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PRACTICE ADVICE ONFINANCIALINVESTIGATION2006Produced on behalf of theAssociation of Chief Police Officersby the National Centre for Policing Excellence

All enquiries about this practice advice should be addressed to:

OpslineNational Centre for Policing ExcellenceWyboston LakesGreat North RoadWybostonBedfordshire MK44 3BY

Tel: 0870 241 5641Email: [email protected]

A printed version of this CD-Rom is available on request from the above address.

AcknowledgementsACPO and the NCPE would like to express their thanks to all those involved in the drafting of thisdocument and to members of the ACPO Steering Group and the ACPO Guidance Working Groupwho gave their advice. All of the responses during the consultation phase of this project wereappreciated and contributed to the final document.

© Association of Chief Police Officers (2006)© Centrex (2006)

All rights reserved. No part of this publication may be reproduced, modified, amended, stored inany retrieval system or transmitted, in any form or by any means, without the prior writtenpermission of Centrex and ACPO or their duly authorised representative.

PRACTICE ADVICE ON FINANCIAL INVESTIGATION

This document has been produced by the National Centre for Policing Excellence (NCPE) onbehalf of the Association of Chief Police Officers (ACPO). It will be updated according tolegislative and policy changes and re-released as required.

The NCPE was established by the Police Reform Act 2002. As part of its remit the NCPE isrequired to develop policing doctrine, including practice advice, in consultation with ACPO, theHome Office and the Police Service. Practice advice produced by the NCPE should be used bychief officers to shape police responses to ensure that the general public experience consistentlevels of service. The implementation of all practice advice will require operational choices to bemade at local level in order to achieve the appropriate police response.

Centrex is committed to providing quality products and services which comply with theCentrex Quality Assurance Framework and encompass diversity.

This practice advice contains information to assist policing in the United Kingdom.

It is not protectively marked under the Government Protective Marking Scheme.

The decision to make the content, or any part of it, publicly available or not, restswith the copyright holders. They have agreed to make it available to the police andpartner agencies on condition that these agencies do not make it publicly available,for example, on internet sites.

Application for disclosure under the Freedom of Information Act 2000 shouldbe sent to the Centrex Security and Business Continuity Unit at<[email protected]>. The Security and BusinessContinuity Unit will be responsible for notifying ACPO and the Police CentralReferral Unit.

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Section 1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

1.1.1 Who Is this Advice Intended For? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.1.2 Why Is this Advice Needed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

1.2 Introduction to Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121.2.1 The Benefits of Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1.3 Police Roles that Use Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.3.1 Specialist Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.3.2 The Non-Specialist Investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1.4 The Role of the Crown Prosecution Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.5 Other Enforcement Agencies With Investigative Powers . . . . . . . . . . . . . . . . . . . 161.6 The Use of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

1.6.1 Financial Information Found During Routine Policing Duties . . . . . . . . . . . 171.6.1.1 Financial Information Found During Stops and Searches . . . . . . 171.6.1.2 Financial Information Found During Searches of Premises . . . . . 18

1.6.2 Situations Where Financial Information May Be Used . . . . . . . . . . . . . . . . . 191.6.3 Using Financial Information as Part of the Investigative Strategy . . . . . . . . 19

1.7 Human Rights Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201.7.1 Special Investigative Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.8 Gathering Financial Information (Types of Financial Information andHow They Can Be Accessed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.8.1 Information Held by Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . 201.8.2 Tasking Financial Investigators to Make Initial Enquiries of the

Regulated Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211.8.3 Requesting Information from Financial Institutions, Commercial Service

Providers, Government Departments and Other Agencies . . . . . . . . . . . . . 211.8.3.1 Production Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211.8.3.2 Account Monitoring Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . 221.8.3.3 Customer Information Orders . . . . . . . . . . . . . . . . . . . . . . . . . . 221.8.3.4 Disclosures of Personal Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1.8.4 Information Held by Merchant Service Providers . . . . . . . . . . . . . . . . . . . . 241.8.5 Information Held by Government Departments and Other Agencies . . . . . 251.8.6 Information Held by Credit Reference Databases . . . . . . . . . . . . . . . . . . . 261.8.7 Accessing Credit Reference Agency Information . . . . . . . . . . . . . . . . . . . . 271.8.8 The Elmer Database (Suspicious Activity Reports) . . . . . . . . . . . . . . . . . . . . 27

1.8.8.1 Access to Suspicious Activity Reports . . . . . . . . . . . . . . . . . . . . 271.8.9 Information Contained in Local Force Intelligence Systems . . . . . . . . . . . . . 28

1.9 Developing a Financial Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281.10 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281.11 The Use of Financial Information in Intelligence Products . . . . . . . . . . . . . . . . . . 291.12 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

1.12.1 Evidential Link to a Suspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301.12.2 Targeting a Prolific Offender and Tracing Assets . . . . . . . . . . . . . . . . . . . . . 301.12.3 Locating a Suspect in an Investigation into an Armed Robbery . . . . . . . . . 30

NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006

CONTENTS

Section 2 CASH SEIZURE, DETENTION AND FORFEITURE . . . . . . . . . . . . . . . . . 312.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332.2 The Process of Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332.3 Step-by-Step Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

2.3.1 Conditions for Seizing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342.3.1.1 Notes on Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342.3.1.2 The Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.1.3 Reasonable Grounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.1.4 The Definition of Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

2.3.2 Initial Enquiries and Financial Interviewing . . . . . . . . . . . . . . . . . . . . . . . . . 362.3.2.1 Where Cash Is Found Independently of a Person . . . . . . . . . . . 37

2.3.3 Bagging and Sealing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382.3.4 Service of Receipt to Persons Found in Possession of Cash . . . . . . . . . . . . . 382.3.5 Arranging the Cash Detention Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . 382.3.6 Service of Form A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

2.3.6.1 The Right to Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392.3.7 Information in Support of Application for Further Detention . . . . . . . . . . . 392.3.8 Application at the Magistrates’ court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.9 Order Granted – Court Forms and Responsibilities . . . . . . . . . . . . . . . . . . . 402.3.10 Procedure for the Cash After an Order of Continued Detention Has

Been Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.11 Further Detention Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.12 Where Enquiries Reveal the Cash is Lawful or Below the

Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412.3.13 Where Other Persons Apply for the Release of the Cash . . . . . . . . . . . . . . 412.3.14 Application for the Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . 412.3.15 Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

2.4 Cash Forfeiture and a Criminal Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.5 Consideration of Money Laundering Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

2.6.1 Where a House Search Results in an Unexpected Cash Seizure . . . . . . . . . 422.6.2 When the Criminal Prosecution Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432.6.3 Where an Investigation into Money Laundering and Deception Offences

Unearths a Sizeable Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432.6.4 A Missed Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43


CONTENTS

Section 3 MONEY LAUNDERING INVESTIGATION . . . . . . . . . . . . . . . . . . . . . . . 453.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

3.1.1 What is Money Laundering? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463.2 Money Laundering Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

3.2.1 Section 327 Concealing, Disguising, Converting or Transferring . . . . . . . . . 473.2.2 Section 328 Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473.2.3 Section 329 Acquisition, Use, Possession . . . . . . . . . . . . . . . . . . . . . . . . . . 473.2.4 Defences to Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

3.3 When is a Money Laundering Investigation Appropriate? . . . . . . . . . . . . . . . . . 483.4 Who Can Undertake a Money Laundering Investigation? . . . . . . . . . . . . . . . . . . 483.5 Process Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

3.6.1 A Money Laundering Investigation Disrupts Semi-Organised Criminality . . 503.6.2 Existence of Cash as Evidence of Money Laundering . . . . . . . . . . . . . . . . . 503.6.3 When Witness Evidence of an Offence is Difficult to Obtain . . . . . . . . . . . 503.6.4 A POCA Section 327 Offence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Section 4 CONFISCATION INVESTIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 514.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

4.1.1 What Is Confiscation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.1.2 Who Can Conduct a Confiscation Investigation? . . . . . . . . . . . . . . . . . . . . 52

4.2 The Process of Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.2.1 Instigating a Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.2.1.1 When Is a Confiscation Investigation Appropriate? . . . . . . . . . . 544.2.2 Planning the Confiscation Investigation: Developing an

Investigative Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564.2.3 Restraining Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574.2.4 Role of the Financial Investigation Unit in Confiscation Proceedings . . . . . . 57

4.2.4.1 Referral of Confiscation Cases to the FinancialInvestigation Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

4.2.5 Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.2.5.1 The Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

4.2.6 The Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614.2.6.1 Confiscation in Cases Where No Assets Are Thought

to Be Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634.2.7 Enforcement of the Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

4.2.7.1 Non-Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634.2.8 Revisiting a Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4.3 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.1 Case Revisited for Outstanding Payment of Confiscation Order . . . . . . . . . 654.3.2 A Student Found in Possession of Five Wraps of Cannabis

Given Confiscation Order of £13,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.3 A Person Pleads Guilty to Conspiracy to Defraud His Employer

of £280,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.4 A Petty Theft Leads to Major Confiscation . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.5 Conduct Forming Part of a Course of Criminal Activity . . . . . . . . . . . . . . . 664.3.6 An Example of Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . 664.3.7 Default Sentence for Non-Payment of Confiscation Order . . . . . . . . . . . . . 66


Section 5 OTHER AGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 675.1 Other Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

5.1.1 Regional Asset Recovery Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685.1.2 Assets Recovery Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695.1.3 Department for Environment, Food and Rural Affairs’ Investigation Service . . 705.1.4 Department of Trade and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

5.1.4.1 Companies Investigation Branch . . . . . . . . . . . . . . . . . . . . . . . . 715.1.5 Department for Work and Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

5.1.5.1 Fraud Investigation Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735.1.6 Financial Crime Information Network (FIN-NET) . . . . . . . . . . . . . . . . . . . . . 735.1.7 Financial Services Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745.1.8 Her Majesty’s Revenue and Customs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755.1.9 Home Office Immigration and Nationality Directorate . . . . . . . . . . . . . . . . 76

5.1.9.1 Immigration and Nationality Directorate Intelligence Service . . . 775.1.10 Identity and Passport Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785.1.11 National Terrorist Financial Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . 795.1.12 Office of Fair Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795.1.13 Serious Fraud Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815.1.14 Serious Organised Crime Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815.1.15 Trading Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

5.2 Other Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835.2.1 Forfeiture Under the Misuse of Drugs Act 1971 . . . . . . . . . . . . . . . . . . . . . 835.2.2 Powers of Criminal Courts (Sentencing) Act 2000 . . . . . . . . . . . . . . . . . . . 835.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and

Police Act 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845.2.4 Terrorism Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

APPENDIX 1 ABBREVIATIONS AND ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . 87

APPENDIX 2 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

APPENDIX 3 SAMPLE RECEIPT FOR SEIZED CASH . . . . . . . . . . . . . . . . . . . . . . 91

APPENDIX 4 FORM A WITH NOTES ON COMPLETION (FIRST/FURTHERAPPLICATION FOR CONTINUED DETENTION OF SEIZED CASH) . . 93

APPENDIX 5 BLANK FORM A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

APPENDIX 6 FORM B (FIRST/FURTHER ORDER FOR CONTINUED DETENTIONOF SEIZED CASH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101

APPENDIX 7 FORM C (NOTICE TO PERSONS AFFECTED BY AN ORDER FORCONTINUED DETENTION OF SEIZED CASH) . . . . . . . . . . . . . . . . .103


CONTENTS

Summary of FiguresFigure 1 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Figure 2 Cash Seizure Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Figure 3 Confiscation Investigation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Figure 4 Excerpt from MG17 Confiscation Review Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Figure 5 Criminal Conduct Flowchart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Figure 6 Using the Assumptions to Calculate the Benefit From Criminal Conduct . . . . . . . . 61Figure 7 Decision-Making Processes of Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . 62

Summary of TablesTable 1 Home Office Summary Table of Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Table 2 Default Sentences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Summary of Text BoxesText Box 1 Seizing Cash as Evidence Under PACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Text Box 2 Criminal Lifestyle Offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54Text Box 3 Particular Criminal Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55



7

Financial investigation can be useful in all types of investigations. A wide range of options areavailable to investigators through powerful legislation that targets the proceeds of crime. Thispractice advice focuses on the knowledge and awareness required for the non-specialistinvestigator to make use of financial investigative tools. It has been developed in consultationwith policy makers and practitioners specialising in this field and represents their views on whatconstitutes good practice. It is to be trialled in a number of Basic Command Units with a viewwith producing management guidance on financial investigation.


PREFACE

8 NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006

9

SEC

TION

1


Section 1INTRODUCTION

This section contains the objectives and structure of the practiceadvice. This includes the legal, historical and policy background to

financial investigation and asset recovery. It details the functions andagencies responsible for financial investigation and the role of thepolice investigator in this context.

Types of financial information are also included in this section withadvice on how they can be accessed.

CONTENTS

1.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.1.1 Who Is this Advice Intended For? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111.1.2 Why Is this Advice Needed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

1.2 Introduction to Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121.2.1 The Benefits of Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1.3 Police Roles that Use Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.3.1 Specialist Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.3.2 The Non-Specialist Investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1.4 The Role of the Crown Prosecution Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.5 Other Enforcement Agencies With Investigative Powers . . . . . . . . . . . . . . . . . . . 161.6 The Use of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

1.6.1 Financial Information Found During Routine Policing Duties . . . . . . . . . . . 171.6.1.1 Financial Information Found During Stops and Searches . . . . . . 171.6.1.2 Financial Information Found During Searches of Premises . . . . . 18

1.6.2 Situations Where Financial Information May Be Used . . . . . . . . . . . . . . . . . 191.6.3 Using Financial Information as Part of the Investigative Strategy . . . . . . . . 19

1.7 Human Rights Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201.7.1 Special Investigative Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.8 Gathering Financial Information (Types of Financial Information andHow They Can Be Accessed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1.8.1 Information Held by Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . 201.8.2 Tasking Financial Investigators to Make Initial Enquiries of the

Regulated Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211.8.3 Requesting Information from Financial Institutions, Commercial Service

Providers, Government Departments and Other Agencies . . . . . . . . . . . . . 211.8.3.1 Production Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211.8.3.2 Account Monitoring Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . 221.8.3.3 Customer Information Orders . . . . . . . . . . . . . . . . . . . . . . . . . . 221.8.3.4 Disclosures of Personal Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

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1.8.4 Information Held by Merchant Service Providers . . . . . . . . . . . . . . . . . . . . 241.8.5 Information Held by Government Departments and Other Agencies . . . . . 251.8.6 Information Held by Credit Reference Databases . . . . . . . . . . . . . . . . . . . 261.8.7 Accessing Credit Reference Agency Information . . . . . . . . . . . . . . . . . . . . 271.8.8 The Elmer Database (Suspicious Activity Reports) . . . . . . . . . . . . . . . . . . . . 27

1.8.8.1 Access to Suspicious Activity Reports . . . . . . . . . . . . . . . . . . . . 271.8.9 Information Contained in Local Force Intelligence Systems . . . . . . . . . . . . . 28

1.9 Developing a Financial Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281.10 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281.11 The Use of Financial Information in Intelligence Products . . . . . . . . . . . . . . . . . . 291.12 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

1.12.1 Evidential Link to a Suspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301.12.2 Targeting a Prolific Offender and Tracing Assets . . . . . . . . . . . . . . . . . . . . . 301.12.3 Locating a Suspect in an Investigation into an Armed Robbery . . . . . . . . . 30


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1.1 OUTLINE

The purpose of this practice advice is to mainstream the use of financial investigation techniquesand the legislation contained in the Proceeds of Crime Act 2002 (POCA), thereby maximisingopportunities to seize criminal assets, reduce crime and fear of crime.

The financial investigation tools that POCA provides are explained in this practice advice infour sections:

• Introduction to the legal, political and enforcement context, and use of financialinformation;

• Cash seizure, detention and forfeiture;• Money laundering investigation;• Confiscation investigation.

The roles and responsibilities of other agencies working with financial investigation are alsodetailed, as background information for the reader. Potentially useful information such as policepowers under legislation, other than POCA, is also provided.

1.1.1 WHO IS THIS ADVICE INTENDED FOR?

This advice provides guidance for operational police matters. It is designed for non-specialistpolice investigators at levels 1 and 2 of the Professionalising the Investigation Process (PIP). Itmay also contain information that is useful to:

• Supervisors;• Trainers;• Policy makers;• Leading roles in operational policing that can influence the investigative process, such as

– evidence review officers (or their equivalent depending on the force)– senior investigating officers (SIOs) dealing with serious and major crime– intelligence units– criminal justice units– file preparation units (depending upon force policy)– case progression units.

1.1.2 WHY IS THIS ADVICE NEEDED?

POCA was introduced in 2002 following recognition of the need for a more coordinatedstrategic approach to criminal asset recovery. It brought together a range of financialinvestigation tools under one umbrella. In addition, its implementation measures sought tochange the traditional approach to financial investigation.

Despite this new legislation and associated roll-out activities, there is a view by policy makersand practitioners that POCA is underused (particularly in respect of money laundering offences:see 3 Money Laundering Investigation).

Payback Time – Joint Review of Asset Recovery Since the Proceeds of Crime Act 2002 statedthat ‘many opportunities for asset recovery are still routinely missed.’


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While financial investigation does not feature as a separate item with the HMIC inspectionframework, forces’ performance is measured by indicators such as their number of confiscationorders and cash seizures. New performance indicators are also being developed.

1.2 INTRODUCTION TO FINANCIAL INVESTIGATION

Financial investigation refers to activity that uses financial investigation techniques and includes:

• The use of financial information in criminal investigations;• The use of financial information in intelligence products (see 1.11 The Use of Financial

Information in Intelligence Products);• Seizing cash (see 2 Cash Seizure, Detention and Forfeiture);• The use of anti-money laundering powers (see 3 Money Laundering Investigation);• Restraining assets (see 4.2.3 Restraining Assets);• Undertaking confiscation investigations (see 4 Confiscation Investigation);• Working with other agencies to reduce crime (see 5 Other Agencies).

The Proceeds of Crime Act 2002 (POCA) is the primary legislation used in financial investigation.It combines previous legislation such as the Drug Trafficking Act 1994 (DTA) and Part VI of theCriminal Justice Act 1988 (CJA).

Other asset recovery tools are provided by:

• Misuse of Drugs Act 1971 (MDA) (forfeiture of property used to commit crime, see5.2.1 Forfeiture Under the Misuse of Drugs Act 1971);

• Powers of Criminal Courts (Sentencing) Act 2000 (PCC(S)A) (forfeiture, see 5.2.2 Powers ofCriminal Courts (Sentencing) Act 2000);

• The Criminal Justice and Police Act 2001 (CJPA) (seizure as evidence through powers ofsearch and sift, see 5.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and PoliceAct 2001);

• The Terrorism Act 2000 (restraint, seizure, forfeiture, money laundering, see 5.2.4 TerrorismLegislation);

• The Anti-Terrorism, Crime and Security Act 2001 (cash seizure, see 5.2.4 Terrorism Legislation).

1.2.1 THE BENEFITS OF FINANCIAL INVESTIGATION

Assisting Criminal Investigations

Financial investigation may provide material of use in all types of investigations, including thosewith no obvious link to money or assets. This is possible because most people have some kindof property, money or assets, and use service providers. Many also use electronic means ofpayment and banking instead of cash. This development has created sources of informationthat can reveal details about a person’s life, activities, interests, associates, plans and desires, allof which can be used to detect and combat crime.

‘Through the Proceeds of Crime Act there are greater powers to seize the goods and assetsof criminals – preventing them from profiting from their crime’.

Prime Minister Tony Blair, 30 March 2004

‘POCA represents a powerful opportunity to substantially disrupt and deter criminality butonly if it is used as a routine investigative process against a wide range of criminality.’

Payback Time – Joint Review of Asset Recovery Since the Proceeds of Crime


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Targeting Acquisitive Crime

Financial investigation and the tools provided by asset recovery legislation provide an effectivemeans to reduce acquisitive crime, (which accounts for over seventy per cent of all crime). Byrecovering the proceeds of crime, investigators disrupt a criminal’s ability to fund further crimeand remove their incentive by creating a continued deterrent. Additionally, it is possible for theproceeds of crime to be recovered in cases where a successful criminal conviction is not assured.

Reassuring the Public

The use of financial investigation to recover the proceeds of crime improves the public’sperception of the police. Negative role models are removed from communities and their well-flaunted assets can be confiscated.

A prison sentence may be viewed as an occupational hazard by the criminal, however, theremoval of all their criminally earned assets can have a far deeper impact. Put simply, the strongconfiscation regime contained in POCA makes sure that ‘crime does not pay’.


Shoppers prefer debitcards instead of cashDEBIT CARD spending in shops andon the web outstripped the use of cashfor the first time during 2005, figuresshowed yesterday. People spent £89bnon debit cards, 9% more than in 2004,while the use of cash fell 4% to £81bn,according to the payment industry bodyApacs. Debit cards accounted for 37%of all retail spending this year, whilecash accounted for 34%. Spending oncredit cards remained unchanged duringthe year at £61bn, while the use ofcheques fell 14% to £9bn. Credit anddebit cards combined accounted fornearly two-thirds of retail spending in2005, up from 60% last year.

Guardian, Wednesday 19 April 2006

Convicted murderer Kenneth Noye, for example, was identified through the use of financialinformation during the investigation of the M25 murder (see 1.12.1 Evidential Link to a Suspect).


An effective deterrent. Getting charged hurts, but losing the Bentley really hurts.

Reassuring thecommunitythat crimedoes not pay.This positivenews article,showing thepolice use ofasset recoverypowers,reached aYorkshireEvening Postreadership of206,657.

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1.3 POLICE ROLES THAT USE FINANCIAL INVESTIGATION

There are a number of roles within each force that routinely use financial investigation. Officersshould be aware of these roles and their responsibilities as specialist and non-specialist functionswill work alongside each other during the investigative process.

1.3.1 SPECIALIST ROLES

Accredited Financial Investigators

Accredited financial investigators (AFIs) are trained in all aspects of financial investigation andaccredited by the Assets Recovery Agency (ARA). As an AFI is not a police or customs officerthere are a few restrictions on them, for example, at present they are not allowed to apply tocourt for the continued detention or forfeiture of seized cash.

Financial Investigators

A financial investigator (FI) is a police officer who is also trained as an AFI. For the purposes ofthis practice advice, FI will be used unless an AFI is specifically required. FIs can be placed at alllevels, for example, some forces now deploy teams of officers trained as financial investigatorsor financial intelligence officers at Basic Command Unit (BCU) level in order to mainstream theuse of POCA.

Analysts with Financial Investigation Training

An analyst with financial investigation training can assist investigations. In some forces analystsworking in Force Intelligence Bureaux (FIBs) are trained in the use of financial investigationtechniques.

1.3.2 THE NON-SPECIALIST INVESTIGATOR

The non-specialist investigator requires, as a minimum, a basic level of awareness of financialinvestigation legislation and techniques. This practice advice gives non-specialists theinformation necessary for the following activities:

• Using financial information in a criminal investigation;• Conducting a cash seizure and assisting a financial investigation into the origins of the

seized cash;• Using money laundering powers;• Triggering a confiscation investigation;• Assisting a financial investigator to conduct a confiscation investigation;• Working in partnership with other agencies involved in financial investigation.

1.4 THE ROLE OF THE CROWN PROSECUTION SERVICE

In December 2002 the Director of Public Prosecutions signed a Service Level Agreement (SLA) withACPO. It is intended to serve as a general guide to cooperation between the parties on issuesarising from POCA. This agreement forms the basis for local protocols between crown prosecutorsand chief constables. Officers should refer to the SLA and local protocol for specific details. CrownProsecution Service (CPS) areas are, however, expected to provide early advice to the policeconcerning the investigation, preservation of assets, obtaining and enforcement of confiscationorders and confiscation matters generally. They will make restraint and confiscation applications tothe crown court on behalf of the police (see 4 Confiscation Investigation).

Managers should note that some officers who are accredited as FIs may not have completedthe confiscation training course. ARA recommends that confiscation is only conducted by FIsthat have had the correct training. See 5.1.2 Assets Recovery Agency for more information.


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The CPS is unable to appear on behalf of the police at cash seizure hearings because theseare civil cases. Additionally they will not make applications to the court under Part 8 of POCA(the investigative powers) unless there is specific agreement on the repayment of its costs(see 2 Cash Seizure, Detention and Forfeiture).

1.5 OTHER ENFORCEMENT AGENCIES WITH INVESTIGATIVE POWERS

In addition to police forces and Regional Asset Recovery Teams (RARTs) comprising officerspooled from forces, there are other law enforcement agencies that conduct financialinvestigations. These are:

• Assets Recovery Agency (ARA);• Department for Environment, Food and Rural Affairs’ Investigation Service (DIS);• Department for Social Development in Northern Ireland;• Department of Agriculture and Rural Development in Northern Ireland;• Department of the Environment Northern Ireland;• Department of Trade and Industry (DTI): Companies Investigation Branch (CIB);• Department for Work and Pensions (DWP);• Financial Services Authority (FSA);• Her Majesty’s Revenue and Customs (HMRC);• Home Office Immigration and Nationality Directorate (IND);• Identity and Passport Service (IPS);• Local Authority Trading Standards;• Medicines and Healthcare Products Regulatory Agency;• NHS Counter Fraud and Security Management Service;• Occupational Pensions Regulatory Authority;• Office of Fair Trading (OFT);• Pensions Regulator;• Royal Mail;• Serious Fraud Office (SFO);• Serious Organised Crime Agency (SOCA).

ARA has additional civil recovery and taxation powers. See 5 Other Agencies for a description ofthe roles and responsibilities of RARTs and the main agencies that the police work with on aregular basis.

1.6 THE USE OF FINANCIAL INFORMATION

Financial information includes all types of information that is connected to money, assets,expenditure and finance, of any kind. This information is present in almost every aspect of aperson’s life (their home, work and plans, both present and future). Non-cash based methods ofdealing with money and assets such as credit and store loyalty cards generate financialinformation. Investigators can analyse this information to obtain material to assist theinvestigation. It can help establish a person’s whereabouts, their possible intentions, evidence ofa crime, motive and whether they are living beyond their means.

A substantial amount of financial information is available to all police officers, although thereare restrictions. FIs are able to access that information more easily because of their training andaccreditation, and the control that some data owners place on access to financial information.For these reasons, more complex enquiries are usually conducted by FIs. The responsibilities forcollecting financial information will vary from force to force. The advice given in this documentexplains the widest powers that are available to non-specialist investigators, however, theyshould consult their own force policy.


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1.6.1 FINANCIAL INFORMATION FOUND DURING ROUTINE POLICING DUTIES

Investigators and supervisors should be aware of the wide range of financial information thatcould be of relevance to a criminal investigation or a confiscation investigation. All police officerscome into contact with financial information during the course of their routine duties. Thisincludes stops and searches and searches of premises.

Opportunities to gather financial information can arise when:

• Conducting a legal search in relation to an offence such as drug dealing or moneylaundering where there are reasonable grounds to believe that financial information willlead to evidence to benefit that investigation;

• Conducting a legal search into an offence where the situation evolves so that the officerbecomes aware of reasonable grounds to suspect that another offence has beencommitted – and the financial information is evidence of that offence;

• Conducting a legal search into an offence and the officer makes notes of financialinformation for intelligence purposes (without specifically searching for it).

Investigators should note that the grounds for the search must be justified, regardless of thefinancial information requirement.

Investigative powers provided by POCA (production orders and search warrants) can only beused while conducting a money laundering or confiscation investigation (see 1.8.3 RequestingInformation from Financial Institutions, Commercial Service Providers, Government Departmentsand Other Agencies). If, however, these powers identify evidence of other offences, the materialobtained may be used within that further criminal investigation.

If other investigation powers are being used and evidence such as financial informationbecomes available that also assists a confiscation matter as an incidental by-product of theoriginal criminal investigation, it can be used.

1.6.1.1 Financial Information Found During Stops and Searches

Following the conditions listed in 1.6.1, officers conducting a routine procedure such as a stopand search, for example, may take note of financial information such as:

• Bank account numbers listed on bank cards and statements; • Personal photographs reflecting expenditure, such as holiday snaps;• Information from any bills and receipts showing expenditure and movement of assets;• Jewellery, watches, designer clothes;• The car, bike or motorbike the person was driving.

This information may then be used by investigators as a basis to make further enquiries whichare relevant to any criminal investigation into that person’s activities.

The officer should make a note of relevant information in encounter forms, stop check cards,search logs or pocket notebook, and ensure that the relevant intelligence entry is made on thelocal intelligence database (see 1.11 The Use of Financial Information in Intelligence Products).Each force will have its own documentation for recording relevant information gathered ina stop and search. Officers should refer to their force policy on case referral. Forfurther information on stop and search procedures see ACPO (2006) Practice Advice on Stopand Search.


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1.6.1.2 Financial Information Found During Searches of Premises

Where premises are being searched in relation to a crime, it is possible that financial informationof relevance to the investigation may be found. In drugs cases, officers will be looking forcontrolled drugs, drugs paraphernalia, cash and financial records. If the investigation is not drugrelated but concerns an acquisitive crime such as a deception, theft or burglary, financialinformation may be relevant to that offence or any future confiscation procedure.

Financial information also has a wider investigative use in providing details of a person’s lifestyleand motives. During a house search officers may note, for example, if the resident is obviouslyliving beyond their means and/or the house has apparent and excessive signs of unexplainedwealth. The officer should make a note of information in the search log and prepare anintelligence report, ensuring that the information is passed to the officer in the case and thelocal intelligence system (see 1.11 The Use of Financial Information in Intelligence Products).Officers should refer to their own force policy on documentation and case referral.

An FI or financial intelligence officer should be involved in executing search warrants onpremises, although this may not always be possible. The support of an FI can maximise theevidence gathering potential of the operation and make sure that wider intelligenceopportunities are not missed. All officers, however, should be aware of the evidential use andintelligence potential of financial information routinely found in premises such as:

• Information from bank and building society books and account statements (both thesuspect’s and their family’s, noting that credit reference checks may not reveal recentlyopened or long-standing bank accounts, or accounts owned by the suspect in othernames);

• Account numbers from cheque books and bank or credit cards;• Information from financial documents regarding pensions, investments, mortgages;• Information from business documents suggesting a working relationship between the

suspect and a business or company;• Expenditure information from

– bills including utility bills– receipts– car and house contents insurance papers;


Does the lifestyle fit the suspect in the case?

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• Evidence of expenditure shown by luxury items such as– expensive pets– electronic goods– designer clothing, shoes, bags, accessories– jewellery– expensive household furnishings or features (eg, marble, expensive tiles, paved

driveways, conservatories, spas)– cars, motorbikes or bicycles– photographs of luxury items;

• Evidence of wealth and expenditure elsewhere such as photographs of holiday homes,evidence of travel and lifestyle;

• Cash;• Passports (numbers, evidence of travel);• Tracing assets for asset recovery.

This information should be forwarded by the officer conducting the search to the relevant unit(the officer in the case, the Financial Investigation Unit (FIU) or FIB). For further informationon procedures for conducting a search, see ACPO (2006) Guidance on Search Managementand Procedures.

1.6.2 SITUATIONS WHERE FINANCIAL INFORMATION MAY BE USED

Financial information can assist many aspects within police investigations including:

• Tracing persons;• Identifying offences committed ;• Identifying motives, associations and links to people and places;• Identifying the use of other services such as phones, transport and amenities relevant to

the case;• Locating or identifying suspects, witnesses or victims;• Providing information on a suspect’s movements (proactive, covert use of financial

information);• Providing information to address the issue of prolific and priority offenders where no

previous method has been successful;• Identifying criminality including acquisitive crime and offences such as fraud and counterfeiting;• Preventing and detecting crime.

(See also passive data generators in ACPO (2005) Core Investigative Doctrine, Section 4.1 Material).

1.6.3 USING FINANCIAL INFORMATION AS PART OF THE INVESTIGATIVE STRATEGY

Financial information can be a useful part of the investigative strategy in any type of investigation.To develop such a strategy, investigators must use their knowledge and experience to decide whichinvestigative actions are most appropriate. The purpose of the investigative strategy is to:

• Identify the most appropriate line of enquiry to pursue;• Determine the objective of pursuing a particular line of enquiry;• Identify the investigative action(s) necessary to efficiently achieve that objective, taking into

account legal and ethical considerations, resources, priorities and proportionality;• Conduct the investigative action and gather the maximum amount of material which may

generate further lines of enquiry.

When investigators are considering which type of financial information is appropriate to theinvestigation, the reason for the enquiry should determine the style of financial investigationrequired. For example, does the investigation need to find out the net worth of a person (forthe confiscation of assets) or is it an intelligence and evidence gathering exercise (tracing aperson or tracking their movements in a criminal investigation)? If in doubt, investigators shouldseek advice from their FIU.


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For further information on investigative strategies see ACPO (2005) Practice Advice on CoreInvestigative Doctrine, Section 6 Investigative Strategies.

1.7 HUMAN RIGHTS CONSIDERATIONS

Financial enquiries are intrusive and result in obtaining private information on an individual.

Blackstone’s Guide to the Proceeds of Crime Act 2002 (second edition) states that:

…defendants are penalized for conduct which is unproven; civil standards and methods ofproof apply to most issues; assumptions and reverse burdens of proof punctuate the variousstages; hardship is never a consideration.

Police officers involved in financial investigation must be aware of the human rights legislationthat protects the right to privacy, and the associated considerations. They must be able to justifysuch enquiries as proportionate, non-discriminatory, legitimate, accountable and necessary tothe investigation being undertaken.

The following legislation applies:

• The Police and Criminal Evidence Act 1984 (PACE);• The Criminal Procedure and Investigations Act 1996 (CPIA);• The Human Rights Act 1998 (HRA);• The Regulation of Investigatory Powers Act 2000 (RIPA);• The Data Protection Act 1998 (DPA);• The Freedom of Information Act 2000.

For more information on legal considerations, see ACPO (2005) Practice Advice on CoreInvestigative Doctrine, Section 2.2 The Legal Framework. See also ACPO (2006) Guidance on theManagement of Police Information, Section 1.4 Legal Basis for Managing Police Information.

1.7.1 SPECIAL INVESTIGATIVE CONSIDERATIONS

WARNING There are various open and closed sources where financial information canbe obtained. The enquiries made to obtain this information can, however, leave their ownfootprints. If an FI makes an enquiry with a Money Laundering Reporting Officer (MLRO) at afinancial institution (see 1.8.2. Tasking Financial Investigators to Make Initial Enquiries of theRegulated Sector), the institution will make a note of the enquiry, including its purpose. Theinvestigation being conducted may involve the use of covert investigation techniques. As such,financial enquiries could result in those investigations being compromised. Prior to making therelevant financial enquiry, consideration must be given to the type of investigation beingundertaken. As such any enquiries should be progressed in consultation with the FIU.

1.8 GATHERING FINANCIAL INFORMATION (TYPES OF FINANCIAL INFORMATIONAND HOW THEY CAN BE ACCESSED)

There are many forms of financial information and these can be related to more than oneaspect of a person’s life. The following subsections list the sources and types of financialinformation, and how they can be accessed. Investigators should contact their FIU forfurther advice.

1.8.1 INFORMATION HELD BY FINANCIAL INSTITUTIONS

Information held by financial institutions can show the lifestyle of a person and whether theyare living beyond their means. This includes information from:

• Bank accounts;


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• Bank statements– direct debits– standing orders– credit and debit slips– supplemental information such as managers’ written notes– identity documents used to open accounts (banks must be satisfied with the identity of

a person opening an account)– account opening forms– safety deposit boxes– copies of ledgers of business– credit and charge card accounts– credit and charge card statements– pensions– insurance schemes– mortgages– other previously unidentified accounts.

These can inform an investigator of payments to and from other persons, the lifestyle of theindividual (their wealth, the turnover in their account), their spend patterns (for example, wherethey went on holiday, their travel, meals, hobbies and other interests), and any financial problems.

In addition, automated teller machines can provide information on:

• Sums withdrawn;• Geographical location at a certain time;• Routines.

1.8.2 TASKING FINANCIAL INVESTIGATORS TO MAKE INITIAL ENQUIRIESOF THE REGULATED SECTOR

FIs can obtain initial information about a person’s basic financial status from MLROs that workin the regulated sector, (see 1.8.8. The Elmer Database (Suspicious Activity Reports)). Thisinformation is channelled through the Financial Intelligence Gateway. It is, however, onlyintelligence and cannot be used in evidence. Any information gathered at this point would haveto be followed up with the relevant authority, such as a production order, to allow its use withinthe evidential chain.

1.8.3 REQUESTING INFORMATION FROM FINANCIAL INSTITUTIONS, COMMERCIALSERVICE PROVIDERS, GOVERNMENT DEPARTMENTS AND OTHER AGENCIES

Information must have been legally obtained before it can be placed into the evidential chain.This may be through the use of the DPA or a relevant production order or search warrant(obtained under POCA, PACE or the DTA). The authority to be used is determined by the type ofinvestigation, eg, a production order under POCA would be used in a confiscation investigation.The owner of the information (eg, bank or credit reference agency) would also have a bearingon the type of order used.

1.8.3.1 Production Orders

Investigators can use production orders and search and seizure warrants to make materialavailable under:

• Section 345 and 352 POCA (applying to confiscation, money laundering and civil recoveryinvestigations only);

• Section 55 and 56 DTA;• Section 9 and Schedule 1 PACE (although production orders under PACE cannot be served

on a government body).


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Investigators may use production orders to access information held by the regulated sector orservice providers. The process involves the appropriate officer (a constable, customs officer or anaccredited financial investigator) gathering information in support of an application for aproduction order and making an application to court for a production order. It is good practiceto obtain an authority from an officer of inspector rank or above for applications underPOCA or the DTA. The material requested can include any information held by the institution.See 1.8.1 Information Held by Financial Institutions for a list of information that is available.

In addition to production orders, investigators have powers under POCA to obtain accountmonitoring orders and customer information orders.

1.8.3.2 Account Monitoring Orders

Account monitoring orders (section 370 POCA) can provide live intelligence on a suspect’s bankaccount(s) for up to ninety days at any one time. These orders can require a financial institutionto submit reports as directed to the police on the suspect’s financial activities. Compliance islabour intensive for the regulated sector. Account monitoring orders require the authorisation ofa detective inspector. They can only be obtained in relation to confiscation or money launderingproceedings at whatever stage. The complex nature of this process and the risk of inappropriateusage (with institutional as well as personal consequences) means that only FIs will apply foraccount monitoring orders.

1.8.3.3 Customer Information Orders

Customer Information Orders (section 363 POCA) are used in a proceeds of crime investigation(eg, a money laundering investigation) to find out if an unidentified account exists. They aretime consuming for financial institutions to comply with and require the authorisation of asuperintendent or above. Application for these orders should be as a last resort andproportionate to the matters under investigation. There must also be intelligence and a rationalreason leading to the belief that an unidentified account exists. The financial institution willusually require as much detail as possible but at least the suspect’s name and postcode in orderto be able to supply the information.

Customer information in section 364 POCA is ‘information whether the person holds, or hasheld, an account or accounts at the financial institution’. If an account is held, customerinformation includes the following:

• The account number(s);• The person’s full name;• Date of birth;• Most recent address and any previous addresses;• Date(s) of account opening and/or closing;• Evidence of identity obtained by the financial institution for the purpose of money

laundering regulations;• Personal details (name, date of birth, addresses) of joint account holders;• Account numbers of any other accounts to which the individual is signatory and details of

the account holders.

Customer information on companies also exists, including details such as VAT numbers,registered offices and personal details of individual account signatories. Due to the complexitiesof applying for customer information orders, in practice only FIs will make an application.

Table 1 Home Office Summary Table of Powers shows each power and who can apply for it in aconfiscation, money laundering or civil recovery investigation.


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Table 1 Home Office Summary Table of Powers

Purpose ofpower

Obtain materialalready in existencerelating to a knownaccount in controlof a know person,eg, bank statementsand correspondence

(1) Search premiseswhereproduction ordernot compliedwith; or

(2) Search premiseswhereproduction orderlikely to beineffective andseize material

Require any personto producedocuments, provideinformation oranswer questionsrelating toinvestigation

Trawl financialinstitutions foraccounts in thename of a particularperson ororganisation

Monitor futuretransactionsthrough a knownaccount for up to90 days

Productionorder

Search andseizure warrant

Disclosureorder

Customerinformationorder

Accountmonitoringorder

Who can applyfor it –

confiscationinvestigation?

(1) Director of theAgency*

(2) Any constable(3) Any customs

officer(4) AFI with relevant

accreditation

(1) Director of theAgency



accreditation

Director of theAgency


(2) Any constablewithsuperintendentauthorisation

(3) Any customsofficer withofficer at PayBand 9authorisation

(4) AFI with relevantaccreditationandauthorisation




accreditation


money launderinginvestigation?



accreditation



accreditation

Not available in amoney launderinginvestigation

(1) Any constablewithsuperintendentauthorisation

(2) Any customsofficer withofficer at PayBand 9authorisation

(3) AFI with relevantaccreditationandauthorisation



accreditation


civil recoveryinvestigation






*‘The Agency’ refers to the ARA.

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1.8.3.4 Disclosures of Personal Data

In order to access information held by other agencies and companies, an investigator must use arequest for disclosure of personal data under the DPA. The power to disclose information existswhere disclosure is required for:

• The prevention or detection of crime;• The apprehension or prosecution of offenders (section 29 (3)),

or for reasons of national security (section 28) to the extent that non-disclosure of the requestedinformation would be likely to prejudice one or more of those same purposes.

In cases where it may not be appropriate to claim the exemption, a court order for thedisclosure may be sought.

Any officer may make a request though it must be authorised by a senior officer of the rank ofinspector or above. Requests must:

• Contain details of the criminal investigation to which it relates and must seek specificdetails, ie, current address, assets, investment accounts or details of income;

• Be necessary for one of the purposes set out in paragraph 2 of Article 8 of Schedule 1 tothe HRA;

• Be proportionate to the purpose for which the information is requested.

1.8.4 INFORMATION HELD BY MERCHANT SERVICE PROVIDERS

Merchant service providers, such as mobile phone companies, utility companies or firms thatdeal with merchants’ claims for reimbursement for credit or debit card payments by customers,hold a variety of information of potential use to an investigation. This can include a person’slocation at a certain time or details of any electronic payments. Investigators can apply forproduction orders to obtain information from the financial institution that administers the chipand PIN or swipe systems (such as Link), which can then be followed up.

Merchant service providers hold:

• Applications for services;• Account information on a person’s

– address– date of birth– bank account number and sort code– telephone numbers– marital status– credit cards held– expenditure.

Retailers hold:

• Information from points of sale;• Loyalty cards providing information on

– lifestyle– location and time– expenditure.


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Other service providers (eg, gambling establishments, social clubs and associations, gyms) hold:

• Customer or client information such as– addresses– telephone numbers– the person’s associates, routines and their location.

Solicitors hold:

• Conveyancing files;• Other related matters.

Accountants hold:

• Reports and other full notes;• Accountancy records.

Material recovered from solicitors or accountants can be the subject of legal professionalprivilege (LPP). All information that a solicitor discovers about a client in the course of a retaineris confidential, whether that information is also privileged is a separate legal issue. For moreinformation on LPP see The Law Society (1999) The Guide to the Professional Conduct ofSolicitors, Chapter 16 and the Crown Prosecution Service website:http://www.cps.gov.uk/legal/section1/chapter_f.html#02

1.8.5 INFORMATION HELD BY GOVERNMENT DEPARTMENTS AND OTHER AGENCIES

Various government agencies and departments hold financial information of use to apolice investigation.

The Department for Work and Pensions (DWP) holds information on benefits such asincome support, jobseekers allowance and incapacity benefit (see 5.1.5 The Department forWork and Pensions).

Her Majesty’s Revenue and Customs provides information on:

• Tax status (note that this requires the authority of an inspector);• Child benefit;• Employment;• Third-party information on individuals which includes interest-bearing accounts, ISAs, and

other items on which tax is due.

A two-way gateway allows exchange of information between the police and HMRC.Investigators should consult their own force policy on accessing information from HMRC(see also 5.1.8 Her Majesty’s Revenue and Customs).

Local Authorities provide information on:

• Housing benefit;• Council tax;• Amount of time a person has spent at an address and who else lives there.

Information is available to the police from local authority fraud departments by using DPAsection 29 requests for intelligence. Production orders under the appropriate Act must beobtained if intelligence from a local authority is required in evidential form. Local memoranda ofunderstanding and informal arrangements may also be in existence. Investigators shouldcontact the FIU and or FIB for assistance.


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The Land Registry provides information on:

• Property owned, solicitors used and any associates;• Value of property;• Mortgages relevant to property.

Investigators are advised to contact the FIU for access to Land Registry information.

The United Kingdom Identity and Passport Service (IPS) can provide information on a personincluding:

• Name;• Gender;• Date of birth;• Place of birth; • Address(es); • Passport number;• Names of family members;• The method of payment used to pay for their passport (possibly leading to bank

account details).

A memorandum of understanding governs the exchange of information between the policeand the IPS. For further details see 5.1.10 Identity and Passport Service.

Companies House holds information relating to any business owned by the suspect including:

• Current and previous directorships;• Registered business addresses and home addresses;• Accountant’s details;• Bank details;• Original signed documentation.

Investigators are advised to contact the FIU for access to information held by Companies House.

1.8.6 INFORMATION HELD BY CREDIT REFERENCE DATABASES

Credit reference agencies provide data access systems that can be used in criminal investigationsallowing authorised officers to obtain information on an individual’s financial relationships andstatus. This information can assist in the prevention or detection of crime and apprehension andprosecution of offenders, or the assessment or collection of any tax or duty. Credit referenceagencies in the UK include:

• Experian;• Equifax;• Call Credit (mostly based in the UK and primarily concerned with high street credit ratings).

These agencies provide information including:

• Financial history and credit status, repossessions;• Names of financial associates;• Address checking;• Electoral roll data;• Insurance information;• Cars, purchases (hire purchase information);• Properties;• County court judgements;• Telephone numbers and a list of all credit searches that have been carried out on a person

including identity verifications;


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• Relevant information on fraud linked to a particular address, and details on repossessions;• Information on business proprietors (including cross-reference business registrations using

address and telephone number data, and directors’ names).

Dunn and Bradstreet hold information on companies, company directors, multiple companydirectorships, a director’s former earnings, company secretaries, trading addresses, companyfiles, and names of disqualified directors. CIFAS, the UK’s fraud prevention service, keepsinformation on multiple credit applications that are suspected of being fraudulent. They alsomaintain other fraud databases.

1.8.7 ACCESSING CREDIT REFERENCE AGENCY INFORMATION

Due to administrative costs, many forces limit access to credit reference agency databases to FIs.There is also a certain level of training required in order to understand a report generated as aresult of a search. All investigators should be, however, aware of the potential of thisinformation to assist an investigation, and should seek the support of their FIU, if necessary, toobtain access.

1.8.8 THE ELMER DATABASE (SUSPICIOUS ACTIVITY REPORTS)

All forces have access to a database called Elmer that is usually located in the FIU or FIB (orboth). Elmer contains data from Suspicious Activity Reports or SARs. SARs can be a usefulsource of intelligence for investigators. They are produced by the regulated sector (the financialindustry and other businesses that deal with large volumes of money), which is legally requiredto train all staff to recognise and report any suspicions that arise concerning money launderingor terrorist activity. SARs are sent to the Serious Organised Crime Agency (SOCA) which thendisseminates them to forces via Elmer. These reports represent a large amount of financialintelligence that has not been adequately exploited by law enforcement agencies.

Investigators can make an enquiry of Elmer through their force FIB or FIU, searching forinformation on a person or persons according to:

• Name;• Post code;• Date of birth;• Address;• The existence of previous SARs.

Note: Disclosures are made on transactions that are suspected by financial institutions andother organisations in the regulated sector, but many are actually legitimate and not linked tocriminal activity.

1.8.8.1 Access to Suspicious Activity Reports

The source of information from SARs must not be revealed to the subject or anyone else. SARsare usually put on the sensitive disclosure Schedule and their existence is only disclosed by ajudge following a Public Interest Immunity (PII) hearing in exceptional circumstances. If PIIbecomes an issue during the trial, SOCA is the custodian of SARS and must be consulted beforeany final decision is made regarding disclosure or otherwise. The highly confidential nature ofSARs means that investigators do not have direct access to them. They are only accessed andhandled by FIs accredited by ARA (deployed in the FIU or FIB), who have a duty to protect thediscloser and may not pass on unsanitised information. Investigating officers should never be inpossession of the confidential information contained in a SAR other than via a sanitisedinformation or intelligence report, commonly known as a 5x5x5, that protects the source of theinformation (the disclosing institution). Each force has its own policy with regard to receipt,initial analysis, development and further dissemination of SARs.


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1.8.9 INFORMATION CONTAINED IN LOCAL FORCE INTELLIGENCE SYSTEMS

Information, including bank account details and telephone numbers, may be held on localdatabases.

Where an individual is the subject of an outstanding confiscation order that has not been paidin full, a force has the ability to place an asset marker (shown as ‘AS’) on the Police NationalComputer (PNC). This then assists law enforcement agencies to keep track of the individual.When stopping an individual who has such a marker against their name, officers may discoverassets that could be confiscated.

1.9 DEVELOPING A FINANCIAL STRATEGY

It is often difficult for investigators to know what type of financial information is useful orneeded for their investigation. Investigators are, therefore, advised to contact their FIU to discussthe financial strategy of their case and to find out what assistance the FIU may offer.

FIs have direct access to banking institutions and information held in SARs. They also routinelycollect financial information through production orders and requests for disclosure of personalinformation.

When tasking FIs to collect financial information, officers should not just request a ‘financialprofile’ on a suspect as this is ambiguous. They should be specific about what they wish toachieve. Investigators should be able to tell the FIU:

• What information they already hold;• What information they would like to obtain;• Why that information is required;• What they intend to do with the information obtained;• How is the information to be disseminated; • Exactly how they would like the FI to help.

Investigators should also refer to their local force policy.

1.10 INVESTIGATIVE AND EVIDENTIAL EVALUATION

Once the financial information has been gathered from the sources listed in this section foruse as material in an investigation, it should be subjected to a formal evaluation. Thisevaluation should:

• Explore whether any additional lines of enquiry can be identified;• Ensure that all existing lines of enquiry and investigative actions have been pursued and

completed to a standard consistent with the investigation;• Review actions and decisions already taken.

The standard model that investigators should use can be found in ACPO (2005) Practice Adviceon Core Investigative Doctrine, 5.6 The Evaluation Process, Investigative Decision Making.Figure 1 provides a summary of that model, amended to include financial information.


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1.11 THE USE OF FINANCIAL INFORMATION IN INTELLIGENCE PRODUCTS

Financial information, such as details of a suspect’s lifestyle, financial status and theidentification of a suspect’s associates, is gathered as material in an investigation. It may then beanalysed to draw inferences of relevance to the investigation.

Financial information that is not used in an investigation may have some relevance to otherpolicing activities and may therefore be used by analysts when compiling the analyticalcomponent of intelligence products. Intelligence products direct prevention, intelligencegathering and enforcement activity at specific problems or targets. This can influence the wayan investigation is conducted, and its outcome.

Financial information can be used to fulfil the intelligence requirement of a region, force orBCU. The intelligence requirement is agreed through the tasking and co-ordination element ofNational Intelligence Model (NIM), and is directly linked to the current priorities for that area.Investigators should make sure that relevant financial information is sent for inclusion in localintelligence systems using a 5x5x5 report, (see also 1.6.1 Financial Information Found DuringRoutine Policing Duties).

Note: Intelligence based on financial information must be carefully checked and substantiatedbefore being used in an investigation.

For further information on the National Intelligence Model see ACPO (2005) Guidance on theNational Intelligence Model.


Figure 1 Investigative and Evidential Evaluation

Objectives

Financial InformationGathering

Material

• Relevance• Reliability• Admissibility

KNOWLEDGE

Outcome

WHO WHAT WHEN WHERE WHY HOW

Lines of Enquiry

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1.12 CASE STUDIES

1.12.1 EVIDENTIAL LINK TO A SUSPECT

Financial information provided evidence linking Kenneth Noye to the murder of StephenCameron on the M25. A vehicle suspected to have been driven by the person responsible forstabbing Stephen Cameron was found to be registered in the name of Anthony Francis – analias allegedly used by Kenneth Noye. The police had difficulty making an evidential linkbetween Noye and the alias. The same alias had come to light in an investigation into themurder of PC John Fordham, an undercover officer investigating the £26 million Brink’s-Matrobbery. Intelligence reports stated that a house had been bought fourteen years previously inthe name of the alias. The FI attached to the murder investigation team located the mortgageapplication for the house. It was actually signed in the name of the alias. The documentationremained with the lending authority. A fingerprint found to belong to Noye was discovered onthe mortgage application form, thus providing the evidential link between Noye, AnthonyFrancis, and the murder of Stephen Cameron. Noye was then convicted of the murder ofStephen Cameron.

1.12.2 TARGETING A PROLIFIC OFFENDER AND TRACING ASSETS

Police received intelligence that a person was dealing drugs from their house on an estate.There was a suggestion that they had bought a car from the criminal proceeds. A financialinvestigation showed that the sum paid for the car was over and above the person’s legitimateincome. When the police executed a search warrant on suspicion of drug dealing they founddrugs, £3,000 in cash and a car. The person was charged with possession with intent to supply(evidenced by the drugs) and two counts of money laundering (evidenced by the car and thecash). When interviewed, the man stated that he only had a credit card with one bank. Aproduction order was obtained for this account. The financial investigation also revealed he helda second account with a significant sum of money. The defendant pleaded guilty to moneylaundering and was sentenced to three years in prison. The defendant was ordered to pay aconfiscation order of over £105,000. This amount has been paid back from assets held by thedefendant including money in investment schemes and the sale of a car that had beenconfiscated by police.

1.12.3 LOCATING A SUSPECT IN AN INVESTIGATION INTO AN ARMED ROBBERY

An operational team from a force in the north of England was tasked to undertake surveillanceon a suspect. Intelligence reports stated that the suspect was in London and the force plannedto deploy the team there at a cost of £3,000 per day. An enquiry made by a financialinvestigator, however, revealed that the suspect had used their cash card the day before in thecity where the surveillance team were already located. The suspect was subsequently located inthat city without the deployment of the surveillance team.


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Section 2CASH SEIZURE,DETENTION ANDFORFEITURE

It is likely that officers will find cash linked to criminal conduct duringthe course of their duties. This could be during any criminal

investigation and particularly when searching persons, premises andvehicles. The Proceeds of Crime Act 2002 (POCA) gives officers thepower to seize cash. This is a civil process that can run alongside acriminal investigation.

This section provides officers with a practical guide to seizing cashwith a view to its continued detention and possible forfeiture.Sections 2.1 to 2.3.7 include a step-by-step guide for non-specialists.Sections 2.3.8 to 2.5 include background information on furtheraction to be taken by FIUs. As cash seizure can be relevant in othertypes of financial investigation, this section should be read inconjunction with Section 3 Money Laundering Investigation andSection 4 Confiscation Investigation.

CONTENTS

2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332.2 The Process of Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 332.3 Step-by-Step Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

2.3.1 Conditions for Seizing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342.3.1.1 Notes on Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342.3.1.2 The Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.1.3 Reasonable Grounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.1.4 The Definition of Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

2.3.2 Initial Enquiries and Financial Interviewing . . . . . . . . . . . . . . . . . . . . . . . . . 362.3.2.1 Where Cash Is Found Independently of a Person . . . . . . . . . . . 37

2.3.3 Bagging and Sealing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 382.3.4 Service of Receipt to Persons Found in Possession of Cash . . . . . . . . . . . . . 382.3.5 Arranging the Cash Detention Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . 382.3.6 Service of Form A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

2.3.6.1 The Right to Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392.3.7 Information in Support of Application for Further Detention . . . . . . . . . . . 392.3.8 Application at the Magistrates’ court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.9 Order Granted – Court Forms and Responsibilities . . . . . . . . . . . . . . . . . . . 402.3.10 Procedure for the Cash After an Order of Continued Detention Has

Been Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.11 Further Detention Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.12 Where Enquiries Reveal the Cash is Lawful or Below the

Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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2.3.13 Where Other Persons Apply for the Release of the Cash . . . . . . . . . . . . . . 412.3.14 Application for the Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . 412.3.15 Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

2.4 Cash Forfeiture and a Criminal Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.5 Consideration of Money Laundering Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

2.6.1 Where a House Search Results in an Unexpected Cash Seizure . . . . . . . . . 422.6.2 When the Criminal Prosecution Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432.6.3 Where an Investigation into Money Laundering and Deception Offences

Unearths a Sizeable Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432.6.4 A Missed Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43


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2.1 INTRODUCTION

As of 31 July 2006, if the police find £1,000 or more in any type of currency, cheques or bonds,and suspect that it has come from or is intended to be used to commit crime, they can seize itand detain it. There are some cases where seizing the cash as evidence under PACE will notapply or will cease to apply (see Text Box 1 Seizing Cash as Evidence Under PACE). Additionally,if a criminal case collapses, any cash seized as evidence would normally have to be returned. If,however, the police suspect that the cash is derived from crime, it can be seized, detained andforfeited under POCA sections 294 to 298. Cash seizure, detention and forfeiture is a civilprocedure and does not require the suspect to be charged or convicted of a crime, although itcan run in parallel with a criminal investigation. Overall, it is a simple and straightforwardprocess that should be used if appropriate.

In the majority of cases a cash seizure, detention and forfeiture will be dealt with by financialinvestigators. There may be occasions where it is necessary for a non-specialist officer to startthe process. All officers should, therefore, be aware of cash seizure opportunities and be able tofollow the procedure in this practice advice.

2.2 THE PROCESS OF CASH SEIZURE

Figure 2 gives an overview of the process of cash seizure, detention and forfeiture, including theroles of the police and the magistrates’ court. The specific role of the investigator is described in2.3 Step-by-Step Guide.

Note: In order for police forces to benefit from a fifty per cent share of the funds recoveredfrom cash seizure and subsequent forfeiture, each case must be entered onto the Joint AssetRecovery Database (JARD) located in the FIU.


Figure 2 Cash Seizure Process

Police lawfully search a person or premises or vehicle

Police find cash over £1,000, obtain any explanation offered anddecide if there is reasonable cause to believe it is either from crime

or to be used in crime

Police seize cash and serve necessary documentation on allinterested parties

Magistrates’ court orders continued detention of cash within forty-eight hours of seizure (not including weekends and holidays) for a

period not exceeding three months

Police investigate origins of cash during three-month period

Magistrates’ court can order continued detention for up to twoyears, or forfeiture of cash

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2.3 STEP-BY-STEP GUIDE

2.3.1 CONDITIONS FOR SEIZING THE CASH

Officers should use their discretion and take account of all of the circumstances associated withthe cash find. Their actions must be proportionate, non-discriminatory, legal, accountable andnecessary (see 1.7 Human Rights Considerations). The lower the sum of cash involved, the morediscretion that must be used by the police in order to avoid unnecessary interference withpeople’s rights and waste of police resources.

An officer may seize cash under POCA if the following conditions apply:

• Their presence is lawful;• There are reasonable grounds to suspect that the cash is recoverable property (obtained by

unlawful conduct) or is intended for use by any person in unlawful conduct;• There appears to be £1,000 or more.

2.3.1.1 Notes on Conditions

Cash can be seized when investigators:

• Are lawfully searching a person or premises and find the cash;• Receive intelligence about the cash and obtain a PACE warrant to conduct a search for

cash as evidence of a particular crime;• Specifically search for cash using an authority issued by magistrates under POCA (section

289 and 290).

Investigators are advised to seek assistance from their FIU in obtaining POCA search warrants.This is a specialist area because prior authority may need to be sought. A prior authority doesnot include the power to enter premises. The powers under POCA complement the powerspolice would normally use under PACE for evidential purposes, ie, section 19 for the seizure ofitems in evidence, and section 22 for the retention of items for use in evidence (see Text Box 1Seizing Cash as Evidence under PACE).


Putting your mouth where your money is – does the person found inpossession of the cash have a reasonable explanation for it?

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For further practice advice on search and seizure of cash, in particular with regard to search of aperson and search of premises, investigators should refer to the Home Office (2002) Code ofPractice for Constables and Customs Officers Under the Proceeds of Crime Act 2002 (issuedunder POCA section 292). It provides a model application for authority for a search and a draftorder. Investigators should also refer to ACPO (2006) Guidance on Search Management andProcedures and ACPO (2006) Practice Advice on Stop and Search.

2.3.1.2 The Minimum Amount

This is currently £1,000, created by statute under POCA (Recovery of Cash in SummaryProceedings: Minimum Amount). A person found in possession of £1,000 in cash should not, initself, be considered suspicious. Taking into account the context and circumstances of thesituation, carrying a much larger sum might reasonably be considered suspicious, unless asatisfactory explanation is given.

2.3.1.3 Reasonable Grounds

Cash seizure powers require reasonable grounds for suspicion that the cash meets theconditions in 2.3.1 Conditions for Seizing the Cash. There must be some objective grounds forthat suspicion, based on facts, information, and/or intelligence. The officer should take intoaccount the following factors:

• How the individual or premises were identified;• Previous intelligence on persons or premises;• Previous involvement with the persons or premises;• Suspected links with criminal activities whether in the UK or overseas.

2.3.1.4 The Definition of Cash

Under POCA section 289 (6) and (7) cash includes:

• Notes or coins of any currency;• Banker’s drafts, bearer bonds and bearer shares;• Postal orders and any kind of cheques including travellers cheques.

Text Box 1 Seizing Cash as Evidence Under PACE

Amounts of less than £1,000 can be seized, for their evidential value, under PACE (section 19(2) or (3) and 22(4)) (for example, if the cash has been contaminated with drugs) if thesuspect is arrested for money laundering or in relation to other offences where the moneycan be shown to be evidence of those offences eg, theft or deception.

A distinction has to be made between grounds for seizure (for example section 19 PACE whenan officer is lawfully on any premises) and grounds for subsequently retaining items seizedunder section 22 PACE. Section 19 subsections (2),(3) and (4) allow an officer who is lawfullyon any premises to seize evidence or anything obtained in consequence of the commission ofan offence in order to prevent it being concealed, lost, damaged or destroyed.

Section 22(2)(b) allows retention of anything seized under section 19 in order to establish itslawful owner, where there are reasonable grounds for believing that it has been obtained inconsequence of the commission of an offence.

Section 22(4) provides that nothing seized under section 19 may be retained for the purposeof a criminal investigation, for use at trial or for forensic examination, if a photograph orcopy would be sufficient for that purpose. This only applies in these limited circumstances setout in section 22(2)(a).


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2.3.2 INITIAL ENQUIRIES AND FINANCIAL INTERVIEWING

The officer should note:

• The time that the cash was first seen;• A description of the cash;• Where it was found or concealed.

The officer should ask the person found in possession of the cash to give an explanation forits origins. This is to establish its ownership and whether it is ‘recoverable property’ (see2.3.1. Conditions for Seizing the Cash). The officer should ask relevant questions such as:

• How much cash is there?

• What type of notes or cheques are there?

• Who does it belong to?

• From what activities did the cash derrive?

• How did it get there?

• Has the person touched or handled it?

Questions of a financial nature should be incorporated into the main PACE interview ifappropriate, for example, where the person has been arrested for money laundering.

Where the cash seizure does not form part of a criminal investigation, it can be conducted in aseparate financial interview.

During a separate financial interview, not conducted under PACE, questions should not bedirected toward the person’s possible criminality. Investigators should note that cash seizure andforfeiture is a civil process. The cash has been seized because it is believed to be derived fromcriminality. The interviewing officer is, therefore, entitled to ask about the origins of the seizedcash. The person found in possession of the cash is not obliged to answer the questions andmay have legal representation if they wish (though there is no guarantee that they will receivelegal aid.) The court can draw inferences from a ‘no comment’ reply. Any civil interviewscarried out at a police station should be tape-recorded in the normal manner but notconducted under caution.

In addition to the questions about the origins of the cash, investigators should explore theperson’s financial situation and legitimate income, and any suspicions they may have. This is toestablish whether or not the person has more expenditure or assets than can be supported bytheir legitimate income. Both the interview conducted under PACE or the separate financialinterview should cover the following areas:

Income

• Do they work? If so, where and for how long?

• How much do they earn?

• If they do not work, do they receive benefit? How much?

• Do they have any other form of income or investments?


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Expenditure

• How much is their mortgage or rent?

• What do they spend on utilities?

• Do they pay for dependants or make payments to the Child Support Agency (includingalimony)?

• Do they have loans or car hire or lease agreements?

• Do they have a drug habit? What is it? How long have they had it and in what quantities?

• Do they consume alcohol, if so, how much? Do they smoke cigarettes or cigars and if sohow many?

• Do they own vehicle(s)? If so, what are their running costs?

Assets

• Do they own any houses in the UK or overseas?

• Do they have any bank accounts in the UK? (Ask for numbers and sort codes.)

• Do they hold any building society accounts? (Ask for numbers and sort codes.)

• Do they have a national savings account?

• Do they hold any overseas bank accounts in their own names, or control any otheroverseas bank accounts in personal or corporate names?

• Do they own any businesses?

• Have they got any other valuable, tangible assets, such as a luxury car or a pedigree dog?

It is important that these questions are asked and recorded as having been asked, even when areply is not received. In subsequent forfeiture hearings a person’s reply and any subsequentdeviation from that reply may have a bearing on the outcome. Where the investigator issatisfied that the person found in possession of the cash is not involved in criminality, there is nopower to detain that person at the scene or to take them to a police station for interview. Inthese circumstances the person being interviewed is a witness in a civil case. All questions askedby an officer at the scene should be recorded in the officer’s pocket book. The person found inpossession of the cash should be invited to attend the police station for further questioning, ifnecessary, in order to establish the ownership of the money and if it is recoverable property.

Investigators should also ask others who may be present (eg, family and friends) about theirknowledge of the cash. It may be that others who volunteer information regarding the cashfound are involved. This information may be required at a later stage to rebut an explanationthat may be given at court.

2.3.2.1 Where Cash Is Found Independently of a Person

In cases where cash is found without the identification of an owner, the police are still able toseize it (eg, where a vehicle is abandoned after a pursuit and cash is recovered in the vehicle, orthe police have cause to go to empty premises and find cash on the premises). If thecircumstances surrounding the discovery indicate the cash may be the proceeds of crime, or thatit is intended for future use in crime, it can be forfeited at the magistrates’ court. Under thesecircumstances the forfeiture hearing may be uncontested.


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2.3.3 BAGGING AND SEALING THE CASH

When bagging and sealing the cash, it is advisable to ensure that:

• Gloves are worn; • Photographs are taken; • Cash is double bagged and sealed, using clean bags; • The amount of cash found is estimated; • The cash is sealed in the presence of the subject and an entry is agreed in the officer’s

pocket notebook, if possible; • Two officers are present and both sign the exhibit labels;• The cash is lodged in a safe until it can be sent for analysis (eg, mass spectrometry for

drugs, contamination from explosives, or for fingerprints) or paid into the bank; • If cash is found during a search, it is logged as recovered property on the record of search form.

Officers should not count the cash as this might cause contamination and spoil any subsequenttests carried out (unless it is decided at an early stage that the money is not to be forensicallyexamined). There may be circumstances where it is necessary to remove the cash from its containerwithout counting it. The container should be preserved in the same manner. While the issue ofcounting the cash is to preserve forensic evidence, it is also to protect the officer’s integrity.

It is also advisable to avoid the following:

• Taking the cash to a custody suite that is potentially contaminated with drugs, explosives orother substances;

• Placing property on floors or contaminated surfaces;• Using officers who have recently been, or could have been, in contact with drugs, explosives

or other substances;• Handling the cash any more than necessary;• Letting the person found in possession of the cash touch it;• Removing the cash from its wrapping, container or bag.

2.3.4 SERVICE OF RECEIPT TO PERSONS FOUND IN POSSESSION OF CASH

It is good practice to give the person in possession of the cash a receipt. The receipt shouldshow the total amount seized, whether or not the total amount comprises smaller amountsclaimed by different people (and its estimated total if not counted). The receipt is in addition toany other receipt or form normally issued (eg, premises search form and items seized receipt).This should be signed by the person found in possession of the cash and a copy retained for thefile. An example of a receipt for seized cash can be found in Appendix 3.

2.3.5 ARRANGING THE CASH DETENTION HEARING

A constable or customs officer must apply to a magistrates’ court for a cash detention hearing.The hearing must be concluded within forty-eight hours of the officer first seeing the cash (notincluding Saturdays, Sundays, bank holidays, Christmas Day and Good Friday).

If the hearing has not been concluded within the forty-eight hours, then the cash must be returnedunless it is also being detained as evidence in criminal proceedings (either under PACE section 19for seizure or section 22 for retention). See Text Box 1 Seizing Cash as Evidence Under PACE.

Normally, investigators should contact their FIU to arrange for the cash detention hearing.Legally, any police officer (but currently, not a civilian FI) can complete the paperwork andattend the magistrates’ court for the cash detention hearing. In most forces the FIU will do thisfor the police officer (this may also be conducted by the force solicitor). Some forces haveappointed cash seizure officers on division who are able to provide support at this stage. Theremay be circumstances where officers must complete the paperwork and make the necessaryarrangements for the court hearing themselves.


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2.3.6 SERVICE OF FORM A

It is a legal requirement to serve the person found in possession of the cash and any otheridentified interested parties with Form A (First Application for Continued Detention ofSeized Cash). This informs the person that the police are going to make an application to thecourt for further detention of the cash and where and when the hearing will take place. Thepolice officer must also provide a copy of Form A to the court. Investigators should make surethey have proof of service of this form (such as a witness statement or receipt). See Appendix 4for a copy of Form A and notes on its completion. Appendix 5 has a blank copy of Form A.

2.3.6.1 The Right to Appeal

The person found in possession of the cash has the right to appeal against the detention of thecash under section 297 of POCA. Investigators may serve them a notice telling the person howthey can reclaim the seized cash. The policy for the use (and format) of this form will vary fromforce to force. Investigators should check their own force policy.

2.3.7 INFORMATION IN SUPPORT OF APPLICATION FOR FURTHER DETENTION

This is a document outlining the evidence upon which the suspicion that the cash is recoverableproperty, or intended for use in unlawful conduct, is based. It usually includes:

• Grounds for the application;• A detailed description of the circumstances;• A list of enquiries already conducted (including information from any interviews), and their

results;• A list of enquiries to be completed.

The information in the rest of this section is provided for non-specialists to be usedfor briefing purposes only. It is usual practice for specialist officers to handle theprocess from this point onwards. If taking part in this process non-specialist officersshould seek advice from their FIU.


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2.3.8 APPLICATION AT THE MAGISTRATES’ COURT

The application for continued detention of the cash is made at the magistrates’ court. As this isa civil procedure, the CPS is not involved. The application can be contested by the other parties.If, however, there are reasonable grounds at this stage for suspecting that the money isrecoverable property, and further enquiries have to be made, another detention order may begranted by the court.

If the case is contested or complicated, legal representation should be considered at an earlystage. The force solicitor should be notified as soon as possible.

The cash seizure provisions allow further applications for continued detention of the cash everythree months until it is either forfeited or returned, for a period of up to two years.

2.3.9 ORDER GRANTED – COURT FORMS AND RESPONSIBILITIES

If the magistrates grant an Order of Continued Detention, it is issued as Form B. A Noticeto Affected Persons for the Order of Continued Detention (Form C) is attached to Form B.Copies of these forms can be found in Appendix 6 and Appendix 7.

The officer investigating the cash (usually an FI) should arrange the next court hearing to furtherdetain the cash. This hearing must be held within a three-month period. The court will either setthe next hearing date and location immediately, or at least seven days prior to the hearing (thispractice will vary from force to force). Using Form A, the date of this hearing must be sent tothe person from whom the cash has been seized and any other parties with an interest in themoney. This form can be sent by the court but good practice recommends that it is also sentby the investigator between seven and fourteen days prior to the hearing (force policiesmay differ).

2.3.10 PROCEDURE FOR THE CASH AFTER AN ORDER OF CONTINUED DETENTIONHAS BEEN GRANTED

The cash should be deposited in an interest-bearing account at the earliest opportunity. Eachforce will have its own procedures governing this. All forces should be capable of determiningthe interest which accrues on individual deposits. The only exceptions to this are if the cash isactually required in its original state as evidence in a case or if it is to be submitted for forensicanalysis. Once the reason for retaining the cash in its original state lapses, it must be paid intoan interest-bearing account as soon as possible.

2.3.11 FURTHER DETENTION ORDERS

An order for the continued detention of the cash cannot exceed three months. Furtherdetention applications can be made in three-monthly increments for a total of two years fromthe date of the first order. They are made to the court using Form A, along with supportinginformation as described in 2.3.7 Information in Support of Application for Further Detention.

A copy of Form A (but not the information in support of application for further detention) mustbe served on the person(s) from whom the cash was seized and all interested parties, no lessthan seven days before the date of the court hearing. The fact that Form A has been servedshould be recorded in the information in support of application for further detention.

If the period of time given in the further detention order expires before another order forcontinued detention is granted, the cash must be returned unless it is being retained foranother reason.

Costs should be applied for after each contested hearing.


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2.3.12 WHERE ENQUIRIES REVEAL THE CASH IS LAWFUL OR BELOW THEMINIMUM AMOUNT

If enquiries reveal that the cash originates from legitimate means or is found to be below theminimum amount, it should be returned to the owner and no further court applications arenecessary. As a matter of courtesy, a note of this should be submitted to the court. It may,however, be necessary to consider restraint of the cash if there are any ongoing associatedcriminal proceedings where confiscation is being considered or sought, and where the cash canbe considered an asset of the person involved in those proceedings. This applies even if it isbelow the minimum amount.

2.3.13 WHERE OTHER PERSONS APPLY FOR THE RELEASE OF THE CASH

At any time the person(s) from whom the cash was seized, or any other interested party, maymake an application to the court for the release of the cash (and any accrued interest). If thecourt is satisfied that all, or part, of the cash is not recoverable property and is lawfully claimedby the person, it may order the release of that cash. This can also occur at a continueddetention hearing if the court is not satisfied that there are grounds to detain the cash. Theseorders are produced by the court on Forms D, E and F.

2.3.14 APPLICATION FOR THE FORFEITURE OF THE CASH

An officer may apply for the cash (and accrued interest) to be forfeited after the investigationinto the origins of the cash have been completed. This application may be made at any timewhile the cash is detained. This application is completed on Form G. It is completed in a similarway as a Form A, in that it must be served on the person(s) from whom the cash was seized andall other interested parties, no less than seven days before the date of the court hearing.Information will be produced in support of the application for the court, but the forfeiturehearing itself should be a full hearing with the complete file of available evidence. Theapplication should be made by the force legal representative (who should have been contactedat the beginning of the proceedings). This application is usually made by a FI who will frequentlyrequire the seizing officer as a witness.

2.3.15 FORFEITURE OF THE CASH

If the application is successful, the court will order the forfeiture of the cash under section 298of POCA, using Form H. Copies of Form H must be served on all parties (by the court). The cashmust be retained by the police for thirty days following the date of the order. This is to allowtime for any of the parties to appeal against the decision. If no appeal is lodged within thisthirty-day period, the cash must be transferred to the relevant Home Office account. The cashcannot be released once an application for forfeiture has been made until that application isconcluded (see 2.3.14 Application for the Forfeiture of the Cash).

If the hearing is unsuccessful, the court will order the release of the cash. The cash must then bereturned, unless it can still be retained under PACE (section 22 – retention of property which isevidence). See Text Box 1 Seizing Cash as Evidence Under PACE. Investigators should also considerrestraint of the cash if there are any ongoing associated criminal proceedings where confiscation isbeing considered or sought, and where the cash can be considered as an asset of the personinvolved in those proceedings (see 4.2.3 Restraining Assets). If the seized cash can be linked todrug trafficking, investigators may consider forfeiture under section 27 of the MDA. The FI can askthe courts to give the cash to the police to fund their fight against drugs. This only applies toactual money and not to funds contained within a bank account. In the event that confiscationproceedings are pending, a section 27 MDA application cannot be made until after theconfiscation order has been made. Generally confiscation should be pursued in preference to asection 27 MDA forfeiture of cash. See also 5.2.1 Forfeiture Under the Misuse of Drugs Act 1971.

The forms used in the cash seizure, detention and forfeiture proceedings are available througheach force FIU or through their force intranet systems.


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2.4 CASH FORFEITURE AND A CRIMINAL INVESTIGATION

If a criminal case fails, the police may still apply for seized cash to be forfeited in civil cashforfeiture proceedings, provided that it can be shown on the balance of probabilities that thecash or part of it is recoverable property, or was intended for use in criminal conduct. This isbecause a cash seizure, detention and forfeiture can run alongside any criminal investigationand confiscation proceedings.

The magistrate can be asked to fix the cash forfeiture hearing at some point in the future afterthe conclusion of the criminal case and confiscation hearings. If the criminal case is successful,the cash can be included in the confiscation order amount, providing that the correct procedurehas been followed. If the criminal case is not successful, the cash forfeiture proceedingscan continue.

2.5 CONSIDERATION OF MONEY LAUNDERING CHARGES

When carrying out a cash seizure, officers should consider whether the person found inpossession of cash may be liable for criminal charges, evidenced by the cash. Seized cash maybe recoverable property (obtained by unlawful conduct or intended by any person for use inunlawful conduct) and could also represent criminal property. If the cash is suspected to becriminal property, there are three money laundering offences that may apply under POCA:

• Section 327 (concealing – where the person might have hidden the cash, which representscriminal property, and disguising, converting, transferring or removal of criminal propertyfrom the UK);

• Section 328 (arranging – where a person knows or suspects that they are helping, in anyway, another person to acquire, hold, use or control the cash or criminal property);

• Section 329 (acquisition, use, possession – a person is simply in possession of the cash,which represents criminal property).

In cases where the cash is less than the minimum amount, the officer can still consider an arrestfor suspicion of money laundering or other offences and seize the cash as evidence under PACE.

For further information see 3 Money Laundering Investigation.

2.6 CASE STUDIES

2.6.1. WHERE A HOUSE SEARCH RESULTS IN AN UNEXPECTED CASH SEIZURE

Police officers conducted a house search under section 18 PACE. As well as looking for evidenceof the crime they were investigating, they also looked for the financial benefit from the crime. Asum of £10,000 was found which was unrelated to the section 18 search. As the suspect couldnot account for the origins of the cash, it was seized under POCA. The cash was sent for drugsanalysis and a higher than average percentage of controlled drug was found on each note. Thissupported the view that the cash was from the proceeds of crime.

Note: Cash detained as part of the cash seizure process is not ‘free property’. As a result,although it will be taken into account when assessing a person’s benefit from criminalconduct, it will not be included in the amount of the confiscation order. In order for it to beincluded, an application to forfeit the cash must be made and the hearing adjourned toawait the outcome of the criminal proceedings (see 2.3.14 Application for the Forfeiture ofthe Cash). For further information consult the FIU.


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2.6.2. WHEN THE CRIMINAL PROSECUTION FAILS

A person suspected of drug trafficking was found not guilty of the criminal charges broughtagainst them. During a search of their house, the police found a large sum of money concealedin the chimney. The person could not provide a reasonable explanation for the origins of thecash. Initially they claimed that they had found the cash under a bush. A number of witnessstatements were obtained that showed the person’s lack of legitimate income and the existenceof unidentified income received into the person’s bank accounts. Investigators were able to uselocal intelligence and interviews about the criminal matters in the confiscation hearing, togetherwith hearsay evidence. An application for detention of the cash was made at the magistrates’court. Even though the criminal prosecution failed, the cash was forfeited.

2.6.3 WHERE AN INVESTIGATION INTO MONEY LAUNDERING AND DECEPTIONOFFENCES UNEARTHS A SIZEABLE CASH SEIZURE

As part of an ongoing money laundering investigation, police officers executed a search warrantat the home of two suspects. During the course of the search, the police found what wasbelieved to be £100,000 in eight bundles of cash in a trunk inside the garage. A secondquantity of money believed to be £50,000 in four bundles was found in a safe in the garage. Asubstantial amount of gold jewellery and financial documentation relating to an alias was alsofound in the safe. Further cash was found in a bundle in the bedroom. Both suspects werearrested and charged with a range of offences from money laundering to deception. Anapplication to detain the money seized was made for a period of three months under POCA, toallow further investigation in to the origin of the funds to take place. (This case is currentlyawaiting the forfeiture hearing.)

2.6.4 A MISSED OPPORTUNITY

A known drug trafficker accompanied by an associate was seen by the police in suspiciouscircumstances in a provincial town. They were stopped and searched for drugs. No drugs werefound, but the police did find £8,000 in cash in their possession – and let them drive off with it!This is a prime example of a lack of awareness leading to a missed opportunity to seize theproceeds of crime.



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SEC

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3


Section 3MONEY LAUNDERINGINVESTIGATION

This section contains practical advice for investigators on how toconduct a money laundering investigation. It is likely that money

laundering offences will be disclosed during investigations into otheroffences, through the use of financial investigation techniques. Forexample, a cash seizure may also provide material to support a moneylaundering charge. The Proceeds of Crime Act 2002 (POCA) createsvarious offences of money laundering which investigators shouldalways consider when formulating their investigative strategy.

CONTENTS

3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463.1.1 What is Money Laundering? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

3.2 Money Laundering Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463.2.1 Section 327 Concealing, Disguising, Converting or Transferring . . . . . . . . . 473.2.2 Section 328 Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473.2.3 Section 329 Acquisition, Use, Possession . . . . . . . . . . . . . . . . . . . . . . . . . . 473.2.4 Defences to Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

3.3 When is a Money Laundering Investigation Appropriate? . . . . . . . . . . . . . . . . . 483.4 Who Can Undertake a Money Laundering Investigation? . . . . . . . . . . . . . . . . . . 483.5 Process Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

3.6.1 A Money Laundering Investigation Disrupts Semi-Organised Criminality . . 503.6.2 Existence of Cash as Evidence of Money Laundering . . . . . . . . . . . . . . . . . 503.6.3 When Witness Evidence of an Offence is Difficult to Obtain . . . . . . . . . . . 503.6.4 A POCA Section 327 Offence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

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3.1 INTRODUCTION

3.1.1 WHAT IS MONEY LAUNDERING?

Money laundering is the process by which funds and assets derived from crime are given theappearance of legitimacy, enabling them to be spent openly by criminals.

The car thief, burglar, fraudster, drug dealer and counterfeiter have a common interest inbenefiting from criminal conduct. According to POCA, a person benefits from criminal conduct(a criminal offence in the UK and abroad) if they obtain property as a result of, or in connectionwith, criminal conduct (section 340 (5)). This makes them liable to charges of money laundering.

Instead of targeting the way in which the benefit was acquired, money laundering legislationfocuses on the existence of the benefit itself. The very fact that a person is in possession ofcriminal property (proved to the criminal standard) means that they could be charged withmoney laundering, in addition to any other offence they may have committed. It may not benecessary to prove the offence which resulted in the benefit; the benefit itself and thecircumstances surrounding it may be enough to support a charge of money laundering. (If thereis no identified predicate offence, this will have to be established by the use of circumstantialevidence. In order to prove to the criminal standard there will have to be several strands ofcircumstantial evidence which prove beyond reasonable doubt that the property originated fromcriminal activity).

Anyone who is involved in concealing, disguising, converting, transferring or removing criminalproperty could be vulnerable to a money laundering charge. This applies at all levels ofcriminality from NIM level 1 to level 3.

3.2 MONEY LAUNDERING POWERS

Money laundering under sections 327, 328 and 329 of POCA are serious offences that carry apotential fourteen year sentence (see 3.2.1, 3.2.2 and 3.2.3). Money laundering includesconspiracies or attempts to commit these offences, counselling, aiding or abetting, or procuring.

The offences are indiscriminate and can target those who are several stages removed from theoriginal crime and the original offender.1 It does not matter who was responsible for the criminalconduct or what it was, as long as the offender knew or suspected that the property involvedwas criminal property.

Property is criminal property if –

(a) it constitutes a person’s benefit from criminal conduct or it represents such a benefit,and the alleged offender knows or suspects that it constitutes or represents sucha benefit…

section 340 (3) POCA

Property includes money, all forms of property or real estate and other intangible or incorporealproperty.

Note: To charge for handling stolen goods under section 22 of the Theft Act 1968, as amended,the police need to prove that:

• The goods are stolen;• The suspect knew or believed them to be stolen.


1 This point derives from Rees, E. and Fisher, R. (2005) Blackstone’s Guide to the Proceeds ofCrime Act 2002, Second Edition.

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For a charge of money laundering the police may not need to prove the specific type ofcriminality behind the criminal property. They need to prove that the suspect knew orsuspected the property to be criminal property.

3.2.1 SECTION 327 CONCEALING

A person commits an offence if they conceal, disguise, convert, transfer or remove criminalproperty from England and Wales or from Scotland or Northern Ireland. Concealing ordisguising criminal property includes concealing or disguising its nature, source, location,disposition, movement or ownership of any rights with respect to it. This offence can becommitted by the criminal in relation to the proceeds of their own crime, or those of someoneelse. See also the case study in 3.6.4 A POCA Section 327 Offence.

3.2.2 SECTION 328 ARRANGEMENTS

This applies when a person assists someone else to keep the proceeds of crime. They mustknow or suspect that they are facilitating someone else to acquire, retain, use or control criminalproperty, and fail to make an authorised disclosure to the authorities.

3.2.3 SECTION 329 ACQUISITION, USE, POSSESSION

A section 329 offence is committed when a person acquires, possesses or uses criminalproperty; and they fail to make an authorised disclosure of these matters to the authorities.Failure to make a disclosure applies to the regulated sector.

It is possible for a person to be charged with laundering their own criminal property, forexample, if after an armed robbery, they hide the money in their loft. Drug dealers and othercriminals may be increasingly likely to do this to avoid the problems of suspicious activityreporting by financial institutions and solicitors.

An Example of Section 329 Acquisition, Use, Possession:

• A person buys a TV for £50 when they know that it is really worth £5,000.

Examples of Section 328 Arrangements:

• A lawyer who knowingly helps a person buy a house with criminal property money;• A person makes arrangements for their partner or parent to place a vehicle constituting

criminal property in their name.

Examples of Section 327 Concealing, Disguising, Converting or Transferring:

• Stealing and selling a watch or mobile phone;• Hiding stolen videos in a garage;• Changing the colour of a car or disguising it by using false plates;• Buying a house with stolen money;• Giving criminal property to someone else;• Taking criminal property out of the country – transferring money from a drugs sale via

money transfer to another country;• Moving criminal property between Scotland and Wales;• Registering a car bought with the proceeds of crime in someone else’s name.


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3.2.4 DEFENCES TO MONEY LAUNDERING

A person does not commit an offence under sections 327, 328 or 329 if they:

• Make an authorised disclosure before they did the act and have consent;• Intended to make disclosure but have a reasonable excuse for not so doing;• Did the act in carrying out a function of enforcement of any provisions of POCA or any

other enactment relating to criminal conduct or benefit from criminal conduct.

Section 329 also has a further defence:

• If the property was acquired, used or possessed for adequate consideration.

This means, for example, that a person cannot be charged if they paid a reasonable amount, ingood faith, for an item that they did not know was stolen.

3.3 WHEN IS A MONEY LAUNDERING INVESTIGATION APPROPRIATE?

Money laundering investigations should be considered:

• When carrying out proactive investigations of those targeted as a result of the tasking andco-ordination process;

• In cases involving suspects who benefit directly from criminal activity but are distancingthemselves in some way from the crime;

• In cases where people warn money launderers about any police interest in their activities;• When a cash seizure and forfeiture has taken place.

In cases where a money laundering charge could be based on the offence of possession orhandling stolen goods (as criminal property is not confined to money alone), the prosecutionwill consider charging the offence where either a defendant has possessed criminal proceeds inlarge amounts or in lesser amounts, but repeatedly and where assets are laundered for profit.

3.4 WHO CAN UNDERTAKE A MONEY LAUNDERING INVESTIGATION?

Any police officer can undertake a money laundering investigation. Some forces have createdteams focusing on money laundering investigations at both the BCU and force level. Theamount of support available from such units will vary from force to force.

Most forces are supported by Regional Asset Recovery Teams (RARTs) that can investigateor offer support for investigations of money laundering connected with serious andorganised crime.

Each FIU and RART has its own policy and procedures that investigators should follow in orderto refer cases. Officers should familiarise themselves with their respective RART or FIU. (Forfurther information on RARTs, see 5.1 Other Agencies).

Supervisors should be aware of the money laundering powers and when checking officers’work they should note possible opportunities to use these charges. Money launderinginvestigations could be considered during the following processes:

• Pre-charge advice by the CPS;• Custody processes;• File review by police supervisors;• Referral to or review by the FIU.


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3.5 PROCESS GUIDE

• Identify if the case is suitable for money laundering investigation. (See 3.3 When Is aMoney Laundering Investigation Appropriate?)

• Develop an investigation strategy that includes gathering material to support a moneylaundering charge. Liaise with the FIU and CPS, as appropriate, to obtain early adviceconcerning evidence and the conduct of the investigation, eg, the need for a restraintorder and for a management receiver, (see 4.2.3 Restraining Assets). Investigators shouldthink laterally about the type of material that would provide evidence of moneylaundering. Evidence of the criminal origin of proceeds can be provided by:– Accomplice evidence;– Circumstantial evidence or other evidence (for example possessions of high value such

as luxury cars and household furnishings showing that a person is living beyond theirlegitimate means);

– Forensic evidence, eg, contamination of cash with drugs, from which inferences can bedrawn that money came from drug trafficking;

– Evidence of complex audit trails, from which an accountancy expert may be able toconclude that the complexity of the transactions indicates that the property came fromthe proceeds of crime;

– Evidence of the unlikelihood of the property being of legitimate origin;– Material where expert evidence shows criminals often attempt to launder proceeds

through a cash intensive business where the cash flows appear too large or the profitmargins too high (investigators should contact the FIU or RART for advice in this area);

• Use POCA production orders to obtain bank and building society account informationto identify the existence of sums of cash and assets (see 1.8.3 Requesting Informationfrom Financial Institutions, Commercial Service Providers, Government Departments andOther Agencies);

• If a search is conducted at a suspect’s home address, look for evidence of wealth andspending such as designer clothing, luxury electrical goods, large sums of cash, bankstatements and credit card receipts (see 1.6.1 Financial Information Found During RoutinePolicing Duties);

• If assets or money are identified, conduct further investigation to identify links to criminalityand criminal associates (people may launder money for themselves or others);

• Consider obtaining a restraint order against any identified property and assets, pendingconfiscation, with the assistance of a FI if necessary (see 4.2.3 Restraining Assets);

• Conduct interview(s) under PACE to gather financial material (see 2.3.2 Initial Enquiries andFinancial Interviewing). If the suspect fails to account for assets, the investigator shouldobtain further production orders to examine accounts and pursue other financial lines ofenquiry (eg, with HMRC, see 5.1.8 Her Majesty’s Revenue and Customs) based on theevidence from the search (where the suspect’s account cannot be verified by other means).

• Produce a file of evidence containing statements of evidence and analytical productsrelating to the suspect’s assets to support the prosecution. This should include a statementby the investigating officer which uses graphs and spreadsheets showing unexplainedincome, and suspicious activity derived from bank accounts obtained using productionorders, and exhibits such as relevant bank statements produced by financial institutions.

• As money laundering is designated a criminal lifestyle offence under POCA, if thedefendant pleads guilty or is found guilty of money laundering offences, the court willorder confiscation proceedings (see 4 Confiscation Investigation and Text Box 2 CriminalLifestyle Offences).


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3.6 CASE STUDIES

3.6.1 A MONEY LAUNDERING INVESTIGATION DISRUPTS SEMI-ORGANISED CRIMINALITY

A special operation was set up to target a family that was known to be involved in a range ofcriminal activity such as vehicle theft, handling stolen vehicles and car clocking. The suspectscould have been charged with handling stolen goods, but because of the sustained andorganised nature of their offences they were charged with conspiracy to launder money(convert criminal property) and tax evasion. This involved the close cooperation of officers in thecase and the FIU.

Officers reported a positive reception by members of the public to the outcome of the case andpositive media coverage. It is not possible to quantify any reduction in associated NIM level 1crime, but it is logical to suggest that the removal of three or more persons into custody, whopreviously made substantial earnings from crime, has a positive effect in general. A substantialconfiscation order may reduce the incentive to commit further crime and may remove thepossibility to fund further criminal enterprises. A continued focus on enforcement will ensurethat any return to criminal activity remains less attractive for these individuals than it was before.

3.6.2 EXISTENCE OF CASH AS EVIDENCE OF MONEY LAUNDERING

Police officers found £180,000 in cash in the house of a 21-year-old drug dealer. The drugdealer was charged with money laundering and released on bail. Seven months later the policeused a drugs warrant to search the house when another large amount of money was found.This resulted in a second money laundering charge. The police did not need to find evidence tothe criminal standard of drug dealing in order to use the money laundering charge.

3.6.3 WHEN WITNESS EVIDENCE OF AN OFFENCE IS DIFFICULT TO OBTAIN

A group of individuals committed many crimes against elderly and frail victims. The offenderswould fit a fire alarm and then convince the elderly and frail person that they must buy ahumidifier in order for the fire alarm to work properly. They sold the humidifiers (which retailedlocally at £69) to the victims at a cost of £4,000 each. These offences were committednationwide and six cases were brought to court. The prosecution was unsuccessful because thewitnesses experienced problems in identifying suspects and giving testimony. A RART conductedan investigation and discovered that the victims had all paid by cheque, payable to one person.This person had banked the cheques and paid out sums to accomplices. On the basis of thisfurther financial investigation, this individual and two others were arrested and charged onsuspicion of money laundering.

3.6.4 A POCA SECTION 327 OFFENCE

A cheque book and bank card were stolen. Each cheque was used to purchase an item worth£99.99 in various shops belonging to the same chain in one area. The items were returned andexchanged for cash in shops of the same chain in a different area the next day. The stolencheques had not yet been cleared through the banking system and so the offenders were ableto launder criminal property. The offenders had committed an offence of money launderingunder POCA section 327.


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Section 4CONFISCATIONINVESTIGATION

Investigating the origins of seized cash and money laundering offenceswill often lead to confiscation investigations. Confiscation is not just

for serious criminals but applies in every case of acquisitive crime. Thissection describes the process of investigating criminal assets with aview to confiscating them. Its purpose is to inform the non-specialistinvestigator how a confiscation investigation is conducted. There is anassumption that, where possible, confiscation investigations will beconducted by financial investigators.

CONTENTS

4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.1.1 What Is Confiscation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.1.2 Who Can Conduct a Confiscation Investigation? . . . . . . . . . . . . . . . . . . . . 52

4.2 The Process of Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.2.1 Instigating a Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

4.2.1.1 When Is a Confiscation Investigation Appropriate? . . . . . . . . . . 544.2.2 Planning the Confiscation Investigation: Developing an

Investigative Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564.2.3 Restraining Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 574.2.4 Role of the Financial Investigation Unit in Confiscation Proceedings . . . . . . 57

4.2.4.1 Referral of Confiscation Cases to the FinancialInvestigation Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

4.2.5 Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 594.2.5.1 The Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

4.2.6 The Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614.2.6.1 Confiscation in Cases Where No Assets Are Thought

to Be Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634.2.7 Enforcement of the Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

4.2.7.1 Non-Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634.2.8 Revisiting a Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4.3 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.1 Case Revisited for Outstanding Payment of Confiscation Order . . . . . . . . . 654.3.2 A Student Found in Possession of Five Wraps of Cannabis

Given Confiscation Order of £13,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.3 A Person Pleads Guilty to Conspiracy to Defraud His Employer

of £280,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.4 A Petty Theft Leads to Major Confiscation . . . . . . . . . . . . . . . . . . . . . . . . . 654.3.5 Conduct Forming Part of a Course of Criminal Activity . . . . . . . . . . . . . . . 664.3.6 An Example of Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . 664.3.7 Default Sentence for Non-Payment of Confiscation Order . . . . . . . . . . . . . 66

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4.1 INTRODUCTION

Whenever a person has benefited from their crime, the police objective should be to secure acriminal conviction and, if possible, remove the benefit of that crime. A confiscation order madeunder the Proceeds of Crime Act 2002 (POCA) is an effective way of achieving this. Theinvestigator should be aware of the opportunities for confiscation proceedings which arenormally undertaken by FIs, and any actions they can take to support the process.

4.1.1 WHAT IS CONFISCATION?

Confiscation is a process by which the benefit from criminality is calculated and an equivalentamount (where recoverable) is returned to the state. Under POCA, confiscation is possible incases where the offender has benefited directly or indirectly from their crime. A confiscationorder requires the offender to pay back the equivalent of their benefit from their criminalconduct. If the amount is not repaid, a default sentence is served consecutively with any sentencealready imposed, and the amount of the outstanding confiscation order remains to be paid.

POCA (S 341 (1)) defines a confiscation investigation as an investigation into:

(a) whether a person has benefited from his criminal conduct, or

(b) the extent or whereabouts of his benefit from his criminal conduct.

4.1.2 WHO CAN CONDUCT A CONFISCATION INVESTIGATION?

All police investigators can contribute to successful confiscation investigations, although theyare usually conducted by FIs. This is because there are certain resources used in the process thatare available only to FIs. These resources include SARs, the Financial Investigation SupportSystem, and the Joint Asset Recovery Database (JARD). In addition, FIs have good links withfinancial institutions and work closely with the CPS.

4.2 THE PROCESS OF CONFISCATION INVESTIGATIONS

The objectives of a confiscation investigation are to determine:

• Whether the defendant has benefited from their crime;• The amount of their benefit;• The amount of realisable money, property or assets the person holds.


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Time Considerations

A confiscation investigation usually takes place in parallel with the related criminal investigation,although there must be a conviction in the criminal case before the confiscation proceedingscan be instituted. There is a two year time limit on completion of the confiscation process fromthe date of conviction, however, there are certain exceptions.

4.2.1 INSTIGATING A CONFISCATION INVESTIGATION

The investigator should be aware of confiscation opportunities that routinely arise in thecourse of their work. They should consider whether each case provides a possibleopportunity for a confiscation investigation. The main principle is that confiscation opportunitiescan arise in any crime where an offender has benefited, directly or indirectly, or gained apecuniary advantage.


Figure 3 Confiscation Investigation Process

Instigate a confiscation investigation

Develop an investigative strategy

Restrain assets

Gather financial information

Develop a financial tasking profile of the suspect

Calculate the benefit amount

Prepare the statement of information

Confiscation hearing held and confiscation order issued

Order enforced

Case revisited

The process of a confiscation investigation can be summed up in the following stages:

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Confiscation proceedings may be ordered by a judge of their own accord, or requested by aprosecutor. The prosecution has to ask the court to consider confiscation after conviction andbefore sentence. The court can start the process itself if it deems it necessary. Investigations canalso be triggered and carried out by other enforcement agencies such as the DWP or the DTI,via the prosecutor. (See 5 Other Agencies).

4.2.1.1 When Is a Confiscation Investigation Appropriate?

The investigator should consider whether a confiscation investigation is appropriate at theearliest possible opportunity, for example, at the outset of a proactive operation or on arrest. Inorder to determine whether confiscation proceedings may be appropriate, the investigatorshould consider the following:

• Was the offence committed on or after 24 March 2003? This is the date from whichPOCA applies and asset recovery should still be considered. Confiscation may still bepossible if the offence was committed before that date, under earlier legislation.Investigators should contact their FIU for advice in this area (see also 5.2 Other Legislation).

• Has the offence been proved to the criminal standard (ie, beyond reasonable doubt) andthe defendant committed to court for sentence? (Or are they likely to be?)

• Is the offender guilty of a criminal lifestyle offence? (See Text Box 2 Criminal LifestyleOffences).

• If the offender does not have a criminal lifestyle, have they nevertheless benefitedfrom their particular criminal conduct such as by committing a theft or burglary?(See Text Box 3 Particular Criminal Conduct).

Text Box 2 Criminal Lifestyle Offences

The following are specific offences or combinations of offences over specified time periodswith a minimum value of criminal property obtained (POCA section 75) and where aconfiscation investigation is mandatory:

• Drug trafficking (but not simple possession or cultivation of cannabis);• Money laundering (but not section 329 – acquisition, use and possession);• Directing terrorism;• People trafficking (assisting illegal entry (under the Immigration Act 1971), offences under

the Asylum and Immigration Act 2003, offences under the Gang Masters Act 2004);• Arms trafficking;• Counterfeiting;• Intellectual property (copyright);• Pimping, brothel keeping (under the Sexual Offences Act 1956) and child sex offences

(offences under the Sexual Offences Act 2003);• Blackmail;• Inchoate offences (attempts, conspiracies and incitement in respect of these offences);• An offence that was committed over a period of at least six months (for example, a

fraud offence or a series of thefts) to the value of £5,000 or more;• Conduct forming part of a course of criminal activity – this applies when a person is

charged with three or more other offences in the current proceedings, in addition to theoffence being heard, where the total benefit is £5,000 or more;

• One offence in the current proceedings, and convicted of a minimum of two separateoffences in the last six years with a benefit of £5,000 or more.


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Money to burn? Multi-burners for reproducing CDs and DVDs. Schedule 2of POCA lists intellectual property offences as lifestyle offences. Has theinvestigator considered a confiscation investigation? Is this criminalactivity linked to other criminality such as money laundering?

The question of suitability for confiscation proceedings should also be discussed with the CPSwhen charges are considered.

As part of the documentation requirements associated with the arrest of the offender, theofficer in the case will be required to fill in the new MG17 Confiscation Review Sheet (seeFigure 4). This contains questions that will also assist the investigator in deciding whether aconfiscation investigation is appropriate in the circumstances.

Text Box 3 Particular Criminal Conduct

Particular criminal conduct refers to the actual offences that are proved in the currentproceedings. This term is used when there is no criminal lifestyle label. With particularcriminal conduct the offender will have to pay a confiscation order to the monetary valueconnected to:

• The offence(s) they are convicted of;• Any others taken into account (TICs) (POCA Section 76 (3)).


Figure 4 Excerpt from MG17 Confiscation Review Sheet

Section 1 – Confiscation assessment (for Police completion)If Yes to any question immediately refer to FIU

1. Does the evidence reveal any ‘criminal lifestyle’ offences, eg, trafficking of drugs,people or arms, prostitution and child sex; directing terrorism, money laundering,copyright offences, blackmail?

2. Did the defendant obtain any property or financial gain?

3. Could the defendant be charged with 3 or more other offences in the currentproceedings that will amount to a total benefit, including TICs, of at least £5,000?

4. Has the defendant been convicted on at least 2 occasions within the last6 years of any offence where the total benefit, including TICs, is at least £5,000?

5. Has the defendant benefited by at least £5,000, including TICs, from anyoffending within at least a 6 month period?

6. Are money laundering charges being considered in this case?

7. Are the victims claiming compensation?

8. Has there been a cash seizure in excess of £1,000?

9. Is a restraint order necessary?

Y / N

Y / N

Y / N

Y / N

Y / N

Y / N

Y / N

Y / N

Y / N

Once there has been a trigger to start a confiscation investigation, or to consider starting one,the investigator should contact the FIU. This is to discuss the suitability of the case and torestrain assets at the earliest possible opportunity. Restraint is necessary to prevent the offenderfrom dissipating the assets in question (see 4.2.3 Restraining Assets). The completed MG17form will be sent to the FIU.

4.2.2 PLANNING THE CONFISCATION INVESTIGATION: DEVELOPING ANINVESTIGATIVE STRATEGY

Officers working on all criminal investigations should consider their investigative strategy. If theinvestigator considers that a confiscation investigation may be appropriate (see 4.2.1.1 When Isa Confiscation Investigation Appropriate?), they should then plan how best to gatherinformation about the defendant’s financial situation (assets held, transferred, spent) that mightbe linked to their original criminality (see the notes on income, expenditure and assets under2.3.2 Initial Enquiries and Financial Interviewing). The strategy should include legal and ethicalconsiderations and the requirements in the investigation for:

• Information (see 1.6 The Use of Financial Information; confiscation investigations will beenhanced if early opportunities to gather financial information have been taken up beforethe person knows they are under investigation);

• Competences and skills of the officers involved;• Resources;• Access to others, eg, CPS and other agencies;• Assessment of whether early restraint of assets is necessary (see 4.2.3 Restraining Assets);• Assessment of whether money laundering charges may be appropriate (see 3 Money

Laundering Investigation);• CPIA issues.

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An FI can assist with this strategy at the start of an investigation. For more information oninvestigative strategies see ACPO (2005) Practice Advice on Core Investigative Doctrine, Section 6Investigative Strategies.

4.2.3 RESTRAINING ASSETS

The power to restrain assets is an essential tool in the asset recovery process. Restraint isnecessary to stop a person who has benefited from their crime from being able to dissipate orspend their money, or sell, transfer or hide their assets or property before it can be confiscatedfrom them. A successful confiscation order will be ineffective if there are no assets left toconfiscate. Action at the earliest possible moment is therefore required.

A restraint order requires a superintendent’s authority and can be requested before criminalcharges are applied. The FI making the application for restraint must be accredited by ARA to doso. Advice should be sought from the CPS as soon as the criminal investigation begins. Theinvestigator should approach a senior CPS lawyer at an appropriate level in accordance with theprocedure set out in their local protocol. FIUs normally consult the CPS on behalf of the police inmatters of restraint. Restraint orders are generally applied for by the CPS. The application issupported by a police officer’s statement. When considering restraint, investigators should beaware that this will alert the suspect to the existence of the investigation.

4.2.4 ROLE OF THE FINANCIAL INVESTIGATION UNIT INCONFISCATION PROCEEDINGS

In addition to providing the advice on suitability of cases, restraint and planning the investigativestrategy, in most forces the FIU will:

• Record the opening of a confiscation investigation on JARD (without this, the force will notbe credited with a share of the funds recovered);

• Provide assistance or advice regarding the execution of search warrants;• Conduct confiscation investigations;• Liaise with the CPS regarding their application to court for restraint orders;• Apply to court for production orders or account monitoring orders, customer information

orders and warrants (see 1.8.3 Requesting Information From Financial Institutions,Commercial Service Providers, Government Departments and Other Agencies);

• Gather specific financial information on a defendant (subject to force policies and criteria);• Calculate the defendant’s benefit from crime;• Identify how much they have available to pay back (the available amount);• Prepare statements of information;• Liaise with court for timing of financial hearings;• Attend confiscation hearings;• Conduct follow-up actions;• Assist with enforcement of any confiscation orders (liaise with the courts and officers who may

have recovered assets, such as cash or jewellery, during the course of the criminal investigation).


4.2.4.1 Referral of Confiscation Cases to the Financial Investigation Unit

The case referral policies and procedures will vary from force to force. Investigators shouldconsult their FIU and make sure they understand the correct procedures when referring a case.

Most FIUs will ask the officer in the case to provide essential information wherever known including:

• Full name, date of birth, address and telephone numbers of the defendant and theirspouse or partner.

• Are they a tenant or home-owner? Amount of rent or mortgage per month, to whom thatsum is payable, the method of payment (eg, cheque or cash or direct debit).

• Amount of time at current address.

• Other property owned or rented.

• Occupation.

• Employer.

• Salary or income (including benefit).

• National insurance number.

• Other income.

• The offence.

• The date and time of arrest.

• The nature and value of the crime committed.

• The cash in the possession of the suspect; who it was retained by? If it was not, why not?

• Details of bank and building society accounts of the defendant and spouse or partnerincluding account number, sort code and bank address.

• Debit or charge cards held – including the company and account number.

• Credit or charge cards held – including the company and account number.

• A list of assets eg, property, stocks and shares, endowments, assurance and insurancepolicies, jewellery and antiques, along with estimates of value and location).

• Details of vehicle, whether owner or keeper, type, registration number, date purchased,purchase price.

• Any periods over the last six years in prison with dates from and to.

• Officer’s notes (including any facts of interest or personal knowledge).

From this stage in the process onwards, there are a number of actions that aredealt with by financial investigators. Non-specialist investigators are advised toconsult their financial investigation unit for further information and advice. Thefollowing sections are presented as background information only. (See 4.1.2 WhoCan Conduct a Confiscation Investigation?)

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4.2.5 CALCULATING THE BENEFIT AMOUNT

The benefit amount is the value of the property that the person obtained either from theirparticular criminal conduct (see Text Box 3 Particular Criminal Conduct) or from their generalcriminal conduct (or their criminal lifestyle, see Text Box 2 Criminal Lifestyle Offences). Figure 5shows this calculation.

Figure 5 Criminal Conduct Flowchart

Criminal Conduct and Benefit

Particular Criminal Conduct

Consideration of benefitfrom that particular conduct

plus TICs

Consideration of benefitfrom all their criminal

conduct, over the last sixyears at least

General Criminal Conduct(criminal lifestyle)

Calculation of the benefit amount


COURT:£300,000 or elseA FENLAND drugs gang will be strippedof the assets they gained from their crimesor face longer jail terms, a judge atCambridge Crown Court has warned.The Warden family, of Belt Drove, Elm,have been ordered to hand over more than£300,000 of the profits they made fromdrug dealing. It could see assets such ascars and jewellery being sold off.The gang, which included ringleadersBarry Warden (61), his wife, Mavis (55),and sons Richard and Barry junior, werejailed for a total of 48 years in 2005 fordealing drugs across the county.It is thought the family earned up to£1 million from the dealings, which theythen used to fund a lavish lifestyle fromtheir modest former council house.

Excerpt from Fenland Today athttp://www.fenlandtoday.co.uk

4.2.5.1 The Assumptions

If the offender is found guilty of any criminal lifestyle offence such as drug trafficking, moneylaundering or brothel keeping (see Text Box 2 Criminal Lifestyle Offences), the court must makecertain assumptions about the offender’s wealth and assets, and how they earned those assets.However:

…the court must not make a required assumption in relation to particular property orexpenditure if –

(a) the assumption is shown to be incorrect, or

(b) there would be a serious risk of injustice if the assumption were made. (section 10(6) POCA)

The court assumes that up to a maximum of six years before they were charged, indicted or hadbeen summoned for an offence, any property transferred to, held by or expended by thedefendant was obtained as a result of general criminal conduct.

The flow chart in Figure 6 shows how the assumptions are used to calculate the benefit amountin general criminal conduct cases.

http://www.fenlandtoday.co.uk

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Note: Property held would include assets that have increased in value over the period of time.Expenditure would generally include assets that have decreased in value over the period of timeheld, eg, a car bought two years earlier would have cost the drug dealer more than its currentretail value. Additionally there is a fourth assumption that the property is free of other interestssuch as joint ownership (by an innocent party) or a mortgage.

4.2.6 THE CONFISCATION HEARING

The confiscation hearing is part of the sentencing procedure and is not a trial. The judge makesa confiscation order in the sum of the benefit or the available amount (the sum of all thedefendant’s existing assets), unless the defendant can prove on the balance of probabilities thatthe benefit should be less.

The FI who conducted the confiscation investigation is responsible for attending all confiscationhearings, liaising with counsel, the direct presentation of evidence and the provision of technicaladvice if necessary.

A summary of the decision-making processes within a confiscation hearing is illustrated inFigure 7. This includes the criminal lifestyle and benefit considerations already addressed in thissection and details the process through to the confiscation order.

Figure 6 Using the Assumptions to Calculate the Benefit From Criminal Conduct

eg, drug dealerreceives credits intobank account, isgiven a car for help incommitting a crime.

= The Benefit from Criminal Conduct

PropertyTransferred

eg, drug dealer ownsa house, holds cash,antiques plus fivebank accounts withcredit balances.

PropertyHeld

eg, drug dealergambled and lostmoney, or bought acar and spent moneyinsuring it, and ownsa yacht.

PropertyExpended


Figure 7 Decision-Making Processes of Confiscation Hearing

Order to be paid at that time unless the defendant shows a need for time to pay –maximum six months. The court must set default sentence. Time to pay can be

extended by the court upon application by the defendant.

CONFISCATION HEARING

Has the defendantbenefited from theirparticular criminal

conduct?

The court must assess thebenefit received by thedefendant from their

general criminal conduct.

Does the defendant have a criminal lifestyle?

The court must decide if the defendant has proved thatthe available amount is less than the benefit.

(Available amount includes tainted gifts.)

Benefit is calculated onthe counts on the

indictment plus theassumptions.

The court must assess thebenefit received by thedefendant from their

particular criminal conduct.

Noconfiscation.

NO

NO YES

YES

The court makesconfiscation order for theamount of the benefit.

The court makes order forthe available amount andissues a statement of its

findings.

NO YES

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4.2.6.1 Confiscation in Cases Where No Assets Are Thought To Be Held

There is no lower minimum amount for triggering a confiscation investigation. Some policeforces apply for a nominal confiscation order in cases where a minimal amount of assets hasbeen identified. The nominal confiscation order could be for as little as £1 as there is no lowerlimit. This means that the case can be revisited at any time in the future should the offenderacquire wealth. This is used mainly as a preventive measure, as a disincentive to the convictedperson to commit further crime. A drug dealer, for example, may have no assets. A nominalconfiscation order in cases where there has been a large benefit amount gives the police ameans to ensure that no profit is made from crime in the future (see 4.3.1 Case Revisited forOutstanding Payment of Confiscation Order).

Outstanding benefit amounts can be marked on the PNC as the asset marker (shown as ‘AS’).When the offender comes to the notice of the police in a newly acquired vehicle, for example,the previous confiscation proceedings may be revisited, depending on cost implications (forexample, the cost involved in recovering a low value car).

4.2.7 ENFORCEMENT OF THE ORDER

If the CPS makes an application to the court to appoint a receiver, the police will provideassistance within the timescale agreed. This will include obtaining any information or evidenceneeded to progress the application, for instance obtaining an up-to-date valuation of currentassets, and attendance at court to assist in the proceedings if required by the CPS.

Police actions to support confiscation order enforcement include:

• Providing information about assets available to the enforcement agency;• Assisting with up-to-date values for assets such as houses and vehicles, and providing bank

account balances;• Assisting with tracing a person if they have left prison;• Assisting with realising sums, held by the police in bank accounts, which may have beenseized during the investigation process;

• Assisting with the disposal of assets held by the police in compliance with any restraint inthe case.

4.2.7.1 Non-Compliance

The offender is responsible for paying the confiscation order amount to the enforcementagency. After non-compliance, however, the magistrates can either grant the defendant moretime to pay, or order them to serve the default sentence.


The default sentences are as follows:

Even if the person serves the default sentence, the magistrates can instruct a receiver to realisethe assets or instruct a bailiff.

4.2.8 REVISITING A CASE

If the amount that a criminal made from their activity is higher than the amount they hadavailable at the time the confiscation order was made, they will remain liable for confiscationproceedings in the future. The police can apply for a further confiscation order to recoup thevalue of the original criminal benefit. Equally, if the person has not paid the entire sum of theirconfiscation order, they remain liable for it. If it comes to the attention of the authorities that aperson has acquired new wealth (such as inheritance or through a lottery win), the remainder ofthe confiscation order will be enforced (see 4.2.6.1 Confiscation in Cases Where No Assets AreThought To Be Held).

The confiscation process may be reconsidered in the following circumstances:

• No order made – reconsideration of case;• No order made – reconsideration of benefit;• Order made – reconsideration of benefit;• Order made – reconsideration of available amount.

If the first three points apply the application must be made within six years of the date of theconviction. The available amount can be reconsidered at anytime. The assumptions regardingexpenditure according to POCA section 10 do not apply at this point.

Trigger points for revisiting cases include:

• Entries on the PNC regarding outstanding benefit in respect of a confiscation case (‘AS’asset markers);

• Entries on the force’s local intelligence system regarding outstanding benefit in respect of aconfiscation case;

• Where a SAR is received indicating that a person has assets it can be cross-checked to seeif there is an outstanding confiscation order against the person (see 1.8.8 The ElmerDatabase (Suspicious Activity Reports)).

Table 2 Default Sentences

An amount not exceeding £200 7 days

An amount exceeding £200 but not exceeding £500 14 days

An amount exceeding £500 but not exceeding £1,000 28 days

An amount exceeding £1,000 but not exceeding £2,500 45 days

An amount exceeding £2,500 but not exceeding £5,000 3 months




An amount exceeding £50,000 but not exceeding £100,000 2 years

An amount exceeding £100,000 but not exceeding £250,000 3 years

An amount exceeding £250,000 but not exceeding £1 million 5 years

An amount exceeding £1 million 10 years

Powers of Criminal Courts (Sentencing) Act 2000 Section 139(4)

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Investigators should contact their FIU whenever they discover that a person who has hadconfiscation proceedings against them has gained new assets.

Some forces have adopted a policy of revisiting outstanding confiscation cases once every threemonths, where resources permit. For further guidance refer to Home Office Circular (24/2003)on Criminal Confiscation Orders in England and Wales under Parts 2, 9 and 11 of POCA, andrelated issues.

4.3 CASE STUDIES

4.3.1 CASE REVISITED FOR OUTSTANDING PAYMENT OF CONFISCATION ORDER

Police revisited a case of two persistent offenders previously convicted of low level crime anddrug dealing. Their mother died and an insurance premium was paid out. As a nominalconfiscation order had been made, the police were able to revisit the confiscation proceedingsand ensure that the offenders paid back their benefit from crime.

4.3.2 A STUDENT FOUND IN POSSESSION OF FIVE WRAPS OF CANNABIS GIVENCONFISCATION ORDER OF £13,000

A twenty-year-old student living at home was stopped and searched by a uniformed officer whofound them in possession of five wraps of cannabis and £100 in cash. The student said that thedrugs were for their own use. The police executed a search warrant; £1,000 in cash was foundin a wardrobe in a jacket pocket along with two bank books showing a total of £20,000 insavings. A further financial investigation found £9,000 in savings. As a result of a moneylaundering charge, the criminal lifestyle assumptions were applied. A sum of £13,000 wasconfiscated (as £7,000 of the money was accounted for by the student’s loans).

4.3.3 A PERSON PLEADS GUILTY TO CONSPIRACY TO DEFRAUD HISEMPLOYER OF £280,000

While working for a high street bank, a person admitted to working with a criminal gang. Theyopened bank accounts using false names in order to obtain loans and credit cards that werethen defaulted on. Police believe total losses to the bank could be as much as £306,000. Theperson also transferred monies from fraudulently opened accounts to their account and that oftheir family. The person was sentenced to two years in prison and made subject to aconfiscation order of £17,000, which had to be paid within nine months.

4.3.4 A PETTY THEFT LEADS TO MAJOR CONFISCATION

This case reveals how confiscation powers can be effectively applied when a person is seen tobe living above their means.

A person was caught stealing petrol. After the investigating officer approached the FIU foradvice, a financial enquiry revealed that there were obvious discrepancies between the person’slegitimate income and their general lifestyle. An investigation led to a conviction for fouroffences of stealing petrol worth £219.58, and one offence of the theft of a Porsche.

The person had received social security benefits but was living in a luxury barn conversion. Theyhad a lavish lifestyle with investments in Switzerland. It appeared that the person was living offthe proceeds of crime.


The person would not provide any realistic explanation for their wealth and the financialinvestigation revealed no signs of legitimate funds to substantiate this wealth. Confiscationproceedings were pursued by the prosecution, resulting in two separate confiscation orders:

• Regarding the theft of the Porsche motor car, a confiscation order was imposed in the sumof £18,650;

• The four offences of theft of petrol on separate occasions were sufficient to trigger criminallifestyle assumptions under the CJA.

Assumptions were, therefore, made about all the person’s unexplained assets. Following afull confiscation hearing, the court imposed an order confiscating a total of £1,566,911 fromthe person.

It should be noted that the dates the offences were committed were prior to the inception ofthe Proceeds of Crime Act 2002. The confiscation legislation that applied was under theCriminal Justice Act 1988 (as amended). If POCA had applied, the offences would still havetriggered the application of criminal lifestyle assumptions.

4.3.5 CONDUCT FORMING PART OF A COURSE OF CRIMINAL ACTIVITY

A social worker employed by a local authority social services department pleaded guilty to tencounts of theft from an 83-year-old client who had been diagnosed as suffering from advanceddementia. The offences were committed over a fourteen-month period and more than £64,000had been stolen. The social worker had stolen the cash from the victim’s bank accounts, her car,and had even sold her home. The defendant was sentenced to a total of three years’ and threemonths’ imprisonment. The defendant appeared again before the crown court for aconfiscation hearing. The court found the defendant to have a criminal lifestyle and to havebenefited from their criminal conduct by £67,599. A confiscation order in the sum of £67,599was made. The court also made a compensation order in the sum of £67,599 and ordered that£54,081.72 of it be paid from monies recovered in satisfaction of the confiscation order. Bothorders have now been settled.

4.3.6 AN EXAMPLE OF CALCULATING THE BENEFIT AMOUNT

At a small local car boot sale security investigators employed by the music sector investigatedthe sale of counterfeit music media. The operation amounted to the arrest of three peopleidentified as selling counterfeit goods. The individuals were found to have a large number ofcounterfeit goods in their vehicle. Simultaneous searches of their houses found multi-burnersset up to copy music and film media. An average day’s takings was established and multipliedby the number of car boot sales operated on site. These were cross-referenced to dates whenindustry investigators had visited the site. The assumption made was that one seller had visitedthe site on every occasion that it was open. A £30,000 benefit was declared at court and aconfiscation order made for that amount. The defendant pleaded guilty to counterfeit offencesand money laundering.

4.3.7 DEFAULT SENTENCE FOR NON-PAYMENT OF CONFISCATION ORDER

A person was convicted of defrauding elderly and frail women of their savings. The policesuccessfully applied for a confiscation order for £450,000. The person was sentenced to thirtymonths’ imprisonment for the theft but was given four years’ imprisonment for the non-payment of the confiscation order.

Even when a default sentence is served, the outstanding amount is still owed. Confiscationproceedings can be revisited if a person acquires more assets in the future.

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Section 5OTHER AGENCIES

During the course of a financial investigation or criminal investigationthat uses financial information it may be necessary for the

investigator to liaise or communicate with an outside agency.This section outlines the roles and main responsibilities of some(but not all) of the agencies or multi-agency bodies that work withfinancial investigation and asset recovery. They are presented inalphabetical order (see also 1.5 Other Enforcement Agencies withInvestigative Powers).

This section also provides information on legislation, other than theProceeds of Crime Act 2002 (POCA), that might be relevant to a financialinvestigation.

CONTENTS

5.1 Other Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685.1.1 Regional Asset Recovery Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 685.1.2 Assets Recovery Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695.1.3 Department for Environment, Food and Rural Affairs’ Investigation Service . . 705.1.4 Department of Trade and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

5.1.4.1 Companies Investigation Branch . . . . . . . . . . . . . . . . . . . . . . . . 715.1.5 Department for Work and Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

5.1.5.1 Fraud Investigation Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735.1.6 Financial Crime Information Network (FIN-NET) . . . . . . . . . . . . . . . . . . . . . 735.1.7 Financial Services Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745.1.8 Her Majesty’s Revenue and Customs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755.1.9 Home Office Immigration and Nationality Directorate . . . . . . . . . . . . . . . . 76

5.1.9.1 Immigration and Nationality Directorate Intelligence Service . . . 775.1.10 Identity and Passport Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 785.1.11 National Terrorist Financial Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . 795.1.12 Office of Fair Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795.1.13 Serious Fraud Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815.1.14 Serious Organised Crime Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 815.1.15 Trading Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

5.2 Other Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835.2.1 Forfeiture Under the Misuse of Drugs Act 1971 . . . . . . . . . . . . . . . . . . . . . 835.2.2 Powers of Criminal Courts (Sentencing) Act 2000 . . . . . . . . . . . . . . . . . . . 835.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and

Police Act 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845.2.4 Terrorism Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

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5.1 OTHER AGENCIES

There are a number of government agencies and other organisations,which hold information that may be of use to investigators, or have afinancial investigation capacity. Police officers should consult their FIUprior to contacting these agencies, unless otherwise indicated.

‘Payback’ is the brand name for cross-government strategy to trace andrecover the proceeds of crime.

5.1.1 REGIONAL ASSET RECOVERY TEAMS

Regional Asset Recovery Teams (RARTs) are multi-force/multi-agency teams serving lawenforcement and community requirements. They are currently in London, the North-West, theNorth-East, the West Midlands and Wales. The strength of the RARTs lies in their multi-agencyarrangement and the range of tactical opportunities this presents to target cross-bordercriminals with asset recovery powers.

RARTs work in partnership with police forces in line with the government’s asset recoverystrategy by:

• Making asset recovery through confiscation an integral part of criminal investigation;• Using cash forfeiture powers;• Increasing action against those involved in money laundering;• Referring suitable cases to the ARA, where civil recovery or taxation provisions may be

applied.

Supporting these main areas, RARTs lead regional operations under the ‘Payback’ banner andsupport operational activity undertaken by collaborating forces and agencies. Depending onlocal policy most RARTs encourage early informal direct contact from investigators to discuss thepossibilities for formal referral. They also accept referrals from single points of contact such asthe head of FIU or the Regional Tasking and Co-ordinating processes where they exist. RARTsare also available to assist investigators with other informal discussion and advice, and tofacilitate access to main functions in the financial investigation community such as HMRC, ARAand SOCA. See 1 Introduction.

RARTs are linked closely to other regional teams such as REFLEX (a practical multi-agencytaskforce tackling organised immigration crime), Special Branch Regional Intelligence Cells andregional drugs teams.

Currently there are five RARTs:

London RARTTelephone: 020 7029 4952Fax: 020 7029 4980Email: [email protected]

North-West Region RARTTelephone: 0870 757 3911Fax: 0870 757 3912Email: [email protected]

North-East Region RARTTelephone: 0113 2607398Fax: 0113 260 8760Email: [email protected]


Taking the cash out of crime.

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West Midlands Region RARTTelephone: 0121 251 2055Fax: 0121 251 2182Email: [email protected]

When emailing West Midlands RART, please note that:

• E-mails should not contain executable files, as these will be automatically deleted forsecurity reasons;

• To ease communication, please include your full name, telephone number and postaladdress within your message.

Wales Regional RARTTelephone: 01656 310100 (switchboard)Fax: 01656 310105For further information on RARTs see http://www.rart.gov.uk

5.1.2 ASSETS RECOVERY AGENCY

The Assets Recovery Agency (ARA) is a non-ministerial department. The Director reports to theHome Secretary but is operationally independent. The Agency has had access to the uniquepowers of POCA since 24 February 2003. ARA’s main offices are in London with a regionaloffice in Northern Ireland.

The Agency aims to:

• Disrupt organised criminal enterprises through the recovery of criminal assets, therebyalleviating the effects of crime on communities;

• Promote the use of financial investigation as an integral part of criminal investigation,within and outside the Agency, domestically and internationally, through training andcontinuing professional development.

ARA has a statutory power to train and accredit financial investigators. Section 3(3) of POCAstates that the Director must establish a system for the accreditation of financial investigators,which must include provision for:

(a) the monitoring of the performance of accredited financial investigators, and(b) the withdrawal of accreditation from any person who contravenes or fails to comply

with any condition subject to which he was accredited.

The ARA training programme is in accordance with National Occupational Standards and inaddition allows the trainee to obtain a BTEC qualification at NVQ Level 4 and diploma level. Theprogramme is based on blended learning consisting of pre-course study, classroom-basedlearning and the submission of a personal development plan compiled in the workplace withthe assistance of an experienced FI. The initial financial investigation course allows the studentto be either a financial intelligence officer or an FI but does not give them the power or skills toapply for restraint, or to complete a confiscation investigation. These form part of the secondcourse for those who have completed the PDP process.

ARA also provides a Management of Financial Investigation course for people who should beusing financial investigation in the workplace but are not.

Further information is available from http://assetsrecovery.gov.uk which also contains a link toARA’s training Centre of Excellence. Any specific queries on training courses should be sent tothe Centre of Excellence at <[email protected]>.


http://www.rart.gov.uk

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ARA uses civil recovery and taxation in order to recover criminal assets and investigates casesthat have been referred to them by the police, HMRC and other law enforcement agencies,where the recovered property value is over £10,000. Evidence of criminal conduct mustbe shown.

Investigators should consult their force FIU for guidance as to the suitability of a case for referralto ARA.

ARA can be contacted at:

Assets Recovery AgencyPO Box 39992LondonEC4M 7XQ Telephone: 020 7029 5700Fax: 020 7029 5706Email: [email protected]

5.1.3 DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS’INVESTIGATION SERVICE

Department for Environment, Food and Rural Affairs’ Investigation Service (DIS) provides aninvestigation service to the whole of the DEFRA organisation which includes the:

• Rural Payments Agency;• British Cattle Movement Service;• State Veterinary Service;• Fishing Industry;• Veterinary Medicines Directorate;• Pesticide Safety Directorate;• Egg Marketing Inspectorate;• Horticulture Marketing Inspectorate;• Plant Health Inspectorate.

This list is not exhaustive.

Investigations are conducted under the legal requirements of PACE, CPIA and RIPA, enforcing awide range of legislation. They are prosecuted by the Litigation and Prosecution Division of theDEFRA Legal Directorate.

For assistance and case referral in the first instance, investigators should contact:

David WoodsDEFRA Investigation ServicesEstuary HousePeninsula ParkRydon LaneExeterTelephone: 07775 823456Email: [email protected]


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5.1.4 DEPARTMENT OF TRADE AND INDUSTRY

The Department of Trade and Industry’s (DTI) legal services investigate fraudsters and confiscateillegally earned assets to improve confidence in UK business by enforcing corporate andinsolvency laws.

Information on possible fraudulent activity can come from a range of sources including:

• The Insolvency Service – referrals from official receivers, administrative receivers andliquidators;

• The DTI’s Corporate Law and Governance Directorate – referrals from the CompaniesInvestigation Branch (CIB) when their statutory enquiries or complaints disclose criminalactivity (see also 5.1.4.1 Companies Investigation Branch);

• Members of the public – mainly hotline complaints against disqualified directors, made tothe Insolvency Service or CIB;

• The police – where the complaint relates to fraudulent activities by company directors; • Companies House – regulatory referrals mostly relating to irregularities in the submission of

company documents.

Investigations conducted by the DTI have to be in the public interest and are carried out undersection 447, 448 and 453 of the Companies Act 1985. Investigations are mostly carried out byDTI officials or other experts. They are usually completed within three months. If a companyrefuses to cooperate with the investigator, or there is a risk of documents being destroyed, theDTI can ask a magistrate for a search warrant. Investigators can then search premises with thepolice with a view to seizing any company documents.Successful cases can result in directors’disqualification orders and custodial sentences.

The DTI also pursues confiscation orders to deprive convicted defendants of the proceeds oftheir criminal acts. It also seeks compensation for victims of criminal wrongdoing.

The DTI can be contacted at:

Department of Trade and IndustryResponse Centre1 Victoria StreetLondon SW1H 0ETTelephone: 0207 215 5000

5.1.4.1 Companies Investigation Branch

Companies Investigation Branch (CIB) carries out enquiries on behalf of the Secretary of Statefor Trade and Industry. These enquiries fall into two categories – the supervision of enquiriescarried out by inspectors appointed by the Secretary of State (where the subject under enquiry ishigh profile and where issues raised are of public concern), and confidential fact-findingenquiries. These are used to investigate a company where there is potential serious misconduct,fraud or malpractice.

CIB is part of the Insolvency Service, which is an executive agency of the DTI. The InsolvencyService is responsible for investigations into companies that have been placed in compulsoryliquidation by the court, and for taking disqualification proceedings against directors ofcompanies which have failed financially. CIB operates from offices in London and Manchester.


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CIB does not carry out criminal investigations. These are the responsibility of the police or othercriminal investigators such as the Serious Fraud Office (SFO) (see 5.1.13 Serious Fraud Office).Similarly, CIB does not usually carry out investigations into financial services companies as theseare usually done by the Financial Services Authority (FSA) (see 5.1.7 Financial Services Authority).CIB tends to investigate companies where there is a perceived financial danger to the public atlarge. The activities of the company involved may not be obviously criminal, but concerns havebeen raised over the integrity of its trading activities. Recent examples include investigations intoonline ticket touts and money-generating schemes, as well as companies enticing individuals toinvest in vintage wines.

CIB investigations result from information provided by various parties, including the police,financial regulators and other branches of the DTI and its agencies as well as the Office of FairTrading (OFT) and Trading Standards Officers (TSOs).

CIB does not usually intervene in any dispute between individuals and a company. This appliesto creditors, shareholders or members of the company’s own management, as they have legalremedies available to them.

Depending on the information obtained in an investigation the CIB can:

• Pass the information found during the investigation to another organisation which haspowers to deal with it;

• Write to the company concerned and suggest that it changes its practices;• Issue a formal warning to a company or its directors requiring them to address concerns

which have been identified;• Where sufficient misconduct by a company has been identified, apply to the court to wind

it up, and therefore stop it from trading;• If the behaviour of the directors is sufficiently questionable, apply to the court for them to

be disqualified from acting as company directors; • Use information obtained to bring a criminal prosecution on the company or its directors.

Any concerns about the activities of a company can be referred to CIB in writing, bytelephone or by using the electronic complaint form which can be found on CIB’s Website:http://www.insolvency.gov.uk/cib

The CIB can be contacted at:

Companies Investigation BranchPO Box 447London SW1H 0WUTelephone: 0207 215 4696

5.1.5 DEPARTMENT FOR WORK AND PENSIONS

The Department for Work and Pensions (DWP) works collaboratively with the police, localauthorities, HMRC and the Home Office on fraud investigations. It is committed to tacklingbenefit fraud. Its aims are to:

• Prevent benefit fraud;• Catch fraudsters;• Encourage the public to report suspects;• Publicise that fraud is not acceptable.

Sixty per cent of detected government benefit fraud originates from income support,jobseeker’s allowance and housing benefit. The DWP’s Fraud and Error Strategy Division hasresponsibility for developing the Department’s overall strategy for reducing the amount ofbenefit fraud committed. The Fraud Investigation Service carries out benefit investigation forDWP. It has investigators nationwide who deal with the full range of benefit fraud from minoroffences through to major frauds.


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The DWP’s local services are provided by Jobcentre Plus offices. These contain specialist teamssuch as fraud investigation teams.

For further information including details on local Jobcentre Plus services contact:

Jobcentre Plus Head OfficeTelephone: 0207 273 6102Website: http://www.jobcentreplus.gov.uk

5.1.5.1 Fraud Investigation Service

Most benefit fraud investigators are located in the regions and their main task is to respond toallegations of fraud committed by benefit claimants.

The Fraud Investigation Service also has specialist teams to investigate employers who colludewith their workers, allowing them obtain benefits illegally. Other specialist teams deal with moreorganised fraud. Investigators also work with HMRC and the Immigration and NationalityDirectorate to fight benefit fraud.

A network of Operational Intelligence Units supports the investigation process by managingreferrals and gathering and analysing intelligence. This includes exercising the Department’spowers under the Social Security Fraud Act 2001, which allows the DWP to obtain informationabout people it is investigating from their banks, building societies and utility (water, gas andelectricity) and telephone companies. The DWP can be contacted at:

Department for Work and PensionsOperational Intelligence UnitGrove House1st FloorManchesterLancashireM16 OLPTelephone: 0161 875 1304Fax: 0161 875 1301

5.1.6 FINANCIAL CRIME INFORMATION NETWORK (FIN-NET)

The Financial Crime Information Network (FIN-NET) is a multi-agency networking organisationwith the primary objective of reducing financial crime. It encourages the exchange ofinformation between regulatory and law enforcement agencies, government departments, andother bodies with public functions on actual or suspected fraud that made use of, or impactedon the UK’s financial system. As the network has developed, the scope of its activities has beenexpanded to cover all aspects of financial and economic crime. FIN-NET provides a frameworkfor the secure pooling and dissemination of this information to members of the network. It alsoprovides a framework within which added value can be achieved, in some cases throughstimulating cooperation between members of the network.

FIN-NET is overseen by a Treasury-led Steering Group. The FSA provides the secretariat andadministrative services necessary for FIN-NET to operate effectively. All police forces have adesignated FIN-NET representative. All enquiries will be channelled through this representative.The FIN-NET Secretariat can be contacted at:

Telephone: 020 7066 0970Email: [email protected]


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5.1.7 FINANCIAL SERVICES AUTHORITY

The Financial Services Authority (FSA) is an independent non-governmental body with statutorypowers under the Financial Services and Markets Act 2000. The FSA has four regulatoryobjectives one of which includes reducing the extent to which it is possible for financial servicesbusiness to be used for financial crime. The FSA is operationally independent of governmentand is funded entirely by the firms it regulates.

FSA regulates around 29,000 firms and 165,000 approved individuals. The type of businessregulated includes:

• Banks, financial advisers and investment firms;• Markets and exchanges, and listings of securities;• Credit unions;• Insurance and mortgages.

There are some areas of financial services that the FSA does not regulate. These are:

• Money service businesses, ie, remittance providers, bureaux de change and cheque cashers(regulated by HMRC);

• Firms specialising solely in personal lending who have consumer credit licences (regulatedby the Office of Fair Trading);

• Occupational pensions (regulated by the Pensions Regulator, although personal pensionsare regulated by the FSA).

The FSA has a wide range of legislative, investigatory and enforcement powers which enablethem to censure or fine firms that fail to meet their rules and requirements. The FSA also haspowers relating to market abuse and money laundering. Depending on the circumstances, theymay draw on the full range of their civil and criminal powers.

If an investigation includes either financial firms or individuals working in the financial industry,the FSA is likely to have an interest or be able to assist with an investigation, or provide expertiseon financial services, markets or products.

If a firm or an individual is regulated by the FSA, they are listed on the FSA register athttp://www.fsa.gov.uk/register

For intelligence queries contact:

Intelligence Team Contact CentreTelephone: 020 7066 2474Email: [email protected]

More information on the role of the FSA can be requested by sending an email with ‘FSA Guide’in the subject field, and supplying a postal address to: <[email protected]>. For moreinformation on FSA intelligence requirements, include ‘Intel Requirements’ in the subject field.

The FSA can be contacted at:

The Financial Services Authority25 The North ColonnadeCanary WharfLondon E14 5HSTelephone: 0207 066 1000Website: http://www.fsa.gov.uk


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5.1.8 HER MAJESTY’S REVENUE AND CUSTOMS

Her Majesty’s Revenue & Customs (HMRC) collects and administers:

• Direct taxes (Capital gains tax, corporation tax, income tax, inheritance tax, nationalinsurance contributions);

• Indirect taxes (Excise duties, insurance premium tax, petroleum revenue tax, stamp dutyland tax, VAT).

HMRC pay and administer child benefit, child trust fund, and tax credits.

They enforce and administer border and frontier protection, environmental taxes, nationalminimum wage enforcement, recovery of student loans.

In order to request information for the purposes of a police investigation, investigators shouldfill in a gateway request (an extended data protection act form) and obtain an authorisationfrom a Superintendent. There is usually a Single Point of Contact in each force for the interfacebetween the police and HMRC’s Centre for Exchange of Intelligence.

Enquiries of a financial nature can be channelled through the National Coordination Unit on0870 785 3600 who can refer issues to the correct specialist financial investigation team.

HMRC’s aim is to secure compliance with the law and regulations governing direct and indirecttaxes and other regimes for which they are responsible. Criminal investigation, with a view toprosecution by the Revenue and Customs Prosecutions Office (RCPO) in England and Wales – orthe appropriate prosecuting authority in Scotland and Northern Ireland, is an important part ofHMRC’s overall enforcement strategy.

It is HMRC’s policy to deal with fraud by use of Civil Investigation of Fraud procedures, whereverappropriate. Criminal Investigation will be reserved for cases where HMRC needs to send a strongdeterrent message or where the conduct involved is such that only a criminal sanction is appropriate.

However, HMRC reserves complete discretion to conduct a criminal investigation in any case andto carry out these investigations across a range of offences and in all the areas for which theCommissioners of HMRC have responsibility.

Examples of the kind of circumstances in which HMRC will generally consider commencingcriminal, rather than civil investigations are:

• In cases of organised criminal gangs attacking the tax system or systematic frauds wherelosses represents a serious threat to the tax base, including conspiracy;

• Where an individual holds a position of trust or responsibility; • Where materially false statements are made or materially false documents are provided in

the course of a civil investigation; • Where, pursuing an avoidance scheme, reliance is placed on a false or altered document or

such reliance or material facts are misrepresented to enhance the credibility of a scheme; • Where deliberate concealment, deception, conspiracy or corruption is suspected; • In cases involving the use of false or forged documents; • In cases involving importation or exportation breaching prohibitions and restrictions; • In cases involving money laundering with particular focus on advisors, accountants,

solicitors and others acting in a ‘professional’ capacity who provide the means to puttainted money out of reach of law enforcement;

• Where the perpetrator has committed previous offences or there is a repeated course ofunlawful conduct or previous civil action;

• In cases involving theft, or the misuse or unlawful destruction of HMRC documents; • Where there is evidence of assault on, threats to, or the impersonation of HMRC officials; • Where there is a link to suspected wider criminality, whether domestic or international,

involving offences not under the administration of HMRC.


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When considering whether a case should be investigated under the Civil Investigation of Fraudprocedures, or should be the subject of a criminal investigation, HMRC will take into accountwhether the taxpayer(s) has made a complete and unprompted disclosure of the offencescommitted.

There are certain fiscal offences where HMRC will not usually adopt the Civil Investigation ofFraud approach. Examples of these are:

• VAT Missing Trader Intra-Community (MTIC) Fraud; • VAT ‘Bogus’ registration repayment fraud; • Organised Tax Credit fraud.

HMRC are fully committed to asset recovery and recovering the proceeds of crime. They have apolicy that all investigations will have a concurrent financial investigation. Confiscation ordersand POCA cash seizures will be pursued to their fullest extent.

The Revenue & Customs Prosecutions Office are responsible for the prosecution in all HMRCcases. They can be contacted at:

Revenue and Customs Prosecutions OfficeNew Kings Beam House22 Upper Ground LondonSE1 9PJEmail: [email protected]

5.1.9 HOME OFFICE IMMIGRATION AND NATIONALITY DIRECTORATE

The Home Office Immigration and Nationality Directorate (IND) is responsible for framing theasylum, immigration and border control laws in relation to Home Office Aim 6. Immigrationofficers control the entry of persons subject to control under the Immigration Act 1971, andenforce and investigate immigration offences in the UK. IND in its role as the National AsylumSupport Service (NASS) is responsible for the support, accommodation and dispersal of personsawaiting decisions on their asylum application. NASS uses specialist powers under the legislationto require disclosure of financial information in relation to asylum applications. Otherdirectorates deal with nationality applications and applications to remain in the UK that are notconnected with asylum. IND, along with the Foreign and Commonwealth Office, operates thevisa issuing network around the world. Many foreign nationals require visas before they enterthe UK and proof of funds may be an important element of any application.

Each IND directorate has an intelligence network to service its needs. The main point of contactfor operational law enforcement matters in the UK is the Enforcement and Removals Directoratewhich works with UK law enforcement on a day-to-day basis. Local Enforcement and Removaloffices maintain intelligence units and close relationships with the police in their area.

General enquiries regarding immigration status are dealt with by the evidence and enquiry unitat IND headquarters at Croydon, telephone: 0845 6012298.

IND is currently improving its financial investigation capability across the organisation.


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5.1.9.1 Immigration and Nationality Directorate Intelligence Service

The Immigration and Nationality Directorate Intelligence Service (INDIS) supports IND by:

• Identifying areas of organised immigration-related crime;• Monitoring local, national and global trends;• Collating, assessing and disseminating intelligence relating to individuals and organisations;• Providing attachments to other organisations;• Providing advice and assistance to the IND.

INDIS units include the National Intelligence Unit, Operational Development Unit and NationalDocument Fraud Unit.

The National Intelligence Unit (NIU) is the main point of contact for SOCA, including SuspiciousActivity Reports and other REFLEX operational support enquiries. (REFLEX is the governmentresponse to organised immigration crime).

Contact details (strictly for law enforcement use only);

Immigration and Nationality Directorate Intelligence ServiceNational Intelligence UnitPO Box 1000HayesUB3 5WBTelephone: 020 8745 2423Email: [email protected]

The Operational Development Unit provides tactical intelligence targeting criminal groupsinvolved in organised immigration crime within REFLEX. The unit has a financial investigationcapability. The Operational Development Unit can be contacted at:

Immigration and Nationality Directorate Intelligence ServiceOperational Development UnitRoom F10PO BOX 1000UB3 5WB

The National Document Fraud Unit provides a service to IND in relation to travel and identitydocument fraud. They can be contacted at:

Duty Officer Telephone: 0208 7452480Email: [email protected]


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5.1.10 IDENTITY AND PASSPORT SERVICE

A memorandum of understanding (MOU) governs the relationship between the police and theIdentity and Passport Service (IPS) – formerly the United Kingdom Passport Service. In addition todetailing the relevant protocols, the MOU contains details of regional office fraud andintelligence units and the police areas they cover, a full list of contact details, and forms to beused by both the police and IPS for requests for personal data. Copies of the MOU can befound on the ACPO or ACPOS websites.

The IPS has seven fraud and intelligence units that proactively investigate passport related fraud.This is in addition to the work previously undertaken by special files units. There is also a CentralIntelligence and Analysis Team that provides internal analysis to the IPS and the Fraud andSecurity Unit. The Fraud and Security Unit undertakes internal investigations in relation tosecurity and fraud.

General enquiries, ie, those not relating to specific cases of fraud, should be directed to thePeterborough searching section, telephone: 01733 888169, fax: 01733 888178. (A detailedcontact list is attached to the MOU).

IPS Fraud and Intelligence Unit staff are permitted to supply information to the police when oneof the following applies:

• The IPS customer has given permission;• It is provided under the terms of a court order; or• The IPS is provided with evidence that disclosure is in connection with the prevention or

detection of crime, the apprehension or prosecution of offenders or national security. IPSwill only assist where non-disclosure would result in a substantial chance, not merely a risk,that the investigation or prosecution would be prejudiced.

The Police have to give sufficient reasons, in writing, to satisfy the IPS as to why they considerthe disclosure falls within the non-disclosure exemptions of the Data Protection Act 1998 (see1.8.3.4 Disclosures of Personal Data). The police officer should complete a written standardrequest form (a DPA request form) clearly specifying the reasons the police believe that the non-disclosure exemptions of the DPA apply. Requests should be signed off by an officer of at leastthe rank of police inspector.

Section 28 exemptions – National Security: Where a police force wishes to rely on theexemption in section 28, the IPS will expect to receive a written assurance that the disclosure isrequired to safeguard national security but will not expect to be told the reasons for the request.

IPS FIU staff will supply the information requested to the police and will handle and respond tostandard requests at the earliest opportunity. All enquiries, (general enquiries and thoseidentifying fraud or other offences) should be made through the force Single Point of Contact.Requests should be made to the IPS Fraud and Intelligence Unit which covers the force areawhere the enquiry is generated. Subject to force policy, any officer can generate arequest where appropriately authorised. The request must contain sufficient detail to locatethe information required. Some examples of information that can be provided are listed in1.8.5. Information Held By Government Departments and Other Agencies.

In the case of urgent enquiries, for example serious crime, and in particular where there isdanger to life, the IPS Fraud and Intelligence Unit will prioritise this work and respond to therequest at the earliest opportunity. These must still be made through the SPOC andaccompanied by the appropriate supporting DPA request form to ensure intelligence benefitsare maximised.


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5.1.11 NATIONAL TERRORIST FINANCIAL INVESTIGATION UNIT

The National Terrorist Financial Investigation Unit (NTFIU), based within Special Branch at NewScotland Yard, is the law enforcement agency responsible for the investigation of terroristfinance in the UK. The unit plays a central role in informing and implementing governmentpolicy on terrorist finance and is an integral part of the UK’s intelligence structure targetingterrorist finance. It is a multi-agency unit made up of investigators from a number of disciplines.It works closely with the intelligence agencies, government departments, law enforcementagencies, regulatory bodies and the private sector, to identify and disrupt terrorist finance.

The NTFIU works closely with Special Branches across the UK and with the Special BranchRegional Intelligence cells. They can be contacted at:

NTFIURoom 1915New Scotland YardBroadway LondonSW1H 0BGTelephone: 020 7230 4164Fax: 020 7230 2638Email: [email protected]

5.1.12 OFFICE OF FAIR TRADING

The Office of Fair Trading (OFT) is an independent organisation that helps consumersunderstand their rights and protects consumer interests throughout the UK, while ensuring thatbusiness practices are fair and competitive. OFT has powers under consumer and competitionlegislation. Any business that exploits consumers and prevents a market from working well – forexample, by rigging prices or using unfair terms – will be pursued by the OFT.

The Competition Enforcement division of the OFT enforce competition law. This role includes:

• Stopping and deterring cartels and other damaging anti-competitive agreements;• Stopping and deterring abuse of dominant market positions;• Promoting a strong competitive culture across the economy;• Informing business, through a widespread education programme, about new legislation

and how to comply with it.

The Competition Enforcement division has teams with specialist knowledge across a range ofindustries and business.

The OFT enforces a wide range of consumer protection legislation. The Consumer RegulationEnforcement division:

• Coordinates enforcement action throughout the UK with other regulatory partners andtakes action against traders who trade unfairly;

• Approves and promotes codes of practice;• Offers a range of information to help consumers understand their rights and make

appropriate choices;• Liaises closely with regulatory bodies in other countries that also have enforcement powers.


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The Unfair Contract Terms team in the Consumer Regulation Enforcement division deals withstandard terms in consumer contracts that are unfair. The team:

• Negotiates with business to stop the use of unfair terms and, when necessary, may seek aninjunction in the courts;

• Issues guidance about the effect of the regulations on different markets;• Issues advice and information about unfair terms that might arise in contracts;• Coordinates enforcement activities with other regulatory bodies.

Consumer credit

OFT regulates the consumer credit market to ensure that there is fair dealing by thosebusinesses which lend money to consumers, introduce consumers to lenders, offer debt advice,or deal with debt collection or credit worthiness information. The consumer credit market uses alicensing system to check that any business involved in consumer credit does not pose a threatto consumers. The consumer credit licensing team:

• Assesses applicants’ fitness to hold a licence and monitors the fitness of those who arealready licensed;

• Issues and updates licences;• Keeps a public record of applicants and those already licensed;• Issues guidelines to explain how the law will be enforced generally and in relation to

particular market sectors and practices.

Misleading Advertising

Under the Control of Misleading Advertising Regulations, the OFT, working closely with bodiessuch as the Advertising Standards Authority, has the power to seek an injunction to stopadvertising which is deceptive or misleading.

Shopping from home

Under the Distance Selling Regulations, the OFT has powers, together with Trading Standards,to stop trading practices that are harmful to the interests of home shoppers. The regulationsalso ensure that consumers who use the internet to buy products and services now generallyenjoy the same rights as any other home shopper.

Estate Agents

The OFT has powers to ban unsuitable people from engaging in estate agency work andmaintains a public register of those who are banned or who have received warning orders.

Enforcement Orders

Part 8 of the Enterprise Act 2002 provides for the enforcement of consumer legislation bymeans of court orders against businesses breaching that legislation. Except in urgent cases, theOFT will consult the business that is infringing consumer protection legislation before applyingfor an Enforcement Order and, where possible, will seek an understanding that theinfringement will stop. The Office of Fair Trading can be contacted at:

Office of Fair TradingFleetbank House2-6 Salisbury SquareLondonEC4Y 8JXTelephone: 020 7211 8000Fax: 020 7211 8800


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5.1.13 SERIOUS FRAUD OFFICE

The Serious Fraud Office (SFO) is a government department and is part of the UK criminal justicesystem. Its purpose is to investigate and prosecute serious and complex fraud so as to deter itand maintain confidence in the integrity of business and financial services in the UK.

The Criminal Justice Act 1987 provides for the conduct of investigations by the SFO either on itsown or in conjunction with the police. The Act also enables the SFO to assist foreign authorities,using its investigative powers under section 2.

Its operational section includes five investigation and prosecution divisions. A forensiccomputing unit is responsible for the seizure, processing and analysis of all electronic-basedevidence. This unit is involved in the UK Internet Crime Forum, G8 Hi-Tech Working Group andthe UK Forensic Computing Group.

The SFO accepts only serious and complex fraud cases. The rationale for the SFO to take on acase is that the nature of the suspected fraud is such that the direction of the investigationshould be in the hands of those who will be responsible for the prosecution.

Factors taken into account include:

• The value of the alleged fraud exceeds £1 million;• There is a significant international dimension;• The case is likely to be of widespread public concern;• The case requires highly specialised knowledge and there is a need to use the SFO’s special

powers, such as section 2 of the Criminal Justice Act 1987 to require witnesses andsuspects to produce documents and answer questions.

The Serious Fraud Office can be contacted at:

The Serious Fraud OfficeElm House10-16 Elm StreetLondonWC1X 0BJTelephone: 0207 239 7272Fax: 0207 8371689Email: [email protected]: http://www.sfo.gov.uk

5.1.14 SERIOUS ORGANISED CRIME AGENCY

The Serious Organised Crime Agency (SOCA) is a non departmental public body formed by theamalgamation of:

• National Crime Squad (NCS);• National Criminal Intelligence Service (NCIS);• HMRC (drugs investigation arm);• UKIS: UK Immigration Service.

It was launched in April 2006 to deal with drug trafficking, organised immigration crime, moneylaundering and identity fraud by developing an intelligence picture of organised crime, pursuingsignificant criminals and groups, disrupting criminal markets, and attacking criminal assets toensure criminals do not profit from their crimes.


http://www.sfo.gov.uk

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SOCA officers will be able to draw on wide-ranging new powers to compel individuals toanswer questions in interviews with prosecutors, make deals with informants, use enhancedpowers of confiscation, and Financial Reporting Orders. These orders allow courts to imposeobligations on offenders to report particulars of their financial affairs.

SOCA has the role of the UK Financial Intelligence Unit and is responsible for the ownership andmanagement of the Suspicious Activity Reporting System.

The new agency will use international agencies to identify links between illegal gangs in the UKand abroad.

SOCA does not have its own detention facilities. Anyone arrested by a SOCA officer must betaken to a police station to be processed there by a custody officer. The police, not SOCA, willdeal with the aspects of the custody.

SOCA officers may be designated the powers of a constable or an officer of HMRC. Undersection 36 of the Serious Organised Crime and Police Act 2005 (SOCPA), police forces have aduty to give SOCA information that appears to be relevant to any SOCA function, and everyconstable has a duty to assist SOCA in the exercise of its functions (section 37 SOCPA).

SOCA can be contacted at:

The Serious Organised Crime AgencySOCA HQ1 Old Queen StreetLondonSW1H 9HPTelephone: 020 7035 6666Fax: 0870 268 8108

5.1.15 TRADING STANDARDS

Trading Standards Departments are a function of local government. Every Local Authority (LA)has its own trading standards department that is responsible for its own trading standardsservice. This includes enforcing a wide range of statutory provisions in relation to consumerprotection and for bringing criminal prosecutions where necessary. Responsibility for settingtrading standards’ priorities and resources lies with each LA. Most offences investigated bytrading standards departments are committed by those acting in the course of a trade orbusiness only. The investigation will be conducted by a Trading Standards Officer orEnforcement Officer.

Trading standards departments have a number of options open to them for dealing withoffences by traders. Offences range from relatively minor, regulatory breaches to deliberateattempts to defraud customers. Depending on the seriousness of the offence and the quality ofthe evidence, one of the following actions will be taken by the Trading Standards Officer:

• Advice given on corrective measures needed to be taken;• Informal written warning letter;• Formal caution;• Prosecution.

Recent legislation also allows trading standards departments, particularly in circumstances ofrepeated failure to comply with legislation, to seek an undertaking or court order requiring atrader to cease certain trading practices. Failure to comply with this can result in imprisonment.

Trading standards can be contacted through local authorities, which can be accessed viahttp://www.tradingstandards.gov.uk


http://www.tradingstandards.gov.uk

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5.2 OTHER LEGISLATION

Investigators should be aware of other confiscation powers under legislation in addition toPOCA. In the majority of cases POCA provides sufficient powers to suit the case in hand. Wherethe use of other confiscation legislation may be appropriate (and in cases where the criminalitytook place prior to the enactment of POCA on 24 March 2003), investigators should seek theadvice and assistance of their force FIU.

5.2.1 FORFEITURE UNDER THE MISUSE OF DRUGS ACT 1971

Section 27 of the MDA, as amended by the CJA, section 70, and the Criminal Justice(International Co-operation) Act 1990 states that:

… anything shown to the satisfaction of the court to relate to the offence … may beforfeited and either destroyed or dealt with in such other manner as the court may order.

Anything shown to relate to the offence applies to tangible objects, such as the car a drugdealer used to commit an offence. This can also include cash seized by police that relatesdirectly to an offence. Investigators may find it useful to apply for forfeiture, under the MDA, ofcash or anything shown to relate to the offence in those cases where the time and resourcesneeded to support a confiscation investigation would outweigh the amount of available assetsthe offender is able to pay back. Confiscation proceedings would be dealt with first, prior to anyforfeiture order. If it comes to light that a person has admitted to drug trafficking, for example,and does not have any assets apart from the cash seized, then police would ask the court toproceed under section 27 of the MDA. The officer would not be required to prepare aconfiscation report under those circumstances, however, the court can always ask for one to becarried out. An offender who is also a prolific drug user might have no assets and absolutely nomeans of paying a confiscation order. The police could still, however, apply for forfeiture of thecar used in the offence, and the small amount of cash made from the deal.

An order under section 27 must be made within twenty-eight days of passing sentence and itcannot be varied, rescinded or made after that period.

5.2.2 POWERS OF CRIMINAL COURTS (SENTENCING) ACT 2000

Once an offender has been convicted of an offence, the court may make an order to deprivethem of any property that was used, or intended to be used, for the purposes of committing, orfacilitating the commission, of any offence. The property needs to have been lawfully seizedfrom them, or be in their possession or under their control when they were apprehended, orwhen a summons in respect of the offence was issued. The Act requires that the propertyconcerned should have been used to commit any offence, and not necessarily the offence ofwhich the offender has been convicted. Possession usually means physical possession but caninclude a legal right to possess. Facilitating the commission of an offence includes taking anysteps after the offence has been committed to dispose of property which is the subject of thecrime, or to avoid apprehension or detection. The property need not have been used personallyby the defendant, provided they intended it to be used for criminal purposes, even by another.

Note: ‘an intention to use for the purposes of crime’, or ‘is in the unlawful possession ofthe defendant’ will suffice, and includes the forfeiture of any vehicle used to commit serioustraffic offences.

The accused is deprived of their rights to the property which passes into the possession of thepolice. The provisions of the Police (Property) Act 1897 apply and a person may claim theproperty provided the court is satisfied that either:

• They did not consent to the offender having possession; or• They did not know, and had no reason to suspect, that the property was likely to be used

for the purpose of committing an offence.


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If no successful claim is made the property will be sold and the proceeds disposed of in thesame way as described in the Police (Property) Act 1897.

In considering whether to make a deprivation order the court shall have regard:

• To the value of the property; and• To the likely financial and other effects on the offender of the making of the order

(together with any other order the court is contemplating);

The order only takes effect after a period of six months in order to allow a person to make aclaim under the Police (Property) Act 1897.

5.2.3 SEIZURE UNDER SECTIONS 50 OR 51 OF THE CRIMINAL JUSTICE ANDPOLICE ACT 2001

Sections 50 and 51 allow for the seizure and removal of property found on premises or on aperson where it is not reasonably practicable to complete a process of examination, searching orseparation at the scene. Section 50 refers to seizure from premises. Section 51 refers to seizurefrom a person.

Section 59 gives any person, with a relevant interest in property seized using these powers theright to apply to the appropriate judicial authority for it to be returned. This power is fullyexplained in the Police and Criminal Evidence Act 1984 Codes of Practice A-G (2005 EditionCode B 7.7-7.17).

In brief it allows for the seizure of property (often documentary) where the sheer volume orcomplexity means that it could not be considered reasonably practicable to search it where itwas originally located.

The Criminal Justice and Police Act and PACE Codes specify various considerations including theservice of a written notice (Code B 7.12). Investigators should seek the assistance of their FIUwhen exercising the power of seizure under sections 50 or 51 of the CJPA.

5.2.4 TERRORISM LEGISLATION

Part III of the Terrorism Act 2000 begins with a broad definition of terrorist property. Thisincludes tangible property, money likely to be used for the purposes of terrorism, the proceedsfrom the commission of acts of terrorism, and the direct or indirect proceeds of acts carried outfor the purposes of terrorism. The definition is wider in relation to an organisation which isproscribed (outlawed in the UK), where it can relate to any resources (any money or otherproperty which is or will be applied or made available for use by the organisation). There thenfollows a series of offences which can in turn trigger legal actions such as forfeiture and theseizure of tainted cash.

These strategies are supplemented by measures in the Anti-Terrorism, Crime and Security Act2001. Part 1 replaces the seizure of cash powers in the Terrorism Act 2000. Section 3 andSchedule 2 amend other parts of the Terrorism Act 2000 to ensure that investigative andfreezing powers are more widely available. The 2001 Act also introduces Account MonitoringOrders and extra powers to freeze the assets of overseas residents.


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Section 1(1) of the 2001 Act states cash which:

• is intended to be used for the purposes of terrorism; • consists of resources of a proscribed organisation; • is, or represents, property obtained through terrorism;

can be forfeited in civil proceedings before a magistrates’ court.

It is emphasised under section 1(2) that the powers conferred are exercisable in relation to anycash whether or not any proceedings have been brought for an offence in connection with thecash. By Schedule 1, paragraph 2, an authorised officer may seize and detain any cash to whichthis section applies if he has reasonable grounds for suspecting that it is terrorist cash. Theseizure may be undertaken even if it is not reasonably practicable to seize only that part of thecash believed to be terrorist cash. Authorisation to seize cash should be obtained from a seniorofficer prior to the actual seizure of the cash. Verbal authorisation should be supported bywritten authorisation as soon as is reasonably practicable. Once seized, the cash must bereleased not later than the end of the period of forty-eight hours beginning with the time whenit is seized. An authorised officer or the Commissioners of HMRC may apply to a magistratescourt for an order. The court may grant the order only if satisfied that there are reasonablegrounds to suspect that the cash is terrorist cash, or the resources of a proscribed organisation,or earmarked as terrorist property and, in whichever of the three situations applies, that thecontinued detention of the cash is justified pending completion of an investigation of its originor derivation, or pending a determination whether to institute criminal proceedings, or pendingthe conclusion of proceedings. An authorised officer or the Commissioner of HMRC may alsoapply to a magistrate’s court for an order forfeiting detained cash. The forfeiture can apply notonly against the seized cash but also in relation to any accrued profits.

Section 18 of the Terrorism Act 2000 Act deals with money laundering so that a personcommits an offence if they enter into or becomes concerned in an arrangement whichfacilitates the retention or control of terrorist property by, on behalf of, another. In order toassist the detection process the Act encourages financial intermediaries to report any suspiciousactivity to the authorities (section 19(1)). A stricter duty to disclose is imposed on the regulatedsector by Schedule 2, part 3 of the Anti-Terrorism, Crime and Security Act 2001.

Section 23 of the Terrorism Act 2000 allows the court by, or before, which a person is convictedof a section 15, 16, 17 or 18 offence to make a forfeiture order. Under subsection (6) the courtmay also order the forfeiture of any money or other property, which wholly or partly, directly orindirectly, is received by any person as a payment or other reward in connection with thecommission of offences under sections 15 to 18. Schedule 4, paragraph 5 allows the HighCourt to make a restraint order where a forfeiture order has already been made, or it appears tothe High Court that a forfeiture order may be made in the proceedings for the offence, or evenwhere the High Court is satisfied that a person is to be charged with any offence under section15 to 18, and that a forfeiture order may be made in these proceedings. The effect of a restraintorder is to prohibit a person to whom notice of it is given from dealing with the relevantproperty. To reinforce the powers of restraint, Schedule 4, paragraph 7 allows a constable asummary power of seizure of any property subject to a restraint order for the purpose ofpreventing it from being removed from the jurisdiction, though the seizure should then benotified to the High Court which will give directions.


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The Treasury can make a ‘freezing order’ if appropriate. There are set conditions which statethat:

4(2) The first condition is that the Treasury reasonably believes that:

(a) action to the detriment of the United Kingdom’s economy (or part of it) has beenor is likely to be taken by a person or persons, or

(b) action constituting a threat to the life of property or one or more nationals of theUnited Kingdom has been or is likely to be taken by a person or persons.

and

4(3) If one person is believed to have taken or be likely to take action the second conditionis that the person is:

(a) the government of a country or territory outside the United Kingdom,or(b) a resident of a country or territory outside the United Kingdom.

It is suggested that further advice should be sought from the NTFIU.


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APPENDIX 1ABBREVIATIONS ANDACRONYMS

ABBREVIATIONS AND ACRONYMS

ACPO . . . . . . Association of Chief Police OfficersAFI. . . . . . . . . Accredited Financial InvestigatorARA. . . . . . . . Assets Recovery AgencyATCSA. . . . . . Anti-Terrorism, Crime and Security Act 2001BCU . . . . . . . . Basic Command UnitCIB. . . . . . . . . Companies Investigation BranchCIFAS . . . . . . The UK’s fraud prevention serviceCJA . . . . . . . . Criminal Justice Act 1988CJPA . . . . . . . Criminal Justice and Police Act 2001CPIA . . . . . . . Criminal Procedure and Investigations Act 1996CPS . . . . . . . . Crown Prosecution ServiceDEFRA. . . . . . Department for Environment, Food and Rural AffairsDIS . . . . . . . . Department for Environment, Food and Rural Affairs Investigation ServiceDPA . . . . . . . . Data Protection Act 1998DTA . . . . . . . . Drug Trafficking Act 1994DTI . . . . . . . . Department of Trade and IndustryDWP . . . . . . . Department for Work and PensionsFI . . . . . . . . . . Financial InvestigatorFIB . . . . . . . . . Force Intelligence BureauFIU. . . . . . . . . Financial Investigation UnitFSA . . . . . . . . Financial Services AuthorityHMIC. . . . . . . Her Majesty’s Inspectorate of the ConstabularyHMRC . . . . . . Her Majesty’s Revenue and CustomsHRA. . . . . . . . Human Rights Act 1998INDIS. . . . . . . Immigration and Nationality Directorate Intelligence ServiceIPS . . . . . . . . . Identity and Passport ServiceISA . . . . . . . . Investment Savings AccountJARD . . . . . . . Joint Asset Recovery DatabaseLA . . . . . . . . . Local AuthorityLPP . . . . . . . . Legal Professional PrivilegeMDA . . . . . . . Misuse of Drugs Act 1971MLRO . . . . . . Money Laundering Reporting OfficerMOU . . . . . . . Memorandum of UnderstandingMTIC . . . . . . . Missing Trader Intra-Community (Fraud)

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NASS. . . . . . . National Asylum Support ServiceNCIS . . . . . . . National Criminal Intelligence ServiceNCPE . . . . . . . National Centre for Policing ExcellenceNIM . . . . . . . . National Intelligence ModelNTFIU . . . . . . National Terrorist Financial Investigation UnitOFT . . . . . . . . Office of Fair TradingPACE . . . . . . . Police and Criminal Evidence Act 1984PCC(S)A . . . . Powers of Criminal Courts (Sentencing) Act 2000 PII . . . . . . . . . Public Interest ImmunityPIP . . . . . . . . . Professionalising the Investigation ProcessesPNC . . . . . . . . Police National ComputerPOCA . . . . . . Proceeds of Crime Act 2002RART . . . . . . . Regional Asset Recovery TeamRCPO. . . . . . . Revenue and Customs Prosecutions OfficeRIPA . . . . . . . Regulation of Investigatory Powers Act 2000SAR . . . . . . . . Suspicious Activity ReportSFO . . . . . . . . Serious Fraud OfficeSIO . . . . . . . . Senior Investigating OfficerSLA . . . . . . . . Service Level Agreement SOCA . . . . . . Serious Organised Crime AgencySOCPA. . . . . . Serious Organised Crime and Police Act 2005TICs . . . . . . . . (Offences) Taken Into ConsiderationTSO . . . . . . . . Trading Standards Officer


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REFERENCES

Anon (2006) Shoppers prefer debit cards instead of cash. Guardian, 19 April.

Anon (2006) End of the High Life. Yorkshire Evening Post, 7 January.

Cabinet Office Performance and Innovation Unit (2000) Recovering the Proceeds of Crime.London: Cabinet Office.

Fenland Today (2006) Fenland Today [Internet]. Wisbech: Fenland Citizen. Available fromhttp://www.fenlandtoday.co.uk [Accessed 23 August 2006].

HMIC, HMCPSI and MCSI (n.d.) Payback Time – Joint Review of Asset Recovery Since theProceeds of Crime Act 2002 [Internet]. London: HMICA. Available fromhttp://www.hmica.gov.uk [Accessed 23 August 2006].

Home Office (2006) Proceeds of Crime Act 2002: Reduction of Cash Seizure Threshold to£1,000 [Internet]. Home Office Circular 16/2006. London: Home Office. Available fromhttp://www.knowledgenetwork.gov.uk/HO/circular.nsf [Accessed 24 August 2006].

Home Office (2003) Criminal Confiscation Orders, England and Wales: Parts 2, 9 and 11 of theProceeds of Crime Act 2002 [Internet]. Home Office Circular 24/2003. London: Home Office.Available from http://security.homeoffice.gov.uk/news-and-publications1/publication-search/214319/ [Accessed 23 August 2006].

Home Office, CPS, ACPO, HMCE, HM Prison Service, Court Service (2003) National BestPractice Guide for Confiscation Order Enforcement. London: Home Office.

Rees, E. and Fisher F. (2005) Blackstone’s Guide to the Proceeds of Crime Act 2002,(second edition). Oxford: Oxford University Press.

PICTURE CREDITSPicture credits are listed by page number. Every effort has been made to correctly identify thecopyright holder, but any omissions or corrections brought to our attention will be included infuture editions.

pp14 An effective deterrent, North-Eastern RART.

pp18 Does the lifestyle fit the suspect in the case?, SOCA.

pp34 Putting your mouth where your money is, London RART.

pp55 Money to burn?, Assets Recovery Agency.

APPENDIX 2REFERENCES

http://www.fenlandtoday.co.uk

http://www.hmica.gov.uk

http://www.knowledgenetwork.gov.uk/HO/circular.nsf

http://security.homeoffice.gov.uk/news-and-publications1/publication-search/214319/


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APPENDIX 3SAMPLE RECEIPTFOR SEIZED CASH

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x RECEIPT FOR SEIZED CASHCONSTABULARY

To:Name of Person found in possession of cash

Address:

If the cash described below is not yours, please pass this form to the person who owns it.

Description of cash seized:

Currency (eg, sterling, US dollars, Euros):

Estimated amount in sterling:

Form (eg, notes, coins, cheques, bearer bonds):

Seal No.

This cash was seized from (name)

At (place)

On (date) At (time)

Case reference numberThe cash may have to be forfeited under the Proceeds of Crime Act 2002. For seizures made inEngland, Wales or Northern Ireland, Police will apply to a magistrate within 48 hours from the time ofseizure for an order to detain the cash for up to 3 months.

You may attend the relevant hearings, and may wish to consult a solicitor for advice on your rights.At any time while the cash is detained, you may claim that it is not liable to detention or forfeiture.

Name of Police Officer:

Address:

Telephone Number:I confirm that I have been issued with a receipt for the cash described above

Signature: Date:

Name (please use block letters)


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APPENDIX 4Form A with Notes onCompletion(First/Further Applicationfor Continued Detention ofSeized Cash)


PROCEEDS OF CRIME ACT 2002 Form A

First/Further** Application for Continued Detention ofSeized Cash

Section 295(4) Proceeds of Crime Act 2002 MC (Detention andForfeiture of Cash) Rules 2002 rr 4(1), 5(1)

Should detaileach place cashis seized from,eg, whichseparate placewithin apremisessearched, suchas living room,bathroom,bedroom.

Time cash is firstseized in case. Ifcash seizedfrom more thanone place in asearch then thisis time of firstseizure, NOT thetime ofcompleting thewhole search.

Case Ref. No. Magistrates’ CourtContinued Detention. Court CodeApplication No.

Date:

Name of person from whom cash seized:

and last address:

Names and addresses of any other persons likely to be affected by an order for detention of

the cash (if known):

Amount seized (estimated):

Date of seizure: Time of seizure:

Place of seizure:

Date of latest order for continued detention of seized cash (if any):

Amount detained under latest order for continued detention (if any):

Amounts released since the latest order for continued detention (if any):

I,

Of Tel. No:(official address and position of applicant)

a Constable, apply for an order under section 295(2) of the Proceeds of Crime Act 2002authorising the continued detention of cash in the sum of and will state upon oath that oneof the two grounds below is satisfied:There are reasonable grounds for suspecting that the cash is either recoverable property oris intended by any person for use in unlawful conduct-(a) its continued detention is justified while its derivation is further investigated or

consideration is given to bringing (in the United Kingdom or elsewhere) proceedingsagainst any person for an offence with which the cash is connected, or

(b) proceedings against any person for an offence with which the cash is connected havebeen started and have not been concluded.

(State grounds)

Signed:……………………………………..

Form A should be completed andsigned by the officer who is actuallygoing to make the application atcourt. It is an application by aperson, rather than an organisation(such as the Police Service)

95NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006

Continuation Form A

To: The Justices’ Chief Executive

Magistrates’ Court

Notes to the Applicant

First Application – You must give a copy of this application and notification of the hearing of it to the person fromwhom the cash was seized.

Further Application – This application must wherever possible be submitted to the Justices’ Chief Executive atleast seven days before the expiry of the last period of detention that was ordered by the court. You must send acopy of this application to the person from whom the cash was seized and any other person specified in any ordermade under section 295(2) of the Proceeds of Crime Act 2002.

*In the case of a means of unattended dispatch such as a letter, parcel, container, the copy application and ifapplicable, notification of hearing should be given to the sender and intended recipient (if known).


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APPENDIX 5Blank Form A


PROCEEDS OF CRIME ACT 2002 Form A

First/Further** Application for Continued Detention ofSeized Cash

Section 295(4) Proceeds of Crime Act 2002 MC (Detention andForfeiture of Cash) Rules 2002 rr 4(1), 5(1)

Case Ref. No. Magistrates’ Court

Continued Detention. Court CodeApplication No.

Date:


and last address:

Names and addresses of any other persons likely to be affected by an order for detention ofthe cash (if known):



Place of seizure:



Amounts released since the latest order for continued detention (if any):

I,

of Tel. No:(official address and position of applicant)

a Constable, apply for an order under section 295(2) of the Proceeds of Crime Act 2002authorising the continued detention of cash in the sum of and will state upon oath that oneof the two grounds below is satisfied:There are reasonable grounds for suspecting that the cash is either recoverable property oris intended by any person for use in unlawful conduct-(a) its continued detention is justified while its derivation is further investigated or

consideration is given to bringing (in the United Kingdom or elsewhere) proceedingsagainst any person for an offence with which the cash is connected, or

(b) proceedings against any person for an offence with which the cash is connected havebeen started and have not been concluded.

(State grounds)

Signed:……………………………………..

99

Continuation Form A

To: The Justices’ Chief Executive

Magistrates’ Court

Notes to the Applicant

First Application – You must give a copy of this application and notification of the hearing of it to the person fromwhom the cash was seized.

Further Application – This application must wherever possible be submitted to the Justices’ Chief Executive atleast seven days before the expiry of the last period of detention that was ordered by the court. You must send acopy of this application to the person from whom the cash was seized and any other person specified in any ordermade under section 295(2) of the Proceeds of Crime Act 2002.

*In the case of a means of unattended dispatch such as a letter, parcel, container, the copy application and ifapplicable, notification of hearing should be given to the sender and intended recipient (if known).



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APPENDIX 6Form B(First/Further Order for ContinuedDetention of Seized Cash)


PROCEEDS OF CRIME ACT 2002 Form B

First/Further** Order for Continued Detention ofSeized Cash

Section 295 (2) of the Proceeds of Crime Act 2002; MC (Detention and Forfeiture of Cash) Rules 2002 rr 4(7), 5(4)



Date:


and last address:

Names and addresses of any other persons likely to be affected by an order for detention ofthe cash (if known):


Estimated amount to which reasonable grounds for suspicionapplies, (First application only) where it is not reasonablypracticable to detain only that part.

Amount to which reasonable grounds for suspicion applies.


Place of seizure:



Amount released since the latest order for continued detention (if any):

On the application of:

after hearing oral evidence from:

and representations from :

It is ordered that the sum of:

be further detained for a period of:

(State a period up to a maximum of three months from the date of this order and not beyond the end of a period oftwo years from the date of the first order, or until its release may be otherwise ordered, whichever is the earlier.)

Notice of this order shall be given without delay to the person from whom the cash was seized and to any otherperson affected by it. Such notice shall be in Form C and shall be accompanied by a copy of this order.

Time of signing:Justice of the Peace*In the case of a letter, parcel, container or other means of unattended dispatch, insert names and addresses, ifknown, of sender and intended recipient.

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APPENDIX 7Form C(Notice to Persons Affected by anOrder for Continued Detention ofSeized Cash)


PROCEEDS OF CRIME ACT 2002 Form C

Notice to Persons Affected by an Order for ContinuedDetention of Seized Cash

Section 295 (8) of the Proceeds of Crime Act 2002; MC(Detention and Forfeiture of Cash) Rules 2002 rr 4(8), 5(6)



Date:Name of person from whom cash seized:


Estimated amount to which reasonable grounds for suspicionapplies, (First application only), where it is not reasonablypracticable to detain only that part.

Amount to which reasonable grounds for suspicion applies.


Place of seizure:

On an order was made under Section 295 (2) of the Proceeds ofCrime Act 2002 authorising the continued detention of cash in the sum offor a period of:

A copy of the order accompanies this notice.

The person from whom the cash was seized may apply for the release of the detained cashor any part of it under Section 297 of that Act. If the cash was in a letter, parcel, container orother means of unattended dispatch, the sender or the intended recipient may make theapplication.

A person who claims that any detained cash or part thereof belongs to him, may applyrelease of the cash or part thereof under Section 301 of the Act.

An application under Section 297 or 301 of the Act, should be made in writing to theJustices' Chief Executive at the Magistrates' Court which made the order for continueddetention of seized cash. The application should state the grounds relied on and identify asclearly as possible the cash referred to.

At the end of the above mentioned period of detention an application may be made for thefurther detention of the cash. An application may also be made to forfeit the cash.

You will be notified if an application is made, or if any other person makes an application tothe court for the release of the detained cash.

If you intend to consult a solicitor about these proceedings you should do so at once andhand this notice and the copy of the order to him.

Signed:……………………………………..(Justices' Chief Executive)*In the case of a letter, parcel, container or other means of unattended dispatch, insert names and addresses, ifknown, of sender and intended recipient.

Documents

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