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Serious Organised Crime and Police Bill


Serious Organised Crime and Police Bill
Part 2 — Investigations, prosecutions, proceedings and proceeds of crime
Chapter 6 — Proceeds of crime

66

 

(2)   

In section 330(1) (regulated sector: failure to disclose: offence committed if

three conditions satisfied), for “each of the following three conditions is

satisfied” substitute “the conditions in subsections (2) to (4) are satisfied”.

(3)   

For section 330(4) to (6) (the required disclosure) substitute—

“(3A)   

The third condition is—

5

(a)   

that he can identify the other person mentioned in subsection

(2) or the whereabouts of any of the laundered property, or

(b)   

that he believes, or it is reasonable to expect him to believe, that

the information or other matter mentioned in subsection (3) will

or may assist in identifying that other person or the

10

whereabouts of any of the laundered property.

(4)   

The fourth condition is that he does not make the required disclosure

to—

(a)   

a nominated officer, or

(b)   

a person authorised for the purposes of this Part by the Director

15

General of the Serious Organised Crime Agency,

   

as soon as is practicable after the information or other matter

mentioned in subsection (3) comes to him.

(5)   

The required disclosure is a disclosure of—

(a)   

the identity of the other person mentioned in subsection (2), if

20

he knows it,

(b)   

the whereabouts of the laundered property, so far as he knows

it, and

(c)   

the information or other matter mentioned in subsection (3).

(5A)   

The laundered property is the property forming the subject-matter of

25

the money laundering that he knows or suspects, or has reasonable

grounds for knowing or suspecting, that other person to be engaged in.

(6)   

But he does not commit an offence under this section if—

(a)   

he has a reasonable excuse for not making the required

disclosure,

30

(b)   

he is a professional legal adviser and—

(i)   

if he knows either of the things mentioned in subsection

(5)(a) and (b), he knows the thing because of information

or other matter that came to him in privileged

circumstances, or

35

(ii)   

the information or other matter mentioned in subsection

(3) came to him in privileged circumstances, or

(c)   

subsection (7) applies to him.”

(4)   

For section 331(4) to (6) (failure to disclose: nominated officers in the regulated

sector: the required disclosure) substitute—

40

“(3A)   

The third condition is—

(a)   

that he knows the identity of the other person mentioned in

subsection (2), or the whereabouts of any of the laundered

property, in consequence of a disclosure made under section

330,

45

 
 

Serious Organised Crime and Police Bill
Part 2 — Investigations, prosecutions, proceedings and proceeds of crime
Chapter 6 — Proceeds of crime

67

 

(b)   

that that other person, or the whereabouts of any of the

laundered property, can be identified from the information or

other matter mentioned in subsection (3), or

(c)   

that he believes, or it is reasonable to expect him to believe, that

the information or other matter will or may assist in identifying

5

that other person or the whereabouts of any of the laundered

property.

(4)   

The fourth condition is that he does not make the required disclosure

to a person authorised for the purposes of this Part by the Director

General of the Serious Organised Crime Agency as soon as is

10

practicable after the information or other matter mentioned in

subsection (3) comes to him.

(5)   

The required disclosure is a disclosure of—

(a)   

the identity of the other person mentioned in subsection (2), if

disclosed to him under section 330,

15

(b)   

the whereabouts of the laundered property, so far as disclosed

to him under section 330, and

(c)   

the information or other matter mentioned in subsection (3).

(5A)   

The laundered property is the property forming the subject-matter of

the money laundering that he knows or suspects, or has reasonable

20

grounds for knowing or suspecting, that other person to be engaged in.

(6)   

But he does not commit an offence under this section if he has a

reasonable excuse for not making the required disclosure.”

(5)   

In section 332(3) (failure to disclose: other nominated officers: the second

condition), for “section 337 or 338” substitute “the applicable section”.

25

(6)   

For section 332(4) to (6) (the required disclosure) substitute—

“(3A)   

The third condition is—

(a)   

that he knows the identity of the other person mentioned in

subsection (2), or the whereabouts of any of the laundered

property, in consequence of a disclosure made under the

30

applicable section,

(b)   

that that other person, or the whereabouts of any of the

laundered property, can be identified from the information or

other matter mentioned in subsection (3), or

(c)   

that he believes, or it is reasonable to expect him to believe, that

35

the information or other matter will or may assist in identifying

that other person or the whereabouts of any of the laundered

property.

(4)   

The fourth condition is that he does not make the required disclosure

to a person authorised for the purposes of this Part by the Director

40

General of the Serious Organised Crime Agency as soon as is

practicable after the information or other matter mentioned in

subsection (3) comes to him.

(5)   

The required disclosure is a disclosure of—

(a)   

the identity of the other person mentioned in subsection (2), if

45

disclosed to him under the applicable section,

(b)   

the whereabouts of the laundered property, so far as disclosed

to him under the applicable section, and

 
 

Serious Organised Crime and Police Bill
Part 2 — Investigations, prosecutions, proceedings and proceeds of crime
Chapter 6 — Proceeds of crime

68

 

(c)   

the information or other matter mentioned in subsection (3).

(5A)   

The laundered property is the property forming the subject-matter of

the money laundering that he knows or suspects that other person to be

engaged in.

(5B)   

The applicable section is section 337 or, as the case may be, section 338.

5

(6)   

But he does not commit an offence under this section if he has a

reasonable excuse for not making the required disclosure.”

(7)   

In section 337 (protected disclosures), after subsection (4) insert—

“(4A)   

Where a disclosure consists of a disclosure protected under subsection

(1) and a disclosure of either or both of—

10

(a)   

the identity of the other person mentioned in subsection (3), and

(b)   

the whereabouts of property forming the subject-matter of the

money laundering that the discloser knows or suspects, or has

reasonable grounds for knowing or suspecting, that other

person to be engaged in,

15

   

the disclosure of the thing mentioned in paragraph (a) or (b) (as well as

the disclosure protected under subsection (1)) is not to be taken to

breach any restriction on the disclosure of information (however

imposed).”

100     

Money laundering: form and manner of disclosures

20

(1)   

In the Proceeds of Crime Act 2002 (c. 29), Part 7 (money laundering) is

amended as follows.

(2)   

In each of sections 330(9)(b), 337(5)(b) and 338(5)(b) (disclosure to nominated

officer is ineffective if employer’s procedures not followed), omit “and in

accordance with the procedure established by the employer for the purpose”.

25

(3)   

In section 334 (penalties), after subsection (2) insert—

“(3)   

A person guilty of an offence under section 339(1A) is liable on

summary conviction to a fine not exceeding level 5 on the standard

scale.”

(4)   

In section 338(1) (authorised disclosures), omit paragraph (b) (disclosure must

30

be made in prescribed form and manner) but not the “and” at the end.

(5)   

In section 339 (form and manner of disclosures), for subsections (2) and (3)

substitute—

“(1A)   

A person commits an offence if he makes a disclosure under section

330, 331, 332 or 338 otherwise than in the form prescribed under

35

subsection (1) or otherwise than in the manner so prescribed.

(1B)   

But a person does not commit an offence under subsection (1A) if he

has a reasonable excuse for making the disclosure otherwise than in the

form prescribed under subsection (1) or (as the case may be) otherwise

than in the manner so prescribed.

40

(2)   

The power under subsection (1) to prescribe the form in which a

disclosure must be made includes power to provide for the form to

include a request to a person making a disclosure that the person

 
 

Serious Organised Crime and Police Bill
Part 2 — Investigations, prosecutions, proceedings and proceeds of crime
Chapter 6 — Proceeds of crime

69

 

provide information specified or described in the form if he has not

provided it in making the disclosure.

(3)   

Where under subsection (2) a request is included in a form prescribed

under subsection (1), the form must—

(a)   

state that there is no obligation to comply with the request, and

5

(b)   

explain the protection conferred by subsection (4) on a person

who complies with the request.”

101     

Money laundering: miscellaneous amendments

(1)   

In the Proceeds of Crime Act 2002 (c. 29), Part 7 (money laundering) is

amended as follows.

10

(2)   

In section 330 (regulated sector: failure to disclose), after subsection (9) insert—

“(9A)   

But a disclosure which satisfies paragraphs (a) and (b) of subsection (9)

is not to be taken as a disclosure to a nominated officer if the person

making the disclosure—

(a)   

is a professional legal adviser,

15

(b)   

makes it for the purpose of obtaining advice about making a

disclosure under this section, and

(c)   

does not intend it to be a disclosure under this section.”

(3)   

In section 337(5)(a) (disclosure to person nominated to receive disclosures

under section 337), after “disclosures under” insert “section 330 or”.

20

(4)   

In section 338(1)(c) (first or second condition must be satisfied for disclosure to

be authorised), for “or second” substitute “, second or third”.

(5)   

In section 338 (authorised disclosures), after subsection (2) insert—

“(2A)   

The second condition is that—

(a)   

the disclosure is made while the alleged offender is doing the

25

prohibited act,

(b)   

he began to do the act at a time when, because he did not then

know or suspect that the property constituted or represented a

person’s benefit from criminal conduct, the act was not a

prohibited act, and

30

(c)   

the disclosure is made on his own initiative and as soon as is

practicable after he first knows or suspects that the property

constitutes or represents a person’s benefit from criminal

conduct.”

(6)   

In section 338(3) (the second condition), for “second” substitute “third”.

35

102     

Money laundering offences

(1)   

The Proceeds of Crime Act 2002 is amended as follows.

(2)   

In section 364 (meaning of customer information) in subsection (5)—

(a)   

after paragraph (a) insert—

“(aa)   

constitutes an offence specified in section 415(1A) of this

40

Act,”;

(b)   

in paragraph (b) after “paragraph (a)” insert “or (aa)”.

 
 

Serious Organised Crime and Police Bill
Part 2 — Investigations, prosecutions, proceedings and proceeds of crime
Chapter 6 — Proceeds of crime

70

 

(3)   

In section 398 (meaning of customer information: Scotland) in subsection (5)—

(a)   

after paragraph (a) insert—

“(aa)   

constitutes an offence specified in section 415(1A) of this

Act,”;

(b)   

in paragraph (b) after “paragraph (a)” insert “or (aa)”.

5

(4)   

In section 415 (money laundering offences) after subsection (1) insert—

“(1A)   

Each of the following is a money laundering offence—

(a)   

an offence under section 93A, 93B or 93C of the Criminal Justice

Act 1988;

(b)   

an offence under section 49, 50 or 51 of the Drug Trafficking Act

10

1994;

(c)   

an offence under section 37 or 38 of the Criminal Law

(Consolidation) (Scotland) Act 1995;

(d)   

an offence under article 45, 46 or 47 of the Proceeds of Crime

(Northern Ireland) Order 1996.”

15

103     

International co-operation

(1)   

Part 11 of the Proceeds of Crime Act 2002 (c. 29) (co-operation) is amended as

follows.

(2)   

In section 444 (external requests and orders), for subsection (3)(a) (Order under

the section may include provision about the functions of the Secretary of State,

20

the Lord Advocate, the Scottish Ministers and the Director of the Assets

Recovery Agency) substitute—

“(a)   

provision about the functions of any of the listed persons in

relation to external requests and orders;”.

(3)   

In that section, after subsection (3) insert—

25

“(4)   

For the purposes of subsection (3)(a) “the listed persons” are—

(a)   

the Secretary of State;

(b)   

the Lord Advocate;

(c)   

the Scottish Ministers;

(d)   

the Director;

30

(e)   

the Director of Public Prosecutions;

(f)   

the Director of Public Prosecutions for Northern Ireland;

(g)   

the Director of the Serious Fraud Office; and

(h)   

the Director of Revenue and Customs Prosecutions.”

(4)   

In section 447(3) (meaning of “external investigation”), after paragraph (a)

35

insert—

“(aa)   

the extent or whereabouts of property obtained as a result of or

in connection with criminal conduct, or”.

 
 

Serious Organised Crime and Police Bill
Part 3 — Police powers etc.

71

 

Part 3

Police powers etc.

Powers of arrest

104     

Powers of arrest

(1)   

For section 24 of PACE (arrest without warrant for arrestable offences)

5

substitute—

“24     

Arrest without warrant: constables

(1)   

A constable may arrest without a warrant—

(a)   

anyone who is about to commit an offence;

(b)   

anyone who is in the act of committing an offence;

10

(c)   

anyone whom he has reasonable grounds for suspecting to be

about to commit an offence;

(d)   

anyone whom he has reasonable grounds for suspecting to be

committing an offence.

(2)   

If a constable has reasonable grounds for suspecting that an offence has

15

been committed, he may arrest without a warrant anyone whom he has

reasonable grounds to suspect of being guilty of it.

(3)   

If an offence has been committed, a constable may arrest without a

warrant—

(a)   

anyone who is guilty of the offence;

20

(b)   

anyone whom he has reasonable grounds for suspecting to be

guilty of it.

(4)   

But the power of summary arrest conferred by subsection (1), (2) or (3)

is exercisable only if the constable has reasonable grounds for believing

that for any of the reasons mentioned in subsection (5) it is necessary to

25

arrest the person in question.

(5)   

The reasons are—

(a)   

to enable the name of the person in question to be ascertained

(in the case where the constable does not know, and cannot

readily ascertain, the person’s name, or has reasonable grounds

30

for doubting whether a name given by the person as his name

is his real name);

(b)   

correspondingly as regards the person’s address;

(c)   

to prevent the person in question—

(i)   

causing physical injury to himself or any other person;

35

(ii)   

suffering physical injury;

(iii)   

causing loss of or damage to property;

(iv)   

committing an offence against public decency (subject to

subsection (6)); or

(v)   

causing an unlawful obstruction of the highway;

40

(d)   

to protect a child or other vulnerable person from the person in

question;

(e)   

to allow the prompt and effective investigation of the offence or

of the conduct of the person in question;

 
 

Serious Organised Crime and Police Bill
Part 3 — Police powers etc.

72

 

(f)   

to prevent any prosecution for the offence from being hindered

by the disappearance of the person in question.

(6)   

Subsection (5)(c)(iv) applies only where members of the public going

about their normal business cannot reasonably be expected to avoid the

person in question.

5

24A     

Arrest without warrant: other persons

(1)   

A person other than a constable may arrest without a warrant—

(a)   

anyone who is in the act of committing an offence;

(b)   

anyone whom he has reasonable grounds for suspecting to be

committing an offence.

10

(2)   

Where an offence has been committed, a person other than a constable

may arrest without a warrant—

(a)   

anyone who is guilty of the offence;

(b)   

anyone whom he has reasonable grounds for suspecting to be

guilty of it.

15

(3)   

But the power of summary arrest conferred by subsection (1) or (2) is

exercisable only if—

(a)   

the person making the arrest has reasonable grounds for

believing that for any of the reasons mentioned in subsection (4)

it is necessary to arrest the person in question; and

20

(b)   

it appears to the person making the arrest that it is not

reasonably practicable for a constable to make it instead.

(4)   

The reasons are to prevent the person in question—

(a)   

causing physical injury to himself or any other person;

(b)   

suffering physical injury;

25

(c)   

causing loss of or damage to property; or

(d)   

making off before a constable can assume responsibility for

him.”

(2)   

Section 25 of PACE (general arrest conditions) shall cease to have effect.

(3)   

In section 66 of PACE (codes of practice), in subsection (1)(a)—

30

(a)   

omit “or” at the end of sub-paragraph (i),

(b)   

at the end of sub-paragraph (ii) insert “or

(iii)   

to arrest a person.”

(4)   

The sections 24 and 24A of PACE substituted by subsection (1) are to have

effect in relation to any offence whenever committed.

35

105     

Powers of arrest: supplementary

Schedule 7, which supplements section 104 by providing for the repeal of

certain enactments (including some which are spent) and by making further

supplementary provision, has effect.

 
 

 
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