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Proceeds of Crime Act 2002

Application of sums

Section 54: Enforcement receivers

106.Section 54 applies to an enforcement receiver appointed under section 50 on the application of the prosecutor (i.e. to cases in which the Director is not the enforcement authority). It specifies how any sums in the hands of the receiver are to be disposed of, after a confiscation order has been made. The sums are payable, subject to certain prior payments the Crown Court may order, to the enforcing justices’ chief executive. Under subsection (3), once a confiscation order has been satisfied, the receiver is to pay any remaining sums in his hands to those with an interest in the property concerned, as directed by the Crown Court. The Crown Court must give those with interests in the property concerned a reasonable opportunity to make representations before making any directions under subsection (3).

Section 55: Sums received by justices’ chief executive

107.Section 55 sets out how an enforcing justices’ chief executive must dispose of any monies received in satisfaction of a confiscation order, whether from a receiver appointed under section 50 or otherwise (for example, voluntary payments by a defendant or the proceeds of the chief executive’s own enforcement activities). The provision is similar to the earlier confiscation legislation, with certain exceptions.

108.Firstly, an earlier obligation of the justices’ chief executive to reimburse the prosecutor out of confiscated monies for sums the prosecutor has paid to a receiver in advance has been abolished as unnecessary, as prosecutors do not make advance payments to receivers. Secondly, under the earlier legislation, victims who receive confiscated monies in satisfaction of a compensation order made in their favour in the same proceedings have to pay a share of the costs of enforcement. This obligation has also been abolished. Thirdly, where the confiscation order takes precedence over parallel bankruptcy proceedings and monies are left over in the receiver’s hands after the confiscation order has been satisfied, they go into the bankrupt’s estate, rather than being entrusted to the confiscation court to dispose of – see Schedule 11, paragraph 16, and the new section 306B(1)(d) and (2) which it adds to the Insolvency Act 1986.

Section 56: Director’s receivers

109.Section 56 is the equivalent, where enforcement by the Director’s receiver is concerned, of section 54 in relation to receivers appointed on the application of the prosecutor. The provision is, with minor modifications, the same as section 54, except that in this case the sums must be paid to the Director instead of to the justices’ chief executive.

Section 57: Sums received by Director

110.Section 57 is the equivalent, where enforcement by the Director is concerned, of section 55 in relation to sums received by justices’ chief executives. The provision is broadly similar to section 55, but there are two significant differences. Firstly, subsection (4) requires the Director to reimburse the expenses of any management or enforcement receiver appointed in the case, but subsection (6) makes it clear that this does not apply where the receiver is a member of the Director’s own staff or providing services under arrangements made by the Director. These costs will be met out of the Director’s budget.

111.Secondly, the Director must pay the residue of any monies received directly into the Consolidated Fund (see paragraph 5(2) ofSchedule 1) which will also be the eventual destination of the monies when they are received by a justices’ chief executive.

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