Proceeds of Crime Act 2002 Explanatory Notes

  • Explanatory Notes Table of contents

  1. Introduction

  2. Background

    1. Confiscation

    2. Cash forfeiture

    3. Money laundering

    4. Report by the Performance and Innovation Unit

    5. Publication of draft sections for a Proceeds of Crime Bill

  3. Summary

  4. The Act

    1. Explanatory Notes for the Proceeds of Crime Act 2002

  5. Commentary on Sections

    1. Part 1: Assets Recovery Agency

      1. Section 1: The Agency and its Director

      2. Schedule 1: Assets Recovery Agency

      3. Section 2: Director’s functions: general

      4. Section 3: Accreditation and training

      5. Section 4: Co-operation

      6. Section 5: Advice and assistance

    2. Part 2: Confiscation: England and Wales

      1. Confiscation orders

        1. Section 6: Making of order

        2. Section 7: Recoverable amount

        3. Section 8: Defendant’s benefit

        4. Section 9: Available amount

        5. Section 10: Assumptions to be made in case of criminal lifestyle

        6. Section 11: Time for payment

        7. Section 12: Interest on unpaid sums

        8. Section 13: Effect of order on court’s other powers

      2. Procedural matters

        1. Section 14: Postponement

        2. Section 15: Effect of postponement

        3. Section 16: Statement of information

        4. Section 17: Defendant’s response to statement of information

        5. Section 18: Provision of information by defendant

      3. Reconsideration

        1. Sections 19-21: Reconsideration

        2. Section 22: Order made: reconsideration of available amount

        3. Section 23: Inadequacy of available amount: variation of order

        4. Section 24: Inadequacy of available amount: discharge of order

        5. Section 25: Small amount outstanding: discharge of order

        6. Section 26: Information

      4. Defendant absconds

        1. Section 27: Defendant convicted or committed

        2. Section 28: Defendant neither convicted nor acquitted

        3. Section 29 : Variation of order

        4. Section 30: Discharge of order

      5. Appeals

        1. Section 31: Appeal by prosecutor or Director

        2. Section 32: Court’s powers on appeal

        3. Section 33: Appeal to House of Lords

      6. Enforcement authority

        1. Section 34: Enforcement authority

      7. Enforcement as fines etc

        1. Section 35: Director not appointed as enforcement authority

        2. Section 36: Director appointed as enforcement authority

        3. Section 37: Director’s application for enforcement

        4. Section 38: Provisions about imprisonment or detention

        5. Section 39: Reconsideration etc: variation of prison term

      8. Restraint orders

        1. Section 40: Conditions for exercise of powers

        2. Section 41: Restraint orders

        3. Section 42: Application, discharge and variation

        4. Section 43: Appeal to Court of Appeal

        5. Section 44: Appeal to House of Lords

        6. Section 45: Seizure

        7. Section 46: Hearsay Evidence

        8. Section 47: Supplementary

      9. Management receivers

        1. Section 48: Appointment

        2. Section 49: Powers

      10. Enforcement receivers

        1. Section 50: Appointment

        2. Section 51: Powers

      11. Director’s receivers

        1. Section 52: Appointment

        2. Section 53: Powers

      12. Application of sums

        1. Section 54: Enforcement receivers

        2. Section 55: Sums received by justices’ chief executive

        3. Section 56: Director’s receivers

        4. Section 57: Sums received by Director

      13. Restrictions

        1. Section 58: Restraint orders

        2. Sections 59 & 60: Enforcement receivers; Director’s receivers

      14. Receivers: further provisions

        1. Section 61: Protection

        2. Section 62: Further applications

        3. Section 63: Discharge and variation

        4. Section 64: Management receivers: discharge

        5. Section 65: Appeal to Court of Appeal

        6. Section 66: Appeal to House of Lords

      15. Seized money

        1. Section 67: Seized money

      16. Financial investigators

        1. Section 68: Applications and appeals

      17. Exercise of powers

        1. Section 69: Powers of court and receiver

      18. Committal

        1. Section 70: Committal by magistrates’ court

        2. Section 71: Sentencing by Crown Court

      19. Compensation

        1. Section 72: Serious default

        2. Section 73: Order varied or discharged

      20. Enforcement abroad

        1. Section 74: Enforcement abroad

      21. Interpretation

        1. Section 75: Criminal lifestyle

        2. Section 76: Conduct and benefit

        3. Sections 77 & 78: Tainted gifts; Gifts and their recipients

        4. Sections 79-81: Value: the basic rule; Value of property obtained from conduct; Value of tainted gifts

        5. Sections 82-84: Free property; Realisable property; Property: general provisions

        6. Sections 85-87: Proceedings; Applications; Confiscation orders

        7. Section 88: Other interpretative provisions

      22. General

        1. Section 89: Procedure on appeal to the Court of Appeal

        2. Section 90: Procedure on appeal to the House of Lords

        3. Section 91: Crown Court Rules

      23. Schedule 2: Lifestyle offences: England and Wales

    3. Part 3: Confiscation: Scotland

      1. Confiscation orders

        1. Section 92: Making of order

        2. Section 93: Recoverable amount

        3. Section 94: Accused’s benefit

        4. Section 95: Available amount

        5. Section 96: Assumptions as to benefit from general criminal conduct

        6. Section 97: Effect of order on court’s other powers

        7. Section 98: Disposal of family home

      2. Procedural matters

        1. Section 99: Postponement

        2. Section 100: Effect of postponement

        3. Section 101: Statement of information

        4. Section 102: Accused’s response to statement of information

        5. Section 103: Provision of information by accused

      3. Reconsideration

        1. Sections 104-106: Reconsideration

        2. Section 107: Order made: reconsideration of available amount

        3. Section 108: Inadequacy of available amount: variation of order

        4. Section 109: Inadequacy of available amount: discharge of order

        5. Section 110: Information

      4. Accused unlawfully at large

        1. Sections 111-114: Accused unlawfully at large

      5. Appeals

        1. Section 115: Appeal by prosecutor

      6. Payment and enforcement

        1. Section 116: Time for payment

        2. Section 117: Interest on unpaid sums

        3. Section 118: Application of provisions about fine enforcement

      7. Restraint orders etc

        1. Section 119: Conditions for exercise of powers

        2. Section 120: Restraint orders etc.

        3. Section 121: Application, recall and variation

        4. Section 122: Appeals

        5. Sections 123 & 124: Inhibition of property affected by order; arrestment of property affected by order

        6. Section 128: Management administrators

        7. Section 126: Seizure

        8. Section 127: Restraint orders: restriction on proceedings and remedies

      8. Realisation of property: general

        1. Section 128: Enforcement administrators

        2. Section 129: Management administrators: discharge

        3. Section 130: Application of sums by enforcement administrator

        4. Section 131: Sums received by clerk of court

      9. Exercise of powers

        1. Section 132: Powers of court and administrator

      10. Administrators: general

        1. Section 133: Protection of administrators

        2. Section 134: Protection of persons affected

        3. Section 135: Recall and variation of order

        4. Section 136: Appeals

        5. Section 137: Administrators: further provision

        6. Section 138: Administrators: restriction on proceedings and remedies

      11. Compensation

        1. Section 139: Serious default

        2. Section 140: Confiscation order varied or discharged

      12. Enforcement abroad

        1. Section 141: Enforcement abroad

      13. Interpretation

        1. Section 142: Criminal lifestyle

        2. Section 143: Conduct and benefit

        3. Section 147: Tainted gifts and their recipients

        4. Sections 145-147: Value: the basic rule; value of property obtained from conduct; value of tainted gifts

        5. Sections 151-153: Free property; realisable property; property: general provisions

        6. Sections 151-153: Proceedings; applications; Satisfaction of confiscation orders

        7. Section 154: Other interpretative provisions

      14. General

        1. Section 155: Rules of Court

      15. Schedule 3: Administrators: further provision

      16. Schedule 4: Lifestyle offences: Scotland

    4. Part 4: Confiscation: Northern Ireland

      1. Confiscation orders; Procedural matters

        1. Sections 156-168: Confiscation orders; Procedural matters

      2. Reconsideration

        1. Sections 169-171: Reconsideration

        2. Sections 172 & 173: Order made: reconsideration of available amount; Inadequacy of available amount: variation of order

        3. Section 174: Inadequacy of available amount: discharge of order

        4. Section 175: Small amount outstanding: discharge of order

        5. Section 176: Information

      3. Defendant absconds

        1. Section 177-180: Absconded defendant convicted or committed; Defendant neither convicted nor acquitted; Variation and discharge of orders

      4. Appeals

        1. Section 181: Appeal by prosecutor or Director

        2. Section 182: Court’s powers on appeal

        3. Section 183: Appeal to House of Lords

      5. Enforcement authority

        1. Section 184: Enforcement authority

      6. Enforcement as fines etc

        1. Section 185: Enforcement as fines etc

        2. Section 186: Director’s application for enforcement

        3. Section 187: Provisions about imprisonment or detention

        4. Section 188: Reconsideration etc: variation of prison term

      7. Restraint orders

        1. Sections 189 to 191: Conditions for exercise of powers; Restraint orders; Application, discharge and variation

        2. Sections 192 & 193: Appeal to Court of Appeal; Appeal to House of Lords

        3. Section 194: Seizure

        4. Section 195: Supplementary

      8. Management Receivers

        1. Sections 196 and 197: Appointment; Powers

      9. Enforcement receivers

        1. Section 198: Appointment

        2. Section 199: Powers

      10. Director’s receivers

        1. Sections 200 & 201: Appointment; Powers

      11. Application of sums

        1. Sections 202 & 203: Enforcement receivers; Sums received by chief clerk

        2. Sections 204 & 205: Sums received by Director’s receivers or Director

      12. Restrictions

        1. Sections 206 to 208: Restraint orders; Enforcement receivers; Director’s receivers

      13. Receivers: further provisions

        1. Sections 209 to 214 Protection; Further applications; Discharge and variation

        2. Sections 213 & 214: Appeal to Court of Appeal; Appeal to House of Lords

      14. Seized money

        1. Section 215: seized money

      15. Financial Investigators

        1. Section 216: Applications and Appeals

      16. Exercise of powers

        1. Section 217: Powers of court and receiver

      17. Committal

        1. Section 218: Committal by magistrates’ court

        2. Section 219: sentencing by Crown Court

      18. Compensation

        1. Section 220: serious default

        2. Sections 221 & 222: Order varied or discharged; Enforcement abroad

      19. Interpretation

        1. Section 223: Criminal lifestyle

        2. Section 224: Conduct and benefit

        3. Sections 225 & 226: Tainted gifts; Gifts and their recipients

        4. Sections 227-229: Value: the basic rule; Value of property obtained from conduct; Value of tainted gifts

        5. Sections 230-235: Free property; Realisable property; Property: general provisions; Proceedings; Applications; Confiscation orders

        6. Section 239: other interpretative provisions

      20. General

        1. Sections 237 & 238: Procedure on appeal to the Court of Appeal; Procedure on appeal to the House of Lords

        2. Section 239: Crown Court Rules

      21. Schedule 5: Lifestyle offences: Northern Ireland

    5. Part 5: Civil Recovery of the Proceeds etc. of Unlawful Conduct

      1. Chapter 1: Introductory

        1. Section 240: General purpose of this Part

        2. Section 241: "Unlawful conduct"

        3. Section 242: "Property obtained through unlawful conduct"

      2. Chapter 2: Civil recovery in the High Court or Court of Session

        Proceedings for recovery orders

        1. Section 243: Proceedings for recovery orders in England and Wales or Northern Ireland

        2. Section 244: Proceedings for recovery orders in Scotland

        3. Section 245: "Associated property"

        4. Interim receiving orders (England and Wales and Northern Ireland)

          1. Section 246: Application for interim receiving order

          2. Section 247: Functions of interim receiver

        5. Schedule 6: Powers of interim receiver or administrator

        6. Section 248: Registration

        7. Section 249: Registration (Northern Ireland)

        8. Section 250: Duties of respondent etc.

        9. Section 251: Supervision of interim receiver and variation of order

        10. Section 252: Restrictions on dealing etc. with property

        11. Section 253: Restriction on proceedings and remedies

        12. Section 254: Exclusion of property which is not recoverable etc.

        13. Section 255: Reporting

        14. Interim administration orders (Scotland)

          1. Section 256: Application for interim administration order

          2. Section 257: Functions of interim administrator

          3. Section 258: Inhibition of property affected by order

          4. Section 259: Duties of respondent etc

          5. Section 260: Supervision of interim administrator and variation of order

          6. Section 261: Restrictions on dealing etc. with property

          7. Section 262: Restriction on proceedings and remedies

          8. Section 263: Exclusion of property which is not recoverable etc.

          9. Section 264: Reporting

          10. Section 265: Arrestment of property affected by interim administration order

        15. Vesting and realisation of recoverable property

          1. Section 266: Recovery orders

          2. Section 267: Functions of the trustee for civil recovery

        16. Schedule 7: Powers of trustee for civil recovery

        17. Section 268: Recording of recovery order (Scotland)

        18. Section 269: Rights of pre-emption, etc

        19. Section 270: Associated and joint property

        20. Section 271: Agreements about associated and joint property

        21. Section 272: Associated and joint property: default of agreement

        22. Section 273: Payments in respect of rights under pension schemes

        23. Section 274: Consequential adjustment of liabilities under pension schemes

        24. Section 275: Pension schemes: supplementary

        25. Section 276: Consent orders

        26. Section 277: Consent orders: pensions

        27. Section 278: Limit on recovery

        28. Section 279: Section 278: supplementary

        29. Section 280: Applying realised proceeds

        30. Exemptions etc.

          1. Section 281: Victims of theft, etc.

          2. Section 282: Other exemptions

        31. Miscellaneous

          1. Section 283: Compensation

          2. Section 284: Payment of interim administrator or trustee (Scotland)

          3. Section 285: Effect of diligence on recovery order (Scotland)

          4. Section 286: Scope of powers (Scotland)

          5. Section 287: Financial threshold

          6. Section 288: Limitation

      3. Chapter 3: Recovery of cash in summary proceedings

        1. Sections 289-291: Searches; Prior approval; Report on exercise of powers

        2. Sections 292-293: Code of practice; Code of practice: Scotland

        3. Seizure and detention

          1. Section 294: Seizure of cash

          2. Sections 295-296: Detention of seized cash; Interest

          3. Section 297: Release of detained cash

        4. Forfeiture

          1. Section 298: Forfeiture

        5. Supplementary

          1. Section 301: Victims and other owners

          2. Section 302: Compensation

          3. Section 303: "The minimum amount"

      4. Chapter 4: General

        Recoverable property

        1. Section 304: Property obtained through unlawful conduct

        2. Section 305: Tracing property, etc.

        3. Section 306: Mixing property

        4. Section 307: Recoverable property: accruing profits

        5. Section 308: General exceptions

        6. Section 309: Other exemptions

        7. Section 310: Granting interests

        8. Insolvency

          1. Section 311: Insolvency

        9. Delegation of enforcement functions

          1. Section 312: Performance of functions of Scottish Ministers by constables in Scotland

          2. Section 313: Restriction on performance of Director’s functions by police

        10. Interpretation

          1. Section 314: Obtaining and disposing of property

          2. Section 315: Northern Ireland: courts

          3. Section 316: General interpretation

    6. Part 6: Revenue Functions

      1. General Functions

        1. Section 317: Director’s general Revenue functions

        2. Section 318: Revenue functions regarding employment

        3. Section 319: Source of income

        4. Section 320: Appeals

      2. Inheritance Tax Functions

        1. Section 321: Director’s functions: transfers of value

        2. Section 322: Director’s functions: certain settlements

      3. General

        1. Section 323: Functions

        2. Section 324: Exercise of Revenue Functions

        3. Section 325: Declarations

        4. Section 326: Interpretation

    7. Part 7: Money Laundering

      1. Offences

        1. Section 327: Concealing etc.

        2. Section 328: Arrangements

        3. Section 329: Acquisition, use and possession

        4. Section 330: Failure to disclose: regulated sector

        5. Section 331: Failure to disclose: nominated officers in the regulated sector

        6. Section 332: Failure to disclose: other nominated officers

        7. Section 333: Tipping off

      2. Consent

        1. Section 335: Appropriate consent

        2. Section 336: Nominated officer: consent

      3. Disclosures

        1. Section 337: Protected disclosures

        2. Section 338: Authorised disclosures

        3. Section 339: Form and manner of disclosures

      4. Interpretation

        1. Section 340: Interpretation

      5. Schedule 9: Regulated sector and supervisory authorities

    8. Part 8: Investigations

      1. Chapter 1: Investigations

        1. Section 341: Investigations

        2. Section 342: Offences of prejudicing investigation

      2. Chapter 2: England and Wales and Northern Ireland

        1. Section 343: Judges

        2. Section 344: Courts

        3. Production orders

          1. Section 345: Production orders

          2. Section 347: Order to grant entry

          3. Section 350: Government departments

          4. Section 351: Supplementary

        4. Search and seizure warrants

          1. Section 352: Search and seizure warrants

          2. Section 353: Requirements where production order not available

          3. Section 355: Further provisions: confiscation and money laundering

          4. Section 356: Further provisions: civil recovery

        5. Disclosure orders

          1. Section 357: Disclosure orders

          2. Section 358: Requirements for making of disclosure order

          3. Section 359: Offences

          4. Section 360: Statements

        6. Customer information orders

          1. Section 363: Customer information orders

          2. Section 364: Meaning of customer information

          3. Section 366: Offences

          4. Section 367: Statements

        7. Account monitoring orders

          1. Section 370: Account monitoring orders

          2. Section 371: Requirements for making of account monitoring order

          3. Section 372: Statements

          4. Section 375: Supplementary

        8. Evidence overseas

          1. Section 376: Evidence overseas

        9. Code of practice

          1. Section 377: Code of practice

        10. Interpretation

          1. Section 378: Officers

      3. Chapter 3: Scotland

        Production orders

        1. Section 380: Production orders

        2. Section 382: Order to grant entry

        3. Section 385: Government departments

        4. Search warrants

          1. Section 387: Search warrants

          2. Section 388: Requirements where production order is not available

          3. Section 390: Further provisions: confiscation, civil recovery and money laundering

        5. Disclosure orders

          1. Section 391: Disclosure orders

          2. Section 392: Requirements for making of disclosure order

          3. Section 393: Offences

          4. Section 394: Statements

        6. Customer information orders

          1. Section 397: Customer information orders

          2. Section 398: Meaning of customer information

          3. Section 400: Offences

          4. Section 401: Statements

        7. Account monitoring orders

          1. Section 404: Account monitoring orders

          2. Section 405: Requirements for making of account monitoring order

          3. Section 406: Statements

          4. Section 408: Supplementary

        8. General

          1. Section 409: Jurisdiction of sheriff

          2. Section 410: Code of practice

          3. Section 411: Performance of functions of Scottish Ministers by constables in Scotland

          4. Section 412: Interpretation

      4. Chapter 4: General

        Interpretation

        1. Section 413: Criminal conduct

    9. Part 9: Insolvency etc.

      1. Bankruptcy in England & Wales

        1. Section 417: Modifications of the 1986 Act

        2. Section 418: Restriction of powers

        3. Section 419: Tainted gifts

      2. Sequestration in Scotland

        1. Section 420-422: Modifications of the 1985 Act; Restriction of powers; Tainted gifts

      3. Bankruptcy in Northern Ireland

        1. Sections 423-425: Modifications of the 1989 Order; Restriction of powers; Tainted gifts

      4. Winding up in England & Wales and Scotland

        1. Section 426: Winding up under the 1986 Act

        2. Section 427: Tainted gifts

      5. Winding up in Northern Ireland

        1. Section 428: Winding up under the 1989 Order

        2. Section 429: Tainted gifts

      6. Floating charges

        1. Section 430: Floating charges

      7. Limited liability partnerships

        1. Section 431: Limited liability partnerships

      8. Insolvency practitioners

        1. Section 432: Insolvency practitioners

    10. Part 10: Information

      1. England and Wales and Northern Ireland

        1. Section 435: Use of information by Director

        2. Section 436: Disclosure of information to Director

        3. Section 437: Further disclosure

        4. Section 438: Disclosure of information by Director

      2. Scotland

        1. Section 439: Disclosure of information to Lord Advocate and to Scottish Ministers

        2. Section 440: Further disclosure

        3. Section 441: Disclosure of information by Lord Advocate and by Scottish Ministers

      3. Overseas purposes

        1. Section 442: Restriction on disclosure for overseas purposes

    11. Part 11: Co-operation

      1. Section 443: Enforcement in different parts of the United Kingdom

      2. Section 444: External requests and orders

      3. Section 445: External investigations

      4. Section 447: Interpretation

    12. Part 12: Miscellaneous and General

      1. Miscellaneous

        1. Section 448: Tax

      2. Schedule 10: Tax

        1. Part 1 – General

        2. Part 2 – Provisions relating to Part 5

      3. Sections 449 & 450: Agency staff: pseudonyms; Pseudonyms: Scotland

      4. Section 451: Customs and Excise prosecutions

      5. Section 452: Crown servants

      6. Section 453: References to financial investigators

      7. Schedule 11: Amendments

        1. Parliamentary Commissioner Act 1967 (c.13)

        2. Criminal Appeal Act 1968 (c.19)

        3. Misuse of Drugs Act 1971 (c.38)

        4. Rehabilitation of Offenders Act 1974 (c.53)

        5. Criminal Appeal (Northern Ireland) Act 1980 (c.47)

        6. Legal Aid, Advice and Assistance (Northern Ireland) Order 1981 (S.I. 1981/228 (N.I. 8)

        7. Civil Jurisdiction and Judgments Act 1982 (c. 27)

        8. Civic Government (Scotland) Act 1982 (c.45)

        9. Criminal Justice Act 1982 (c.48)

        10. Police and Criminal Evidence Act 1984 (c.60)

        11. Bankruptcy (Scotland) Act 1985 (c.66)

        12. Insolvency Act 1986 (c. 45)

        13. Criminal Justice Act 1988 (c.33)

        14. Extradition Act 1989 (c.33)

        15. Police & Criminal Evidence (Northern Ireland) Order 1989 (SI 1989/1341 (NI 12))

        16. Insolvency (Northern Ireland) Order 1989 (SI 1989/2405 (NI 19))

        17. Criminal Justice (International Co-operation) Act 1990 (c. 5)

        18. Criminal Justice and Public Order Act 1994 (c.31)

        19. Drug Trafficking Act 1994 (c.37)

        20. Proceeds of Crime (Scotland) Act 1995 (c.43)

        21. Criminal Procedure (Scotland) Act 1995 (c.46)

        22. Proceeds of Crime (Northern Ireland) Order 1996 (SI 1996/1299 (NI 9))

        23. Crime (Sentences) Act 1997 (c. 43)

        24. Access to Justice Act 1999 (c.22)

        25. Powers of Criminal Courts (Sentencing) Act 2000 (c.6)

        26. Financial Services and Markets Act 2000 (c.8)

        27. Terrorism Act 2000 (c.11)

        28. Criminal Justice and Police Act 2001 (c.16)

      8. Section 458: Commencement

      9. General

        1. Section 459: Orders and regulations

        2. Section 461: Extent

  6. Commencement

  7. Hansard References

  • Explanatory Notes Table of contents

Back to top