Serious Crime Bill [HL]

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Serious Crime Bill [HL]

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 1 — Prevention of fraud
36

65
Penalty and prosecution for offence under section 64
(1)
A person who commits an offence under section 64 is liable—
(a)
on summary conviction, to imprisonment for a term not exceeding 12
months or to a fine not exceeding the statutory maximum or to both;
(b)
on conviction on indictment, to imprisonment for a term not exceeding
5
two years or to a fine or to both.
(2)
A prosecution for an offence under section 64 may be begun in England and
Wales only—
(a)
in the case of revenue and customs information disclosed by Revenue
and Customs—
10
(i)
by the Director of Revenue and Customs Prosecutions; or
(ii)
with the consent of the Director of Public Prosecutions; and
(b)
in any other case, with the consent of the Director of Public
Prosecutions.
(3)
A prosecution for an offence under section 64 may be begun in Northern
15
Ireland only—
(a)
in the case of revenue and customs information disclosed by Revenue
and Customs—
(i)
by the Commissioners of Revenue and Customs; or
(ii)
with the consent of the Director of Public Prosecutions for
20
Northern Ireland; and
(b)
in any other case, with the consent of the Director of Public
Prosecutions for Northern Ireland.
(4)
If an offence under section 64 committed by a body corporate or a partnership
is proved to have been committed with the consent or connivance of—
25
(a)
an officer of the body corporate or (as the case may be) a partner or a
senior officer of the partnership; or
(b)
a person who was purporting to act in any such capacity;

he (as well as the body corporate or partnership) is guilty of the offence and
liable to be proceeded against and punished accordingly.
30
(5)
In the application of subsection (1)(a) in Northern Ireland, the reference to 12
months is to be read as a reference to 6 months.
(6)
In this section—
“body corporate” includes a limited liability partnership;
“Commissioners of Revenue and Customs”, “Revenue and Customs” and
35
“revenue and customs information” have the same meaning as in
section 64;
“director”, in relation to a body corporate whose affairs are managed by
its members, means a member of the body corporate;
“officer of a body corporate” means any director, manager, secretary or
40
other similar officer of the body corporate; and
“senior officer of a partnership” means any person who has the control or
management of the business carried on by the partnership at the
principal place where it is carried on.
66
Data protection rules
45
In Schedule 3 to the Data Protection Act 1998 (c. 29) (conditions for processing

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
37

sensitive personal data), after paragraph 7, insert—
“7A   (1)
The processing—
(a)
is either—
(i)
the disclosure of sensitive personal data by a person
as a member of an anti-fraud organisation or
5
otherwise in accordance with any arrangements
made by such an organisation; or
(ii)
any other processing by that person or another person
of sensitive personal data so disclosed; and
(b)
is necessary for the purposes of preventing fraud or a
10
particular kind of fraud.
      (2)
In this paragraph “an anti-fraud organisation” means any
unincorporated association, body corporate or other person which
enables or facilitates any sharing of information to prevent fraud or
a particular kind of fraud or which has any of these functions as its
15
purpose or one of its purposes.”.
Data matching
67
Data matching
Schedule 7 (which makes provision about data matching) has effect.
Chapter 2
20
Proceeds of crime
Assets Recovery Agency
68
Abolition of Assets Recovery Agency and redistribution of functions etc.
(1)
The Assets Recovery Agency and the corporation sole that is its Director shall
cease to exist on such day as the Secretary of State may by order appoint.
25
(2)
The following Parts of Schedule 8 (abolition of Assets Recovery Agency and its
Director) have effect—
(a)
Part 1 (abolition of confiscation functions);
(b)
Part 2 (transfer to SOCA and prosecution authorities of civil recovery
functions);
30
(c)
Part 3 (transfer to SOCA of Revenue functions and power to abolish
those functions);
(d)
Part 4 (transfer to SOCA of investigation functions);
(e)
Part 5 (transfer of accreditation and training functions to National
Policing Improvement Agency);
35
(f)
Part 6 (other amendments to the Proceeds of Crime Act 2002 (c. 29));
and
(g)
Part 7 (amendments to other enactments).
(3)
Schedule 9 (which makes provision about the transfer of the Director and staff
of the Agency, and property, rights and liabilities of the Director and the
40
Agency, to SOCA and the National Policing Improvement Agency) has effect.

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
38

(4)
In this section and Schedules 8 and 9 “SOCA” means the Serious Organised
Crime Agency.
Detained cash investigations: use of production orders and warrants
69
Use of production orders for detained cash investigations
(1)
After section 341(3) of the Proceeds of Crime Act 2002 (c. 29) (types of
5
investigation to which Part 8 applies) insert—
“(3A)
For the purposes of this Part a detained cash investigation is—
(a)
an investigation for the purposes of Chapter 3 of Part 5 into the
derivation of cash detained under section 295 or a part of such
cash, or
10
(b)
an investigation for the purposes of Chapter 3 of Part 5 into
whether cash detained under section 295, or a part of such cash,
is intended by any person to be used in unlawful conduct.”
(2)
In section 345(2) of that Act (investigations in respect of which production
orders may be made), in paragraph (b), after “a civil recovery investigation”
15
insert “or a detained cash investigation”.
(3)
In section 346(2) of that Act (reasonable suspicion requirement for making a
production order), after paragraph (b), insert—
“(ba)
in the case of a detained cash investigation into the derivation
of cash, the property the application for the order specifies as
20
being subject to the investigation, or a part of it, is recoverable
property;
(bb)
in the case of a detained cash investigation into the intended use
of cash, the property the application for the order specifies as
being subject to the investigation, or a part of it, is intended by
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any person to be used in unlawful conduct;”.
(4)
In section 380(3) of that Act (investigations in respect of which production
orders may be made in Scotland), in paragraph (b), after “a civil recovery
investigation” insert “or a detained cash investigation”.
(5)
In section 381(2) of that Act (reasonable suspicion requirement for making a
30
production order in Scotland), after paragraph (b), insert—
“(ba)
in the case of a detained cash investigation into the derivation
of cash, the property the application for the order specifies as
being subject to the investigation, or a part of it, is recoverable
property;
35
(bb)
in the case of a detained cash investigation into the intended use
of cash, 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;”.
70
Use of search warrants etc. for detained cash investigations
40
(1)
In section 352(2) of the Proceeds of Crime Act 2002 (investigations in respect of
which a search and seizure warrant may be issued), in paragraph (b), after “a
civil recovery investigation” insert “or a detained cash investigation”.
(2)
In section 353(2) of that Act (reasonable suspicion grounds for warrant where

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
39

no production order), after paragraph (b), insert—
“(ba)
in the case of a detained cash investigation into the derivation
of cash, the property specified in the application for the
warrant, or a part of it, is recoverable property;
(bb)
in the case of a detained cash investigation into the intended use
5
of cash, 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)
After section 353(7) of that Act (types of material in respect of which warrant
may be issued where no production order) insert—
10
“(7A)
In the case of a detained cash investigation into the derivation of cash,
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 property or
15
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.
(7B)
In the case of a detained cash investigation into the intended use of
20
cash, 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
25
(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.”
(4)
In section 387(3) of that Act (investigations in respect of which a search warrant
may be issued in Scotland), in paragraph (b), after “a civil recovery
30
investigation” insert “or a detained cash investigation”.
(5)
In section 388(2) of that Act (reasonable suspicion grounds for issue of warrant
in Scotland where no production order), after paragraph (b), insert—
“(ba)
in the case of a detained cash investigation into the derivation
of cash, the property specified in the application for the
35
warrant, or a part of it, is recoverable property;
(bb)
in the case of a detained cash investigation into the intended use
of cash, 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;”.
40
(6)
After section 388(7) of that Act (types of material in respect of which warrant
may be issued in Scotland where no production order) insert—
“(7A)
In the case of a detained cash investigation into the derivation of cash,
material falls within this subsection if it cannot be identified at the time
of the application but it—
45
(a)
relates 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

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
40

(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.
(7B)
In the case of a detained cash investigation into the intended use of
cash, material falls within this subsection if it cannot be identified at the
5
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)
is likely to be of substantial value (whether or not by itself) to
10
the investigation for the purposes of which the warrant is
sought.”
71
Further provision about detained cash investigations
Schedule 10 (which makes further provision about detained cash
investigations) has effect.
15
Extension of powers of accredited financial investigators
72
Powers to seize property to which restraint orders apply
(1)
In section 45(1) of the Proceeds of Crime Act 2002 (c. 29) (seizure of property to
which restraint order applies: England and Wales) after “constable” insert “, an
accredited financial investigator”.
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(2)
After section 45(2) of that Act insert—
“(3)
The reference in subsection (1) to an accredited financial investigator is
a reference to an accredited financial investigator who falls within a
description specified in an order made for the purposes of that
subsection by the Secretary of State under section 453.”
25
(3)
In section 194(1) of that Act (seizure of property to which restraint order
applies: Northern Ireland) after “constable” insert “, an accredited financial
investigator”.
(4)
After section 194(2) of that Act insert—
“(3)
The reference in subsection (1) to an accredited financial investigator is
30
a reference to an accredited financial investigator who falls within a
description specified in an order made for the purposes of that
subsection by the Secretary of State under section 453.”
73
Powers to recover cash
Schedule 11 (which gives accredited financial investigators powers to recover
35
cash under Chapter 3 of Part 5 of the Proceeds of Crime Act 2002 and makes
related amendments) has effect.
74
Powers in relation to certain investigations
(1)
In section 352(5) of the Proceeds of Crime Act 2002 (search and seizure
warrants in connection with confiscation, money laundering and detained cash
40
investigations etc.)—

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
41

(a)
in paragraph (a), after “constable” insert “, an accredited financial
investigator”; and
(b)
in paragraph (c) (as inserted by Schedule 10 to this Act), after
“constable” insert “, an accredited financial investigator”.
(2)
After section 352(6) of that Act insert—
5
“(7)
The reference in paragraph (a) or (c) of subsection (5) to an accredited
financial investigator is a reference to an accredited financial
investigator who falls within a description specified in an order made
for the purposes of that paragraph by the Secretary of State under
section 453.”
10
(3)
In section 353(10) of that Act (requirements in relation to search and seizure
warrants)—
(a)
in paragraph (a), after “constable” insert “, an accredited financial
investigator”; and
(b)
in paragraph (c) (as inserted by Schedule 10 to this Act), after
15
“constable” insert “, an accredited financial investigator”.
(4)
After section 353(10) of that Act insert—
“(11)
The reference in paragraph (a) or (c) of subsection (10) to an accredited
financial investigator is a reference to an accredited financial
investigator who falls within a description specified in an order made
20
for the purposes of that paragraph by the Secretary of State under
section 453.”
(5)
In section 356(11)(b) of that Act (as inserted by Schedule 10 to this Act) (further
provisions in relation to search and seizure warrants: detained cash
investigations) after “constable” insert “, an accredited financial investigator”.
25
(6)
After section 356(11) of that Act (as inserted by Schedule 10 to this Act) insert—
“(12)
The reference in paragraph (b) of subsection (11) to an accredited
financial investigator is a reference to an accredited financial
investigator who falls within a description specified in an order made
for the purposes of that paragraph by the Secretary of State under
30
section 453.”
(7)
In section 378(3A) of that Act (as inserted by Schedule 10 to this Act) (meaning
of “officers” for purposes of Part 8 in relation to detained cash investigations)
after paragraph (a) insert—
“(ab)
an accredited financial investigator;”.
35
(8)
After section 378(3A) of that Act (as inserted by Schedule 10 to this Act)
insert—
“(3B)
The reference in paragraph (ab) of subsection (3A) to an accredited
financial investigator is a reference to an accredited financial
investigator who falls within a description specified in an order made
40
for the purposes of that paragraph by the Secretary of State under
section 453.”
75
Supplementary provision in relation to new powers
(1)
In section 453(2) of the Proceeds of Crime Act 2002 (c. 29) (power to modify
references to accredited financial investigators)—
45

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 2 — Proceeds of crime
42

(a)
after “may” insert “, in particular,”; and
(b)
after “person” insert “or by reference to particular types of training
undertaken”.
(2)
After section 453 of that Act insert—
“453A
Certain offences in relation to financial investigators
5
(1)
A person commits an offence if he assaults an accredited financial
investigator who is acting in the exercise of a relevant power.
(2)
A person commits an offence if he resists or wilfully obstructs an
accredited financial investigator who is acting in the exercise of a
relevant power.
10
(3)
A person guilty of an offence under subsection (1) is liable on summary
conviction—
(a)
to imprisonment for a term not exceeding 51 weeks; or
(b)
to a fine not exceeding level 5 on the standard scale;

or to both.
15
(4)
A person guilty of an offence under subsection (2) is liable on summary
conviction—
(a)
to imprisonment for a term not exceeding 51 weeks; or
(b)
to a fine not exceeding level 3 on the standard scale;

or to both.
20
(5)
In this section “relevant power” means a power exercisable under—
(a)
section 45 or 194 (powers to seize property to which restraint
orders apply);
(b)
section 289 (powers to search for cash);
(c)
section 294 (powers to seize cash);
25
(d)
section 295(1) (power to detain seized cash); or
(e)
a search and seizure warrant issued under section 352.
(6)
In the application of this section to England and Wales in relation to an
offence committed before the commencement of section 281(5) of the
Criminal Justice Act 2003 (c. 44) (alteration of penalties for summary
30
offences), and in the application of this section to Northern Ireland—
(a)
the reference to 51 weeks in subsection (3)(a) is to be read as a
reference to 6 months; and
(b)
the reference to 51 weeks in subsection (4)(a) is to be read as a
reference to 1 month.”
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Use of force in executing search warrants: Scotland
76
Use of force in executing search warrants: Scotland
In section 387 of the Proceeds of Crime Act 2002 (c. 29) (issue of search warrants
in Scotland in connection with certain investigations), after subsection (4),
insert—
40
“(4A)
A proper person may, if necessary, use reasonable force in executing a
search warrant.”