of a notice”.

24 In section 241 (“unlawful conduct”), in subsection (3)(b), for “cash”
30substitute “property”.

25 (1) Section 278 (limit on recovery) is amended as follows.

(2) In subsection (6A)—

(a) in paragraph (a), after “section 297A” insert “or an account forfeiture
notice under section 303J”;

(b) 35in the words after paragraph (b), for “forfeiture notice” substitute
“notice”.

(3) In subsection (7)—

(a) in paragraph (a), after “section 298” insert “, 303O or 303Z14”;

(b) in the words after paragraph (b), for “section 298” substitute “that
40section”.

(4) after subsection (7) insert—

“(7A) If—

(a) an order is made under section 303Q instead of an order
being made under section 303O for the forfeiture of
45recoverable property, and

(b) the enforcement authority subsequently seeks a recovery
order in respect of related property,

the order under section 303Q is to be treated for the purposes of this
section as if it were a recovery order obtained by the enforcement
5authority in respect of the property that was the forfeitable property
in relation to the order under section 303Q.”

(26) In section 290 (prior approval), after subsection (6) insert—

“(6A) But the duty in subsection (6) does not apply if, during the course of
exercising the powers conferred by section 289, the relevant officer
10seizes property by virtue of section 303J and the property so seized is
detained for more than 48 hours (calculated in accordance with
section 303K(5)).”

27 (1) Section 311 (insolvency) is amended as follows.

(2) After subsection (2) insert—

“(2A) 15An application for an order for the further detention of any property
to which subsection (3) applies may not be made under section 303L
unless the appropriate court gives leave.

(2B) An application for the making of an account freezing order under
section 303Z3 in respect of an account in which is held money to
20which subsection (3) applies, or an application under section 303Z4
for the extension of the period specified in such an order, may not be
made unless the appropriate court gives leave.”

(3) In subsection (4), after “recovery order” insert “, or to apply for an account
freezing order under section 303Z3,”.

28 25In section 312 (performance of functions of Scottish Ministers by constables
in Scotland: excluded functions), in subsection (2), after paragraph (j)
insert—

“(k) section 303B(3) (listed asset);

(l) section 303H(1) (code of practice);

(m) 30section 303O(1)(b) (forfeiture);

(n) section 303Y(3) (minimum value);

(o) section 303Z8(3) (minimum amount);

(p) section 303Z14(2)(b) (forfeiture).”

29 (1) Section 316 (general interpretation of Part 5) is amended as follows.

(2) 35In subsection (1)—

(a) in the definition of “associated property”, after “property”” insert
“(in Chapter 2)”;

(b) in the definition of “court”, for “Chapter 3” substitute “Chapters 3,
3A and 3B”;

(c) 40at the appropriate places insert—

• “““account forfeiture notice” (in Chapter 3B) has the
  meaning given by section 303Z9(3),”;

• ““account freezing order” (in Chapter 3B) has the
  meaning given by section 303Z1(3)(a),”;

• 45““bank” (in Chapter 3B) has the meaning given by
  section 303Z7,”;

Criminal Finances BillPage 145

• ““building society” (in Chapter 3B) has the meaning
  given by section 303Z1(6),”;

• ““enforcement officer” (in Chapter 3B) has the meaning
  given by section 303Z1(6),”;

• 5““listed asset” (in Chapter 3A) has the meaning given by
  section 303B,”;

• ““the minimum amount” (in Chapter 3B) has the
  meaning given by section 303Z8,”;

• ““the minimum value” (in Chapter 3A) has the meaning
  10given by section 303Y,”;

• ““relevant court” (in Chapter 3B) has the meaning given
  by section 303Z1(6),”;

• ““relevant officer” (in Chapter 3A) has the meaning
  given by section 303C(9),”;

• 15““senior officer” (in Chapter 3B) has the meaning given
  by section 303Z2(7),”.

(3) After subsection (9) insert—

“(10) References (in Chapter 3B) to an account being operated by or for a
person are to be read in accordance with section 303Z1(3)(b).”

30 20In section 333D (tipping off: other permitted disclosures), in subsection (1)—

(a) omit “or” at the end of paragraph (a);

(b) after that paragraph insert—

“(aa) for the purposes of proceedings under section 335A
(power of court to extend moratorium period);

(ab) 25made in good faith by virtue of section 339ZB
(disclosures within the regulated sector); or”.

31 In section 340 (Part 7: interpretation), after subsection (14) insert—

“(15) “Further information notice” means a notice given under section
339ZH or (as the case may be) section 339ZI.

(16) 30“Further information order” means an order made under section
339J.”

32 (1) Section 341 (investigations for purposes of Part 8) is amended as follows.

(2) In subsection (3)—

(a) omit “or” at the end of paragraph (c);

(b) 35in paragraph (d), after “295” insert “, 303K or 303L”;

(c) at the end of paragraph (d) insert “, or

(e) property held in an account in relation to which an
account freezing order made under section 303Z3 has
effect.”

(3) 40After subsection (3A) insert—

“(3B) For the purposes of this Part a detained property investigation is an
investigation for the purposes of Chapter 3A of Part 5 into—

(a) the derivation of property detained under that Chapter, or a
part of such property, or

(b) whether property detained under that Chapter, or a part of
such property, is intended by any person to be used in
unlawful conduct.

(3C) For the purposes of this Part a frozen funds investigation is an
5investigation for the purposes of Chapter 3B of Part 5 into—

(a) the derivation of money held in an account in relation to
which an account freezing order made under section 303Z3
has effect (a “frozen account”) or of a part of such money, or

(b) whether money held in a frozen account, or a part of such
10money, is intended by any person to be used in unlawful
conduct.”

33 In section 342 (offences of prejudicing investigation), in subsection (1), after
“a detained cash investigation” insert “, a detained property investigation, a
frozen funds investigation”.

34 15In section 343 (judges), in subsection (2), for “or a detained cash
investigation” substitute “, a detained cash investigation, a detained
property investigation or a frozen funds investigation”.

35 In section 344 (courts), in paragraph (a), for “or a detained cash
investigation” substitute “, a detained cash investigation, a detained
20property investigation or a frozen funds investigation”.

36 In section 345 (production orders), in subsection (2)(b), for “or a detained
cash investigation” substitute “, a detained cash investigation, a detained
property investigation or a frozen funds investigation”.

37 In section 346 (requirements for making of production order), in subsection
25(2), after paragraph (bb) insert—

“(bc) in the case of a detained property investigation into the
derivation of property, the property the application for the
order specifies as being subject to the investigation, or a part
of it, is recoverable property;

(bd) 30in the case of a detained property investigation into the
intended use of property, the property the application for the
order specifies as being subject to the investigation, or a part
of it, is intended by any person to be used in unlawful
conduct;

(be) 35in the case of a frozen funds investigation into the derivation
of money held in an account in relation to which an account
freezing order made under section 303Z3 has effect (a “frozen
account”), the property the application for the order specifies
as being subject to the investigation, or a part of it, is
40recoverable property;

(bf) in the case of a frozen funds investigation into the intended
use of money held in a frozen account, the property the
application for the order specifies as being subject to the
investigation, or a part of it, is intended by any person to be
45used in unlawful conduct;”.

38 In section 350 (government departments), in subsection (5)(a), for “or a
detained cash investigation” substitute “, a detained cash investigation, a
detained property investigation or a frozen funds investigation”.

39 In section 351 (production orders: supplementary), for subsection (5)

substitute—

“(5A) An application to discharge or vary a production order or an order
to grant entry need not be made by the same appropriate officer that
applied for the order (but must be made by an appropriate officer of
5the same description).

(5A) If the application for the order was, by virtue of an order under
section 453, made by an accredited financial investigator of a
particular description, the reference in subsection (5) to an
appropriate officer of the same description is to another accredited
10financial investigator of that description.”

40 (1) Section 352 (search and seizure warrants) is amended as follows.

(2) In subsection (2)(b), for “or a detained cash investigation” substitute “, a
detained cash investigation, a detained property investigation or a frozen
funds investigation”.

(3) 15In subsection (5)—

(a) at the beginning of paragraph (b) insert “a Financial Conduct
Authority officer,”;

(b) in that paragraph, after “National Crime Agency officer” insert “, an
officer of Revenue and Customs”;

(c) 20in paragraph (c), after “constable,” insert “an SFO officer,”;

(d) after paragraph (c) insert—

“(ca) a constable, an SFO officer, an accredited financial
investigator or an officer of Revenue and Customs, if
the warrant is sought for the purposes of a detained
25property investigation;

(cb) a constable, an SFO officer, an accredited financial
investigator or an officer of Revenue and Customs, if
the warrant is sought for the purposes of a frozen
funds investigation;”.

(4) 30In subsection (7), for “paragraph (c)” substitute “paragraphs (c), (ca) and
(cb)”.

41 (1) Section 353 (requirements where production order not available) is
amended as follows.

(2) In subsection (2), after paragraph (bb) insert—

“(bc) 35in the case of a detained property investigation into the
derivation of property, the property specified in the
application for the warrant, or a part of it, is recoverable
property;

(bd) in the case of a detained property investigation into the
40intended use of property, the property specified in the
application for the warrant, or a part of it, is intended by any
person to be used in unlawful conduct;

(be) in the case of a frozen funds investigation into the derivation
of money held in an account in relation to which an account
45freezing order made under section 303Z3 has effect (a “frozen
account”), the property specified in the application for the
warrant, or a part of it, is recoverable property;

(bf) in the case of a frozen funds investigation into the intended
use of money held in a frozen account, the property specified
in the application for the warrant, or a part of it, is intended
by any person to be used in unlawful conduct;”.

(3) 5In subsection (5)(a), after “(7B)” insert “, (7C), (7D), (7E), (7F)”.

(4) After subsection (7B) insert—

“(7C) In the case of a detained property investigation into the derivation of
property, material falls within this subsection if it cannot be
identified at the time of the application but it—

(a) 10relates to the property specified in the application, the
question whether the property, or a part of it, is recoverable
property or any other question as to its derivation, and

(b) is likely to be of substantial value (whether or not by itself) to
the investigation for the purposes of which the warrant is
15sought.

(7D) In the case of a detained property investigation into the intended use
of property, material falls within this subsection if it cannot be
identified at the time of the application but it—

(a) relates to the property specified in the application or the
20question whether the property, or a part of it, is intended by
any person to be used in unlawful conduct, and

(b) is likely to be of substantial value (whether or not by itself) to
the investigation for the purposes of which the warrant is
sought.

(7E) 25In the case of a frozen funds investigation into the derivation of
money held in a frozen account, material falls within this subsection
if it cannot be identified at the time of the application but it—

(a) relates to the property specified in the application, the
question whether the property, or a part of it, is recoverable
30property or any other question as to its derivation, and

(b) is likely to be of substantial value (whether or not by itself) to
the investigation for the purposes of which the warrant is
sought.

(7F) In the case of a frozen funds investigation into the intended use of
35money held in a frozen account, material falls within this subsection
if it cannot be identified at the time of the application but it—

(a) relates to the property specified in the application or the
question whether the property, or a part of it, is intended by
any person to be used in unlawful conduct, and

(b) 40is likely to be of substantial value (whether or not by itself) to
the investigation for the purposes of which the warrant is
sought.”

(5) In subsection (10)—

(a) at the beginning of paragraph (b) insert “a Financial Conduct
45Authority officer,”;

(b) in that paragraph, after “National Crime Agency officer” insert “, an
officer of Revenue and Customs”;

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

(d) after paragraph (c) insert—

“(ca) a constable, an SFO officer, an accredited financial
investigator or an officer of Revenue and Customs, if
the warrant is sought for the purposes of a detained
5property investigation;

(cb) a constable, an SFO officer, an accredited financial
investigator or an officer of Revenue and Customs, if
the warrant is sought for the purposes of a frozen
funds investigation;”.

(6) 10In subsection (11), for “paragraph (c)” substitute “paragraphs (c), (ca) and
(cb)”.

42 (1) Section 355 (further provisions: confiscation and money laundering) is
amended as follows.

(2) In the heading, for “and money laundering” substitute “, money laundering,
15detained cash, detained property and frozen funds investigations”.

(3) In subsection (1)(a), for “or a detained cash investigation” substitute “, a
detained cash investigation, a detained property investigation or a frozen
funds investigation”.

43 In section 356 (further provisions: civil recovery), in the heading, at the end
20insert “and exploitation proceeds investigations”.

44 (1) Section 357 (disclosure orders) is amended as follows.

(2) In subsection (2), after “detained cash investigation” insert “, a detained
property investigation or a frozen funds investigation”.

(3) In subsection (7), in paragraph (b)—

(a) 25after “investigation,” insert “a Financial Conduct Authority officer,”;

(b) after “National Crime Agency officer” insert “, an officer of Revenue
and Customs”.

45 In section 363 (customer information orders), in subsection (1A), at the end
insert “, a detained property investigation or a frozen funds investigation”.

46 (1) 30Section 369 (customer information orders: supplementary) is amended as
follows.

(2) For subsection (5) substitute—

“(5) An application to discharge or vary a customer information order
need not be made by the same appropriate officer that applied for the
35order (but must be made by an appropriate officer of the same
description).

(5A) If the application for the order was, by virtue of an order under
section 453, made by an accredited financial investigator of a
particular description, the reference in subsection (5) to an
40appropriate officer of the same description is to another accredited
financial investigator of that description.”

(3) In subsection (7)—

(a) after “National Crime Agency officer,” insert “a Financial Conduct
Authority officer,”;

(b) 45after “constable” insert “, an SFO officer”.