Proceeds of Crime Act 2002 (c. 29)

(The document as of February, 2008)

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(2) Any sums received by the Secretary of State in consequence of this Act are to be paid into the Consolidated Fund.

461 Extent

(1) Part 2 extends to England and Wales only.

(2) In Part 8, Chapter 2 extends to England and Wales and Northern Ireland only.

(3) These provisions extend to Scotland only--

(a) Part 3;

(b) in Part 8, Chapter 3.

(4) Part 4 extends to Northern Ireland only.

(5) The amendments in Schedule 11 have the same extent as the provisions amended.

(6) The repeals and revocations in Schedule 12 have the same extent as the provisions repealed or revoked.

462 Short title

This Act may be cited as the Proceeds of Crime Act 2002.

SCHEDULES

Section 1

SCHEDULE 1 Assets Recovery Agency

Director's terms of appointment

1 (1) The Director holds office for the period determined by the Secretary of State on his appointment (or re-appointment) to the office.

(2) But--

(a) the Director may at any time resign by giving notice to the Secretary of State;

(b) the Secretary of State may at any time remove the Director from office if satisfied that he is unable or unfit to exercise his functions.

2 Subject to that, the Director holds office on the terms determined by the Secretary of State with the approval of the Minister for the Civil Service.

Staff

3 (1) The members of staff of the Agency must include--

(a) a deputy to the Director who is to act as Director during any vacancy in that office or if the Director is absent, subject to suspension or unable to act, and

(b) an assistant to the Director with responsibilities in relation to the exercise of the Director's functions in Northern Ireland.

(2) But the Director must not appoint a person under sub-paragraph (1)(b) unless he first consults the Secretary of State.

4 The members of staff of the Agency hold office on the terms determined by the Director with the approval of the Minister for the Civil Service.

Finances

5 (1) These amounts are to be paid out of money provided by Parliament--

(a) the remuneration of the Director and the staff of the Agency;

(b) any expenses incurred by the Director or any of the staff in the exercise of his or their functions.

(2) Subject to anything in this Act any sums received by the Director are to be paid into the Consolidated Fund.

Annual plan

6 (1) The Director must, before the beginning of each financial year apart from the first, prepare a plan setting out how he intends to exercise his functions during the financial year (an annual plan).

(2) The annual plan must, in particular, set out how the Director intends to exercise his functions in Northern Ireland.

(3) The annual plan must also include a statement of--

(a) the Director's objectives for the financial year;

(b) any performance targets which he has for the financial year (whether or not relating to his objectives);

(d) the financial resources expected to be available to him for the financial year;

(e) his proposed allocation of those resources.

(4) Once the annual plan has been prepared the Director must send a copy to the Secretary of State for his approval.

(5) If the Secretary of State does not approve the annual plan--

(a) he must give the Director his reasons for not approving it, and

(b) he may require the Director to revise it in the manner specified by the Secretary of State.

(6) The Director must revise the annual plan, but if sub-paragraph (5)(b) applies he must do so in the manner specified by the Secretary of State.

(7) The Director must send a copy of the revised annual plan to the Secretary of State for his approval.

Annual report

7 (1) The Director must, as soon as possible after the end of each financial year, prepare a report on how he has exercised his functions during the financial year.

(2) The report for any financial year apart from the first must include--

(a) the Director's annual plan for the financial year, and

(b) an assessment of the extent to which it has been carried out.

(3) The Director must send a copy of each report to the Secretary of State who must--

(a) lay a copy of it before each House of Parliament, and

(b) arrange for it to be published.

Meaning of "financial year"

8 In this Schedule "financial year" means--

(a) the period beginning with the day on which section 1 comes into force and ending with the next 31 March (which is the first financial year), and

(b) each subsequent period of twelve months beginning with 1 April.

Section 75

SCHEDULE 2 Lifestyle offences: England and Wales

Drug trafficking

1 (1) An offence under any of the following provisions of the Misuse of Drugs Act 1971 (c. 38)--

(a) section 4(2) or (3) (unlawful production or supply of controlled drugs);

(b) section 5(3) (possession of controlled drug with intent to supply);

(d) section 20 (assisting in or inducing the commission outside the UK of an offence punishable under a corresponding law).

(2) An offence under any of the following provisions of the Customs and Excise Management Act 1979 (c. 2) if it is committed in connection with a prohibition or restriction on importation or exportation which has effect by virtue of section 3 of the Misuse of Drugs Act 1971--

(a) section 50(2) or (3) (improper importation of goods);

(b) section 68(2) (exploration of prohibited or restricted goods);

(3) An offence under either of the following provisions of the Criminal Justice (International Co-operation) Act 1990 (c. 5)--

(a) section 12 (manufacture or supply of a substance for the time being specified in Schedule 2 to that Act);

(b) section 19 (using a ship for illicit traffic in controlled drugs).

Money laundering

2 An offence under either of the following provisions of this Act--

(a) section 327 (concealing etc criminal property);

(b) section 328 (assisting another to retain criminal property).

Directing terrorism

3 An offence under section 56 of the Terrorism Act 2000 (c. 11) (directing the activities of a terrorist organisation).

People trafficking

4 An offence under section 25(1) of the Immigration Act 1971 (c. 77) (assisting illegal entry etc).

Arms trafficking

5 (1) An offence under either of the following provisions of the Customs and Excise Management Act 1979 if it is committed in connection with a firearm or ammunition--

(a) section 68(2) (exportation of prohibited goods);

(b) section 170 (fraudulent evasion).

(2) An offence under section 3(1) of the Firearms Act 1968 (c. 27) (dealing in firearms or ammunition by way of trade or business).

(3) In this paragraph "firearm" and "ammunition" have the same meanings as in section 57 of the Firearms Act 1968 (c. 27).

Counterfeiting

6 An offence under any of the following provisions of the Forgery and Counterfeiting Act 1981 (c. 45)--

(a) section 14 (making counterfeit notes or coins);

(b) section 15 (passing etc counterfeit notes or coins);

(d) section 17 (making or possessing materials or equipment for counterfeiting).

Intellectual property

7 (1) An offence under any of the following provisions of the Copyright, Designs and Patents Act 1988 (c. 48)--

(a) section 107(1) (making or dealing in an article which infringes copyright);

(b) section 107(2) (making or possessing an article designed or adapted for making a copy of a copyright work);

(d) section 297A (making or dealing in unauthorised decoders).

(2) An offence under section 92(1), (2) or (3) of the Trade Marks Act 1994 (c. 26) (unauthorised use etc of trade mark).

Pimps and brothels

8 (1) An offence under any of the following provisions of the Sexual Offences Act 1956 (c. 69)--

(a) section 2 (procuring a woman by threats);

(b) section 3 (procuring a woman by false pretences);

(d) section 22 (procuring a woman for prostitution);

(e) section 24 (detaining a woman in a brothel);

(f) section 28 (causing or encouraging prostitution etc of girl under 16);

(g) section 29 (causing or encouraging prostitution of defective woman);

(h) section 30 (man living on earnings of prostitution);

(i) section 31 (woman exercising control over prostitute);

(j) section 33 (keeping a brothel);

(k) section 34 (letting premises for use as brothel).

(2) An offence under section 5 of the Sexual Offences Act 1967 (c. 60) (living on the earnings of male prostitute).

Blackmail

9 An offence under section 21 of the Theft Act 1968 (c. 60) (blackmail).

Inchoate offences

10 (1) An offence of attempting, conspiring or inciting the commission of an offence specified in this Schedule.

(2) An offence of aiding, abetting, counselling or procuring the commission of such an offence.

Section 137

SCHEDULE 3 Administrators: further provision

General

1 In this Schedule, unless otherwise expressly provided--

(a) references to an administrator are to an administrator appointed under section 125 or 128(3);

(b) references to realisable property are to the realisable property in respect of which the administrator is appointed.

Appointment etc

2 (1) If the office of administrator is vacant, for whatever reason, the court must appoint a new administrator.

(2) Any property vested in the previous administrator by virtue of paragraph 5(4) vests in the new administrator.

(3) Any order under section 125 or 128(7) in relation to the previous administrator applies in relation to the new administrator when he gives written notice of his appointment to the person subject to the order.

(4) The administration of property by an administrator must be treated as continuous despite any temporary vacancy in that office.

(5) The appointment of an administrator is subject to such conditions as to caution as the accountant of court may impose.

(6) The premium of any bond of caution or other security required by such conditions must be treated as part of the administrator's expenses in the exercise of his functions.

Functions

3 (1) An administrator--

(a) may, if appointed under section 125, and

(b) must, if appointed under section 128(3),

as soon as practicable take possession of the realisable property and of the documents mentioned in sub-paragraph (2).

(2) Those documents are any document which--

(a) is in the possession or control of the person ("A") in whom the property is vested (or would be vested but for an order made under paragraph 5(4)), and

(b) relates to the property or to A's assets, business or financial affairs.

(3) An administrator is entitled to have access to, and to copy, any document relating to the property or to A's assets, business or financial affairs and not falling within sub-paragraph (2)(a).

(4) An administrator may bring, defend or continue any legal proceedings relating to the property.

(5) An administrator may borrow money so far as it is necessary to do so to safeguard the property and may for the purposes of such borrowing create a security over any part of the property.

(6) An administrator may, if he considers that it would be beneficial for the management or realisation of the property--

(a) carry on any business of A;

(b) exercise any right of A as holder of securities in a company;

(d) enter into any contract, or execute any deed, as regards the property or as regards A's business.

(7) An administrator may, where any right, option or other power forms part of A's estate, make payments or incur liabilities with a view to--

(a) obtaining property which is the subject of, or

(b) maintaining,

the right, option or power.

(8) An administrator may effect or maintain insurance policies as regards the property on A's business.

(9) An administrator may, if appointed under section 128(3), complete any uncompleted title which A has to any heritable estate; but completion of title in A's name does not validate by accretion any unperfected right in favour of any person other than the administrator.

(10) An administrator may sell, purchase or exchange property or discharge any security for an obligation due to A; but it is incompetent for the administrator or an associate of his (within the meaning of section 74 of the Bankruptcy (Scotland) Act 1985 (c. 66)) to purchase any of A's property in pursuance of this sub-paragraph.

(11) An administrator may claim, vote and draw dividends in the sequestration of the estate (or bankruptcy or liquidation) of a debtor of A and may accede to a voluntary trust deed for creditors of such a debtor.

(12) An administrator may discharge any of his functions through agents or employees, but is personally liable to meet the fees and expenses of any such agent or employee out of such remuneration as is payable to the administrator on a determination by the accountant of court.

(13) An administrator may take such professional advice as he considers necessary in connection with the exercise of his functions.

(14) An administrator may at any time apply to the court for directions as regards the exercise of his functions.

(15) An administrator may exercise any power specifically conferred on him by the court, whether conferred on his appointment or subsequently.

(16) An administrator may--

(a) enter any premises;

(b) search for or inspect anything authorised by the court;

(d) remove anything which the administrator is required or authorised to take possession of in pursuance of an order of the court.

(17) An administrator may do anything incidental to the powers and duties listed in the previous provisions of this paragraph.

Consent of accountant of court

4 An administrator proposing to exercise any power conferred by paragraph 3(4) to (17) must first obtain the consent of the accountant of court.

Dealings in good faith with administrator

5 (1) A person dealing with an administrator in good faith and for value is not concerned to enquire whether the administrator is acting within the powers mentioned in paragraph 3.

(2) Sub-paragraph (1) does not apply where the administrator or an associate purchases property in contravention of paragraph 3(10).

(3) The validity of any title is not challengeable by reason only of the administrator having acted outwith the powers mentioned in paragraph 3.

(4) The exercise of a power mentioned in paragraph 3(4) to (11) must be in A's name except where and in so far as an order made by the court under this sub-paragraph vests the property in the administrator (or in a previous administrator).

(5) The court may make an order under sub-paragraph (4) on the application of the administrator or on its own motion.

Money received by administrator

6 (1) All money received by an administrator in the exercise of his functions must be deposited by him, in the name (unless vested in the administrator by virtue of paragraph 5(4)) of the holder of the property realised, in an appropriate bank or institution.

(2) But the administrator may at any time retain in his hands a sum not exceeding £200 or such other sum as may be prescribed by the Scottish Ministers by regulations.

(3) In sub-paragraph (1), "appropriate bank or institution" means a bank or institution mentioned in section 3(1) of the Banking Act 1987 (c. 22) or for the time being specified in Schedule 2 to that Act.

Effect of appointment of administrator on diligence

7 (1) An arrestment or poinding of realisable property executed on or after the appointment of an administrator does not create a preference for the arrester or poinder.

(2) Any realisable property so arrested or poinded, or (if the property has been sold) the proceeds of sale, must be handed over to the administrator.

(3) A poinding of the ground in respect of realisable property on or after such appointment is ineffectual in a question with the administrator except for the interest mentioned in sub-paragraph (4).

(4) That interest is--

(a) interest on the debt of a secured creditor for the current half-yearly term, and

(b) arrears of interest on that debt for one year immediately before the commencement of that term.

(5) On and after such appointment no other person may raise or insist in an adjudication against realisable property or be confirmed as executor-creditor on that property.

(6) An inhibition on realisable property which takes effect on or after such appointment does not create a preference for the inhibitor in a question with the administrator.

(7) This paragraph is without prejudice to sections 123 and 124.

(8) In this paragraph, the reference to an administrator is to an administrator appointed under section 128(3).

Supervision

8 (1) If the accountant of court reports to the court that an administrator has failed to perform any duty imposed on him, the court may, after giving the administrator an opportunity to be heard as regards the matter--

(a) remove him from office,

(b) censure him, or

(2) Section 6 of the Judicial Factors (Scotland) Act 1889 (c. 39) (supervision of judicial factors) does not apply in relation to an administrator.

Accounts and remuneration

9 (1) Not later than two weeks after the issuing of any determination by the accountant of court as to the remuneration and expenses payable to the administrator, the administrator or the Lord Advocate may appeal against it to the court.

(2) The amount of remuneration payable to the administrator must be determined on the basis of the value of the work reasonably undertaken by him, regard being had to the extent of the responsibilities involved.

(3) The accountant of court may authorise the administrator to pay without taxation an account in respect of legal services incurred by the administrator.

Discharge of administrator

10 (1) After an administrator has lodged his final accounts under paragraph 9(1), he may apply to the accountant of court to be discharged from office.

(2) A discharge, if granted, frees the administrator from all liability (other than liability arising from fraud) in respect of any act or omission of his in exercising his functions as administrator.

Section 142

SCHEDULE 4 Lifestyle offences: Scotland

Money laundering

1 An offence under either of the following provisions of this Act--

(a) section 327 (concealing etc. criminal property);

(b) section 328 (assisting another person to retain criminal property).

Drug trafficking

2 (1) An offence under any of the following provisions of the Misuse of Drugs Act 1971 (c. 38)--

(a) section 4(2) or (3) (unlawful production or supply of controlled drugs);

(b) section 5(3) (possession of controlled drug with intent to supply);

(d) section 20 (assisting in or inducing the commission outside the UK of an offence punishable under a corresponding law).

(a) section 50(2) or (3) (improper importation of goods);

(b) section 68(2) (exploration of prohibited or restricted goods);

(3) An offence under either of the following provisions of the Criminal Justice (International Co-operation) Act 1990 (c. 5)--

(a) section 12 (manufacture or supply of a substance for the time being specified in Schedule 2 to that Act);

(b) section 19 (using a ship for illicit traffic in controlled drugs).

Directing terrorism

3 An offence under section 56 of the Terrorism Act 2000 (c. 11) (directing the activities of a terrorist organisation).

People trafficking

4 An offence under section 25(1) of the Immigration Act 1971 (c. 77) (assisting illegal entry etc).

Arms trafficking

5 (1) An offence under either of the following provisions of the Customs and Excise Management Act 1979 if it is committed in connection with a firearm or ammunition--

(a) section 68(2) (exportation of prohibited goods);

(b) section 170 (fraudulent evasion).

(2) An offence under section 3(1) of the Firearms Act 1968 (c. 27)(dealing in firearms or ammunition by way of trade or business).

(3) In this paragraph "firearm" and "ammunition" have the same meanings as in section 57 of the Firearms Act 1968 (c. 27).

Counterfeiting

6 An offence under any of the following provisions of the Forgery and Counterfeiting Act 1981 (c. 45)--

(a) section 14 (making counterfeit notes or coins);

(b) section 15 (passing etc counterfeit notes or coins);

(d) section 17 (making or possessing materials or equipment for counterfeiting).

Intellectual property

7 (1) An offence under any of the following provisions of the Copyright, Designs and Patents Act 1988 (c. 48)--

(a) section 107(1) (making or dealing in an article which infringes copyright);

(b) section 107(2) (making or possessing an article designed or adapted for making a copy of a copyright work);

(d) section 297A (making or dealing in unauthorised decoders).

(2) An offence under section 92(1), (2), or (3) of the Trade Marks Act 1994 (c. 26)(unauthorised use etc of trade mark).

Pimps and brothels

8 An offence under either of the following provisions of the Criminal Law (Consolidation) (Scotland) Act 1995 (c. 39)--

(a) section 11(1) (living on earnings of prostitution or soliciting for immoral purposes);

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