Part 5Civil recovery of the proceeds etc. of unlawful conduct
F1CHAPTER 3FConversion of cryptoassets
Supplementary
303Z64Compensation
(1)
This section applies if no order is made under section 303Z60 in respect of converted cryptoassets detained under this Chapter.
(2)
Where this section applies, the following may make an application to the relevant court for compensation—
(a)
a person to whom the relevant cryptoassets belonged immediately before they were seized;
(b)
a person from whom the relevant cryptoassets were seized;
(3)
If the relevant court is satisfied that—
(a)
the applicant has suffered loss as a result of—
(i)
the conversion of the relevant cryptoassets into money, or
(ii)
the detention of the converted cryptoassets, and
(b)
the circumstances are exceptional,
the relevant court may order compensation to be paid to the applicant.
(4)
The amount of compensation to be paid is the amount the relevant court thinks reasonable, having regard to the loss suffered and any other relevant circumstances.
(5)
If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for His Majesty’s Revenue and Customs.
(6)
If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by a constable, the compensation is to be paid as follows—
(a)
in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met;
(b)
in the case of a constable of the Police Service of Scotland, it is to be paid by the Scottish Police Authority;
(c)
in the case of a police officer within the meaning of the Police (Northern Ireland) Act 2000, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.
(7)
If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an SFO officer, the compensation is to be paid by the Director of the Serious Fraud Office.
(8)
If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by a National Crime Agency officer, the compensation is to be paid by the National Crime Agency.
(9)
If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an accredited financial investigator who was not an officer of Revenue and Customs, a constable, an SFO officer or a National Crime Agency officer, the compensation is to be paid as follows—
(a)
in the case of an investigator who was—
(i)
a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of the Police Reform and Social Responsibility Act 2011, or
(ii)
a member of staff of the City of London police force,
it is to be paid out of the police fund from which the expenses of the police force are met,
(b)
in the case of an investigator who was a member of staff of the Police Service of Northern Ireland, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland,
(c)
in the case of an investigator who was a member of staff of a department of the Government of the United Kingdom, it is to be paid by the Minister of the Crown in charge of the department or by the department,
(d)
in the case of an investigator who was a member of staff of a Northern Ireland department, it is to be paid by the department,
(e)
in the case of an investigator who was exercising a function of the Welsh Revenue Authority, it is to be paid by the Welsh Revenue Authority, and
(f)
in any other case, it is to be paid by the employer of the investigator.
(10)
The Secretary of State may by regulations amend subsection (9).
(11)
The power in subsection (10) is exercisable by the Department of Justice (and not by the Secretary of State) so far as it may be used to make provision that—
(a)
would be within the legislative competence of the Northern Ireland Assembly if contained in an Act of that Assembly, and
(b)
would not, if contained in a Bill for an Act of the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State.
(12)
In this section—
“the relevant cryptoassets” means—