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PRACTICE ADVICE ON
FINANCIAL
INVESTIGATION2006Produced on behalf of the
Association of Chief Police Officers
by the National Centre for Policing Excellence
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All enquiries about this practice advice should be addressed to:
Opsline
National Centre for Policing Excellence
Wyboston Lakes
Great North Road
Wyboston
Bedfordshire MK44 3BY
Tel: 0870 241 5641
Email: [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 this
document and to members of the ACPO Steering Group and the ACPO Guidance Working Group
who gave their advice. All of the responses during the consultation phase of this project were
appreciated 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 in
any retrieval system or transmitted, in any form or by any means, without the prior written
permission 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) on
behalf of the Association of Chief Police Officers (ACPO). It will be updated according to
legislative 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 is
required to develop policing doctrine, including practice advice, in consultation with ACPO, the
Home Office and the Police Service. Practice advice produced by the NCPE should be used by
chief officers to shape police responses to ensure that the general public experience consistent
levels of service. The implementation of all practice advice will require operational choices to be
made at local level in order to achieve the appropriate police response.
Centrex is committed to providing quality products and services which comply with the
Centrex 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 and
partner 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 should
be sent to the Centrex Security and Business Continuity Unit at
<SecurityBusinessContinuity@ centrex.pnn.police.uk>. The Security and Business
Continuity Unit will be responsible for notifying ACPO and the Police Central
Referral Unit.
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Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Section 1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.1.1 Who Is this Advice Intended For? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.1.2 Why Is this Advice Needed? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.2 Introduction to Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.2.1 The Benefits of Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.3 Police Roles that Use Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151.3.1 Specialist Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.3.2 The Non-Specialist Investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4 The Role of the Crown Prosecution Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.5 Other Enforcement Agencies With Investigative Powers . . . . . . . . . . . . . . . . . . . 16
1.6 The Use of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.6.1 Financial Information Found During Routine Policing Duties . . . . . . . . . . . 17
1.6.1.1 Financial Information Found During Stops and Searches . . . . . . 17
1.6.1.2 Financial Information Found During Searches of Premises . . . . . 18
1.6.2 Situations Where Financial Information May Be Used . . . . . . . . . . . . . . . . . 19
1.6.3 Using Financial Information as Part of the Investigative Strategy . . . . . . . . 19
1.7 Human Rights Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.7.1 Special Investigative Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201.8 Gathering Financial Information (Types of Financial Information and
How They Can Be Accessed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.8.1 Information Held by Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.8.2 Tasking Financial Investigators to Make Initial Enquiries of the
Regulated Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.8.3 Requesting Information from Financial Institutions, Commercial Service
Providers, Government Departments and Other Agencies . . . . . . . . . . . . . 21
1.8.3.1 Production Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.8.3.2 Account Monitoring Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.8.3.3 Customer Information Orders . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.8.3.4 Disclosures of Personal Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1.8.4 Information Held by Merchant Service Providers . . . . . . . . . . . . . . . . . . . . 24
1.8.5 Information Held by Government Departments and Other Agencies . . . . . 25
1.8.6 Information Held by Credit Reference Databases . . . . . . . . . . . . . . . . . . . 26
1.8.7 Accessing Credit Reference Agency Information . . . . . . . . . . . . . . . . . . . . 27
1.8.8 The Elmer Database (Suspicious Activity Reports) . . . . . . . . . . . . . . . . . . . . 27
1.8.8.1 Access to Suspicious Activity Reports . . . . . . . . . . . . . . . . . . . . 27
1.8.9 Information Contained in Local Force Intelligence Systems . . . . . . . . . . . . . 28
1.9 Developing a Financial Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1.10 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1.11 The Use of Financial Information in Intelligence Products . . . . . . . . . . . . . . . . . . 29
1.12 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.12.1 Evidential Link to a Suspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.12.2 Targeting a Prolific Offender and Tracing Assets . . . . . . . . . . . . . . . . . . . . . 30
1.12.3 Locating a Suspect in an Investigation into an Armed Robbery . . . . . . . . . 30
NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006
CONTENTS
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Section 2 CASH SEIZURE, DETENTION AND FORFEITURE . . . . . . . . . . . . . . . . . 31
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.2 The Process of Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.3 Step-by-Step Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1 Conditions for Seizing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1.1 Notes on Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1.2 The Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.3.1.3 Reasonable Grounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.3.1.4 The Definition of Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.2 Initial Enquiries and Financial Interviewing . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.3.2.1 Where Cash Is Found Independently of a Person . . . . . . . . . . . 37
2.3.3 Bagging and Sealing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3.4 Service of Receipt to Persons Found in Possession of Cash . . . . . . . . . . . . . 38
2.3.5 Arranging the Cash Detention Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3.6 Service of Form A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.3.6.1 The Right to Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.3.7 Information in Support of Application for Further Detention . . . . . . . . . . . 39
2.3.8 Application at the Magistrates’ court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.3.9 Order Granted – Court Forms and Responsibilities . . . . . . . . . . . . . . . . . . . 40
2.3.10 Procedure for the Cash After an Order of Continued Detention Has
Been Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402.3.11 Further Detention Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.3.12 Where Enquiries Reveal the Cash is Lawful or Below the
Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.3.13 Where Other Persons Apply for the Release of the Cash . . . . . . . . . . . . . . 41
2.3.14 Application for the Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.3.15 Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.4 Cash Forfeiture and a Criminal Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.5 Consideration of Money Laundering Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.6.1 Where a House Search Results in an Unexpected Cash Seizure . . . . . . . . . 42
2.6.2 When the Criminal Prosecution Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.6.3 Where an Investigation into Money Laundering and Deception Offences
Unearths a Sizeable Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.6.4 A Missed Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006
CONTENTS
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Section 3 MONEY LAUNDERING INVESTIGATION . . . . . . . . . . . . . . . . . . . . . . . 45
3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.1.1 What is Money Laundering? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.2 Money Laundering Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.2.1 Section 327 Concealing, Disguising, Converting or Transferring . . . . . . . . . 47
3.2.2 Section 328 Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.2.3 Section 329 Acquisition, Use, Possession . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.2.4 Defences to Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.3 When is a Money Laundering Investigation Appropriate? . . . . . . . . . . . . . . . . . 483.4 Who Can Undertake a Money Laundering Investigation? . . . . . . . . . . . . . . . . . . 48
3.5 Process Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
3.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.6.1 A Money Laundering Investigation Disrupts Semi-Organised Criminality . . 50
3.6.2 Existence of Cash as Evidence of Money Laundering . . . . . . . . . . . . . . . . . 50
3.6.3 When Witness Evidence of an Offence is Difficult to Obtain . . . . . . . . . . . 50
3.6.4 A POCA Section 327 Offence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Section 4 CONFISCATION INVESTIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.1.1 What Is Confiscation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.1.2 Who Can Conduct a Confiscation Investigation? . . . . . . . . . . . . . . . . . . . . 524.2 The Process of Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.2.1 Instigating a Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
4.2.1.1 When Is a Confiscation Investigation Appropriate? . . . . . . . . . . 54
4.2.2 Planning the Confiscation Investigation: Developing an
Investigative Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.2.3 Restraining Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4.2.4 Role of the Financial Investigation Unit in Confiscation Proceedings . . . . . . 57
4.2.4.1 Referral of Confiscation Cases to the Financial
Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.2.5 Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.2.5.1 The Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.2.6 The Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2.6.1 Confiscation in Cases Where No Assets Are Thought
to Be Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.7 Enforcement of the Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.7.1 Non-Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.8 Revisiting a Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.1 Case Revisited for Outstanding Payment of Confiscation Order . . . . . . . . . 65
4.3.2 A Student Found in Possession of Five Wraps of Cannabis
Given Confiscation Order of £13,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.3 A Person Pleads Guilty to Conspiracy to Defraud His Employer
of £280,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.4 A Petty Theft Leads to Major Confiscation . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.5 Conduct Forming Part of a Course of Criminal Activity . . . . . . . . . . . . . . . 664.3.6 An Example of Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . 66
4.3.7 Default Sentence for Non-Payment of Confiscation Order . . . . . . . . . . . . . 66
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Section 5 OTHER AGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
5.1 Other Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.1.1 Regional Asset Recovery Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.1.2 Assets Recovery Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.1.3 Department for Environment, Food and Rural Affairs’ Investigation Service . . 70
5.1.4 Department of Trade and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.1.4.1 Companies Investigation Branch . . . . . . . . . . . . . . . . . . . . . . . . 71
5.1.5 Department for Work and Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.1.5.1 Fraud Investigation Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 735.1.6 Financial Crime Information Network (FIN-NET) . . . . . . . . . . . . . . . . . . . . . 73
5.1.7 Financial Services Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
5.1.8 Her Majesty’s Revenue and Customs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.1.9 Home Office Immigration and Nationality Directorate . . . . . . . . . . . . . . . . 76
5.1.9.1 Immigration and Nationality Directorate Intelligence Service . . . 77
5.1.10 Identity and Passport Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
5.1.11 National Terrorist Financial Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . 79
5.1.12 Office of Fair Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
5.1.13 Serious Fraud Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.1.14 Serious Organised Crime Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.1.15 Trading Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
5.2 Other Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835.2.1 Forfeiture Under the Misuse of Drugs Act 1971 . . . . . . . . . . . . . . . . . . . . . 83
5.2.2 Powers of Criminal Courts (Sentencing) Act 2000 . . . . . . . . . . . . . . . . . . . 83
5.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and
Police Act 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
5.2.4 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/FURTHER
APPLICATION FOR CONTINUED DETENTION OF SEIZED CASH) . . 93
APPENDIX 5 BLANK FORM A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
APPENDIX 6 FORM B (FIRST/FURTHER ORDER FOR CONTINUED DETENTION
OF SEIZED CASH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101
APPENDIX 7 FORM C (NOTICE TO PERSONS AFFECTED BY AN ORDER FOR
CONTINUED DETENTION OF SEIZED CASH) . . . . . . . . . . . . . . . . .103
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Summary of FiguresFigure 1 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 2 Cash Seizure Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Figure 3 Confiscation Investigation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Figure 4 Excerpt from MG17 Confiscation Review Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Figure 5 Criminal Conduct Flowchart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Figure 6 Using the Assumptions to Calculate the Benefit From Criminal Conduct . . . . . . . . 61
Figure 7 Decision-Making Processes of Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . 62
Summary of TablesTable 1 Home Office Summary Table of Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 2 Default Sentences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Summary of Text BoxesText Box 1 Seizing Cash as Evidence Under PACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Text Box 2 Criminal Lifestyle Offences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Text Box 3 Particular Criminal Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
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Financial investigation can be useful in all types of investigations. A wide range of options are
available to investigators through powerful legislation that targets the proceeds of crime. This
practice advice focuses on the knowledge and awareness required for the non-specialist
investigator to make use of financial investigative tools. It has been developed in consultation
with policy makers and practitioners specialising in this field and represents their views on what
constitutes good practice. It is to be trialled in a number of Basic Command Units with a view
with producing management guidance on financial investigation.
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PREFACE
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S E C T I ON1
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Section 1INTRODUCTION
This section contains the objectives and structure of the practiceadvice. This includes the legal, historical and policy background tofinancial 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.2.1 The Benefits of Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.3 Police Roles that Use Financial Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.3.1 Specialist Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.3.2 The Non-Specialist Investigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.4 The Role of the Crown Prosecution Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.5 Other Enforcement Agencies With Investigative Powers . . . . . . . . . . . . . . . . . . . 16
1.6 The Use of Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.6.1 Financial Information Found During Routine Policing Duties . . . . . . . . . . . 17
1.6.1.1 Financial Information Found During Stops and Searches . . . . . . 17
1.6.1.2 Financial Information Found During Searches of Premises . . . . . 18
1.6.2 Situations Where Financial Information May Be Used . . . . . . . . . . . . . . . . . 19
1.6.3 Using Financial Information as Part of the Investigative Strategy . . . . . . . . 19
1.7 Human Rights Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.7.1 Special Investigative Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.8 Gathering Financial Information (Types of Financial Information and
How They Can Be Accessed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.8.1 Information Held by Financial Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . 20
1.8.2 Tasking Financial Investigators to Make Initial Enquiries of the
Regulated Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.8.3 Requesting Information from Financial Institutions, Commercial Service
Providers, Government Departments and Other Agencies . . . . . . . . . . . . . 21
1.8.3.1 Production Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.8.3.2 Account Monitoring Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . 221.8.3.3 Customer Information Orders . . . . . . . . . . . . . . . . . . . . . . . . . . 22
1.8.3.4 Disclosures of Personal Data . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
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1.8.4 Information Held by Merchant Service Providers . . . . . . . . . . . . . . . . . . . . 24
1.8.5 Information Held by Government Departments and Other Agencies . . . . . 25
1.8.6 Information Held by Credit Reference Databases . . . . . . . . . . . . . . . . . . . 26
1.8.7 Accessing Credit Reference Agency Information . . . . . . . . . . . . . . . . . . . . 27
1.8.8 The Elmer Database (Suspicious Activity Reports) . . . . . . . . . . . . . . . . . . . . 271.8.8.1 Access to Suspicious Activity Reports . . . . . . . . . . . . . . . . . . . . 27
1.8.9 Information Contained in Local Force Intelligence Systems . . . . . . . . . . . . . 28
1.9 Developing a Financial Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1.10 Investigative and Evidential Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
1.11 The Use of Financial Information in Intelligence Products . . . . . . . . . . . . . . . . . . 29
1.12 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.12.1 Evidential Link to a Suspect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.12.2 Targeting a Prolific Offender and Tracing Assets . . . . . . . . . . . . . . . . . . . . . 30
1.12.3 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 techniques
and the legislation contained in the Proceeds of Crime Act 2002 (POCA), thereby maximising
opportunities to seize criminal assets, reduce crime and fear of crime.
The financial investigation tools that POCA provides are explained in this practice advice in
four sections:
• Introduction to the legal, political and enforcement context, and use of financial
information;
• Cash seizure, detention and forfeiture;
• Money laundering investigation;
• Confiscation investigation.
The roles and responsibilities of other agencies working with financial investigation are also
detailed, as background information for the reader. Potentially useful information such as police
powers 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-specialist
police investigators at levels 1 and 2 of the Professionalising the Investigation Process (PIP). It
may 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 coordinated
strategic approach to criminal asset recovery. It brought together a range of financial
investigation tools under one umbrella. In addition, its implementation measures sought to
change the traditional approach to financial investigation.
Despite this new legislation and associated roll-out activities, there is a view by policy makers
and 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 stated
that ‘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 inspection
framework, forces’ performance is measured by indicators such as their number of confiscation
orders 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 the
Criminal Justice Act 1988 (CJA).
Other asset recovery tools are provided by:
• Misuse of Drugs Act 1971 (MDA) (forfeiture of property used to commit crime, see
5.2.1 Forfeiture Under the Misuse of Drugs Act 1971);
• Powers of Criminal Courts (Sentencing) Act 2000 (PCC(S)A) (forfeiture, see 5.2.2 Powers of
Criminal Courts (Sentencing) Act 2000);
• The Criminal Justice and Police Act 2001 (CJPA) (seizure as evidence through powers of
search and sift, see 5.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and Police
Act 2001);
• The Terrorism Act 2000 (restraint, seizure, forfeiture, money laundering, see 5.2.4 Terrorism
Legislation);• 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 those
with no obvious link to money or assets. This is possible because most people have some kind
of property, money or assets, and use service providers. Many also use electronic means of
payment and banking instead of cash. This development has created sources of information
that can reveal details about a person’s life, activities, interests, associates, plans and desires, all
of which can be used to detect and combat crime.
‘Through the Proceeds of Crime Act there are greater powers to seize the goods and assets
of 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 but
only 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 effective
means to reduce acquisitive crime, (which accounts for over seventy per cent of all crime). By
recovering the proceeds of crime, investigators disrupt a criminal’s ability to fund further crime
and remove their incentive by creating a continued deterrent. Additionally, it is possible for the
proceeds 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, the
removal of all their criminally earned assets can have a far deeper impact. Put simply, the strong
confiscation regime contained in POCA makes sure that ‘crime does not pay’.
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Shoppers prefer debitcards instead of cashDEBIT CARD spending in shops and
on the web outstripped the use of cash
for the first time during 2005, figures
showed yesterday. People spent £89bn
on debit cards, 9% more than in 2004,
while the use of cash fell 4% to £81bn,
according to the payment industry body
Apacs. Debit cards accounted for 37%of all retail spending this year, while
cash accounted for 34%. Spending on
credit cards remained unchanged during
the year at £61bn, while the use of
cheques fell 14% to £9bn. Credit and
debit cards combined accounted for
nearly two-thirds of retail spending in
2005, up from 60% last year.
Guardian, Wednesday 19 April 2006
Convicted murderer Kenneth Noye, for example, was identified through the use of financial
information during the investigation of the M25 murder (see 1.12.1 Evidential Link to a Suspect).
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An effective deterrent. Getting charged hurts, but losing the Bentley really hurts.
Reassuring thecommunitythat crimedoes not pay.This positive
news 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. Officers
should be aware of these roles and their responsibilities as specialist and non-specialist functions
will 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 and
accredited by the Assets Recovery Agency (ARA). As an AFI is not a police or customs officer
there are a few restrictions on them, for example, at present they are not allowed to apply to
court 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 of
this practice advice, FI will be used unless an AFI is specifically required. FIs can be placed at all
levels, for example, some forces now deploy teams of officers trained as financial investigators
or financial intelligence officers at Basic Command Unit (BCU) level in order to mainstream the
use of POCA.
Analysts with Financial Investigation Training
An analyst with financial investigation training can assist investigations. In some forces analysts
working in Force Intelligence Bureaux (FIBs) are trained in the use of financial investigation
techniques.
1.3.2 THE NON-SPECIALIST INVESTIGATOR
The non-specialist investigator requires, as a minimum, a basic level of awareness of financial
investigation legislation and techniques. This practice advice gives non-specialists the
information 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 theseized 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) with
ACPO. It is intended to serve as a general guide to cooperation between the parties on issues
arising from POCA. This agreement forms the basis for local protocols between crown prosecutors
and chief constables. Officers should refer to the SLA and local protocol for specific details. Crown
Prosecution Service (CPS) areas are, however, expected to provide early advice to the police
concerning the investigation, preservation of assets, obtaining and enforcement of confiscation
orders and confiscation matters generally. They will make restraint and confiscation applications to
the 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 completed
the confiscation training course. ARA recommends that confiscation is only conducted by FIs
that 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 these
are 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 officers
pooled from forces, there are other law enforcement agencies that conduct financial
investigations. 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 of
the roles and responsibilities of RARTs and the main agencies that the police work with on a
regular 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 a
person’s life (their home, work and plans, both present and future). Non-cash based methods of
dealing with money and assets such as credit and store loyalty cards generate financialinformation. Investigators can analyse this information to obtain material to assist the
investigation. It can help establish a person’s whereabouts, their possible intentions, evidence of
a crime, motive and whether they are living beyond their means.
A substantial amount of financial information is available to all police officers, although there
are restrictions. FIs are able to access that information more easily because of their training and
accreditation, 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 for
collecting financial information will vary from force to force. The advice given in this document
explains the widest powers that are available to non-specialist investigators, however, they
should 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 that
could be of relevance to a criminal investigation or a confiscation investigation. All police officers
come 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 money
laundering where there are reasonable grounds to believe that financial information will
lead to evidence to benefit that investigation;
• Conducting a legal search into an offence where the situation evolves so that the officer
becomes aware of reasonable grounds to suspect that another offence has been
committed – and the financial information is evidence of that offence;
• Conducting a legal search into an offence and the officer makes notes of financial
information for intelligence purposes (without specifically searching for it).
Investigators should note that the grounds for the search must be justified, regardless of the
financial information requirement.
Investigative powers provided by POCA (production orders and search warrants) can only be
used while conducting a money laundering or confiscation investigation (see 1.8.3 Requesting
Information from Financial Institutions, Commercial Service Providers, Government Departments
and Other Agencies). If, however, these powers identify evidence of other offences, the material
obtained may be used within that further criminal investigation.
If other investigation powers are being used and evidence such as financial information
becomes available that also assists a confiscation matter as an incidental by-product of the
original 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 stop
and 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 which
are 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 the
local 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 in
a stop and search. Officers should refer to their force policy on case referral. For
further information on stop and search procedures see ACPO (2006) Practice Advice on Stop
and 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 information
of relevance to the investigation may be found. In drugs cases, officers will be looking for
controlled 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, financial
information 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 lifestyle
and motives. During a house search officers may note, for example, if the resident is obviously
living beyond their means and/or the house has apparent and excessive signs of unexplained
wealth. The officer should make a note of information in the search log and prepare an
intelligence report, ensuring that the information is passed to the officer in the case and the
local 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 the
evidence gathering potential of the operation and make sure that wider intelligence
opportunities are not missed. All officers, however, should be aware of the evidential use and
intelligence potential of financial information routinely found in premises such as:
• Information from bank and building society books and account statements (both the
suspect’s and their family’s, noting that credit reference checks may not reveal recently
opened or long-standing bank accounts, or accounts owned by the suspect in other
names);
• 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;
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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 Management
and 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 which
investigative 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 the
investigation, 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 (for
the confiscation of assets) or is it an intelligence and evidence gathering exercise (tracing a
person or tracking their movements in a criminal investigation)? If in doubt, investigators should
seek advice from their FIU.
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For further information on investigative strategies see ACPO (2005) Practice Advice on Core
Investigative 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 of
proof apply to most issues; assumptions and reverse burdens of proof punctuate the various
stages; hardship is never a consideration.
Police officers involved in financial investigation must be aware of the human rights legislation
that protects the right to privacy, and the associated considerations. They must be able to justify
such enquiries as proportionate, non-discriminatory, legitimate, accountable and necessary to
the 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 Core
Investigative Doctrine, Section 2.2 The Legal Framework. See also ACPO (2006) Guidance on the
Management 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 can
be obtained. The enquiries made to obtain this information can, however, leave their own
footprints. If an FI makes an enquiry with a Money Laundering Reporting Officer (MLRO) at a
financial institution (see 1.8.2. Tasking Financial Investigators to Make Initial Enquiries of the
Regulated Sector), the institution will make a note of the enquiry, including its purpose. The
investigation being conducted may involve the use of covert investigation techniques. As such,
financial enquiries could result in those investigations being compromised. Prior to making the
relevant financial enquiry, consideration must be given to the type of investigation being
undertaken. 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 one
aspect of a person’s life. The following subsections list the sources and types of financial
information, and how they can be accessed. Investigators should contact their FIU for
further 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 the
individual (their wealth, the turnover in their account), their spend patterns (for example, where
they 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 work
in the regulated sector, (see 1.8.8. The Elmer Database (Suspicious Activity Reports)). This
information is channelled through the Financial Intelligence Gateway. It is, however, only
intelligence and cannot be used in evidence. Any information gathered at this point would have
to be followed up with the relevant authority, such as a production order, to allow its use within
the 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 of
investigation, 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 bearing
on the type of order used.
1.8.3.1 Production Orders
Investigators can use production orders and search and seizure warrants to make material
available under:
• Section 345 and 352 POCA (applying to confiscation, money laundering and civil recovery
investigations 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 or
service providers. The process involves the appropriate officer (a constable, customs officer or an
accredited financial investigator) gathering information in support of an application for a
production order and making an application to court for a production order. It is good practice
to 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 account
monitoring 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 bank
account(s) for up to ninety days at any one time. These orders can require a financial institution
to submit reports as directed to the police on the suspect’s financial activities. Compliance is
labour 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 laundering
proceedings at whatever stage. The complex nature of this process and the risk of inappropriate
usage (with institutional as well as personal consequences) means that only FIs will apply for
account 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 are
time consuming for financial institutions to comply with and require the authorisation of a
superintendent or above. Application for these orders should be as a last resort and
proportionate to the matters under investigation. There must also be intelligence and a rational
reason leading to the belief that an unidentified account exists. The financial institution will
usually require as much detail as possible but at least the suspect’s name and postcode in order
to be able to supply the information.
Customer information in section 364 POCA is ‘information whether the person holds, or has
held, an account or accounts at the financial institution’. If an account is held, customer
information 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 complexities
of 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 a
confiscation, money laundering or civil recovery investigation.
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NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006
Table 1 Home Office Summary Table of Powers
Purpose of
power
Obtain material
already in existence
relating to a known
account in control
of a know person,
eg, bank statements
and correspondence
(1) Search premises
whereproduction order
not complied
with; or
(2) Search premises
where
production order
likely to be
ineffective and
seize material
Require any person
to produce
documents,provideinformation or
answer questions
relating to
investigation
Trawl financial
institutions for
accounts in the
name of a particular
person or
organisation
Monitor future
transactions
through a known
account for up to
90 days
Production
order
Search and
seizure warrant
Disclosure
order
Customer
information
order
Account
monitoring
order
Who can apply
for it –
confiscation
investigation?
(1) Director of the
Agency*
(2) Any constable
(3) Any customs
officer
(4) AFI with relevant
accreditation
(1) Director of the
Agency(2) Any constable
(3) Any customs
officer
(4) AFI with relevant
accreditation
Director of the
Agency
(1) Director of the
Agency
(2) Any constable
with
superintendent
authorisation
(3) Any customs
officer withofficer at Pay
Band 9
authorisation
(4) AFI with relevant
accreditation
and
authorisation
(1) Director of the
Agency
(2) Any constable
(3) Any customs
officer(4) AFI with relevant
accreditation
Who can apply
for it –
money laundering
investigation?
(1) Any constable
(2) Any customs
officer
(3) AFI with relevant
accreditation
(1) Any constable
(2) Any customsofficer
(3) AFI with relevant
accreditation
Not available in a
money laundering
investigation
(1) Any constable
with
superintendent
authorisation
(2) Any customs
officer with
officer at Pay
Band 9authorisation
(3) AFI with relevant
accreditation
and
authorisation
(1) Any constable
(2) Any customs
officer
(3) AFI with relevant
accreditation
Who can apply
for it –
civil recovery
investigation
Director of the
Agency
Director of the
Agency
Director of the
Agency
Director of the
Agency
Director of the
Agency
*‘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 a
request for disclosure of personal data under the DPA. The power to disclose information exists
where 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 requested
information 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 the
disclosure may be sought.
Any officer may make a request though it must be authorised by a senior officer of the rank of
inspector or above. Requests must:
• Contain details of the criminal investigation to which it relates and must seek specific
details, 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 to
the 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 that
deal 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’s
location at a certain time or details of any electronic payments. Investigators can apply for
production orders to obtain information from the financial institution that administers the chip
and 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 professional
privilege (LPP). All information that a solicitor discovers about a client in the course of a retainer
is confidential, whether that information is also privileged is a separate legal issue. For more
information on LPP see The Law Society (1999) The Guide to the Professional Conduct of
Solicitors, 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 a
police investigation.
The Department for Work and Pensions (DWP) holds information on benefits such as
income support, jobseekers allowance and incapacity benefit (see 5.1.5 The Department for
Work 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 DPA
section 29 requests for intelligence. Production orders under the appropriate Act must be
obtained if intelligence from a local authority is required in evidential form. Local memoranda ofunderstanding and informal arrangements may also be in existence. Investigators should
contact 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 person
including:
• 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 police
and 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 investigations
allowing authorised officers to obtain information on an individual ’s financial relationships and
status. This information can assist in the prevention or detection of crime and apprehension and
prosecution of offenders, or the assessment or collection of any tax or duty. Credit reference
agencies 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, company
files, and names of disqualified directors. CIFAS, the UK’s fraud prevention service, keeps
information on multiple credit applications that are suspected of being fraudulent. They also
maintain 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 a
result of a search. All investigators should be, however, aware of the potential of this
information to assist an investigation, and should seek the support of their FIU, if necessary, to
obtain 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 (or
both). Elmer contains data from Suspicious Activity Reports or SARs. SARs can be a useful
source of intelligence for investigators. They are produced by the regulated sector (the financial
industry and other businesses that deal with large volumes of money), which is legally required
to train all staff to recognise and report any suspicions that arise concerning money laundering
or terrorist activity. SARs are sent to the Serious Organised Crime Agency (SOCA) which then
disseminates them to forces via Elmer. These reports represent a large amount of financial
intelligence that has not been adequately exploited by law enforcement agencies.
Investigators can make an enquiry of Elmer through their force FIB or FIU, searching for
information 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 and
other organisations in the regulated sector, but many are actually legitimate and not linked to
criminal 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. SARs
are usually put on the sensitive disclosure Schedule and their existence is only disclosed by a
judge following a Public Interest Immunity (PII) hearing in exceptional circumstances. If PII
becomes an issue during the trial, SOCA is the custodian of SARS and must be consulted before
any final decision is made regarding disclosure or otherwise. The highly confidential nature of
SARs means that investigators do not have direct access to them. They are only accessed and
handled by FIs accredited by ARA (deployed in the FIU or FIB), who have a duty to protect the
discloser and may not pass on unsanitised information. Investigating officers should never be in
possession of the confidential information contained in a SAR other than via a sanitised
information 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 local
databases.
Where an individual is the subject of an outstanding confiscation order that has not been paid
in full, a force has the ability to place an asset marker (shown as ‘AS’) on the Police National
Computer (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 discover
assets 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 or
needed for their investigation. Investigators are, therefore, advised to contact their FIU to discuss
the 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 routinely
collect financial information through production orders and requests for disclosure of personal
information.
When tasking FIs to collect financial information, officers should not just request a ‘financial
profile’ on a suspect as this is ambiguous. They should be specific about what they wish to
achieve. 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 for
use as material in an investigation, it should be subjected to a formal evaluation. This
evaluation should:
• Explore whether any additional lines of enquiry can be identified;
• Ensure that all existing lines of enquiry and investigative actions have been pursued andcompleted 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 Advice
on 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 the
identification of a suspect’s associates, is gathered as material in an investigation. It may then be
analysed to draw inferences of relevance to the investigation.
Financial information that is not used in an investigation may have some relevance to other
policing activities and may therefore be used by analysts when compiling the analytical
component of intelligence products. Intelligence products direct prevention, intelligence
gathering and enforcement activity at specific problems or targets. This can influence the way
an investigation is conducted, and its outcome.
Financial information can be used to fulfil the intelligence requirement of a region, force or
BCU. The intelligence requirement is agreed through the tasking and co-ordination element of
National 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 local
intelligence systems using a 5x5x5 report, (see also 1.6.1 Financial Information Found During
Routine Policing Duties).
Note: Intelligence based on financial information must be carefully checked and substantiated
before being used in an investigation.
For further information on the National Intelligence Model see ACPO (2005) Guidance on theNational Intelligence Model.
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Figure 1 Investigative and Evidential Evaluation
Objectives
Financial Information
Gathering
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 Stephen
Cameron on the M25. A vehicle suspected to have been driven by the person responsible for
stabbing Stephen Cameron was found to be registered in the name of Anthony Francis – an
alias allegedly used by Kenneth Noye. The police had difficulty making an evidential link
between Noye and the alias. The same alias had come to light in an investigation into the
murder of PC John Fordham, an undercover officer investigating the £26 million Brink’s-Mat
robbery. Intelligence reports stated that a house had been bought fourteen years previously in
the name of the alias. The FI attached to the murder investigation team located the mortgage
application for the house. It was actually signed in the name of the alias. The documentation
remained with the lending authority. A fingerprint found to belong to Noye was discovered on
the mortgage application form, thus providing the evidential link between Noye, Anthony
Francis, and the murder of Stephen Cameron. Noye was then convicted of the murder of
Stephen 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 financial
investigation showed that the sum paid for the car was over and above the person’s legitimate
income. When the police executed a search warrant on suspicion of drug dealing they found
drugs, £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 the
cash). When interviewed, the man stated that he only had a credit card with one bank. A
production order was obtained for this account. The financial investigation also revealed he held
a 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 a
confiscation order of over £105,000. This amount has been paid back from assets held by the
defendant including money in investment schemes and the sale of a car that had been
confiscated 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 surveillance
on a suspect. Intelligence reports stated that the suspect was in London and the force planned
to deploy the team there at a cost of £3,000 per day. An enquiry made by a financial
investigator, however, revealed that the suspect had used their cash card the day before in the
city where the surveillance team were already located. The suspect was subsequently located in
that city without the deployment of the surveillance team.
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S E C T I ON2
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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 criminalinvestigation 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 other
types of financial investigation, this section should be read inconjunction with Section 3 Money Laundering Investigation andSection 4 Confiscation Investigation.
CONTENTS
2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.2 The Process of Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.3 Step-by-Step Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1 Conditions for Seizing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1.1 Notes on Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
2.3.1.2 The Minimum Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.3.1.3 Reasonable Grounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352.3.1.4 The Definition of Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
2.3.2 Initial Enquiries and Financial Interviewing . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.3.2.1 Where Cash Is Found Independently of a Person . . . . . . . . . . . 37
2.3.3 Bagging and Sealing the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3.4 Service of Receipt to Persons Found in Possession of Cash . . . . . . . . . . . . . 38
2.3.5 Arranging the Cash Detention Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
2.3.6 Service of Form A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.3.6.1 The Right to Appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.3.7 Information in Support of Application for Further Detention . . . . . . . . . . . 39
2.3.8 Application at the Magistrates’ court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.3.9 Order Granted – Court Forms and Responsibilities . . . . . . . . . . . . . . . . . . . 40
2.3.10 Procedure for the Cash After an Order of Continued Detention HasBeen Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.3.11 Further Detention Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
2.3.12 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 . . . . . . . . . . . . . . 41
2.3.14 Application for the Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.3.15 Forfeiture of the Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
2.4 Cash Forfeiture and a Criminal Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.5 Consideration of Money Laundering Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 422.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.6.1 Where a House Search Results in an Unexpected Cash Seizure . . . . . . . . . 42
2.6.2 When the Criminal Prosecution Fails . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.6.3 Where an Investigation into Money Laundering and Deception Offences
Unearths a Sizeable Cash Seizure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.6.4 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 it
and 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 and
forfeited under POCA sections 294 to 298. Cash seizure, detention and forfeiture is a civil
procedure and does not require the suspect to be charged or convicted of a crime, although it
can run in parallel with a criminal investigation. Overall, it is a simple and straightforward
process that should be used if appropriate.
In the majority of cases a cash seizure, detention and forfeiture will be dealt with by financial
investigators. There may be occasions where it is necessary for a non-specialist officer to start
the process. All officers should, therefore, be aware of cash seizure opportunities and be able to
follow 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 the
roles of the police and the magistrates’ court. The specific role of the investigator is described in
2.3 Step-by-Step Guide.
Note: In order for police forces to benefit from a fifty per cent share of the funds recovered
from cash seizure and subsequent forfeiture, each case must be entered onto the Joint Asset
Recovery Database (JARD) located in the FIU.
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Figure 2 Cash Seizure Process
Police lawfully search a person or premises or vehicle
Police find cash over £1,000, obtain any explanation offered and
decide 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 all
interested 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 two
years, 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 with
the cash find. Their actions must be proportionate, non-discriminatory, legal, accountable and
necessary (see 1.7 Human Rights Considerations). The lower the sum of cash involved, the more
discretion that must be used by the police in order to avoid unnecessary interference with
people’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 does
not include the power to enter premises. The powers under POCA complement the powers
police would normally use under PACE for evidential purposes, ie, section 19 for the seizure of
items in evidence, and section 22 for the retention of items for use in evidence (see Text Box 1
Seizing Cash as Evidence under PACE).
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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 a
person and search of premises, investigators should refer to the Home Office (2002) Code of
Practice for Constables and Customs Officers Under the Proceeds of Crime Act 2002 (issued
under POCA section 292). It provides a model application for authority for a search and a draft
order. Investigators should also refer to ACPO (2006) Guidance on Search Management and
Procedures 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 Summary
Proceedings: Minimum Amount). A person found in possession of £1,000 in cash should not, in
itself, be considered suspicious. Taking into account the context and circumstances of the
situation, carrying a much larger sum might reasonably be considered suspicious, unless a
satisfactory explanation is given.
2.3.1.3 Reasonable Grounds
Cash seizure powers require reasonable grounds for suspicion that the cash meets the
conditions in 2.3.1 Conditions for Seizing the Cash. There must be some objective grounds for
that suspicion, based on facts, information, and/or intelligence. The officer should take into
account 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 money
can 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 when
an officer is lawfully on any premises) and grounds for subsequently retaining items seized
under section 22 PACE. Section 19 subsections (2),(3) and (4) allow an officer who is lawfully
on any premises to seize evidence or anything obtained in consequence of the commission of
an 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 its
lawful owner, where there are reasonable grounds for believing that it has been obtained in
consequence of the commission of an offence.
Section 22(4) provides that nothing seized under section 19 may be retained for the purpose
of a criminal investigation, for use at trial or for forensic examination, if a photograph or
copy would be sufficient for that purpose. This only applies in these limited circumstances set
out 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 for
its origins. This is to establish its ownership and whether it is ‘recoverable property’ (see
2.3.1. 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 if
appropriate, 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 a
separate financial interview.
During a separate financial interview, not conducted under PACE, questions should not be
directed toward the person’s possible criminality. Investigators should note that cash seizure and
forfeiture is a civil process. The cash has been seized because it is believed to be derived from
criminality. The interviewing officer is, therefore, entitled to ask about the origins of the seized
cash. The person found in possession of the cash is not obliged to answer the questions and
may have legal representation if they wish (though there is no guarantee that they will receive
legal aid.) The court can draw inferences from a ‘no comment’ reply. Any civil interviews
carried out at a police station should be tape-recorded in the normal manner but not
conducted under caution.
In addition to the questions about the origins of the cash, investigators should explore the
person’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 by
their legitimate income. Both the interview conducted under PACE or the separate financial
interview 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 (including
alimony)?
• 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 so
how 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 other
overseas 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 a
reply is not received. In subsequent forfeiture hearings a person’s reply and any subsequent
deviation from that reply may have a bearing on the outcome. Where the investigator is
satisfied that the person found in possession of the cash is not involved in criminality, there is no
power to detain that person at the scene or to take them to a police station for interview. In
these circumstances the person being interviewed is a witness in a civil case. All questions asked
by 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, if
necessary, 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 their
knowledge of the cash. It may be that others who volunteer information regarding the cash
found are involved. This information may be required at a later stage to rebut an explanation
that 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 to
seize 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 the
circumstances surrounding the discovery indicate the cash may be the proceeds of crime, or that
it is intended for future use in crime, it can be forfeited at the magistrates’ court. Under these
circumstances 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 subsequent
tests 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 container
without counting it. The container should be preserved in the same manner. While the issue of
counting 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 or
other 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 should
show the total amount seized, whether or not the total amount comprises smaller amounts
claimed by different people (and its estimated total if not counted). The receipt is in addition to
any 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 the
file. 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 (not
including 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 returned
unless it is also being detained as evidence in criminal proceedings (either under PACE section 19
for 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 and
attend 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 have
appointed cash seizure officers on division who are able to provide support at this stage. There
may be circumstances where officers must complete the paperwork and make the necessary
arrangements 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 other
identified interested parties with Form A (First Application for Continued Detention of
Seized 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. The
police officer must also provide a copy of Form A to the court. Investigators should make sure
they have proof of service of this form (such as a witness statement or receipt). See Appendix 4
for 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 the
cash under section 297 of POCA. Investigators may serve them a notice telling the person how
they can reclaim the seized cash. The policy for the use (and format) of this form will vary from
force 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 recoverable
property, 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 the
process from this point onwards. If taking part in this process non-specialist officers
should 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 is
a 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 be
granted by the court.
If the case is contested or complicated, legal representation should be considered at an early
stage. The force solicitor should be notified as soon as possible.
The cash seizure provisions allow further applications for continued detention of the cash every
three 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 further
detain the cash. This hearing must be held within a three-month period. The court will either set
the next hearing date and location immediately, or at least seven days prior to the hearing (this
practice will vary from force to force). Using Form A, the date of this hearing must be sent to
the person from whom the cash has been seized and any other parties with an interest in the
money. This form can be sent by the court but good practice recommends that it is also sent
by the investigator between seven and fourteen days prior to the hearing (force policies
may 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. Each
force will have its own procedures governing this. All forces should be capable of determining
the interest which accrues on individual deposits. The only exceptions to this are if the cash is
actually required in its original state as evidence in a case or if it is to be submitted for forensic
analysis. Once the reason for retaining the cash in its original state lapses, it must be paid into
an 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 from
the date of the first order. They are made to the court using Form A, along with supporting
information 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) must
be served on the person(s) from whom the cash was seized and all interested parties, no less
than seven days before the date of the court hearing. The fact that Form A has been served
should 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 for
continued detention is granted, the cash must be returned unless it is being retained for
another 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 the
minimum 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 associated
criminal proceedings where confiscation is being considered or sought, and where the cash can
be considered an asset of the person involved in those proceedings. This applies even if it is
below 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, may
make an application to the court for the release of the cash (and any accrued interest). If the
court is satisfied that all, or part, of the cash is not recoverable property and is lawfully claimed
by 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. These
orders 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 investigation
into the origins of the cash have been completed. This application may be made at any time
while the cash is detained. This application is completed on Form G. It is completed in a similar
way as a Form A, in that it must be served on the person(s) from whom the cash was seized and
all 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 forfeiture
hearing itself should be a full hearing with the complete file of available evidence. The
application should be made by the force legal representative (who should have been contacted
at the beginning of the proceedings). This application is usually made by a FI who will frequently
require 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 298
of POCA, using Form H. Copies of Form H must be served on all parties (by the court). The cash
must be retained by the police for thirty days following the date of the order. This is to allow
time for any of the parties to appeal against the decision. If no appeal is lodged within this
thirty-day period, the cash must be transferred to the relevant Home Office account. The cash
cannot be released once an application for forfeiture has been made until that application is
concluded (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 be
returned, unless it can still be retained under PACE (section 22 – retention of property which is
evidence). See Text Box 1 Seizing Cash as Evidence Under PACE. Investigators should also consider
restraint of the cash if there are any ongoing associated criminal proceedings where confiscation is
being considered or sought, and where the cash can be considered as an asset of the person
involved in those proceedings (see 4.2.3 Restraining Assets). If the seized cash can be linked to
drug trafficking, investigators may consider forfeiture under section 27 of the MDA. The FI can ask
the courts to give the cash to the police to fund their fight against drugs. This only applies to
actual money and not to funds contained within a bank account. In the event that confiscation
proceedings are pending, a section 27 MDA application cannot be made until after the
confiscation 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 through
each 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 cash
forfeiture proceedings, provided that it can be shown on the balance of probabilities that the
cash 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 investigation
and confiscation proceedings.
The magistrate can be asked to fix the cash forfeiture hearing at some point in the future after
the 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 procedure
has been followed. If the criminal case is not successful, the cash forfeiture proceedings
can continue.
2.5 CONSIDERATION OF MONEY LAUNDERING CHARGES
When carrying out a cash seizure, officers should consider whether the person found in
possession of cash may be liable for criminal charges, evidenced by the cash. Seized cash may
be recoverable property (obtained by unlawful conduct or intended by any person for use in
unlawful conduct) and could also represent criminal property. If the cash is suspected to be
criminal property, there are three money laundering offences that may apply under POCA:
• Section 327 (concealing – where the person might have hidden the cash, which represents
criminal property, and disguising, converting, transferring or removal of criminal property
from the UK);
• Section 328 (arranging – where a person knows or suspects that they are helping, in any
way, 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 arrest
for 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 evidence
of the crime they were investigating, they also looked for the financial benefit from the crime. A
sum of £10,000 was found which was unrelated to the section 18 search. As the suspect could
not account for the origins of the cash, it was seized under POCA. The cash was sent for drugs
analysis and a higher than average percentage of controlled drug was found on each note. This
supported 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 criminal
conduct, it will not be included in the amount of the confiscation order. In order for it to be
included, an application to forfeit the cash must be made and the hearing adjourned to
await the outcome of the criminal proceedings (see 2.3.14 Application for the Forfeiture of
the Cash). For further information consult the FIU.
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C A S H S E I Z
UR E ,DE T E NT I ONA
NDF OR F E I T UR E
2.6.2. WHEN THE CRIMINAL PROSECUTION FAILS
A person suspected of drug trafficking was found not guilty of the criminal charges brought
against them. During a search of their house, the police found a large sum of money concealed
in 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 witness
statements were obtained that showed the person’s lack of legitimate income and the existence
of unidentified income received into the person’s bank accounts. Investigators were able to use
local intelligence and interviews about the criminal matters in the confiscation hearing, together
with 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 warrant
at 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 second
quantity of money believed to be £50,000 in four bundles was found in a safe in the garage. A
substantial amount of gold jewellery and financial documentation relating to an alias was also
found in the safe. Further cash was found in a bundle in the bedroom. Both suspects were
arrested and charged with a range of offences from money laundering to deception. An
application to detain the money seized was made for a period of three months under POCA, to
allow further investigation in to the origin of the funds to take place. (This case is currently
awaiting the forfeiture hearing.)
2.6.4 A MISSED OPPORTUNITY
A known drug trafficker accompanied by an associate was seen by the police in suspicious
circumstances in a provincial town. They were stopped and searched for drugs. No drugs were
found, 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 the
proceeds of crime.
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S E C T I ON 3
NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006
Section 3MONEY LAUNDERING
INVESTIGATION
This section contains practical advice for investigators on how toconduct a money laundering investigation. It is likely that moneylaundering 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.1.1 What is Money Laundering? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463.2 Money Laundering Powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.2.1 Section 327 Concealing, Disguising, Converting or Transferring . . . . . . . . . 47
3.2.2 Section 328 Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.2.3 Section 329 Acquisition, Use, Possession . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.2.4 Defences to Money Laundering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.3 When is a Money Laundering Investigation Appropriate? . . . . . . . . . . . . . . . . . 48
3.4 Who Can Undertake a Money Laundering Investigation? . . . . . . . . . . . . . . . . . . 48
3.5 Process Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
3.6 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
3.6.1 A Money Laundering Investigation Disrupts Semi-Organised Criminality . . 50
3.6.2 Existence of Cash as Evidence of Money Laundering . . . . . . . . . . . . . . . . . 50
3.6.3 When Witness Evidence of an Offence is Difficult to Obtain . . . . . . . . . . . 50
3.6.4 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 the
appearance of legitimacy, enabling them to be spent openly by criminals.
The car thief, burglar, fraudster, drug dealer and counterfeiter have a common interest in
benefiting 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 connection
with, 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 legislation
focuses on the existence of the benefit itself. The very fact that a person is in possession of
criminal property (proved to the criminal standard) means that they could be charged with
money laundering, in addition to any other offence they may have committed. It may not be
necessary 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 there
is no identified predicate offence, this will have to be established by the use of circumstantial
evidence. In order to prove to the criminal standard there will have to be several strands of
circumstantial evidence which prove beyond reasonable doubt that the property originated from
criminal activity).
Anyone who is involved in concealing, disguising, converting, transferring or removing criminal
property could be vulnerable to a money laundering charge. This applies at all levels of
criminality 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 a
potential fourteen year sentence (see 3.2.1, 3.2.2 and 3.2.3). Money laundering includes
conspiracies 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 the
original crime and the original offender.1 It does not matter who was responsible for the criminal
conduct or what it was, as long as the offender knew or suspected that the property involved
was 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 such
a benefit…
section 340 (3) POCA
Property includes money, all forms of property or real estate and other intangible or incorporeal
property.
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.
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1 This point derives from Rees, E. and Fisher, R. (2005) Blackstone’ s Guide to the Proceeds of
Crime Act 2002, Second Edition.
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M ONE YL A
UNDE R I N GI NVE S T I GAT I ON
For a charge of money laundering the police may not need to prove the specific type of
criminality behind the criminal property. They need to prove that the suspect knew or
suspected 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 criminal
property from England and Wales or from Scotland or Northern Ireland. Concealing or
disguising criminal property includes concealing or disguising its nature, source, location,
disposition, movement or ownership of any rights with respect to it. This offence can be
committed by the criminal in relation to the proceeds of their own crime, or those of someone
else. 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 criminal
property, 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 criminal
property; 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, for
example, if after an armed robbery, they hide the money in their loft. Drug dealers and other
criminals 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, in
good 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 and
co-ordination process;
• In cases involving suspects who benefit directly from criminal activity but are distancing
themselves 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 or
handling stolen goods (as criminal property is not confined to money alone), the prosecution
will consider charging the offence where either a defendant has possessed criminal proceeds in
large 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 created
teams focusing on money laundering investigations at both the BCU and force level. The
amount of support available from such units will vary from force to force.
Most forces are supported by Regional Asset Recovery Teams (RARTs) that can investigate
or offer support for investigations of money laundering connected with serious and
organised crime.
Each FIU and RART has its own policy and procedures that investigators should follow in order
to 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 laundering
investigations 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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M ONE YL A
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3.5 PROCESS GUIDE
• Identify if the case is suitable for money laundering investigation. (See 3.3 When Is a
Money Laundering Investigation Appropriate?)
• Develop an investigation strategy that includes gathering material to support a money
laundering charge. Liaise with the FIU and CPS, as appropriate, to obtain early advice
concerning evidence and the conduct of the investigation, eg, the need for a restraint
order and for a management receiver, (see 4.2.3 Restraining Assets). Investigators should
think laterally about the type of material that would provide evidence of money
laundering. 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 their
legitimate means);
– Forensic evidence, eg, contamination of cash with drugs, from which inferences can be
drawn that money came from drug trafficking;
– Evidence of complex audit trails, from which an accountancy expert may be able to
conclude that the complexity of the transactions indicates that the property came from
the 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 profit
margins 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 information
to identify the existence of sums of cash and assets (see 1.8.3 Requesting Information
from Financial Institutions, Commercial Service Providers, Government Departments and
Other Agencies);
• If a search is conducted at a suspect’s home address, look for evidence of wealth and
spending such as designer clothing, luxury electrical goods, large sums of cash, bank
statements and credit card receipts (see 1.6.1 Financial Information Found During Routine
Policing Duties);
• If assets or money are identified, conduct further investigation to identify links to criminality
and criminal associates (people may launder money for themselves or others);
• Consider obtaining a restraint order against any identified property and assets, pending
confiscation, 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 should
obtain further production orders to examine accounts and pursue other financial lines of
enquiry (eg, with HMRC, see 5.1.8 Her Majesty’s Revenue and Customs) based on the
evidence 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 products
relating to the suspect’s assets to support the prosecution. This should include a statement
by the investigating officer which uses graphs and spreadsheets showing unexplained
income, and suspicious activity derived from bank accounts obtained using production
orders, and exhibits such as relevant bank statements produced by financial institutions.
• As money laundering is designated a criminal lifestyle offence under POCA, if the
defendant pleads guilty or is found guilty of money laundering offences, the court will
order confiscation proceedings (see 4 Confiscation Investigation and Text Box 2 Criminal
Lifestyle 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 of
criminal activity such as vehicle theft, handling stolen vehicles and car clocking. The suspects
could have been charged with handling stolen goods, but because of the sustained and
organised 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 the
case and the FIU.
Officers reported a positive reception by members of the public to the outcome of the case and
positive media coverage. It is not possible to quantify any reduction in associated NIM level 1
crime, but it is logical to suggest that the removal of three or more persons into custody, who
previously made substantial earnings from crime, has a positive effect in general. A substantial
confiscation order may reduce the incentive to commit further crime and may remove thepossibility to fund further criminal enterprises. A continued focus on enforcement will ensure
that 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 drug
dealer was charged with money laundering and released on bail. Seven months later the police
used 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 to
the 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 OBTAINA group of individuals committed many crimes against elderly and frail victims. The offenders
would fit a fire alarm and then convince the elderly and frail person that they must buy a
humidifier in order for the fire alarm to work properly. They sold the humidifiers (which retailed
locally at £69) to the victims at a cost of £4,000 each. These offences were committed
nationwide and six cases were brought to court. The prosecution was unsuccessful because the
witnesses experienced problems in identifying suspects and giving testimony. A RART conducted
an 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 this
further financial investigation, this individual and two others were arrested and charged on
suspicion 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 and
exchanged for cash in shops of the same chain in a different area the next day. The stolen
cheques had not yet been cleared through the banking system and so the offenders were able
to launder criminal property. The offenders had committed an offence of money laundering
under POCA section 327.
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S E C T I ON4
NOT PROTECTIVELY MARKED Practice Advice on Financial Investigation 2006 © ACPO Centrex 2006
Section 4CONFISCATION
INVESTIGATION
Investigating the origins of seized cash and money laundering offenceswill often lead to confiscation investigations. Confiscation is not justfor 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.1.1 What Is Confiscation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524.1.2 Who Can Conduct a Confiscation Investigation? . . . . . . . . . . . . . . . . . . . . 52
4.2 The Process of Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.2.1 Instigating a Confiscation Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
4.2.1.1 When Is a Confiscation Investigation Appropriate? . . . . . . . . . . 54
4.2.2 Planning the Confiscation Investigation: Developing an
Investigative Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.2.3 Restraining Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
4.2.4 Role of the Financial Investigation Unit in Confiscation Proceedings . . . . . . 57
4.2.4.1 Referral of Confiscation Cases to the Financial
Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
4.2.5 Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.2.5.1 The Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.2.6 The Confiscation Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.2.6.1 Confiscation in Cases Where No Assets Are Thought
to Be Held . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.7 Enforcement of the Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.7.1 Non-Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
4.2.8 Revisiting a Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
4.3 Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.1 Case Revisited for Outstanding Payment of Confiscation Order . . . . . . . . . 65
4.3.2 A Student Found in Possession of Five Wraps of Cannabis
Given Confiscation Order of £13,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.3 A Person Pleads Guilty to Conspiracy to Defraud His Employer
of £280,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.4 A Petty Theft Leads to Major Confiscation . . . . . . . . . . . . . . . . . . . . . . . . . 65
4.3.5 Conduct Forming Part of a Course of Criminal Activity . . . . . . . . . . . . . . . 66
4.3.6 An Example of Calculating the Benefit Amount . . . . . . . . . . . . . . . . . . . . . 66
4.3.7 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 a
criminal conviction and, if possible, remove the benefit of that crime. A confiscation order made
under 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 are
normally 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 equivalent
amount (where recoverable) is returned to the state. Under POCA, confiscation is possible in
cases where the offender has benefited directly or indirectly from their crime. A confiscation
order requires the offender to pay back the equivalent of their benefit from their criminal
conduct. If the amount is not repaid, a default sentence is served consecutively with any sentence
already 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 they
are usually conducted by FIs. This is because there are certain resources used in the process that
are available only to FIs. These resources include SARs, the Financial Investigation Support
System, and the Joint Asset Recovery Database (JARD). In addition, FIs have good links with
financial 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 proceedings
can be instituted. There is a two year time limit on completion of the confiscation process from
the 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 the
course of their work. They should consider whether each case provides a possibleopportunity for a confiscation investigation. The main principle is that confiscation opportunities
can arise in any crime where an offender has benefited, directly or indirectly, or gained a
pecuniary advantage.
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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 a
prosecutor. The prosecution has to ask the court to consider confiscation after conviction and
before sentence. The court can start the process itself if it deems it necessary. Investigations can
also 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 the
earliest possible opportunity, for example, at the outset of a proactive operation or on arrest. In
order to determine whether confiscation proceedings may be appropriate, the investigator
should consider the following:
• Was the offence committed on or after 24 March 2003? This is the date from which
POCA applies and asset recovery should still be considered. Confiscation may still be
possible 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) and
the 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 Lifestyle
Offences).
• If the offender does not have a criminal lifestyle, have they nevertheless benefited
from 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 periods
with a minimum value of criminal property obtained (POCA section 75) and where a
confiscation 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 the
offence being heard, where the total benefit is £5,000 or more;
• One offence in the current proceedings, and convicted of a minimum of two separate
offences 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 criminal
activity linked to other criminality such as money laundering?
The question of suitability for confiscation proceedings should also be discussed with the CPS
when charges are considered.
As part of the documentation requirements associated with the arrest of the offender, the
officer in the case will be required to fill in the new MG17 Confiscation Review Sheet (see
Figure 4). This contains questions that will also assist the investigator in deciding whether a
confiscation 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 current
proceedings. This term is used when there is no criminal lifestyle label. With particular
criminal conduct the offender will have to pay a confiscation order to the monetary value
connected to:
• The offence(s) they are convicted of;
• Any others taken into account (TICs) (POCA Section 76 (3)).
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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 current
proceedings 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 last
6 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 any
offending 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 to
restrain assets at the earliest possible opportunity. Restraint is necessary to prevent the offender
from dissipating the assets in question (see 4.2.3 Restraining Assets). The completed MG17
form 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 the
investigator considers that a confiscation investigation may be appropriate (see 4.2.1.1 When Is
a Confiscation Investigation Appropriate?), they should then plan how best to gather
information about the defendant’s financial situation (assets held, transferred, spent) that might
be linked to their original criminality (see the notes on income, expenditure and assets under
2.3.2 Initial Enquiries and Financial Interviewing). The strategy should include legal and ethical
considerations and the requirements in the investigation for:
• Information (see 1.6 The Use of Financial Information; confiscation investigations will be
enhanced if early opportunities to gather financial information have been taken up before
the 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 MoneyLaundering Investigation);
• CPIA issues.
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An FI can assist with this strategy at the start of an investigation. For more information on
investigative strategies see ACPO (2005) Practice Advice on Core Investigative Doctrine, Section 6
Investigative Strategies.
4.2.3 RESTRAINING ASSETS
The power to restrain assets is an essential tool in the asset recovery process. Restraint is
necessary to stop a person who has benefited from their crime from being able to dissipate or
spend their money, or sell, transfer or hide their assets or property before it can be confiscated
from them. A successful confiscation order will be ineffective if there are no assets left to
confiscate. Action at the earliest possible moment is therefore required.
A restraint order requires a superintendent’s authority and can be requested before criminal
charges are applied. The FI making the application for restraint must be accredited by ARA to do
so. Advice should be sought from the CPS as soon as the criminal investigation begins. The
investigator should approach a senior CPS lawyer at an appropriate level in accordance with the
procedure 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 is
supported by a police officer’s statement. When considering restraint, investigators should be
aware 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 investigative
strategy, in most forces the FIU will:
• Record the opening of a confiscation investigation on JARD (without this, the force will not
be 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).
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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 should
consult 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 their
spouse or partner.
• Are they a tenant or home-owner? Amount of rent or mortgage per month, to whom that
sum 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 partner
including 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 insurance
policies, 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 are
dealt with by financial investigators. Non-specialist investigators are advised to
consult their financial investigation unit for further information and advice. The
following sections are presented as background information only. (See 4.1.2 Who
Can 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 their
particular criminal conduct (see Text Box 3 Particular Criminal Conduct) or from their general
criminal 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 benefit
from that particular conduct
plus TICs
Consideration of benefit
from all their criminal
conduct, over the last six
years at least
General
Criminal Conduct
(criminal lifestyle)
Calculation of the
benefit amount
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COURT:
£300,000 or elseA FENLAND drugs gang will be stripped
of the assets they gained from their crimes
or face longer jail terms, a judge at
Cambridge 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 from
drug dealing. It could see assets such as
cars and jewellery being sold off.
The gang, which included ringleaders
Barry Warden (61), his wife, Mavis (55),and sons Richard and Barry junior, were
jailed for a total of 48 years in 2005 for
dealing drugs across the county.
It is thought the family earned up to
£1 million from the dealings, which they
then used to fund a lavish lifestyle from
their modest former council house.
Excerpt from Fenland Today at
http://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, money
laundering or brothel keeping (see Text Box 2 Criminal Lifestyle Offences), the court must make
certain 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 or
expenditure 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 had
been summoned for an offence, any property transferred to, held by or expended by the
defendant 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 amount
in general criminal conduct cases.
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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 time
held, eg, a car bought two years earlier would have cost the drug dealer more than its current
retail value. Additionally there is a fourth assumption that the property is free of other interests
such 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 makes
a confiscation order in the sum of the benefit or the available amount (the sum of all the
defendant’s existing assets), unless the defendant can prove on the balance of probabilities that
the benefit should be less.
The FI who conducted the confiscation investigation is responsible for attending all confiscation
hearings, liaising with counsel, the direct presentation of evidence and the provision of technical
advice if necessary.
A summary of the decision-making processes within a confiscation hearing is illustrated in
Figure 7. This includes the criminal lifestyle and benefit considerations already addressed in this
section and details the process through to the confiscation order.
Figure 6 Using the Assumptions to Calculate the Benefit From Criminal Conduct
eg, drug dealer
receives credits into
bank account, is
given a car for help in
committing a crime.
= The Benefit from Criminal Conduct
Property
Transferred
eg, drug dealer owns
a house, holds cash,
antiques plus five
bank accounts with
credit balances.
Property
Held
eg, drug dealer
gambled and lost
money, or bought a
car and spent money
insuring it, and owns
a yacht.
Property
Expended
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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 defendant
benefited from their
particular criminal
conduct?
The court must assess the
benefit received by the
defendant 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 on
the counts on the
indictment plus the
assumptions.
The court must assess the
benefit received by the
defendant from their
particular criminal conduct.
No
confiscation.
NO
NO YES
YES
The court makes
confiscation order for the
amount of the benefit.
The court makes order for
the available amount and
issues 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 police
forces apply for a nominal confiscation order in cases where a minimal amount of assets has
been 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 offender
acquire wealth. This is used mainly as a preventive measure, as a disincentive to the convicted
person to commit further crime. A drug dealer, for example, may have no assets. A nominal
confiscation order in cases where there has been a large benefit amount gives the police a
means to ensure that no profit is made from crime in the future (see 4.3.1 Case Revisited for
Outstanding 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 (for
example, 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 provide
assistance within the timescale agreed. This will include obtaining any information or evidence
needed to progress the application, for instance obtaining an up-to-date valuation of current
assets, 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 been
seized during the investigation process;
• Assisting with the disposal of assets held by the police in compliance with any restraint in
the case.
4.2.7.1 Non-Compliance
The offender is responsible for paying the confiscation order amount to the enforcement
agency. After non-compliance, however, the magistrates can either grant the defendant more
time to pay, or order them to serve the default sentence.
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The default sentences are as follows:
Even if the person serves the default sentence, the magistrates can instruct a receiver to realise
the 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 had
available at the time the confiscation order was made, they will remain liable for confiscation
proceedings in the future. The police can apply for a further confiscation order to recoup the
value of the original criminal benefit. Equally, if the person has not paid the entire sum of their
confiscation order, they remain liable for it. If it comes to the attention of the authorities that a
person has acquired new wealth (such as inheritance or through a lottery win), the remainder of
the confiscation order will be enforced (see 4.2.6.1 Confiscation in Cases Where No Assets Are
Thought 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 the
conviction. The available amount can be reconsidered at anytime. The assumptions regarding
expenditure 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 see
if there is an outstanding confiscation order against the person (see 1.8.8 The Elmer
Database (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 £5,000 but not exceeding £10,000 6 months
An amount exceeding £10,000 but not exceeding £20,000 12 months
An amount exceeding £20,000 but not exceeding £50,000 18 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 had
confiscation proceedings against them has gained new assets.
Some forces have adopted a policy of revisiting outstanding confiscation cases once every three
months, 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, and
related 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 and
drug dealing. Their mother died and an insurance premium was paid out. As a nominal
confiscation order had been made, the police were able to revisit the confiscation proceedings
and 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 who
found them in possession of five wraps of cannabis and £100 in cash. The student said that the
drugs were for their own use. The police executed a search warrant; £1,000 in cash was found
in a wardrobe in a jacket pocket along with two bank books showing a total of £20,000 in
savings. A further financial investigation found £9,000 in savings. As a result of a money
laundering charge, the criminal lifestyle assumptions were applied. A sum of £13,000 was
confiscated (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. They
opened bank accounts using false names in order to obtain loans and credit cards that were
then defaulted on. Police believe total losses to the bank could be as much as £306,000. The
person also transferred monies from fraudulently opened accounts to their account and that of
their family. The person was sentenced to two years in prison and made subject to a
confiscation 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 to
be living above their means.
A person was caught stealing petrol. After the investigating officer approached the FIU for
advice, a financial enquiry revealed that there were obvious discrepancies between the person’s
legitimate income and their general lifestyle. An investigation led to a conviction for four
offences 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. They
had a lavish lifestyle with investments in Switzerland. It appeared that the person was living off
the proceeds of crime.
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The person would not provide any realistic explanation for their wealth and the financial
investigation revealed no signs of legitimate funds to substantiate this wealth. Confiscation
proceedings 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 criminal
lifestyle assumptions under the CJA.
Assumptions were, therefore, made about all the person’s unexplained assets. Following a
full confiscation hearing, the court imposed an order confiscating a total of £1,566,911 from
the person.
It should be noted that the dates the offences were committed were prior to the inception of
the Proceeds of Crime Act 2002. The confiscation legislation that applied was under the
Criminal Justice Act 1988 (as amended). If POCA had applied, the offences would still have
triggered 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 ten
counts of theft from an 83-year-old client who had been diagnosed as suffering from advanced
dementia. The offences were committed over a fourteen-month period and more than £64,000
had 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 three
months’ imprisonment. The defendant appeared again before the crown court for a
confiscation hearing. The court found the defendant to have a criminal lifestyle and to have
benefited from their criminal conduct by £67,599. A confiscation order in the sum of £67,599
was 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. Both
orders 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 investigated
the sale of counterfeit music media. The operation amounted to the arrest of three people
identified as selling counterfeit goods. The individuals were found to have a large number of
counterfeit goods in their vehicle. Simultaneous searches of their houses found multi-burners
set up to copy music and film media. An average day’s takings was established and multiplied
by the number of car boot sales operated on site. These were cross-referenced to dates when
industry investigators had visited the site. The assumption made was that one seller had visited
the 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 offences
and 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 police
successfully applied for a confiscation order for £450,000. The person was sentenced to thirty
months’ 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. Confiscation
proceedings can be revisited if a person acquires more assets in the future.
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S E C T I ON 5
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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 theinvestigator 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.1.1 Regional Asset Recovery Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.1.2 Assets Recovery Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.1.3 Department for Environment, Food and Rural Affairs’ Investigation Service . . 70
5.1.4 Department of Trade and Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.1.4.1 Companies Investigation Branch . . . . . . . . . . . . . . . . . . . . . . . . 71
5.1.5 Department for Work and Pensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.1.5.1 Fraud Investigation Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.1.6 Financial Crime Information Network (FIN-NET) . . . . . . . . . . . . . . . . . . . . . 73
5.1.7 Financial Services Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745.1.8 Her Majesty’s Revenue and Customs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.1.9 Home Office Immigration and Nationality Directorate . . . . . . . . . . . . . . . . 76
5.1.9.1 Immigration and Nationality Directorate Intelligence Service . . . 77
5.1.10 Identity and Passport Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
5.1.11 National Terrorist Financial Investigation Unit . . . . . . . . . . . . . . . . . . . . . . . 79
5.1.12 Office of Fair Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
5.1.13 Serious Fraud Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.1.14 Serious Organised Crime Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.1.15 Trading Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
5.2 Other Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
5.2.1 Forfeiture Under the Misuse of Drugs Act 1971 . . . . . . . . . . . . . . . . . . . . . 83
5.2.2 Powers of Criminal Courts (Sentencing) Act 2000 . . . . . . . . . . . . . . . . . . . 83
5.2.3 Seizure Under Sections 50 or 51 of the Criminal Justice and
Police Act 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
5.2.4 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 a
financial investigation capacity. Police officers should consult their FIU
prior to contacting these agencies, unless otherwise indicated.
‘Payback’ is the brand name for cross-government strategy to trace and
recover the proceeds of crime.
5.1.1 REGIONAL ASSET RECOVERY TEAMS
Regional Asset Recovery Teams (RARTs) are multi-force/multi-agency teams serving law
enforcement and community requirements. They are currently in London, the North-West, the
North-East, the West Midlands and Wales. The strength of the RARTs lies in their multi-agency
arrangement 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 recovery
strategy 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 and
support operational activity undertaken by collaborating forces and agencies. Depending on
local policy most RARTs encourage early informal direct contact from investigators to discuss the
possibilities for formal referral. They also accept referrals from single points of contact such as
the head of FIU or the Regional Tasking and Co-ordinating processes where they exist. RARTs
are also available to assist investigators with other informal discussion and advice, and to
facilitate access to main functions in the financial investigation community such as HMRC, ARA
and SOCA. See 1 Introduction.
RARTs are linked closely to other regional teams such as REFLEX (a practical multi-agency
taskforce tackling organised immigration crime), Special Branch Regional Intelligence Cells and
regional drugs teams.
Currently there are five RARTs:
London RART
Telephone: 020 7029 4952
Fax: 020 7029 4980
Email: [email protected]
North-West Region RART
Telephone: 0870 757 3911
Fax: 0870 757 3912
Email: [email protected]
North-East Region RARTTelephone: 0113 2607398
Fax: 0113 260 8760
Email: [email protected]
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West Midlands Region RART
Telephone: 0121 251 2055
Fax: 0121 251 2182
Email: [email protected]
When emailing West Midlands RART, please note that:
• E-mails should not contain executable files, as these will be automatically deleted for
security reasons;
• To ease communication, please include your full name, telephone number and postal
address within your message.
Wales Regional RART
Telephone: 01656 310100 (switchboard)
Fax: 01656 310105
For 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 the
Home Secretary but is operationally independent. The Agency has had access to the unique
powers of POCA since 24 February 2003. ARA’s main offices are in London with a regional
office in Northern Ireland.
The Agency aims to:
• Disrupt organised criminal enterprises through the recovery of criminal assets, thereby
alleviating 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 and
continuing professional development.
ARA has a statutory power to train and accredit financial investigators. Section 3(3) of POCA
states 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 in
addition 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-based
learning and the submission of a personal development plan compiled in the workplace with
the assistance of an experienced FI. The initial financial investigation course allows the student
to be either a financial intelligence officer or an FI but does not give them the power or skills to
apply for restraint, or to complete a confiscation investigation. These form part of the second
course for those who have completed the PDP process.
ARA also provides a Management of Financial Investigation course for people who should be
using financial investigation in the workplace but are not.
Further information is available from http://assetsrecovery.gov.uk which also contains a link to
ARA’s training Centre of Excellence. Any specific queries on training courses should be sent tothe Centre of Excellence at <[email protected]>.
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ARA uses civil recovery and taxation in order to recover criminal assets and investigates cases
that 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 must
be shown.
Investigators should consult their force FIU for guidance as to the suitability of a case for referral
to ARA.
ARA can be contacted at:
Assets Recovery Agency
PO Box 39992
London
EC4M 7XQ
Telephone: 020 7029 5700
Fax: 020 7029 5706
Email: [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 an
investigation 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 a
wide range of legislation. They are prosecuted by the Litigation and Prosecution Division of the
DEFRA Legal Directorate.
For assistance and case referral in the first instance, investigators should contact:
David Woods
DEFRA Investigation Services
Estuary House
Peninsula Park
Rydon Lane
Exeter
Telephone: 07775 823456
Email: [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 confiscate
illegally earned assets to improve confidence in UK business by enforcing corporate and
insolvency laws.
Information on possible fraudulent activity can come from a range of sources including:
• The Insolvency Service – referrals from official receivers, administrative receivers and
liquidators;
• The DTI’s Corporate Law and Governance Directorate – referrals from the Companies
Investigation Branch (CIB) when their statutory enquiries or complaints disclose criminal
activity (see also 5.1.4.1 Companies Investigation Branch);
• Members of the public – mainly hotline complaints against disqualified directors, made to
the 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 ofcompany documents.
Investigations conducted by the DTI have to be in the public interest and are carried out under
section 447, 448 and 453 of the Companies Act 1985. Investigations are mostly carried out by
DTI officials or other experts. They are usually completed within three months. If a company
refuses to cooperate with the investigator, or there is a risk of documents being destroyed, the
DTI can ask a magistrate for a search warrant. Investigators can then search premises with the
police 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 of
their criminal acts. It also seeks compensation for victims of criminal wrongdoing.
The DTI can be contacted at:
Department of Trade and Industry
Response Centre
1 Victoria Street
London SW1H 0ET
Telephone: 0207 215 5000
5.1.4.1 Companies Investigation Branch
Companies Investigation Branch (CIB) carries out enquiries on behalf of the Secretary of State
for 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 is
high profile and where issues raised are of public concern), and confidential fact-finding
enquiries. 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 Insolvency
Service is responsible for investigations into companies that have been placed in compulsory
liquidation by the court, and for taking disqualification proceedings against directors of
companies 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 other
criminal 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 these
are 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 have
been raised over the integrity of its trading activities. Recent examples include investigations into
online ticket touts and money-generating schemes, as well as companies enticing individuals to
invest 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 Fair
Trading (OFT) and Trading Standards Officers (TSOs).
CIB does not usually intervene in any dispute between individuals and a company. This applies
to creditors, shareholders or members of the company’s own management, as they have legal
remedies 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 has
powers 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, by
telephone 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 Branch
PO Box 447
London SW1H 0WU
Telephone: 0207 215 4696
5.1.5 DEPARTMENT FOR WORK AND PENSIONS
The Department for Work and Pensions (DWP) works collaboratively with the police, local
authorities, HMRC and the Home Office on fraud investigations. It is committed to tackling
benefit 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 of
benefit fraud committed. The Fraud Investigation Service carries out benefit investigation for
DWP. It has investigators nationwide who deal with the full range of benefit fraud from minor
offences through to major frauds.
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The DWP’s local services are provided by Jobcentre Plus offices. These contain specialist teams
such as fraud investigation teams.
For further information including details on local Jobcentre Plus services contact:
Jobcentre Plus Head Office
Telephone: 0207 273 6102
Website: 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 to
allegations of fraud committed by benefit claimants.
The Fraud Investigation Service also has specialist teams to investigate employers who collude
with their workers, allowing them obtain benefits illegally. Other specialist teams deal with more
organised 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 managing
referrals and gathering and analysing intelligence. This includes exercising the Department’s
powers under the Social Security Fraud Act 2001, which allows the DWP to obtain information
about people it is investigating from their banks, building societies and utility (water, gas and
electricity) and telephone companies. The DWP can be contacted at:
Department for Work and Pensions
Operational Intelligence Unit
Grove House
1st Floor
Manchester
Lancashire
M16 OLP
Telephone: 0161 875 1304
Fax: 0161 875 1301
5.1.6 FINANCIAL CRIME INFORMATION NETWORK (FIN-NET)
The Financial Crime Information Network (FIN-NET) is a multi-agency networking organisation
with the primary objective of reducing financial crime. It encourages the exchange of
information between regulatory and law enforcement agencies, government departments, and
other bodies with public functions on actual or suspected fraud that made use of, or impacted
on 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 framework
for the secure pooling and dissemination of this information to members of the network. It also
provides a framework within which added value can be achieved, in some cases through
stimulating cooperation between members of the network.
FIN-NET is overseen by a Treasury-led Steering Group. The FSA provides the secretariat and
administrative services necessary for FIN-NET to operate effectively. All police forces have a
designated FIN-NET representative. All enquiries will be channelled through this representative.
The FIN-NET Secretariat can be contacted at:
Telephone: 020 7066 0970
Email: [email protected]
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5.1.7 FINANCIAL SERVICES AUTHORITY
The Financial Services Authority (FSA) is an independent non-governmental body with statutory
powers under the Financial Services and Markets Act 2000. The FSA has four regulatory
objectives 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 government
and is funded entirely by the firms it regulates.
FSA regulates around 29,000 firms and 165,000 approved individuals. The type of business
regulated 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 (regulated
by the Office of Fair Trading);
• Occupational pensions (regulated by the Pensions Regulator, although personal pensions
are regulated by the FSA).
The FSA has a wide range of legislative, investigatory and enforcement powers which enable
them to censure or fine firms that fail to meet their rules and requirements. The FSA also has
powers relating to market abuse and money laundering. Depending on the circumstances, they
may 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 expertise
on financial services, markets or products.
If a firm or an individual is regulated by the FSA, they are listed on the FSA register at
http://www.fsa.gov.uk/register
For intelligence queries contact:
Intelligence Team Contact Centre
Telephone: 020 7066 2474
Email: [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 more
information on FSA intelligence requirements, include ‘Intel Requirements’ in the subject field.
The FSA can be contacted at:
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Telephone: 0207 066 1000
Website: 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 duty
land tax, VAT).
HMRC pay and administer child benefit, child trust fund, and tax credits.
They enforce and administer border and frontier protection, environmental taxes, national
minimum wage enforcement, recovery of student loans.
In order to request information for the purposes of a police investigation, investigators should
fill in a gateway request (an extended data protection act form) and obtain an authorisation
from 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 on
0870 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 indirect
taxes and other regimes for which they are responsible. Criminal investigation, with a view to
prosecution by the Revenue and Customs Prosecutions Office (RCPO) in England and Wales – or
the appropriate prosecuting authority in Scotland and Northern Ireland, is an important part of
HMRC’s overall enforcement strategy.
It is HMRC’s policy to deal with fraud by use of Civil Investigation of Fraud procedures, wherever
appropriate. Criminal Investigation will be reserved for cases where HMRC needs to send a strong
deterrent 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 and
to carry out these investigations across a range of offences and in all the areas for which the
Commissioners of HMRC have responsibility.
Examples of the kind of circumstances in which HMRC will generally consider commencing
criminal, rather than civil investigations are:
• In cases of organised criminal gangs attacking the tax system or systematic frauds where
losses 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 put
tainted money out of reach of law enforcement;
• Where the perpetrator has committed previous offences or there is a repeated course of
unlawful 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 Fraud
procedures, or should be the subject of a criminal investigation, HMRC will take into account
whether the taxpayer(s) has made a complete and unprompted disclosure of the offences
committed.
There are certain fiscal offences where HMRC will not usually adopt the Civil Investigation of
Fraud 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 a
policy that all investigations will have a concurrent financial investigation. Confiscation orders
and POCA cash seizures will be pursued to their fullest extent.
The Revenue & Customs Prosecutions Office are responsible for the prosecution in all HMRC
cases. They can be contacted at:
Revenue and Customs Prosecutions Office
New Kings Beam House
22 Upper Ground
London
SE1 9PJ
Email: [email protected]
5.1.9 HOME OFFICE IMMIGRATION AND NATIONALITY DIRECTORATE
The Home Office Immigration and Nationality Directorate (IND) is responsible for framing the
asylum, 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, and
enforce and investigate immigration offences in the UK. IND in its role as the National Asylum
Support Service (NASS) is responsible for the support, accommodation and dispersal of persons
awaiting decisions on their asylum application. NASS uses specialist powers under the legislation
to require disclosure of financial information in relation to asylum applications. Other
directorates deal with nationality applications and applications to remain in the UK that are not
connected with asylum. IND, along with the Foreign and Commonwealth Office, operates the
visa issuing network around the world. Many foreign nationals require visas before they enter
the 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 contact
for operational law enforcement matters in the UK is the Enforcement and Removals Directorate
which works with UK law enforcement on a day-to-day basis. Local Enforcement and Removal
offices 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 unit
at 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 National
Document Fraud Unit.
The National Intelligence Unit (NIU) is the main point of contact for SOCA, including Suspicious
Activity Reports and other REFLEX operational support enquiries. (REFLEX is the government
response to organised immigration crime).
Contact details (strictly for law enforcement use only);
Immigration and Nationality Directorate Intelligence Service
National Intelligence Unit
PO Box 1000
Hayes
UB3 5WB
Telephone: 020 8745 2423
Email: [email protected]
The Operational Development Unit provides tactical intelligence targeting criminal groups
involved in organised immigration crime within REFLEX. The unit has a financial investigation
capability. The Operational Development Unit can be contacted at:
Immigration and Nationality Directorate Intelligence Service
Operational Development Unit
Room F10
PO BOX 1000
UB3 5WB
The National Document Fraud Unit provides a service to IND in relation to travel and identity
document fraud. They can be contacted at:
Duty Officer Telephone: 0208 7452480
Email: [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 the
Identity and Passport Service (IPS) – formerly the United Kingdom Passport Service. In addition to
detailing 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 be
used by both the police and IPS for requests for personal data. Copies of the MOU can be
found 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 Central
Intelligence and Analysis Team that provides internal analysis to the IPS and the Fraud and
Security Unit. The Fraud and Security Unit undertakes internal investigations in relation to
security and fraud.
General enquiries, ie, those not relating to specific cases of fraud, should be directed to the
Peterborough 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 one
of 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. IPS
will 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 consider
the disclosure falls within the non-disclosure exemptions of the Data Protection Act 1998 (see
1.8.3.4 Disclosures of Personal Data). The police officer should complete a written standard
request 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 least
the rank of police inspector.
Section 28 exemptions – National Security: Where a police force wishes to rely on the
exemption in section 28, the IPS will expect to receive a written assurance that the disclosure is
required 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 to
standard 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 area
where the enquiry is generated. Subject to force policy, any officer can generate a
request where appropriately authorised. The request must contain sufficient detail to locate
the information required. Some examples of information that can be provided are listed in
1.8.5. Information Held By Government Departments and Other Agencies.
In the case of urgent enquiries, for example serious crime, and in particular where there is
danger to life, the IPS Fraud and Intelligence Unit will prioritise this work and respond to the
request at the earliest opportunity. These must still be made through the SPOC and
accompanied by the appropriate supporting DPA request form to ensure intelligence benefits
are 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 New
Scotland Yard, is the law enforcement agency responsible for the investigation of terrorist
finance 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 targeting
terrorist 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 enforcement
agencies, 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 Branch
Regional Intelligence cells. They can be contacted at:
NTFIU
Room 1915
New Scotland Yard
BroadwayLondon
SW1H 0BG
Telephone: 020 7230 4164
Fax: 020 7230 2638
Email: [email protected]
5.1.12 OFFICE OF FAIR TRADING
The Office of Fair Trading (OFT) is an independent organisation that helps consumers
understand their rights and protects consumer interests throughout the UK, while ensuring that
business practices are fair and competitive. OFT has powers under consumer and competition
legislation. Any business that exploits consumers and prevents a market from working well – for
example, 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 of
industries and business.
The OFT enforces a wide range of consumer protection legislation. The Consumer Regulation
Enforcement division:
• Coordinates enforcement action throughout the UK with other regulatory partners and
takes 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 with
standard terms in consumer contracts that are unfair. The team:
• Negotiates with business to stop the use of unfair terms and, when necessary, may seek an
injunction 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 those
businesses 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 a
licensing system to check that any business involved in consumer credit does not pose a threat
to consumers. The consumer credit licensing team:
• Assesses applicants’ fitness to hold a licence and monitors the fitness of those who are
already 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 bodies
such as the Advertising Standards Authority, has the power to seek an injunction to stop
advertising 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 regulations
also ensure that consumers who use the internet to buy products and services now generally
enjoy the same rights as any other home shopper.
Estate Agents
The OFT has powers to ban unsuitable people from engaging in estate agency work and
maintains 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 by
means of court orders against businesses breaching that legislation. Except in urgent cases, the
OFT will consult the business that is infringing consumer protection legislation before applying
for an Enforcement Order and, where possible, will seek an understanding that the
infringement will stop. The Office of Fair Trading can be contacted at:
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
LondonEC4Y 8JX
Telephone: 020 7211 8000
Fax: 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 justice
system. Its purpose is to investigate and prosecute serious and complex fraud so as to deter it
and 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 its
own 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 forensic
computing unit is responsible for the seizure, processing and analysis of all electronic-based
evidence. This unit is involved in the UK Internet Crime Forum, G8 Hi-Tech Working Group and
the UK Forensic Computing Group.
The SFO accepts only serious and complex fraud cases. The rationale for the SFO to take on a
case 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 and
suspects to produce documents and answer questions.
The Serious Fraud Office can be contacted at:
The Serious Fraud Office
Elm House
10-16 Elm Street
London
WC1X 0BJ
Telephone: 0207 239 7272
Fax: 0207 8371689
Email: [email protected]
Website: 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 the
amalgamation 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, money
laundering and identity fraud by developing an intelligence picture of organised crime, pursuing
significant criminals and groups, disrupting criminal markets, and attacking criminal assets to
ensure criminals do not profit from their crimes.
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SOCA officers will be able to draw on wide-ranging new powers to compel individuals to
answer questions in interviews with prosecutors, make deals with informants, use enhanced
powers of confiscation, and Financial Reporting Orders. These orders allow courts to impose
obligations 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 and
management of the Suspicious Activity Reporting System.
The new agency will use international agencies to identify links between illegal gangs in the UK
and abroad.
SOCA does not have its own detention facilities. Anyone arrested by a SOCA officer must be
taken to a police station to be processed there by a custody officer. The police, not SOCA, will
deal with the aspects of the custody.
SOCA officers may be designated the powers of a constable or an officer of HMRC. Under
section 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 every
constable has a duty to assist SOCA in the exercise of its functions (section 37 SOCPA).
SOCA can be contacted at:
The Serious Organised Crime Agency
SOCA HQ
1 Old Queen Street
London
SW1H 9HP
Telephone: 020 7035 6666
Fax: 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 standards
service. This includes enforcing a wide range of statutory provisions in relation to consumer
protection and for bringing criminal prosecutions where necessary. Responsibility for setting
trading standards’ priorities and resources lies with each LA. Most offences investigated by
trading standards departments are committed by those acting in the course of a trade or
business only. The investigation will be conducted by a Trading Standards Officer or
Enforcement 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 deliberate
attempts to defraud customers. Depending on the seriousness of the offence and the quality of
the 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 of
repeated failure to comply with legislation, to seek an undertaking or court order requiring a
trader 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 via
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 to
POCA. In the majority of cases POCA provides sufficient powers to suit the case in hand. Where
the 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 the
advice 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 be
forfeited 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 drug
dealer used to commit an offence. This can also include cash seized by police that relates
directly to an offence. Investigators may find it useful to apply for forfeiture, under the MDA, of
cash or anything shown to relate to the offence in those cases where the time and resources
needed to support a confiscation investigation would outweigh the amount of available assets
the offender is able to pay back. Confiscation proceedings would be dealt with first, prior to any
forfeiture 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 to
proceed under section 27 of the MDA. The officer would not be required to prepare a
confiscation report under those circumstances, however, the court can always ask for one to be
carried out. An offender who is also a prolific drug user might have no assets and absolutely no
means of paying a confiscation order. The police could still, however, apply for forfeiture of the
car 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 it
cannot 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 deprive
them of any property that was used, or intended to be used, for the purposes of committing, or
facilitating the commission, of any offence. The property needs to have been lawfully seized
from them, or be in their possession or under their control when they were apprehended, or
when a summons in respect of the offence was issued. The Act requires that the property
concerned should have been used to commit any offence, and not necessarily the offence of
which 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 any
steps after the offence has been committed to dispose of property which is the subject of the
crime, or to avoid apprehension or detection. The property need not have been used personally
by 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 of
the defendant’ will suffice, and includes the forfeiture of any vehicle used to commit serious
traffic offences.
The accused is deprived of their rights to the property which passes into the possession of the
police. The provisions of the Police (Property) Act 1897 apply and a person may claim the
property 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 the
same 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 a
claim 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 a
person 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 seizure
from a person.
Section 59 gives any person, with a relevant interest in property seized using these powers the
right to apply to the appropriate judicial authority for it to be returned. This power is fully
explained in the Police and Criminal Evidence Act 1984 Codes of Practice A-G (2005 Edition
Code B 7.7-7.17).
In brief it allows for the seizure of property (often documentary) where the sheer volume or
complexity means that it could not be considered reasonably practicable to search it where it
was originally located.
The Criminal Justice and Police Act and PACE Codes specify various considerations including the
service of a written notice (Code B 7.12). Investigators should seek the assistance of their FIU
when 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. This
includes tangible property, money likely to be used for the purposes of terrorism, the proceeds
from the commission of acts of terrorism, and the direct or indirect proceeds of acts carried out
for the purposes of terrorism. The definition is wider in relation to an organisation which is
proscribed (outlawed in the UK), where it can relate to any resources (any money or other
property which is or will be applied or made available for use by the organisation). There then
follows 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 Act
2001. Part 1 replaces the seizure of cash powers in the Terrorism Act 2000. Section 3 and
Schedule 2 amend other parts of the Terrorism Act 2000 to ensure that investigative and
freezing powers are more widely available. The 2001 Act also introduces Account Monitoring
Orders 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 any
cash whether or not any proceedings have been brought for an offence in connection with the
cash. By Schedule 1, paragraph 2, an authorised officer may seize and detain any cash to which
this section applies if he has reasonable grounds for suspecting that it is terrorist cash. The
seizure may be undertaken even if it is not reasonably practicable to seize only that part of the
cash believed to be terrorist cash. Authorisation to seize cash should be obtained from a senior
officer prior to the actual seizure of the cash. Verbal authorisation should be supported by
written authorisation as soon as is reasonably practicable. Once seized, the cash must be
released 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 magistrates
court for an order. The court may grant the order only if satisfied that there are reasonable
grounds 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 the
continued detention of the cash is justified pending completion of an investigation of its origin
or derivation, or pending a determination whether to institute criminal proceedings, or pending
the conclusion of proceedings. An authorised officer or the Commissioner of HMRC may also
apply to a magistrate’s court for an order forfeiting detained cash. The forfeiture can apply not
only 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 person
commits an offence if they enter into or becomes concerned in an arrangement which
facilitates the retention or control of terrorist property by, on behalf of, another. In order to
assist the detection process the Act encourages financial intermediaries to report any suspicious
activity to the authorities (section 19(1)). A stricter duty to disclose is imposed on the regulated
sector 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 convicted
of a section 15, 16, 17 or 18 offence to make a forfeiture order. Under subsection (6) the court
may also order the forfeiture of any money or other property, which wholly or partly, directly or
indirectly, is received by any person as a payment or other reward in connection with the
commission of offences under sections 15 to 18. Schedule 4, paragraph 5 allows the High
Court to make a restraint order where a forfeiture order has already been made, or it appears to
the High Court that a forfeiture order may be made in the proceedings for the offence, or even
where 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 restraint
order is to prohibit a person to whom notice of it is given from dealing with the relevant
property. To reinforce the powers of restraint, Schedule 4, paragraph 7 allows a constable a
summary power of seizure of any property subject to a restraint order for the purpose of
preventing it from being removed from the jurisdiction, though the seizure should then be
notified 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 state
that:
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 been
or 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 the
United 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 condition
is 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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AP P E NDI X
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APPENDIX 1
ABBREVIATIONS ANDACRONYMS
ABBREVIATIONS AND ACRONYMS
ACPO . . . . . . Association of Chief Police Officers
AFI. . . . . . . . . Accredited Financial Investigator
ARA. . . . . . . . Assets Recovery Agency
ATCSA. . . . . . Anti-Terrorism, Crime and Security Act 2001
BCU. . . . . . . . Basic Command Unit
CIB. . . . . . . . . Companies Investigation Branch
CIFAS . . . . . . The UK’s fraud prevention service
CJA . . . . . . . . Criminal Justice Act 1988
CJPA . . . . . . . Criminal Justice and Police Act 2001
CPIA . . . . . . . Criminal Procedure and Investigations Act 1996
CPS . . . . . . . . Crown Prosecution Service
DEFRA. . . . . . Department for Environment, Food and Rural Affairs
DIS . . . . . . . . Department for Environment, Food and Rural Affairs Investigation Service
DPA . . . . . . . . Data Protection Act 1998
DTA . . . . . . . . Drug Trafficking Act 1994
DTI . . . . . . . . Department of Trade and Industry
DWP . . . . . . . Department for Work and Pensions
FI . . . . . . . . . . Financial Investigator
FIB . . . . . . . . . Force Intelligence Bureau
FIU. . . . . . . . . Financial Investigation Unit
FSA . . . . . . . . Financial Services Authority
HMIC. . . . . . . Her Majesty’s Inspectorate of the Constabulary
HMRC . . . . . . Her Majesty’s Revenue and Customs
HRA. . . . . . . . Human Rights Act 1998INDIS. . . . . . . Immigration and Nationality Directorate Intelligence Service
IPS . . . . . . . . . Identity and Passport Service
ISA . . . . . . . . Investment Savings Account
JARD . . . . . . . Joint Asset Recovery Database
LA . . . . . . . . . Local Authority
LPP . . . . . . . . Legal Professional Privilege
MDA . . . . . . . Misuse of Drugs Act 1971
MLRO . . . . . . Money Laundering Reporting Officer
MOU . . . . . . . Memorandum of Understanding
MTIC . . . . . . . Missing Trader Intra-Community (Fraud)
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NASS. . . . . . . National Asylum Support Service
NCIS . . . . . . . National Criminal Intelligence Service
NCPE . . . . . . . National Centre for Policing Excellence
NIM. . . . . . . . National Intelligence Model
NTFIU . . . . . . National Terrorist Financial Investigation UnitOFT . . . . . . . . Office of Fair Trading
PACE . . . . . . . Police and Criminal Evidence Act 1984
PCC(S)A . . . . Powers of Criminal Courts (Sentencing) Act 2000
PII . . . . . . . . . Public Interest Immunity
PIP . . . . . . . . . Professionalising the Investigation Processes
PNC . . . . . . . . Police National Computer
POCA . . . . . . Proceeds of Crime Act 2002
RART . . . . . . . Regional Asset Recovery Team
RCPO. . . . . . . Revenue and Customs Prosecutions Office
RIPA . . . . . . . Regulation of Investigatory Powers Act 2000
SAR . . . . . . . . Suspicious Activity Report
SFO . . . . . . . . Serious Fraud OfficeSIO . . . . . . . . Senior Investigating Officer
SLA . . . . . . . . Service Level Agreement
SOCA . . . . . . Serious Organised Crime Agency
SOCPA. . . . . . Serious Organised Crime and Police Act 2005
TICs . . . . . . . . (Offences) Taken Into Consideration
TSO . . . . . . . . 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 from
http://www.fenlandtoday.co.uk [Accessed 23 August 2006].
HMIC, HMCPSI and MCSI (n.d.) Payback Time – Joint Review of Asset Recovery Since the
Proceeds of Crime Act 2002 [Internet]. London: HMICA. Available from
http://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 from
http://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 the
Proceeds 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 Best Practice 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 CREDITS
Picture credits are listed by page number. Every effort has been made to correctly identify the
copyright holder, but any omissions or corrections brought to our attention will be included in
future 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 2
REFERENCES
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APPENDIX 3
SAMPLE 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 number
The 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 of
seizure 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 4
Form A with Notes onCompletion(First/Further Application
for Continued Detention of
Seized Cash)
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PROCEEDS OF CRIME ACT 2002 Form A
First/Further** Application for Continued Detention of Seized Cash
Section 295(4) Proceeds of Crime Act 2002 MC (Detention and
Forfeiture of Cash) Rules 2002 rr 4(1), 5(1)
Should detail
each place cash
is seized from,eg, which
separate place
within a
premises
searched,such
as living room,
bathroom,
bedroom.
Time cash is first
seized in case. If
cash seized
from more than
one place in a
search then this
is time of first
seizure, NOT the
time of completing the
whole search.
Case Ref. No. Magistrates’ Court
Continued Detention. Court Code
Application 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 2002
authorising the continued detention of cash in the sum of and will state upon oath that one
of the two grounds below is satisfied:
There are reasonable grounds for suspecting that the cash is either recoverable property or
is 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) proceedings
against 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 have
been started and have not been concluded.
(State grounds)
Signed:……………………………………..
Form A should be completed and
signed by the officer who is actually
going to make the application at
court. It is an application by a
person, rather than an organisation
(such as the Police Service)
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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 order made 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 if applicable, notification of hearing should be given to the sender and intended recipient (if known).
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APPENDIX 5
Blank Form A
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PROCEEDS OF CRIME ACT 2002 Form A
First/Further** Application for Continued Detention of Seized Cash
Section 295(4) Proceeds of Crime Act 2002 MC (Detention and
Forfeiture of Cash) Rules 2002 rr 4(1), 5(1)
Case Ref. No. Magistrates’ Court
Continued Detention. Court Code Application 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 2002
authorising 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 or is 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) proceedings
against 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 have
been started and have not been concluded.
(State grounds)
Signed:……………………………………..
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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 at
least seven days before the expiry of the last period of detention that was ordered by the court. You must send a
copy of this application to the person from whom the cash was seized and any other person specified in any order
made 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 if
applicable, notification of hearing should be given to the sender and intended recipient (if known).
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APPENDIX 6
Form B(First/Further Order for Continued
Detention of Seized Cash)
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PROCEEDS OF CRIME ACT 2002 Form B
First/Further** Order for Continued Detention of Seized Cash
Section 295 (2) of the Proceeds of Crime Act 2002; MC
(Detention and Forfeiture of Cash) Rules 2002 rr 4(7), 5(4)
Case Ref. No. Magistrates’ Court
Continued Detention. Court Code Application 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):
Estimated amount to which reasonable grounds for suspicion
applies, (First application only) where it is not reasonablypracticable to detain only that part.
Amount to which reasonable grounds for suspicion applies.
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):
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 of
two 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 other
person 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, if
known, of sender and intended recipient.
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APPENDIX 7
Form C(Notice to Persons Affected by an
Order for Continued Detention of
Seized Cash)
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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)
Case Ref. No. Magistrates’ Court
Continued Detention. Court Code Application No.
Date:Name of person from whom cash seized:
Amount seized (estimated):
Estimated amount to which reasonable grounds for suspicion
applies, (First application only), where it is not reasonablypracticable to detain only that part.
Amount to which reasonable grounds for suspicion applies.
Date of seizure: Time of seizure:
Place of seizure:
On an order was made under Section 295 (2) of the Proceeds of Crime Act 2002 authorising the continued detention of cash in the sum of
for 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 cash
or any part of it under Section 297 of that Act. If the cash was in a letter, parcel, container or other means of unattended dispatch, the sender or the intended recipient may make the
application.
A person who claims that any detained cash or part thereof belongs to him, may apply
release 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 the
Justices' 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 as
clearly as possible the cash referred to.
At the end of the above mentioned period of detention an application may be made for the
further 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 to
the court for the release of the detained cash.
If you intend to consult a solicitor about these proceedings you should do so at once and
hand 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, if
known, of sender and intended recipient.
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