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
39

68
Penalty and prosecution for offence under section 67
(1)
A person who commits an offence under section 67 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 67 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 67 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 67 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 67;
“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.

Serious Crime Bill [HL]
Part 3 — Other measures to prevent or disrupt serious and other crime
Chapter 1 — Prevention of fraud
40

69
Code of practice for disclosure of information to prevent fraud
(1)
The Secretary of State must prepare, and keep under review, a code of practice
with respect to the disclosure, for the purposes of preventing fraud or a
particular kind of fraud, of information by public authorities as members of
specified anti-fraud organisations or otherwise in accordance with any
5
arrangements made by such organisations.
(2)
Before preparing or altering the code, the Secretary of State must consult—
(a)
any specified anti-fraud organisation;
(b)
the Information Commissioner; and
(c)
such other persons as the Secretary of State considers appropriate.
10
(3)
A public authority must have regard to the code in (or in connection with)
disclosing information, for the purposes of preventing fraud or a particular
kind of fraud, as a member of a specified anti-fraud organisation or otherwise
in accordance with any arrangements made by such an organisation.
(4)
Nothing in this section applies in relation to any disclosure by a relevant public
15
authority of information whose subject-matter is a matter about which
provision would be within the legislative competence of the Scottish
Parliament if it were included in an Act of the Scottish Parliament.
(5)
The Secretary of State must—
(a)
lay a copy of the code, and of any alterations to it, before Parliament;
20
and
(b)
from time to time publish the code as for the time being in force.
(6)
In this section—
“information” and “public authority” have the same meaning as in section
66;
25
“relevant public authority” has the meaning given by section 66(6); and
“specified anti-fraud organisation” means any person which is a specified
anti-fraud organisation for the purposes of section 66.
70
Data protection rules
In Schedule 3 to the Data Protection Act 1998 (c. 29) (conditions for processing
30
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
35
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
40
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
45
purpose or one of its purposes.”

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

Data matching
71
Data matching
Schedule 7 (which makes provision about data matching) has effect.
Chapter 2
Proceeds of crime
5
Assets Recovery Agency
72
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.
(2)
The following Parts of Schedule 8 (abolition of Assets Recovery Agency and its
10
Director) have effect—
(a)
Part 1 (abolition of confiscation functions);
(b)
Part 2 (transfer to SOCA and prosecution authorities of civil recovery
functions);
(c)
Part 3 (transfer to SOCA of Revenue functions and power to abolish
15
those functions);
(d)
Part 4 (transfer of investigation functions);
(e)
Part 5 (transfer of accreditation and training functions to National
Policing Improvement Agency);
(f)
Part 6 (other amendments to the Proceeds of Crime Act 2002 (c. 29));
20
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
Agency, to SOCA and the National Policing Improvement Agency) has effect.
25
(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
73
Use of production orders for detained cash investigations
(1)
After section 341(3) of the Proceeds of Crime Act 2002 (types of investigation
30
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
35
(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.”

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

(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”
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—
5
“(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;
(bb)
in the case of a detained cash investigation into the intended use
10
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;”.
(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
15
investigation” insert “or a detained cash investigation”.
(5)
In section 381(2) of that Act (reasonable suspicion requirement for making a
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
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
25
any person to be used in unlawful conduct;”.
74
Use of search warrants etc. for detained cash investigations
(1)
In section 352(2) of the Proceeds of Crime Act 2002 (c. 29) (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”.
30
(2)
In section 353(2) of that Act (reasonable suspicion grounds for warrant 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
warrant, 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 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
40
may be issued 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—
(a)
relates to the property specified in the application, the question
45
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
43

(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.”
(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
investigation” insert “or a detained cash investigation”.
15
(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
warrant, or a part of it, is recoverable property;
20
(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;”.
(6)
After section 388(7) of that Act (types of material in respect of which warrant
25
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—
(a)
relates to the property specified in the application, the question
30
whether the property, or a part of it, is recoverable property or
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.
35
(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
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
40
person to be used in unlawful conduct, 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.”
75
Further provision about detained cash investigations
45
Schedule 10 (which makes further provision about detained cash
investigations) has effect.