Criminal Finances Bill (HC Bill 75)

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10 Sharing of information within the regulated sector

After section 339ZA of the Proceeds of Crime Act 2002 insert—

339ZB Disclosures within the regulated sector

(1) A person (A) may disclose information to one or more other persons if
5conditions 1 to 4 are met.

(2) Condition 1 is that—

(a) A is carrying on a business in the regulated sector as a relevant
undertaking,

(b) the information on which the disclosure is based came to A in
10the course of carrying on that business, and

(c) the person to whom the information is to be disclosed (or each
of them, where the disclosure is to more than one person) is also
carrying on a business in the regulated sector as a relevant
undertaking (whether or not of the same kind as A).

(3) 15Condition 2 is that—

(a) an NCA authorised officer has requested A to make the
disclosure, or

(b) the person to whom the information is to be disclosed (or at
least one of them, where the disclosure is to more than one
20person) has requested A to do so.

(4) Condition 3 is that, before A makes the disclosure, the required
notification has been made to an NCA authorised officer (see section
339ZC(3) to (5)).

(5) Condition 4 is that A is satisfied that the disclosure of the information
25will or may assist in determining any matter in connection with a
suspicion that a person is engaged in money laundering.

(6) A person may disclose information to A for the purposes of making a
disclosure request if, and to the extent that, the person has reason to
believe that A has in A’s possession information that will or may assist
30in determining any matter in connection with a suspicion that a person
is engaged in money laundering.

339ZC Section 339ZB: disclosure requests and required notifications

(1) A disclosure request must—

(a) state that it is made in connection with a suspicion that a person
35is engaged in money laundering,

(b) identify the person (if known),

(c) describe the information that is sought from A, and

(d) specify the person or persons to whom it is requested that the
information is disclosed.

(2) 40Where the disclosure request is made by a person mentioned in section
339ZB(3)(b), the request must also—

(a) set out the grounds for the suspicion that a person is engaged in
money laundering, or

(b) provide such other information as the person making the
45request thinks appropriate for the purposes of enabling A to

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determine whether the information requested ought to be
disclosed under section 339ZB(1).

(3) A required notification must be made—

(a) in the case of a disclosure request made by an NCA authorised
5officer, by the person who is to disclose information under
section 339ZB(1) as a result of the request;

(b) in the case of a disclosure request made by a person mentioned
in section 339ZB(3)(b), by the person who made the request.

(4) In a case within subsection (3)(a), the required notification must state
10that information is to be disclosed under section 339ZB(1).

(5) In a case within subsection (3)(b), the required notification must—

(a) state that a disclosure request has been made,

(b) specify the person to whom the request was made,

(c) identify any person (if known) suspected of being engaged in
15money laundering in connection with whom the request was
made, and

(d) provide all such other information that the person giving the
notification would be required to give if making the required
disclosure for the purposes of section 330 (see in particular
20subsection (5)(b) and (c) of that section).

339ZD Section 339ZB: effect on required disclosures under section 330 or 331

(1) This section applies if in any proceedings a question arises as to
whether the required disclosure has been made for the purposes of
section 330(4) or 331(4)—

(a) 25by a person (A) who discloses information under section
339ZB(1) as a result of a disclosure request,

(b) by a person (B) who makes a required notification in accordance
with section 339ZC(3)(b) in connection with that request, or

(c) by any other person (C) to whom A discloses information under
30section 339ZB(1) as a result of that request.

(2) The making of a required notification in good faith is to be treated as
satisfying any requirement to make the required disclosure on the part
of A, B and C.

This is subject to section 339ZE(1) to (8).

(3) 35The making of a joint disclosure report in good faith is to be treated as
satisfying any requirement to make the required disclosure on the part
of the persons who jointly make the report.

This is subject to section 339ZE(10).

(4) A joint disclosure report is a report to an NCA authorised officer that—

(a) 40is made jointly by A and B (whether or not also jointly with
other persons to whom A discloses information under section
339ZB(1)),

(b) satisfies the requirements as to content mentioned in subsection
(5),

(c) 45is prepared after the making of a disclosure by A to B under
section 339ZB(1) in connection with a suspicion of a person’s
engagement in money laundering, and

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(d) is sent to the NCA authorised officer before the end of the
applicable period.

(5) The requirements as to content are that the report must—

(a) explain the extent to which there are continuing grounds to
5suspect that the person mentioned in subsection (4)(c) is
engaged in money laundering,

(b) identify the person (if known),

(c) set out the grounds for the suspicion, and

(d) provide any other information relevant to the matter.

(6) 10The applicable period is—

(a) in a case where the disclosure under section 339ZB was made as
a result of a disclosure request from an NCA authorised officer
by virtue of subsection (3)(a) of that section, whatever period
may be specified by the officer when making the request;

(b) 15in a case where the disclosure was made as a result of a
disclosure request from another person by virtue of subsection
(3)(b) of that section, the period of 28 days beginning with the
day on which a required notification is made in connection with
the request.

(7) 20A joint disclosure report must be—

(a) approved by the nominated officer of each person that jointly
makes the report, and

(b) signed by the nominated officer on behalf of each such person.

If there is no nominated officer the report must be approved and signed
25by another senior officer.

(8) References in this section to A, B or C include—

(a) a nominated officer acting on behalf of A, B or C, and

(b) any other person who is an employee, officer or partner of A, B
or C.

339ZE 30 Limitations on application of section 339ZD(2) and (3)

(1) Subsections (2) and (3) apply in a case where the required notification
is made by A (notification made as a result of disclosure request
received from NCA authorised officer).

(2) Section 339ZD(2) has effect in the case of A, B or C only so far as relating
35to—

(a) the suspicion in connection with which the required notification
is made, and

(b) matters known, suspected or believed as a result of the making
of the disclosure request concerned.

(3) 40Accordingly, section 339ZD(2) does not remove any requirement to
make the required disclosure in relation to anything known, suspected
or believed that does not result only from the making of the disclosure
request.

(4) Subsections (5) to (7) apply in a case where the required notification is
45made by B (notification made as a result of disclosure request received
from another undertaking in the regulated sector).

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(5) Section 339ZD(2) has effect in the case of A or C only so far as relating
to—

(a) the suspicion in connection with which the notification by B is
made, and

(b) 5matters known, suspected or believed by A or C as a result of
the making of that notification.

(6) Accordingly, section 339ZD(2) does not remove any requirement to
make the required disclosure in relation to anything known, suspected
or believed that does not result only from the making of the
10notification.

(7) Section 339ZD(2) has effect in the case of B only so far as relating to—

(a) the suspicion in connection with which the notification is made,
and

(b) matters known, suspected or believed by B at the time of the
15making of the notification.

(8) If a joint disclosure report is not made before the end of the applicable
period (whether the required notification was made by A or B), section
339ZD(2)

(a) has effect only so far as relating to any requirement to make the
20required disclosure that would have otherwise arisen within
that period, and

(b) does not remove a requirement to make the required disclosure
so far as arising after the end of that period on the part of any
person in respect of matters that may become known, suspected
25or believed by the person after the time when the required
notification was made.

(9) If a joint disclosure report is not made before the end of the applicable
period, the person who made the required notification must notify an
NCA authorised officer that a report is not being made as soon as
30reasonably practicable after the period ends.

(10) Section 339ZD(3) has effect only so far as relating to—

(a) the suspicion in connection with which the report is made, and

(b) matters known, suspected or believed at the time of the making
of the report.

(11) 35Terms used in this section have the same meanings as in section 339ZD.

339ZF Section 339ZB: supplementary

(1) A relevant disclosure made in good faith does not breach—

(a) an obligation of confidence owed by the person making the
disclosure, or

(b) 40any other restriction on the disclosure of information,

however imposed.

(2) But a relevant disclosure may not include information obtained from a
UK law enforcement agency unless that agency consents to the
disclosure.

(3) 45In a case where a person is acting on behalf of another (“the
undertaking”) as a nominated officer—

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(a) a relevant disclosure by the undertaking must be made by the
nominated officer on behalf of the undertaking, and

(b) a relevant disclosure to the undertaking must be made to that
officer.

(4) 5In this section—

  • “relevant disclosure” means any disclosure made under section
    339ZB;

  • UK law enforcement agency” means—

    (a)

    the National Crime Agency;

    (b)

    10a police force in England, Scotland, Northern Ireland or
    Wales;

    (c)

    any other person operating in England, Scotland,
    Northern Ireland or Wales charged with the duty of
    preventing, detecting, investigating or prosecuting
    15offences.

339ZG Sections 339ZB to 339ZF: interpretation

(1) This section applies for the purposes of sections 339ZB to 339ZF.

(2) “Disclosure request” means a request made for the purposes of
condition 2 in section 339ZB(3).

(3) 20NCA authorised officer” means a person authorised for the purposes
of this Part by the Director General of the National Crime Agency.

(4) “Nominated officer” means a person nominated to receive disclosures
under section 330.

(5) “Relevant undertaking” means any of the following—

(a) 25a credit institution;

(b) a financial institution;

(c) a professional legal adviser;

(d) a relevant professional adviser;

(e) other persons (not within paragraphs (a) to (d)) whose business
30consists of activities listed in paragraph 1(1) of Schedule 9.

(6) “Required disclosure” has the same meaning as in section 330(5) or (as
the case may be) section 331(5).

(7) “Required notification” means a notification made for the purposes of
condition 3 in section 339ZB(4).

(8) 35For the purposes of subsection (5)

(a) “credit institution” has the same meaning as in Schedule 9;

(b) “financial institution” means an undertaking that carries on a
business in the regulated sector by virtue of any of paragraphs
(b) to (i) of paragraph 1(1) of that Schedule;

(c) 40“relevant professional adviser” has the meaning given by
section 333E(5).

(9) Schedule 9 has effect for determining what is a business in the
regulated sector.”

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11 Further information notices and orders

After section 339ZG of the Proceeds of Crime Act 2002 (inserted by section 10
above) insert—

“Further information notices and orders
339ZH 5 Further information notices: disclosures under this Part

(1) This section applies where a person makes a disclosure under this Part
to a constable, an officer of Revenue and Customs or an NCA
authorised officer.

(2) An NCA authorised officer may give a further information notice
10under this section to—

(a) the person who made the disclosure, or

(b) any other person carrying on a business in the regulated sector.

(3) A further information notice under this section is a notice directing the
person to whom it is given to provide to the NCA authorised officer
15further information in relation to anything contained in the disclosure.

(4) A further information notice must be given in writing.

(5) A further information notice must—

(a) specify or describe the further information that is to be
provided,

(b) 20specify how the further information is to be provided,

(c) specify a date by which it is to be provided, and

(d) explain that failure to comply with the notice may result in the
making of a further information order.

(6) In this section “NCA authorised officer” means a person authorised for
25the purposes of this Part by the Director General of the National Crime
Agency.

(7) For the purposes of this section and section 339ZI, Schedule 9 has effect
for determining what is a business in the regulated sector.

339ZI Further information notices: disclosures under foreign law

(1) 30This section applies where the National Crime Agency receives an
external request asking for further information to be provided in
connection with a disclosure made under a corresponding disclosure
requirement.

(2) An external request is a request by an authority of a foreign country
35which has responsibility in that country for carrying out investigations
into whether a corresponding money laundering offence has been
committed.

(3) An NCA authorised officer may give a further information notice
under this section to a person carrying on a business in the regulated
40sector.

(4) But a further information notice under this section may be given only if
the NCA authorised officer is satisfied that there are reasonable
grounds to believe that—

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(a) the information that is the subject of the external request relates
to a disclosure made under a corresponding disclosure
requirement,

(b) the person to whom the notice is to be given is in possession of
5all or part of the information, and

(c) the information is likely to be of substantial value to the
authority that made the request in determining any matter in
connection with the disclosure.

(5) A further information notice under this section is a notice directing the
10person to whom it is given to provide to the NCA authorised officer all
or part of the further information that was the subject of the external
request concerned.

(6) A further information notice under this section must be given in
writing.

(7) 15A further information notice under this section must—

(a) specify or describe the further information that is to be
provided,

(b) specify how the further information is to be provided,

(c) specify a date by which it is to be provided, and

(d) 20explain that failure to comply with the notice may result in the
making of a further information order.

(8) In this section—

  • “corresponding disclosure requirement” means a requirement to
    make a disclosure under the law of the foreign country
    25concerned that corresponds to a requirement imposed by virtue
    of this Part;

  • “corresponding money laundering offence” means an offence
    under the law of the foreign country concerned that would, if
    done in the United Kingdom, constitute an offence specified in
    30paragraph (a), (b) or (c) of section 340(11);

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

  • NCA authorised officer” means a person authorised for the
    purposes of this Part by the Director General of the National
    35Crime Agency.

339ZJ Further information orders

(1) A magistrates’ court or (in Scotland) the sheriff must, on an application
made by a relevant person, make a further information order if satisfied
that the requirements for making the order are met (see subsection (5)
40or (as the case may be) subsection (6)).

(2) A further information order is an order requiring a person to whom a
further information notice has been given under section 339ZH or
339ZI to provide—

(a) the further information specified or described in the notice, or

(b) 45such other information as the court or sheriff making the order
thinks appropriate.

(3) The order must specify—

(a) how the further information is to be provided, and

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(b) the date by which it is to be provided.

(4) An application for a further information order may not be made before
the end of—

(a) the date specified in the further information notice as the date
5by which the further information referred to in the notice is to
be provided, or

(b) if later, 7 working days beginning with the first working day
after the day on which the notice is given.

(5) The requirements for making a further information order, where the
10further information notice to which the order relates was given under
section 339ZH, are that—

(a) the further information required to be given under the order
would relate to a matter arising from a disclosure made under
this Part,

(b) 15the further information would assist in investigating whether a
person is engaged in money laundering or in determining
whether an investigation of that kind should be started,

(c) the person to whom the further information notice was given
has failed to comply with it by the later of the times mentioned
20in subsection (4), and

(d) it is reasonable in all the circumstances for the further
information required under the order to be provided.

(6) The requirements for making a further information order, where the
further information notice to which the order relates was given under
25section 339ZI, are that—

(a) the court or sheriff is satisfied that there are reasonable grounds
to believe the matters mentioned in section 339ZI(4)(a) to (c),

(b) the person to whom the notice was given has failed to comply
with it by the later of the times mentioned in subsection (4), and

(c) 30it is reasonable in all the circumstances for the further
information required under the order to be provided.

(7) If a person fails to comply with a further information order the
magistrates’ court or (as the case may be) the sheriff may order the
person to pay an amount not exceeding £5,000.

(8) 35In the case of an order made by a magistrates’ court, the sum
mentioned in subsection (7) is to be treated as adjudged to be paid by a
conviction of the court for the purposes of the Magistrates’ Courts Act
1980 or (as the case may be) the Magistrates’ Courts (Northern Ireland)
Order 1981 (S.I. 1981/1675 (N.I. 26)S.I. 1981/1675 (N.I. 26)).

(9) 40In order to take account of changes in the value of money the Secretary
of State may by regulations substitute another sum for the sum for the
time being specified in subsection (7).

(10) In this section—

  • “relevant person” means—

    (a)

    45in the case of an application to a magistrates’ court, a
    senior National Crime Agency officer, or

    (b)

    in the case of an application to the sheriff—

    (i)

    a procurator fiscal,

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    (ii)

    a senior National Crime Agency officer, or

    (iii)

    the Scottish Ministers;

  • “senior National Crime Agency officer” means—

    (a)

    the Director General of the National Crime Agency, or

    (b)

    5any other National Crime Agency officer authorised by
    the Director General (whether generally or specifically)
    for this purpose;

  • “working day” means a day other than—

    (a)

    a Saturday,

    (b)

    10a Sunday,

    (c)

    Christmas Day,

    (d)

    Good Friday, or

    (e)

    a day which is a bank holiday under the Banking and
    Financial Dealings Act 1971 in the part of the United
    15Kingdom in which the person is when the further
    information notice concerned is given.

339ZK Statements

(1) A statement made by a person in response to a further information
notice, or a further information order, may not be used in evidence
20against the person in criminal proceedings.

(2) Subsection (1) does not apply—

(a) in the case of proceedings under this Part,

(b) on a prosecution for perjury, or

(c) on a prosecution for some other offence where, in giving
25evidence, the person makes a statement inconsistent with the
statement mentioned in subsection (1).

(3) A statement may not be used by virtue of subsection (2)(c) unless—

(a) evidence relating to it is adduced, or

(b) a question relating to it is asked,

30by or on behalf of the person in the proceedings arising out of the
prosecution.

(4) In subsection (2)(b) the reference to a prosecution for perjury is—

(a) in the case of England and Wales, a reference to a prosecution
for an offence under section 5 of the Perjury Act 1911;

(b) 35in the case of Northern Ireland, a reference to a prosecution for
an offence under Article 10 of the Perjury (Northern Ireland)
Order 1979 (S.I. 1979/1714 (N.I. 19)S.I. 1979/1714 (N.I. 19)).

339ZL Appeals

(1) An appeal from a decision on an application for a further information
40order lies to the relevant appeal court.

(2) An appeal under this section lies at the instance of any person who was
a party to the proceedings on the application.

(3) The “relevant appeal court” is—

(a) the Crown Court, in the case of a decision made by a
45magistrates’ court in England and Wales;

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(b) a county court, in the case of a decision made by a magistrates’
court in Northern Ireland;

(c) the Sheriff Appeal Court, in the case of a decision made by the
sheriff.

(4) 5On an appeal under this section the relevant appeal court may—

(a) make or (as the case may be) discharge a further information
order, or

(b) vary the order.

339ZM Supplementary

(1) 10A further information order does not confer the right to require a
person to provide privileged information.

(2) “Privileged information” is information which a person would be
entitled to refuse to provide on grounds of legal professional privilege
in proceedings in the High Court or, in Scotland, legal privilege as
15defined by section 412.

(3) Information provided in pursuance of a further information notice, or
a further information order, is not to be taken to breach any restriction
on the disclosure of information (however imposed).

(4) An application for a further information order may be heard and
20determined in private.

(5) Rules of court may make provision as to the practice and procedure to
be followed in connection with proceedings relating to further
information orders.”

CHAPTER 3 Civil recovery

12 25Forfeiture of certain personal (or moveable) property

In Part 5 of the Proceeds of Crime Act 2002 (civil recovery of the proceeds etc
of unlawful conduct), after section 303A insert—

“Chapter 3A

Recovery of Listed Assets in Summary Proceedings

Definition of listed asset
303B “Listed asset”

(1) 30In this Chapter, a “listed asset” means an item of property that falls
within one of the following descriptions of property—

(a) precious metals;

(b) precious stones;

(c) watches;

(d) 35artistic works;

(e) face-value vouchers;