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1

 

House of Commons

 
 

Tuesday 21 February 2017

 

Consideration of Bill (Report Stage)

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Criminal Finances Bill, As Amended


 

Note

 

This document includes all amendments tabled to date and includes any

 

withdrawn amendments at the end. The amendments have been arranged in the

 

order in which they relate to the Bill.

 


 

New Clauses

 

Secretary Amber Rudd

 

NC7

 

To move the following Clause—

 

         

“Unlawful conduct: gross human rights abuses or violations

 

(1)    

Part 5 of the Proceeds of Crime Act 2002 (civil recovery of the proceeds etc of

 

unlawful conduct) is amended as follows.

 

(2)    

In section 241 (meaning of “unlawful conduct”), after subsection (2) insert—

 

“(2A)    

Conduct which—

 

(a)    

occurs in a country or territory outside the United Kingdom,

 

(b)    

constitutes, or is connected with, the commission of a gross

 

human rights abuse or violation (see section 241A), and

 

(c)    

if it occurred in a part of the United Kingdom, would be an

 

offence triable under the criminal law of that part on indictment

 

only or either on indictment or summarily,

 

    

is also unlawful conduct.”

 

(3)    

After that section insert—

 

“241A

“Gross human rights abuse or violation”

 

(1)    

Conduct constitutes the commission of a gross human rights abuse or

 

violation if each of the following three conditions is met.


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

(2)    

The first condition is that—

 

(a)    

the conduct constitutes the torture of a person who has sought—

 

(i)    

to expose illegal activity carried out by a public official

 

or a person acting in an official capacity, or

 

(ii)    

to obtain, exercise, defend or promote human rights and

 

fundamental freedoms, or

 

(b)    

the conduct otherwise involves the cruel, inhuman or degrading

 

treatment or punishment of such a person.

 

(3)    

The second condition is that the conduct is carried out in consequence of

 

that person having sought to do anything falling within subsection

 

(2)(a)(i) or (ii).

 

(4)    

The third condition is that the conduct is carried out—

 

(a)    

by a public official, or a person acting in an official capacity, in

 

the performance or purported performance of his or her official

 

duties, or

 

(b)    

by a person not falling within paragraph (a) at the instigation or

 

with the consent or acquiescence—

 

(i)    

of a public official, or

 

(ii)    

of a person acting in an official capacity,

 

    

who in instigating the conduct, or in consenting to or acquiescing

 

in it, is acting in the performance or purported performance of his

 

or her official duties.

 

(5)    

Conduct is connected with the commission of a gross human rights abuse

 

or violation if it is conduct by a person that involves—

 

(a)    

acting as an agent for another in connection with activities

 

relating to conduct constituting the commission of a gross human

 

rights abuse or violation,

 

(b)    

directing, or sponsoring, such activities,

 

(c)    

profiting from such activities, or

 

(d)    

materially assisting such activities.

 

(6)    

Conduct that involves the intentional infliction of severe pain or suffering

 

on another person is conduct that constitutes torture for the purposes of

 

subsection (2)(a).

 

(7)    

It is immaterial whether the pain or suffering is physical or mental and

 

whether it is caused by an act or omission.

 

(8)    

The cases in which a person materially assists activities for the purposes

 

of subsection (5)(d) include those where the person—

 

(a)    

provides goods or services in support of the carrying out of the

 

activities, or

 

(b)    

otherwise provides any financial or technological support in

 

connection with their carrying out.”

 

(4)    

The amendments made by this section—

 

(a)    

apply in relation to conduct, so far as that conduct constitutes or is

 

connected with the torture of a person (see section 241A(2)(a) of the

 

Proceeds of Crime Act 2002 as inserted by subsection (3) above),

 

whether the conduct occurs before or after the coming into force of this

 

section;

 

(b)    

apply in relation to property obtained through such conduct whether the

 

property is obtained before or after the coming into force of this section;


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

(c)    

apply in relation to conduct, so far as that conduct involves or is

 

connected with the cruel, inhuman or degrading treatment or punishment

 

of a person (see section 241A(2)(b) of that Act as inserted by subsection

 

(3) above), only if the conduct occurs after the coming into force of this

 

section.

 

    

This is subject to subsection (5).

 

(5)    

Proceedings under Chapter 2 of Part 5 of the Proceeds of Crime Act 2002 may

 

not be brought in respect of property obtained through unlawful conduct of the

 

kind mentioned in section 241(2A) of the Proceeds of Crime Act 2002 (as

 

inserted by subsection (2) above) after the end of the period of 20 years from the

 

date on which the conduct constituting the commission of the gross human rights

 

abuse or violation concerned occurs.

 

(6)    

Proceedings under that Chapter are brought in England and Wales or Northern

 

Ireland when—

 

(a)    

a claim form is issued,

 

(b)    

an application is made for a property freezing order under section 245A

 

of that Act, or

 

(c)    

an application is made for an interim receiving order under section 246

 

of that Act,

 

    

whichever is the earliest.

 

(7)    

Proceedings under that Chapter are brought in Scotland when—

 

(a)    

the proceedings are served,

 

(b)    

an application is made for a prohibitory property order under section

 

255A of that Act, or

 

(c)    

an application is made for an interim administration order under section

 

256 of that Act,

 

    

whichever is the earliest.”

 

Member’s explanatory statement

 

This new clause extends the meaning of “unlawful conduct” for the purposes of Part 5 of the

 

Proceeds of Crime Act 2002, so that it includes conduct in other countries that constitutes the gross

 

human rights abuse or violation of a person who has sought to expose illegal activity of a public

 

official or person acting in an official capacity, or to promote etc human rights. Part 5 confers civil

 

recovery powers in relation to property that has been obtained through unlawful conduct.

 


 

Secretary Amber Rudd

 

NC8

 

To move the following Clause—

 

         

“Her Majesty’s Revenue and Customs: removal of restrictions

 

(1)    

The following provisions, which impose restrictions on the exercise of certain

 

powers conferred on officers of Revenue and Customs, are amended as follows.

 

(2)    

In section 23A of the Criminal Law (Consolidation) (Scotland) Act 1995

 

(investigation of offences by Her Majesty’s Revenue and Customs), omit the

 

following—

 

(a)    

in subsection (2), the words “Subject to subsection (3) below,” and the

 

words from “other than” to the end of the subsection;

 

(b)    

subsection (3).


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

(3)    

In section 307 of the Criminal Procedure (Scotland) Act 1995 (interpretation),

 

omit the following—

 

(a)    

in subsection (1), in paragraph (ba) of the definition of “officer of law”,

 

the words “subject to subsection (1A) below,”;

 

(b)    

subsection (1A).

 

(4)    

In the Proceeds of Crime Act 2002 omit the following—

 

(a)    

in section 289 (searches), subsections (5)(ba) and (5A);

 

(b)    

in section 294 (seizure of cash), subsections (2A), (2B) and (2C);

 

(c)    

section 375C (restriction on exercise of certain powers conferred on

 

officers of Revenue and Customs);

 

(d)    

section 408C (restriction on exercise of certain powers conferred on

 

officers of Revenue and Customs).

 

(5)    

In the Finance Act 2007, in section 84 (sections 82 and 83: supplementary), omit

 

subsection (3).”

 

Member’s explanatory statement

 

This new clause, together with amendments 20, 25 and 28, removes restrictions on the exercise of

 

certain powers by HMRC officers. The restrictions prevented the powers being exercised in

 

relation to certain former Inland Revenue functions.

 


 

Dominic Raab

 

Dame Margaret Hodge

 

Tom Brake

 

Mr Douglas Carswell

 

Ian Blackford

 

Caroline Lucas

Mr Andrew Mitchell

Mr Dominic Grieve

Dr Sarah Wollaston

Mr Jonathan Djanogly

Tim Loughton

Mr Jacob Rees-Mogg

James Gray

Bob Stewart

Sir Edward Garnier

Ms Harriet Harman

Margaret Beckett

Chris Bryant

Catherine McKinnell

Caroline Flint

Rachel Reeves

Mr Ben Bradshaw

Rushanara Ali

Mr David Lammy

Ms Margaret Ritchie

Mark Durkan

Sammy Wilson

Fiona Mactaggart

Mr George Howarth

Ian Austin

Ms Karen Buck

Ann Coffey

Ms Angela Eagle

Neil Gray

Drew Hendry

Calum Kerr

Dr Eilidh Whiteford

Brendan O’Hara

Stephen Gethins

Ms Tasmina Ahmed-Sheikh

Hannah Bardell

Joanna Cherry

John Nicolson

Douglas Chapman

Chris Stephens

Patrick Grady

Charlie Elphicke

Mr Nigel Dodds

Sir Jeffrey Donaldson

Richard Benyon

 

NC1

 

To move the following Clause—

 

         

“Civil recovery: gross abuse of human rights

 

(1)    

Part 5 of the Proceeds of Crime Act 2002 (civil recovery of the proceeds etc. of

 

unlawful conduct) is amended as follows.


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

(2)    

In section 241 (which defines unlawful conduct), after subsection (2), insert—

 

“(2A)    

Conduct which—

 

(a)    

occurs in a country or territory outside the United Kingdom and

 

has been designated as conduct by a person connected to a gross

 

human rights abuse in accordance with the provisions of section

 

241B, and

 

(b)    

if it occurred in a part of the United Kingdom, would be or would

 

have been unlawful under the criminal law of that part at the

 

relevant time,

 

    

is also unlawful conduct.”

 

(3)    

After section 241 (which defines unlawful conduct), insert—

 

“241A

  Conduct connected to a gross human rights abuse

 

(1)    

“Conduct connected to a gross human rights abuse” means—

 

(a)    

involvement by a Person (“A”) in torture or other serious

 

breaches of human rights and fundamental freedoms against a

 

Person (“B”) where B sought or seeks—

 

(i)    

to expose illegal activity carried out by foreign public

 

officials, or

 

(ii)    

to obtain, exercise, defend or promote human rights and

 

fundamental freedoms,

 

(b)    

activities by a Person (“C”) as an agent in a matter relating to an

 

activity by A described in paragraph (a),

 

(c)    

activities by a Person (“D”) to profit from, materially assist,

 

sponsor, or provide financial, material or technological support

 

for, or goods and services in support of, an activity by A

 

described in paragraph (a),

 

(d)    

commission by a Person (“E”), whether or not a foreign public

 

official, of the illegal activity described in paragraph (a)(i).

 

(2)    

For the purposes of this section, it is immaterial where the conduct

 

occurred.

 

(3)    

In this section “human rights and fundamental freedoms” means the

 

“Convention rights” as defined in section 1 of the Human Rights Act

 

1998.

 

241B  

  Designation of conduct connected to a gross human rights abuse

 

(1)    

The High Court may make an order designating that the actions of the

 

respondent constitute conduct connected to a gross human rights abuse

 

and, if considered appropriate, that—

 

(a)    

a person is prohibited from dealing with property, funds or

 

economic resources owned, held or controlled by the respondent

 

if the person knows, or has reasonable cause to suspect, that the

 

person is dealing with such property, funds or economic

 

resources,

 

(b)    

a person is prohibited from making property, funds or financial

 

services available (directly or indirectly) to the respondent if the

 

person knows, or has reasonable cause to suspect that the person

 

is making the funds or financial services so available,

 

(c)    

a person is prohibited from making funds or financial services

 

available to any person for the benefit of the respondent if the


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

person knows, or has reasonable cause to suspect, that the person

 

is making the funds or financial services so available.

 

(2)    

An order under subsection (1) may only be made on application.

 

(3)    

An application for an order under subsection (1) may be made by—

 

(a)    

the Secretary of State,

 

(b)    

an individual, or

 

(c)    

an entity, including a non-governmental organisation.

 

(4)    

An application for an order under subsection (1) must be supported by a

 

statement of information which addresses—

 

(a)    

the circumstances surrounding the respondent’s conduct

 

connected to a gross human rights abuse, and

 

(b)    

the nature and extent of the respondent’s involvement.

 

(5)    

An application for an order under subsection (1) may be made without

 

notice to the respondent to a judge in chambers.

 

(6)    

The Court must be satisfied that it is in the public interest to make an

 

order under subsection (1).

 

(7)    

The Court shall reach a decision on an order under subsection (1) on the

 

balance of probabilities.

 

241C  

  Duration, extension, variation and discharge of an order

 

(1)    

The High Court shall specify the duration of an order under section

 

241B(1) which shall not exceed two years.

 

(2)    

In determining the duration of an order, the Court shall have regard to the

 

likely duration of consequential proceedings under this Part.

 

(3)    

The Court may extend an order for a maximum period to two years at any

 

time before it expires, if it is satisfied that the requirements of a

 

designation order continue to be met.

 

(4)    

An extension application may be made without the need for a hearing if

 

the court considers it appropriate.

 

(5)    

An application to extend, vary or discharge an order may be made to the

 

court by—

 

(a)    

the Secretary of State,

 

(b)    

the applicant,

 

(c)    

the respondent, or

 

(d)    

any person affected by the order.

 

(6)    

An application to discharge a designation order must be made by the

 

applicant as soon as reasonably practicable in circumstances where the

 

requirements of an order are no longer satisfied.

 

241D  

  Appeals, etc.

 

(1)    

The following persons may appeal to the Court of Appeal in respect of

 

the High Court’s decision on matters falling to be decided under sections

 

241B and 241C—

 

(a)    

the applicant,

 

(b)    

the respondent, or

 

(c)    

any person affected by the order.


 
 

Consideration of Bill (Report Stage): 21 February 2017      

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Criminal Finances Bill, continued

 
 

(2)    

On an appeal under subsection (1) the Court of Appeal may—

 

(a)    

confirm the decision, or

 

(b)    

make such orders as it believes appropriate.

 

(3)    

An appeal lies to the Supreme Court from a decision of the Court of

 

Appeal on an appeal under this section.

 

(4)    

An appeal under this section lies at the instance of any person who was a

 

party to the proceedings before the Court of Appeal.

 

(5)    

On an appeal under this section the Supreme Court may—

 

(a)    

confirm the decision of the Court of Appeal, or

 

(b)    

make such order as it believes is appropriate.

 

241E  

  Standard to be applied

 

All matters to be determined by a court under sections 241B to 241D are

 

to be decided on the balance of probabilities.

 

241F  

  Costs

 

In the exercise of its discretion, a court may, on application, make a costs

 

capping order in respect of proceedings under sections 241B to 241D.

 

241G  

  Duties in respect of gross abuse of human rights

 

(1)    

It shall be the duty of the Secretary of State to apply for an order under

 

section 241B where the Secretary of State is satisfied that—

 

(a)    

the requirements for the making of an order are met; and

 

(b)    

it is in the public interest to make the application.

 

(2)    

It shall be the duty of the Secretary of State to maintain a public register

 

of—

 

(a)    

individuals in respect of whom orders have been made under

 

section 241B(1),

 

(b)    

the circumstances giving rise to the making of such orders, and

 

(c)    

any decisions of a court under sections 241C and 241D in

 

relation to such orders.

 

(3)    

In any case where a relevant authority considers that evidence is available

 

of property being held by a person in respect of whom an order has been

 

made under section 241B which may represent property obtained

 

through unlawful conduct, it shall be the duty of the relevant authority to

 

seek to initiate proceedings for civil recovery under this Part.”

 

(4)    

In section 304 (which defines recoverable property), after subsection (1), insert—

 

“(1A)    

Property of a person who is the subject of a designation order under

 

section 241B is presumed to have been obtained through unlawful

 

conduct unless the contrary is shown by the respondent.””

 

Member’s explanatory statement

 

This new clause extends the scope of unlawful conduct for the purposes of Part 5 of the Proceeds

 

of Crime Act 2002 to cover to certain actions connected to a gross human rights abuse which has

 

taken place abroad.

 



 
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Revised 20 February 2017