Criminal Finances Act 2017

• (10) The Department of Justice in Northern Ireland may by regulations make transitional, transitory or saving provision in connection with the coming into force of a provision mentioned in subsection (3).

• (11) The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of Part 3.

• (12) No regulations may be made under subsection (1) bringing into force any of the following provisions, so far as they extend to Scotland, unless the Secretary of State has consulted the Scottish Ministers—

• (a) sections 4 and 5;

• (b) section 8;

• (c) section 14;

• (d) section 15;

• (e) section 16;

• (f) section 25;

• (g) section 29;

• (h) section 33;

• (i) section 34(10).

• (13) No regulations may be made under subsection (1) bringing into force any of the following provisions, so far as they extend to Northern Ireland, unless the Secretary of State has consulted the Department of Justice in Northern Ireland—

• (a) sections 1 and 2;

• (b) section 7;

• (c) section 14;

• (d) section 15;

• (e) section 16;

• (f) section 17 and Schedule 1;

• (g) sections 19 and 20;

• (h) sections 22 to 25;

• (i) section 33;

• (j) section 34(10).

• (14) Consultation for the purposes of this section may be, or include, consultation before the day on which this Act is passed.

• (15) The power to make regulations under subsections (8) to (11) includes power to make different provision for different purposes.

• (16) The power of the Department of Justice in Northern Ireland to make regulations under subsection (3) or (10) is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

Short title

59

This Act may be cited as the Criminal Finances Act 2017.

SCHEDULE 1

1

The Proceeds of Crime Act 2002 is amended as follows.

2

• (1) Section 2C (prosecuting authorities) is amended as follows.

• (2) In subsection (2) after “Part” insert “ 2, 4, ”.

• (3) In subsection (3) after “Part” insert “ 2, 4, ”.

3

In section 47A (meaning of “appropriate officer” for purposes of search and seizure powers under Part 2 of that Act), in subsection (1)—

• (a) omit “or” at the end of paragraph (b), and

• (b) after that paragraph insert—

(ba) an SFO officer, or

.

4

In section 47G (meaning of “appropriate approval” for purposes of section 47C etc), in subsection (3) after paragraph (ab) insert—

(ac) in relation to the exercise of a power by an SFO officer, the Director of the Serious Fraud Office,

.

5

In section 47M (further detention in other cases where property is detained under section 47J), in subsection (3) after paragraph (b) insert—

(ba) an SFO officer,

.

6

In section 47S (codes of practice), after subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about the draft in its application to the exercise of powers by SFO officers and the Director of the Serious Fraud Office.

7

In section 195A (meaning of “appropriate officer” for purposes of search and seizure powers under Part 4 of that Act), in subsection (1)—

• (a) omit “or” at the end of paragraph (b), and

• (b) after that paragraph insert—

(ba) an SFO officer, or

.

8

In section 195G (meaning of “appropriate approval” for purposes of section 195C etc), in subsection (3) after paragraph (ab) insert—

(ac) in relation to the exercise of a power by an SFO officer, the Director of the Serious Fraud Office,

.

9

In section 195M (further detention in other cases where property is detained under section 195J), in subsection (3) after paragraph (b) insert—

(ba) an SFO officer,

.

10

• (1) Section 195S (codes of practice: Secretary of State) is amended as follows.

• (2) In subsection (1)—

• (a) in paragraph (a) for “and immigration officers” substitute “ , immigration officers and SFO officers ”, and

• (b) in paragraph (c) after “immigration officers” insert “ , SFO officers ”.

• (3) In subsection (1A), after paragraph (b) insert—

(c) the Director of the Serious Fraud Office.

• (4) After subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about the draft in its application to the exercise of powers by SFO officers and the Director of the Serious Fraud Office.

11

• (1) Section 289 (searches) is amended as follows.

• (2) In subsection (1) after “constable” insert “ , an SFO officer ”.

• (3) In subsection (1A)—

• (a) in paragraph (a) after “constable” insert “ , an SFO officer ”;

• (b) in paragraph (b)—

• (i) after “officer” insert “ of Revenue and Customs ”;

• (ii) after “constable” insert “ , SFO officer ”.

• (4) In subsection (1C)—

• (a) after “constable”, in both places where it occurs, insert “ , SFO officer ”;

• (b) after “officer”, in the second place where it occurs, insert “ of Revenue and Customs ”.

• (5) In subsection (1D)—

• (a) after “constable”, in both places where it occurs, insert “ , SFO officer ”;

• (b) after “officer”, in the second place where it occurs, insert “ of Revenue and Customs ”.

• (6) In subsection (2) after “constable” insert “ , an SFO officer ”.

• (7) In subsection (3) after “constable” insert “ , SFO officer ”.

• (8) In subsection (4) after “constable” insert “ , SFO officer ”.

• (9) In subsection (5), in paragraph (c) after “an” insert “ SFO officer or ”.

12

• (1) Section 290 (prior approval) is amended as follows.

• (2) In subsection (4), after paragraph (a) insert—

(aa) in relation to the exercise of a power by an SFO officer, the Director of the Serious Fraud Office,

.

• (3) In subsection (6), after “constable” insert “, SFO officer.

13

In section 291 (report on exercise of powers), in subsection (2) after “constable” insert “ , SFO officer ”.

14

• (1) Section 292 (code of practice) is amended as follows.

• (2) In subsection (1) after “Customs” insert “ , SFO officers ”.

• (3) After subsection (2) insert—

(2A) The Secretary of State must also consult the Attorney General about the draft in its application to the exercise of powers by SFO officers and the Director of the Serious Fraud Office.

• (4) In subsection (6) after “Customs,” insert “ an SFO officer, ”.

15

• (1) Section 294 (seizure of cash) is amended as follows.

• (2) In subsection (1) after “constable” insert “ , an SFO officer ”.

• (3) In subsection (2) after “constable” insert “ , an SFO officer ”.

• (4) In subsection (4) after “by” insert “ an SFO officer or ”.

16

• (1) Section 295 (detention of seized cash) is amended as follows.

• (2) In subsection (1) after “constable” insert “ , SFO officer ”.

• (3) In subsection (4)(a) after “constable” insert “ , an SFO officer ”.

17

In section 296 (interest), in subsection (2) after “constable” insert “ , SFO officer ”.

18

In section 297 (release of detained cash), in subsection (4) after “constable” insert “ , SFO officer ”.

19

In section 297A (forfeiture notice), in subsection (6)—

• (a) omit “or” at the end of paragraph (b), and

• (b) after that paragraph insert—

(ba) the Director of the Serious Fraud Office, or

.

20

In section 297D (detention following lapse of notice), in subsection (3) after “constable” insert “ , an SFO officer ”.

21

In section 297F (release of cash subject to forfeiture notice), in subsection (4) after “constable” insert “ , SFO officer ”.

22

In section 298 (forfeiture), in subsection (1)(a) for “or a constable” substitute “ , a constable or an SFO officer ”.

23

In section 302 (compensation), after subsection (7) insert—

(7ZA) If the cash was seized by an SFO officer, the compensation is to be paid by the Director of the Serious Fraud Office.

24

In section 377A (code of practice of Attorney General etc), in subsection (1)(a) after “Prosecutions” insert “, SFO officers”.

25

• (1) Section 378 (appropriate officers and senior appropriate officers for the purposes of investigations under Part 8 of that Act) is amended as follows.

• (2) In subsection (1) after paragraph (c) insert—

(ca) an SFO officer;

.

• (3) In subsection (2) after paragraph (b) insert—

(ba) the Director of the Serious Fraud Office;

.

• (4) In subsection (3A) after paragraph (a) insert—

(aa) an SFO officer;

.

• (5) In subsection (3AA) after paragraph (a) insert—

(aa) the Director of the Serious Fraud Office;

.

• (6) In subsection (4) after paragraph (b) insert—

(ba) an SFO officer;

.

• (7) In subsection (6) after paragraph (a) insert—

(aa) the Director of the Serious Fraud Office;

.

26

After section 454 insert—

(454A) For the purposes of this Act “SFO officer” means a member of staff of the Serious Fraud Office.

SCHEDULE 2

1

The Terrorism Act 2000 is amended as follows.

2

After section 37 insert—

(37A) Schedule 5A (terrorist financing investigations: disclosure orders) has effect.

3

After Schedule 5 insert—

SCHEDULE 5A (1) This paragraph applies for the purposes of this Part of this Schedule. (2) A disclosure order is an order made under paragraph 9. (3) A judge is— (a) in England and Wales, a judge entitled to exercise the jurisdiction of the Crown Court; (b) in Northern Ireland, a Crown Court judge. (4) A terrorist financing investigation is a terrorist investigation into— (a) the commission, preparation or instigation of an offence under any of sections 15 to 18, or (b) the identification of terrorist property or its movement or use. (5) An appropriate officer is— (a) a constable, or (b) a counter-terrorism financial investigator. (6) A senior police officer is a police officer of at least the rank of superintendent. (7) “Document” means anything in which information of any description is recorded. (8) “Excluded material”— (a) in relation to England and Wales, has the same meaning as in the Police and Criminal Evidence Act 1984; (b) in relation to Northern Ireland, has the same meaning as in the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)). (9) (1) A judge may, on the application of an appropriate officer, make a disclosure order if satisfied that each of the requirements for the making of the order is fulfilled. (2) The application must state that a person or property specified in the application is subject to a terrorist financing investigation and the order is sought for the purposes of the investigation. (3) A disclosure order is an order authorising an appropriate officer to give to any person the officer considers has relevant information notice in writing requiring the person to do any or all of the following with respect to any matter relevant to the terrorist financing investigation concerned— (a) answer questions, either at a time specified in the notice or at once, at a place so specified; (b) provide information specified in the notice, by a time and in a manner so specified; (c) produce documents, or documents of a description, specified in the notice, either at or by a time so specified or at once, and in a manner so specified. (4) Relevant information is information (whether or not contained in a document) which the appropriate officer concerned considers to be relevant to the investigation. (5) A person is not bound to comply with a requirement imposed by a notice given under a disclosure order unless evidence of authority to give the notice is produced. (6) An appropriate officer may not make an application under this paragraph unless the officer is a senior police officer or is authorised to do so by a senior police officer. (10) (1) These are the requirements for the making of a disclosure order. (2) There must be reasonable grounds for suspecting that a person has committed an offence under any of sections 15 to 18 or that the property specified in the application is terrorist property. (3) There must be reasonable grounds for believing that information which may be provided in compliance with a requirement imposed under the order is likely to be of substantial value (whether or not by itself) to the terrorist financing investigation concerned. (4) There must be reasonable grounds for believing that it is in the public interest for the information to be provided, having regard to the benefit likely to accrue to the investigation if the information is obtained. (11) (1) A person commits an offence if without reasonable excuse the person fails to comply with a requirement imposed under a disclosure order. (2) A person guilty of an offence under sub-paragraph (1) is liable— (a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 51 weeks, or to a fine, or to both; (b) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding level 5 on the standard scale, or to both. (3) A person commits an offence if, in purported compliance with a requirement imposed under a disclosure order, the person— (a) makes a statement which the person knows to be false or misleading in a material particular, or (b) recklessly makes a statement which is false or misleading in a material particular. (4) A person guilty of an offence under sub-paragraph (3) is liable— (a) on conviction on indictment, to imprisonment for a term not exceeding 2 years, or to a fine, or to both; (b) on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months, or to a fine, or to both; (c) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding the statutory maximum, or to both. (5) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003 (alteration of penalties for certain summary offences), the reference in sub-paragraph (2)(a) to 51 weeks is to be read as a reference to 6 months. (6) In relation to an offence committed before the coming into force of section 282 of the Criminal Justice Act 2003 (increase in maximum sentence on summary conviction of offence triable either way), the reference in sub-paragraph (4)(b) to 12 months is to be read as a reference to 6 months. (12) (1) A statement made by a person in response to a requirement imposed under a disclosure order may not be used in evidence against that person in criminal proceedings. (2) Sub-paragraph (1) does not apply— (a) in the case of proceedings under this Part of this Act (including paragraph 11(1) or (3)), (b) on a prosecution for an offence under section 5 of the Perjury Act 1911 or Article 10 of the Perjury (Northern Ireland) Order 1979 (S.I. 1979/1714 (N.I. 19)) (false statements), or (c) on a prosecution for some other offence where, in giving evidence, the person makes a statement inconsistent with the statement mentioned in sub-paragraph (1). (3) A statement may not be used by virtue of sub-paragraph (2)(c) against a person unless— (a) evidence relating to it is adduced, or (b) a question relating to it is asked, by or on behalf of the person in the proceedings arising out of the prosecution. (13) (1) A disclosure order does not confer the right to require a person— (a) to answer any privileged question, (b) to provide any privileged information, or (c) to produce any privileged document or other material, except that a lawyer may be required to provide the name and address of a client. (2) For the purposes of sub-paragraph (1)— (a) a privileged question is a question which the person would be entitled to refuse to answer on grounds of legal professional privilege in proceedings in the High Court; (b) privileged information is any information which the person would be entitled to refuse to provide on grounds of legal professional privilege in proceedings in the High Court; (c) a privileged document or other material is any document or material which the person would be entitled to refuse to produce on grounds of legal professional privilege in proceedings in the High Court. (3) A disclosure order does not confer the right to require a person to produce excluded material. (4) A disclosure order has effect in spite of any restriction on the disclosure of information (however imposed). (5) An appropriate officer may take copies of any documents produced in compliance with a requirement to produce them imposed under a disclosure order. (6) The documents may be retained for so long as it is necessary to retain them (as opposed to a copy of them) in connection with the terrorist financing investigation for the purposes of which the order was made. (7) But if an appropriate officer has reasonable grounds for believing that— (a) the documents may need to be produced for the purposes of any legal proceedings, and (b) they might otherwise be unavailable for those purposes, they may be retained until the proceedings are concluded. (8) An appropriate officer may retain documents under sub-paragraph (7) only if the officer is a senior police officer or is authorised to do so by a senior police officer. (14) (1) An application for a disclosure order may be made without notice to a judge in chambers. (2) Rules of court may make provision as to the practice and procedure to be followed in connection with proceedings relating to disclosure orders. (3) An application to discharge or vary a disclosure order may be made to the Crown Court by— (a) the person who applied for the order; (b) any person affected by the order. (4) The Crown Court may— (a) discharge the order; (b) vary the order. (5) An application to discharge or vary a disclosure order need not be made by the same appropriate officer that applied for the order. (6) References to a person who applied for a disclosure order are to be construed accordingly. (7) An appropriate officer may not make an application to discharge or vary a disclosure order unless the officer is a senior police officer or is authorised to do so by a senior police officer.

4

After Part 1 of Schedule 5A (as inserted by paragraph 3 above) insert—

(15) This paragraph applies for the purposes of this Part of this Schedule. (16) A disclosure order is an order made under paragraph 19. (17) A terrorist financing investigation is a terrorist investigation into— (a) the commission, preparation or instigation of an offence under any of sections 15 to 18, or (b) the identification of terrorist property or its movement or use. (18) “Document” means anything in which information of any description is recorded. (19) (1) The High Court of Justiciary may, on the application of the Lord Advocate, make a disclosure order if satisfied that each of the requirements for the making of the order is fulfilled. (2) The application must state that a person or property specified in the application is subject to a terrorist financing investigation and the order is sought for the purposes of the investigation. (3) A disclosure order is an order authorising the Lord Advocate to give to any person the Lord Advocate considers has relevant information notice in writing requiring the person to do any or all of the following with respect to any matter relevant to the terrorist financing investigation concerned— (a) answer questions, either at a time specified in the notice or at once, at a place so specified; (b) provide information specified in the notice, by a time and in a manner so specified; (c) produce documents, or documents of a description, specified in the notice, either at or by a time so specified or at once, and in a manner so specified. (4) Relevant information is information (whether or not contained in a document) which the Lord Advocate considers to be relevant to the investigation. (5) A person is not bound to comply with a requirement imposed by a notice given under a disclosure order unless evidence of authority to give the notice is produced. (20) (1) These are the requirements for the making of a disclosure order. (2) There must be reasonable grounds for suspecting that a person has committed an offence under any of sections 15 to 18 or that the property specified in the application is terrorist property. (3) There must be reasonable grounds for believing that information which may be provided in compliance with a requirement imposed under the order is likely to be of substantial value (whether or not by itself) to the terrorist financing investigation concerned. (4) There must be reasonable grounds for believing that it is in the public interest for the information to be provided, having regard to the benefit likely to accrue to the investigation if the information is obtained. (21) (1) A person commits an offence if without reasonable excuse the person fails to comply with a requirement imposed under a disclosure order. (2) A person guilty of an offence under sub-paragraph (1) is liable on summary conviction to— (a) imprisonment for a term not exceeding 6 months, (b) a fine not exceeding level 5 on the standard scale, or (c) both. (3) A person commits an offence if, in purported compliance with a requirement imposed under a disclosure order, the person— (a) makes a statement which the person knows to be false or misleading in a material particular, or (b) recklessly makes a statement which is false or misleading in a material particular. (4) A person guilty of an offence under sub-paragraph (3) 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, or (b) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both. (22) (1) A statement made by a person in response to a requirement imposed under a disclosure order may not be used in evidence against that person in criminal proceedings. (2) Sub-paragraph (1) does not apply— (a) in the case of proceedings under this Part of this Act (including paragraph 21(1) or (3)), (b) on a prosecution for perjury, or (c) on a prosecution for some other offence where, in giving evidence, the person makes a statement inconsistent with the statement mentioned in sub-paragraph (1). (3) A statement may not be used by virtue of sub-paragraph (2)(c) against a person unless— (a) evidence relating to it is adduced, or (b) a question relating to it is asked, by or on behalf of the person in the proceedings arising out of the prosecution. (23) (1) A disclosure order does not confer the right to require a person— (a) to answer any question, (b) to provide any information, or (c) to produce any document, which the person would be entitled to refuse to answer, provide or produce on grounds of legal privilege. (2) A disclosure order has effect in spite of any restriction on the disclosure of information (however imposed). (3) The Lord Advocate may take copies of any documents produced in compliance with a requirement to produce them imposed under a disclosure order. (4) The documents may be retained for so long as it is necessary to retain them (as opposed to a copy of them) in connection with the terrorist financing investigation for the purposes of which the order was made. (5) But if the Lord Advocate has reasonable grounds for believing that— (a) the documents may need to be produced for the purposes of any legal proceedings, and (b) they might otherwise be unavailable for those purposes, they may be retained until the proceedings are concluded. (24) (1) An application for a disclosure order may be made without notice to a judge of the High Court of Justiciary. (2) Provision may be made in rules of court as to the discharge and variation of disclosure orders. (3) An application to discharge or vary a disclosure order may be made to the High Court of Justiciary by— (a) the Lord Advocate; (b) any person affected by the order. (4) The High Court of Justiciary may— (a) discharge the order; (b) vary the order.

SCHEDULE 3

1

Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (forfeiture of terrorist cash) is amended as follows.

2

After paragraph 10 insert—

(10A) (1) In this Part of this Schedule, a “listed asset” means an item of property that falls within one of the following descriptions of property— (a) precious metals; (b) precious stones; (c) watches; (d) artistic works; (e) face-value vouchers; (f) postage stamps. (2) The Secretary of State may by regulations made by statutory instrument amend sub-paragraph (1)— (a) by removing a description of property; (b) by adding a description of tangible personal (or corporeal moveable) property. (3) A statutory instrument containing regulations under sub-paragraph (2) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. (4) In this paragraph— (a) “precious metal” means gold, silver or platinum (whether in an unmanufactured or a manufactured state); (b) “artistic work” means a piece of work falling within section 4(1)(a) of the Copyright, Designs and Patents Act 1988; (c) “face-value voucher” means a voucher in physical form that represents a right to receive goods or services to the value of an amount stated on it. (10B) (1) An authorised officer may seize any item of property if the authorised officer has reasonable grounds for suspecting that— (a) it is a listed asset, and (b) it is within subsection (1)(a) or (b) of section 1 or it is property earmarked as terrorist property. (2) An authorised officer may also seize any item of property if— (a) the authorised officer has reasonable grounds for suspecting the item to be a listed asset, (b) the authorised officer has reasonable grounds for suspecting that part of the item is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property, and (c) it is not reasonably practicable to seize only that part. (10C) (1) Property seized under paragraph 10B may be detained for an initial period of 48 hours. (2) Sub-paragraph (1) authorises the detention of property only for so long as an authorised officer continues to have reasonable grounds for suspicion in relation to that property as described in paragraph 10B(1) or (2) (as the case may be). (3) In calculating a period of hours for the purposes of this paragraph, no account shall be taken of— (a) any Saturday or Sunday, (b) Christmas Day, (c) Good Friday, (d) any day that is a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom within which the property is seized, or (e) any day prescribed under section 8(2) of the Criminal Procedure (Scotland) Act 1995 as a court holiday in a sheriff court in the sheriff court district within which the property is seized. (10D) (1) The period for which property seized under paragraph 10B, or any part of that property, may be detained may be extended by an order made— (a) in England and Wales or Northern Ireland, by a magistrates' court; (b) in Scotland, by the sheriff. (2) An order under sub-paragraph (1) may not authorise the detention of any property— (a) beyond the end of the period of 6 months beginning with the date of the order, and (b) in the case of any further order under this paragraph, beyond the end of the period of 2 years beginning with the date of the first order. (3) A justice of the peace may also exercise the power of a magistrates' court to make the first order under sub-paragraph (1) extending a particular period of detention. (4) An application to a magistrates' court, a justice of the peace or the sheriff to make the first order under sub-paragraph (1) extending a particular period of detention— (a) may be made and heard without notice of the application or hearing having been given to any of the persons affected by the application or to the legal representatives of such a person, and (b) may be heard and determined in private in the absence of persons so affected and of their legal representatives. (5) An application for an order under sub-paragraph (1) may be made— (a) in relation to England and Wales and Northern Ireland, by the Commissioners for Her Majesty's Revenue and Customs or an authorised officer; (b) in relation to Scotland, by a procurator fiscal. (6) The court, sheriff or justice may make the order if satisfied, in relation to the item of property to be further detained, that— (a) it is a listed asset, and (b) condition 1, condition 2 or condition 3 is met. (7) Condition 1 is that there are reasonable grounds for suspecting that the property is intended to be used for the purposes of terrorism and that either— (a) its continued detention is justified while its intended use is further investigated or consideration is given to bringing (in the United Kingdom or elsewhere) proceedings against any person for an offence with which the property is connected, or (b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded. (8) Condition 2 is that there are reasonable grounds for suspecting that the property consists of resources of an organisation which is a proscribed organisation and that either— (a) its continued detention is justified while investigation is made into whether or not it consists of such resources or consideration is given to bringing (in the United Kingdom or elsewhere) proceedings against any person for an offence with which the property is connected, or (b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded. (9) Condition 3 is that there are reasonable grounds for suspecting that the property is property earmarked as terrorist property and that either— (a) its continued detention is justified while its derivation is further investigated or consideration is given to bringing (in the United Kingdom or elsewhere) proceedings against any person for an offence with which the property is connected, or (b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded. (10) Where an application for an order under sub-paragraph (1) relates to an item of property seized under paragraph 10B(2), the court, sheriff or justice may make the order if satisfied that— (a) the item of property is a listed asset, (b) condition 1, 2 or 3 is met in respect of part of the item, and (c) it is not reasonably practicable to detain only that part. (11) An order under sub-paragraph (1) must provide for notice to be given to persons affected by it. (10E) (1) An authorised officer may carry out (or arrange for the carrying out of) tests on any item of property seized under paragraph 10B for the purpose of establishing whether it is a listed asset. (2) An authorised officer must arrange for any item of property seized under paragraph 10B to be safely stored throughout the period during which it is detained under this Part of this Schedule. (10F) (1) This paragraph applies while any property is detained under this Part of this Schedule. (2) A magistrates' court or (in Scotland) the sheriff may direct the release of the whole or any part of the property if satisfied, on an application by the person from whom the property was seized, that the conditions in paragraph 10C or 10D (as the case may be) for the detention of the property are no longer met in relation to the property to be released. (3) An authorised officer or (in Scotland) a procurator fiscal may, after notifying the magistrates' court, sheriff or justice under whose order property is being detained, release the whole or any part of it if satisfied that the detention of the property to be released is no longer justified. (4) But property is not to be released under this paragraph— (a) if an application for its release under paragraph 10O is made, until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded; (b) if (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the property is connected, until the proceedings are concluded. See also paragraph 10G(7). (10G) (1) While property is detained under this Part of this Schedule, an application for the forfeiture of the whole or any part of it may be made— (a) to a magistrates' court, by the Commissioners for Her Majesty's Revenue and Customs or an authorised officer; (b) to the sheriff, by the Scottish Ministers. (2) The court or sheriff may order the forfeiture of the property or any part of it if satisfied that— (a) the property is a listed asset, and (b) what is to be forfeited is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property. (3) An order under sub-paragraph (2) made by a magistrates' court may provide for payment under paragraph 10N of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of— (a) the proceedings in which the order is made, or (b) any related proceedings under this Part of this Schedule. (4) A sum in respect of a relevant item of expenditure is not payable under paragraph 10N in pursuance of provision under sub-paragraph (3) unless— (a) the person who applied for the order under sub-paragraph (2) agrees to its payment, or (b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount. (5) For the purposes of sub-paragraph (4)— (a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (2) had instead been a recovery order made under section 266 of that Act; (b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations; (c) if the person who applied for the order under sub-paragraph (2) was an authorised officer, that person may not agree to the payment of a sum unless the person is a senior officer or is authorised to do so by a senior officer. (6) Sub-paragraph (2) ceases to apply on the transfer of an application made under this paragraph in accordance with paragraph 10J(1)(a) or (b). (7) Where an application for the forfeiture of any property is made under this paragraph, the property is to be detained (and may not be released under any power conferred by this Part of this Schedule) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded. (8) Where the property to which the application relates is being detained under this Part of this Schedule as part of an item of property, having been seized under paragraph 10B(2), sub-paragraph (7) is to be read as if it required the continued detention of the whole of the item of property. (9) For the purposes of sub-paragraph (5)(c), a “senior officer” means— (a) in relation to an application made by a constable or a counter-terrorism financial investigator, a senior police officer; (b) in relation to an application made by an officer of Revenue and Customs, such an officer of a rank designated by the Commissioners for Her Majesty's Revenue and Customs as equivalent to that of a senior police officer; (c) in relation to an application made by an immigration officer, such an officer of a rank designated by the Secretary of State as equivalent to that of a senior police officer. (10) In sub-paragraph (9), a “senior police officer” means a police officer of at least the rank of superintendent. (10H) (1) Paragraphs 10I and 10J apply if— (a) an application is made under paragraph 10G in respect of property detained under this Part of this Schedule, (b) the court or sheriff is satisfied that the property is a listed asset, (c) the court or sheriff is satisfied that all or part of the property is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property, and (d) there exists property that is associated with the property in relation to which the court or sheriff is satisfied as mentioned in paragraph (c). (2) Paragraphs 10I and 10J also apply in England and Wales and Northern Ireland if— (a) an application is made under paragraph 10G in respect of property detained under this Part of this Schedule, (b) the court is satisfied that the property is a listed asset, (c) the court is satisfied that all or part of the property is property earmarked as terrorist property, and (d) the property in relation to which the court or sheriff is satisfied as mentioned in paragraph (c) belongs to joint tenants and one of the tenants is an excepted joint owner. (3) In this paragraph and paragraphs 10I and 10J “associated property” means property of any of the following descriptions that is not itself the forfeitable property— (a) any interest in the forfeitable property; (b) any other interest in the property in which the forfeitable property subsists; (c) if the forfeitable property is a tenancy in common, the tenancy of the other tenant; (d) if (in Scotland) the forfeitable property is owned in common, the interest of the other owner; (e) if the forfeitable property is part of a larger property, but not a separate part, the remainder of that property. References to property being associated with forfeitable property are to be read accordingly. (4) In this paragraph and paragraphs 10I and 10J the “forfeitable property” means the property in relation to which the court or sheriff is satisfied as mentioned in sub-paragraph (1)(c) or (2)(c) (as the case may be). (5) For the purposes of this paragraph and paragraphs 10I and 10J— (a) an excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against him or her) be earmarked, and (b) references to the excepted joint owner's share of property are to so much of the property as would have been his or hers if the joint tenancy had been severed. (10I) (1) Where— (a) this paragraph applies, and (b) the person who applied for the order under paragraph 10G (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree, the magistrates' court or sheriff may, instead of making an order under paragraph 10G(2), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order. (2) The amount of the payment is (subject to sub-paragraph (3)) to be the amount which the persons referred to in sub-paragraph (1)(b) agree represents— (a) in a case where this paragraph applies by virtue of paragraph 10H(1), the value of the forfeitable property; (b) in a case where this paragraph applies by virtue of paragraph 10H(2), the value of the forfeitable property less the value of the excepted joint owner's share. (3) The amount of the payment may be reduced if the person who applied for the order under paragraph 10G agrees that the other party to the agreement has suffered loss as a result of the seizure of the forfeitable property and any associated property under paragraph 10B and its subsequent detention. (4) The reduction that is permissible by virtue of sub-paragraph (3) is such amount as the parties to the agreement agree is reasonable, having regard to the loss suffered and any other relevant circumstances. (5) An order under sub-paragraph (1) may, so far as required for giving effect to the agreement, include provision for vesting, creating or extinguishing any interest in property. (6) An order under sub-paragraph (1) made by a magistrates' court may provide for payment under sub-paragraph (11) of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of— (a) the proceedings in which the order is made, or (b) any related proceedings under this Part of this Schedule. (7) A sum in respect of a relevant item of expenditure is not payable under sub-paragraph (11) in pursuance of provision under sub-paragraph (6) unless— (a) the person who applied for the order under paragraph 10G agrees to its payment, or (b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount. (8) For the purposes of sub-paragraph (7)— (a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (1) had instead been a recovery order made under section 266 of that Act; (b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations. (9) If there is more than one item of associated property or more than one excepted joint owner, the total amount to be paid under sub-paragraph (1), and the part of that amount which is to be provided by each person who holds any such associated property or who is an excepted joint owner, is to be agreed between both (or all) of them and the person who applied for the order under paragraph 10G. (10) If the person who applied for the order under paragraph 10G was an authorised officer, that person may enter into an agreement for the purposes of any provision of this paragraph only if the person is a senior officer or is authorised to do so by a senior officer. (11) An amount received under an order under sub-paragraph (1) must be applied as follows— (a) first, it must be applied in making any payment of legal expenses which, after giving effect to sub-paragraph (7), are payable under this sub-paragraph in pursuance of provision under sub-paragraph (6); (b) second, it must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the forfeitable property and any associated property whilst detained under this Part of this Schedule; (c) third, it must be paid— (i) if the order was made by a magistrates' court, into the Consolidated Fund; (ii) if the order was made by the sheriff, into the Scottish Consolidated Fund. (10J) (1) Where this paragraph applies and there is no agreement under paragraph 10I, the magistrates' court or sheriff— (a) must transfer the application made under paragraph 10G to the relevant court if satisfied that the value of the forfeitable property and any associated property is £10,000 or more; (b) may transfer the application made under paragraph 10G to the relevant court if satisfied that the value of the forfeitable property and any associated property is less than £10,000. (2) The “relevant court” is— (a) the High Court, where the application under paragraph 10G was made to a magistrates' court; (b) the Court of Session, where the application under paragraph 10G was made to the sheriff. (3) Where (under sub-paragraph (1)(a) or (b)) an application made under paragraph 10G is transferred to the relevant court, the relevant court may order the forfeiture of the property to which the application relates, or any part of that property, if satisfied that— (a) the property is a listed asset, and (b) what is to be forfeited is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property. (4) An order under sub-paragraph (3) made by the High Court may include provision of the type that may be included in an order under paragraph 10G(2) made by a magistrates' court by virtue of paragraph 10G(3). (5) If provision is included in an order of the High Court by virtue of sub-paragraph (4) of this paragraph, paragraph 10G(4) and (5) apply with the necessary modifications. (6) The relevant court may, as well as making an order under sub-paragraph (3), make an order— (a) providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner's interest to be extinguished, or (b) providing for the excepted joint owner's interest to be severed. (7) Where (under sub-paragraph (1)(b)) the magistrates' court or sheriff decides not to transfer an application made under paragraph 10G to the relevant court, the magistrates' court or sheriff may, as well as making an order under paragraph 10G(2), make an order— (a) providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner's interest to be extinguished, or (b) providing for the excepted joint owner's interest to be severed. (8) An order under sub-paragraph (6) or (7) may be made only if the relevant court, the magistrates' court or the sheriff (as the case may be) thinks it just and equitable to do so. (9) An order under sub-paragraph (6) or (7) must provide for the payment of an amount to the person who holds the associated property or who is an excepted joint owner. (10) In making an order under sub-paragraph (6) or (7), and including provision in it by virtue of sub-paragraph (9), the relevant court, the magistrates' court or the sheriff (as the case may be) must have regard to— (a) the rights of any person who holds the associated property or who is an excepted joint owner and the value to that person of that property or (as the case may) of that person's share (including any value that cannot be assessed in terms of money), and (b) the interest of the person who applied for the order under paragraph 10G in realising the value of the forfeitable property. (11) If the relevant court, the magistrates' court or the sheriff (as the case may be) is satisfied that— (a) the person who holds the associated property or who is an excepted joint owner has suffered loss as a result of the seizure of the forfeitable property and any associated property under paragraph 10B and its subsequent detention, and (b) the circumstances are exceptional, an order under sub-paragraph (6) or (7) may require the payment of compensation to that person. (12) The amount of compensation to be paid by virtue of sub-paragraph (11) is the amount the relevant court, the magistrates' court or the sheriff (as the case may be) thinks reasonable, having regard to the loss suffered and any other relevant circumstances. (13) Compensation to be paid by virtue of sub-paragraph (11) is to be paid in the same way that compensation is to be paid under paragraph 10P. (10K) (1) Any party to proceedings for an order for the forfeiture of property under paragraph 10G may appeal against— (a) the making of an order under paragraph 10G; (b) the making of an order under paragraph 10J(7); (c) a decision not to make an order under paragraph 10G unless the reason that no order was made is that an order was instead made under paragraph 10I; (d) a decision not to make an order under paragraph 10J(7). Paragraphs (c) and (d) do not apply if the application for the order under paragraph 10G was transferred in accordance with paragraph 10J(1)(a) or (b). (2) Where an order under paragraph 10I is made by a magistrates' court, any party to the proceedings for the order (including any party to the proceedings under paragraph 10G that preceded the making of the order) may appeal against a decision to include, or not to include, provision in the order under sub-paragraph (6) of paragraph 10I. (3) An appeal under this paragraph lies— (a) in relation to England and Wales, to the Crown Court; (b) in relation to Scotland, to the Sheriff Appeal Court; (c) in relation to Northern Ireland, to a county court. (4) An appeal under this paragraph must be made before the end of the period of 30 days starting with the day on which the court makes the order or decision. (5) Sub-paragraph (4) is subject to paragraph 10L. (6) The court hearing the appeal may make any order it thinks appropriate. (7) If the court upholds an appeal against an order forfeiting property, it may order the release of the whole or any part of the property. (10L) (1) This paragraph applies where— (a) a successful application for an order under paragraph 10G relies (wholly or partly) on the fact that an organisation is proscribed, (b) an application under section 4 of the Terrorism Act 2000 for a deproscription order in respect of the organisation is refused by the Secretary of State, (c) the property forfeited by the order under paragraph 10G was seized under this Part of this Schedule on or after the date of the refusal of that application, (d) an appeal against that refusal is allowed under section 5 of the Terrorism Act 2000, (e) a deproscription order is made accordingly, and (f) if the order is made in reliance on section 123(5) of the Terrorism Act 2000, a resolution is passed by each House of Parliament under section 123(5)(b) of that Act. (2) Where this paragraph applies, an appeal under paragraph 10K against the making of an order under paragraph 10G, and against the making (in addition) of any order under paragraph 10J(7), may be brought at any time before the end of the period of 30 days beginning with the date on which the deproscription order comes into force. (3) In this paragraph a “deproscription order” means an order under section 3(3)(b) or (8) of the Terrorism Act 2000. (10M) (1) If property is forfeited under paragraph 10G or 10J, an authorised officer must realise the property or make arrangements for its realisation. (2) But the property is not to be realised— (a) before the end of the period within which an appeal may be made (whether under paragraph 10K or otherwise), or (b) if an appeal is made within that period, before the appeal is determined or otherwise disposed of. (3) The realisation of property under sub-paragraph (1) must be carried out, so far as practicable, in the manner best calculated to maximise the amount obtained for the property. (10N) (1) The proceeds of property realised under paragraph 10M must be applied as follows— (a) first, they must be applied in making any payment required to be made by virtue of paragraph 10J(9); (b) second, they must be applied in making any payment of legal expenses which, after giving effect to paragraph 10G(4) (including as applied by paragraph 10J(5)), are payable under this sub-paragraph in pursuance of provision under paragraph 10G(3) or, as the case may be, 10J(4); (c) third, they must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the property whilst detained under this Part of this Schedule and in realising the property; (d) fourth, they must be paid— (i) if the property was forfeited by a magistrates' court or the High Court, into the Consolidated Fund; (ii) if the property was forfeited by the sheriff or the Court of Session, into the Scottish Consolidated Fund. (2) If what is realised under paragraph 10M represents part only of an item of property seized under paragraph 10B and detained under this Part of this Schedule, the reference in sub-paragraph (1)(c) to costs incurred in storing or insuring the property is to be read as a reference to costs incurred in storing or insuring the whole of the item of property. (10O) (1) A person who claims that any property detained under this Part of this Schedule, or any part of it, belongs to him or her may apply for the property or part to be released. (2) An application under sub-paragraph (1) is to be made— (a) in England and Wales or Northern Ireland, to a magistrates' court; (b) in Scotland, to the sheriff. (3) The application may be made in the course of proceedings under paragraph 10D or 10G or at any other time. (4) The court or sheriff may order the property to which the application relates to be released to the applicant if it appears to the court or sheriff that— (a) the applicant was deprived of the property to which the application relates, or of property which it represents, by criminal conduct, (b) the property the applicant was deprived of was not, immediately before the applicant was deprived of it, property obtained by or in return for criminal conduct and nor did it then represent such property, and (c) the property belongs to the applicant. (5) If sub-paragraph (6) applies, the court or sheriff may order the property to which the application relates to be released to the applicant or to the person from whom it was seized. (6) This sub-paragraph applies where— (a) the applicant is not the person from whom the property to which the application relates was seized, (b) it appears to the court or sheriff that the property belongs to the applicant, (c) the court or sheriff is satisfied that the release condition is met in relation to the property, and (d) no objection to the making of an order under sub-paragraph (5) has been made by the person from whom the property was seized. (7) The release condition is met— (a) in relation to property detained under paragraph 10C or 10D, if the conditions in paragraph 10C or (as the case may be) 10D for the detention of the property are no longer met, and (b) in relation to property detained under paragraph 10G, if the court or sheriff decides not to make an order under that paragraph in relation to the property. (10P) (1) If no order under paragraph 10G, 10I or 10J is made in respect of any property detained under this Part of this Schedule, the person to whom the property belongs or from whom it was seized may make an application for compensation. (2) An application under sub-paragraph (1) is to be made— (a) in England and Wales or Northern Ireland, to a magistrates' court; (b) in Scotland, to the sheriff. (3) If the court or sheriff is satisfied that the applicant has suffered loss as a result of the detention of the property and that the circumstances are exceptional, the court or sheriff may order compensation to be paid to the applicant. (4) The amount of compensation to be paid is the amount the court or sheriff thinks reasonable, having regard to the loss suffered and any other relevant circumstances. (5) If the property was seized by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for Her Majesty's Revenue and Customs. (6) If the property was seized 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 property was seized by a counter-terrorism financial investigator, the compensation is to be paid as follows— (a) in the case of a counter-terrorism financial 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 a counter-terrorism financial 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. (8) If the property was seized by an immigration officer, the compensation is to be paid by the Secretary of State. (9) If an order under paragraph 10G, 10I or 10J is made in respect only of a part of any property detained under this Part, this paragraph has effect in relation to the other part. (10) This paragraph does not apply if the court or sheriff makes an order under paragraph 10O.

3

In paragraph 19 (general interpretation), in sub-paragraph (1), at the appropriate place insert—

“listed asset” has the meaning given by paragraph 10A,

.

SCHEDULE 4

1

Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (forfeiture of terrorist cash) is amended as follows.

2

After paragraph 10P (inserted by Schedule 3 above) insert—