Criminal Finances Bill (HC Bill 75)

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(b) proceedings on the application (including any on appeal) have
been determined or otherwise disposed of.

(5) The third case is where the court has received a notification in relation
to the property concerned under section 396D(4) (notification of no
5further proceedings).

(6) References in this section to the “applicable 48 hour period” are to be
read as follows—

(a) in a case where the respondent complies, or purports to comply,
with the requirements imposed by the unexplained wealth
10order before the end of the response period, it is the period of 48
hours beginning with the day after the day with which the 60
day period mentioned in section 396D(3) ends;

(b) in any other case, it is the period of 48 hours beginning with the
day after the day on which the response period ends.

(7) 15In calculating a period of 48 hours for the purposes of subsection (6), no
account is to be taken of—

(a) any Saturday or Sunday,

(b) Christmas Day,

(c) Good Friday, or

(d) 20any other day that is a bank holiday under the Banking and
Financial Dealings Act 1971 in Scotland.

(8) Section 396D(7) applies for the purposes of subsection (6) in
determining whether a person complies, or purports to comply, with
the requirements imposed by an unexplained wealth order and when
25such compliance, or purported compliance, takes place.

(9) Before exercising power under this section to vary or recall an interim
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.

(10) 30Subsection (9) does not apply where the court is acting as required by
subsection (2).

(11) In this section—

  • “relevant application” means an application for—

    (a)

    a restraint order under section 120,

    (b)

    35a prohibitory property order under section 255A, or

    (c)

    an interim administration order under section 256;

  • “response period” has the meaning given by section 396C(4).

396K Exclusions

(1) The power to vary an interim freezing order includes (amongst other
40things) power to make exclusions as follows—

(a) power to exclude property from the order, and

(b) power, otherwise than by excluding property from the order, to
make exclusions from the prohibition on dealing with the
property to which the order applies.

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(2) Exclusions from the prohibition on dealing with the property to which
the order applies (other than exclusions of property from the order)
may also be made when the order is made.

(3) An exclusion may (amongst other things) make provision for the
5purpose of enabling any person—

(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) An exclusion may not be made for the purpose of enabling any person
10to meet any legal expenses in respect of proceedings under this
Chapter.

(6) If excluded property is not specified in the order it must be described
in the order in general terms.

396L Restrictions on proceedings and remedies

(1) 15While an interim freezing order has effect the Court of Session may sist
any action, execution or other legal process in respect of the property to
which the order applies.

(2) If a court (whether the Court of Session or any other court) in which
proceedings are pending in respect of any property is satisfied that an
20interim freezing order has been applied for or made in respect of the
property, it may—

(a) sist the proceedings, or

(b) allow them to continue on any terms it thinks fit.

(3) Before exercising a power conferred by this section, the court must (as
25well as giving the parties to any proceedings concerned an opportunity
to be heard) give such an opportunity to any person who may be
affected by the court’s decision.

396M Arrestment of property affected by interim freezing order

(1) On the application of the Scottish Ministers the Court of Session may,
30in relation to moveable property to which an interim freezing order
applies (whether generally or to such of it as is specified in the
application), grant warrant for arrestment.

(2) An application under subsection (1) may be made at the same time as
the application for the interim freezing order or at any time afterwards.

(3) 35A warrant for arrestment may be granted only if the property would be
arrestable if the person entitled to it were a debtor.

(4) A warrant under subsection (1) has effect as if granted on the
dependence of an action for debt at the instance of the Scottish
Ministers against the person and may be executed, recalled, loosed or
40restricted accordingly.

(5) An arrestment executed under this section ceases to have effect when,
or in so far as, the interim freezing order ceases to apply in respect of
the property in relation to which the warrant for arrestment was
granted.

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(6) If an arrestment ceases to have effect to any extent by virtue of
subsection (5), the Scottish Ministers must apply to the Court of Session
for an order recalling or, as the case may be, restricting the arrestment.

396N Inhibition of property affected by interim freezing order

(1) 5On the application of the Scottish Ministers, the Court of Session may,
in relation to the property mentioned in subsection (2), grant warrant
for inhibition against any person specified in an interim freezing order.

(2) The property is heritable property situated in Scotland to which the
interim freezing order applies (whether generally or to such of it as is
10specified in the application).

(3) The warrant for inhibition—

(a) has effect as if granted on the dependence of an action for debt
by the Scottish Ministers against the person and may be
executed, recalled, loosed or restricted accordingly, and

(b) 15has the effect of letters of inhibition and must forthwith be
registered by the Scottish Ministers in the register of inhibitions
and adjudications.

(4) Section 155 of the Titles to Land Consolidation (Scotland) Act 1868
(effective date of inhibition) applies in relation to an inhibition for
20which warrant is granted under subsection (1) as it applies to an
inhibition by separate letters or contained in a summons.

(5) An inhibition executed under this section ceases to have effect when, or
in so far as, the interim freezing order ceases to apply in respect of the
property in relation to which the warrant for inhibition was granted.

(6) 25If an inhibition ceases to have effect to any extent by virtue of
subsection (5), the Scottish Ministers must—

(a) apply for the recall or, as the case may be, the restriction of the
inhibition, and

(b) ensure that the recall or restriction is reflected in the register of
30inhibitions and adjudications.

396O Receivers in connection with interim freezing orders

(1) This section applies where the Court of Session makes an interim
freezing order on an application by the Scottish Ministers.

(2) The Court of Session may, on an application by the Scottish Ministers,
35by order appoint a receiver in respect of any property to which the
interim freezing order applies.

(3) An application under subsection (2) may be made at the same time as
the application for the interim freezing order or at any time afterwards.

(4) The application may be made without notice if the circumstances of the
40case are such that notice of the application would prejudice the right of
the Scottish Ministers to obtain a recovery order in respect of the
property.

(5) In their application the Scottish Ministers must nominate a suitably
qualified person for appointment as a receiver.

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(6) The person nominated may be a member of staff of the Scottish
Ministers.

(7) The Scottish Ministers may apply a sum received by them under
section 280(2) in making payment of the remuneration and expenses of
5a receiver appointed under this section.

(8) Subsection (7) does not apply in relation to the remuneration of the
receiver if that person is a member of staff of the Scottish Ministers (but
it does apply in relation to such remuneration if the receiver is a person
providing services under arrangements made by the Scottish
10Ministers).

396P Powers of receivers appointed under section 396O

(1) If the Court of Session appoints a receiver under section 396O, the court
may act under this section on the application of the Scottish Ministers.

(2) The court may by order authorise or require the receiver—

(a) 15to exercise any of the powers mentioned in paragraph 5 of
Schedule 6 (management powers) in relation to any property in
respect of which the receiver is appointed;

(b) to take any other steps the court thinks appropriate in
connection with the management of any such property
20(including securing the detention, custody or preservation of
the property in order to manage it).

(3) The court may by order require any person in respect of whose
property the receiver is appointed—

(a) to bring the property to a place in Scotland specified by the
25receiver or to place it in the custody of the receiver (if in either
case the person is able to do so);

(b) to do anything the person is reasonably required to do by the
receiver for the preservation of the property.

(4) The court may by order require any person in respect of whose
30property the receiver is appointed to bring any documents relating to
the property which are in that person’s possession or control to a place
in Scotland specified by the receiver or to place them in the custody of
the receiver.

(5) In subsection (4) “document” means anything in which information of
35any description is recorded.

(6) Any prohibition on dealing with property imposed by an interim
freezing order does not prevent a person from complying with any
requirements imposed by virtue of this section.

(7) Subsection (8) applies in a case where—

(a) 40the receiver deals with property that is not property in respect
of which the receiver was appointed under section 396O, but

(b) at the time of dealing with the property the receiver believed on
reasonable grounds that he or she was entitled to do so by virtue
of his or her appointment.

(8) 45The receiver is not liable to any person in respect of any loss or damage
resulting from the receiver’s dealing with the property.

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(9) But subsection (8) does not apply to the extent that the loss or damage
is caused by the receiver’s negligence.

396Q Supervision of section 396O receiver and variations

(1) Any of the following persons may at any time apply to the Court of
5Session for directions as to the exercise of the functions of a receiver
appointed under section 396O

(a) the receiver;

(b) a party to the proceedings for the appointment of the receiver or
the interim freezing order concerned;

(c) 10a person affected by an action taken by the receiver;

(d) a person who may be affected by an action proposed to be taken
by the receiver.

(2) Before it gives directions under subsection (1), the court must give an
opportunity to be heard to—

(a) 15the receiver;

(b) the parties to the proceedings for the appointment of the
receiver and for the interim freezing order concerned;

(c) any person who may be interested in the application under
subsection (1).

(3) 20The court may at any time vary or recall—

(a) the appointment of a receiver under section 396O,

(b) an order under section 396P, or

(c) directions under this section.

(4) Before exercising a power under subsection (3) the court must give an
25opportunity to be heard to—

(a) the receiver;

(b) the parties to the proceedings for the appointment of the
receiver, for the order under section 396P or (as the case may be)
for the directions under this section;

(c) 30the parties to the proceedings for the interim freezing order
concerned;

(d) any person who may be affected by the court’s decision.”

6 External assistance

After section 396Q of the Proceeds of Crime Act 2002 (inserted by section 5
35above) insert—

“Unexplained wealth orders: enforcement abroad
396R Enforcement abroad: enforcement authority

(1) This section applies if—

(a) the Court of Session makes an unexplained wealth order in
40respect of any property,

(b) it appears to the Scottish Ministers that the risk mentioned in
section 396I(2) applies in relation to the property, and

(c) the Scottish Ministers believe that the property is in a country
outside the United Kingdom (the receiving country).

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(2) The Scottish Ministers may send a request for assistance in relation to
the property to the Secretary of State with a view to it being forwarded
under this section.

(3) The Secretary of State may forward the request for assistance to the
5government of the receiving country.

(4) A request for assistance under this section is a request to the
government of the receiving country—

(a) to secure that any person is prohibited from dealing with the
property;

(b) 10for assistance in connection with the management of the
property, including with securing its detention, custody or
preservation.

396S Enforcement abroad: receiver

(1) This section applies if—

(a) 15an interim freezing order has effect in relation to property, and

(b) the receiver appointed under section 396O in respect of the
property believes that it is in a country outside the United
Kingdom (the receiving country).

(2) The receiver may send a request for assistance in relation to the
20property to the Secretary of State with a view to it being forwarded
under this section.

(3) The Secretary of State must forward the request for assistance to the
government of the receiving country.

(4) A request for assistance under this section is a request to the
25government of the receiving country—

(a) to secure that any person is prohibited from dealing with the
property;

(b) for assistance in connection with the management of the
property, including with securing its detention, custody or
30preservation.”

Disclosure orders

7 Disclosure orders: England and Wales and Northern Ireland

(1) Chapter 2 of Part 8 of the Proceeds of Crime Act 2002 (investigations: England
and Wales and Northern Ireland) is amended as follows.

(2) 35In section 357 (disclosure orders)—

(a) in subsection (2) omit “or a money laundering investigation”;

(b) omit subsection (2A);

(c) in subsection (3), after paragraph (b) insert—

(ba) a person specified in the application is subject to a
40money laundering investigation which is being carried
out by an appropriate officer and the order is sought for
the purposes of the investigation, or”;

(d) in subsection (7)—

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(i) in paragraph (a) for “a prosecutor” substitute “an appropriate
officer”;

(ii) after paragraph (b) insert—

(ba) in relation to a money laundering investigation,
5an appropriate officer, and;”;

(e) omit subsections (8) and (9).

(3) In section 358 (requirements for making a disclosure order), in subsection (2)
after paragraph (b) insert—

(ba) in the case of a money laundering investigation, the person
10specified in the application for the order has committed a
money laundering offence;”.

(4) In section 362 (supplementary)—

(a) for subsection (4A) substitute—

(4A) An application to discharge or vary a disclosure order need not
15be made by the same appropriate officer or (as the case may be)
the same National Crime Agency officer that applied for the
order (but must be made by an appropriate officer of the same
description or (as the case may be) by another National Crime
Agency officer).

(4AAA) 20If 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 (4A) to an
appropriate officer of the same description is to another
accredited financial investigator of that description.”;

(b) 25after subsection (5) insert—

(6) An appropriate officer may not make an application for a
disclosure order, or an application for the discharge or variation
of such an order, unless the officer is a senior appropriate officer
or is authorised to do so by a senior appropriate officer.”

8 30Disclosure orders: Scotland

(1) Chapter 3 of Part 8 of the Proceeds of Crime Act 2002 (investigations: Scotland)
is amended as follows.

(2) In section 391(disclosure orders)—

(a) in subsection (1) after “confiscation investigations” insert “or money
35laundering investigations”;

(b) in subsection (2) omit “or a money laundering investigation”;

(c) in subsection (3) after paragraph (a) insert—

(aa) a person specified in the application is subject to a
money laundering investigation and the order is sought
40for the purposes of the investigation, or”.

(3) In section 392 (requirements for making a disclosure order), in subsection (2)
after paragraph (a) insert—

(aa) in the case of a money laundering investigation, the person
specified in the application for the order has committed a
45money laundering offence;”.

(4) In section 396 (supplementary)—

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(a) in subsection (1) in paragraph (a) after “confiscation investigation”
insert “or a money laundering investigation”;

(b) in subsection (3) in paragraph (a) after “confiscation investigation”
insert “or a money laundering investigation”.

CHAPTER 2 5Money laundering

9 Power to extend moratorium period

(1) Part 7 of the Proceeds of Crime Act 2002 (money laundering) is amended as
follows.

(2) In section 335 (appropriate consent), after subsection (6) insert—

(6A) 10Subsection (6) is subject to section 336A, which enables the moratorium
period to be extended by court order in accordance with that section.”

(3) In section 336 (nominated officer: consent), after subsection (8) insert—

(8A) Subsection (8) is subject to section 336A, which enables the moratorium
period to be extended by court order in accordance with that section.”

(4) 15After section 336 insert—

336A Power of court to extend the moratorium period

(1) The court may, on an application under this section, grant an extension
of a moratorium period if satisfied that—

(a) an investigation is being carried out in relation to a relevant
20disclosure (but has not been completed),

(b) the investigation is being conducted diligently and
expeditiously,

(c) further time is needed for conducting the investigation, and

(d) it is reasonable in all the circumstances for the moratorium
25period to be extended.

(2) An application under this section may be made only by a senior officer.

(3) The application must be made before the moratorium period would
otherwise end.

(4) An extension of a moratorium period must end no later than 31 days
30beginning with the day after the day on which the period would
otherwise end.

(5) Where a moratorium period is extended by the court under this section,
it may be further extended by the court (on one or more occasions) on
the making of another application.

(6) 35But the court may not grant a further extension of a moratorium period
if the effect would be to extend the period by more than 186 days (in
total) beginning with the day after the end of the 31 day period
mentioned in section 335(6) or (as the case may be) section 336(8).

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(7) Subsections (1) to (4) apply to any further extension of a moratorium
period as they apply to the first extension of the period under this
section.

336B Proceedings under section 336A: supplementary

(1) 5This section applies to proceedings on an application under section
336A.

(2) The court may exclude from any part of the hearing—

(a) an interested person;

(b) anyone representing that person.

(3) 10The person who made the application may apply to the court for an
order that specified information upon which he or she intends to rely
be withheld from—

(a) an interested person;

(b) anyone representing that person.

(4) 15The court may make such an order only if satisfied that there are
reasonable grounds to believe that if the specified information were
disclosed—

(a) evidence of an offence would be interfered with or harmed,

(b) the gathering of information about the possible commission of
20an offence would be interfered with,

(c) a person would be interfered with or physically injured,

(d) the recovery of property under this Act would be hindered, or

(e) national security would be put at risk.

(5) The court must direct that the following be excluded from the hearing
25of an application under subsection (3)

(a) the interested person to whom that application relates;

(b) anyone representing that person.

(6) Subject to this section, rules of court may make provision as to the
practice and procedure to be followed in connection with proceedings
30in relation to applications under section 336A.

(7) An appeal against a decision of the sheriff on an application under
section 336A may be made to the Sheriff Appeal Court.

(8) The Sheriff Appeal Court may on such an appeal make any order that
it considers appropriate.

336C 35Sections 336A and 336B: interpretation

(1) This section provides for the meaning of terms used in sections 336A
and 336B (and in this section).

(2) “The court” means—

(a) in relation to England and Wales or Northern Ireland, the
40Crown Court;

(b) in relation to Scotland, the sheriff.

(3) “Interested person” means—

(a) the person who made the relevant disclosure, and

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(b) any other person who appears to the person making the
application under section 336A to have an interest in the
relevant property.

(4) “Moratorium period” means the period of 31 days mentioned in section
5335(6) or (as the case may be) section 336(8), or any such period as
extended or further extended by virtue of an order under section 336A.

(5) “Relevant disclosure” means—

(a) where the application under section 336A relates to the
moratorium period mentioned in section 335(6), the authorised
10disclosure mentioned in section 335(2)(a);

(b) where the application under section 336A relates to the
moratorium period mentioned in section 336(8), the disclosure
mentioned in section 336(4)(a).

(6) “Relevant property” means any property that would be the subject of
15the prohibited act (within the meaning of section 335(8) or (as the case
may be) section 336(10)) in relation to which the moratorium period in
question applies.

(7) In the case of an application to the Crown Court, “senior officer”
means—

(a) 20the Director General of the National Crime Agency,

(b) any other National Crime Agency officer authorised by the
Director General (whether generally or specifically) for this
purpose,

(c) a police officer of at least the rank of inspector,

(d) 25an officer of Revenue and Customs who is not below such grade
as is designated by the Commissioners for Her Majesty’s
Revenue and Customs as equivalent to that rank,

(e) a member of staff of the Financial Conduct Authority who is not
below such grade as is designated by the Treasury for the
30purposes of this Part,

(f) the Director of the Serious Fraud Office (or a member of staff of
that Office authorised for the purposes of that section by virtue
of section 2C(2)), or

(g) an accredited financial investigator who falls within a
35description specified in an order made for the purposes of
section 336A by the Secretary of State under section 453.

(8) In the case of an application to the sheriff, “senior officer” means—

(a) a procurator fiscal,

(b) the Director General of the National Crime Agency,

(c) 40any other National Crime Agency officer authorised by the
Director General (whether generally or specifically) for this
purpose,

(d) a police officer of at least the rank of inspector,

(e) an officer of Revenue and Customs who is not below such grade
45as is designated by the Commissioners for Her Majesty’s
Revenue and Customs as equivalent to that rank, or

(f) the Scottish Ministers.”