The Proceeds of Crime Act 2002 (Administrative Forfeiture Notices) (England and Wales and Northern Ireland) Regulations 2017

EXPLANATORY NOTE

(This note is not part of these Regulations)

Part 1 of these Regulations sets out how a senior officer must give an account forfeiture notice under section 303Z9 of the Proceeds of Crime Act 2002 (c. 29) (“the Act”). An account forfeiture notice relates to money in a bank account or a building society account in respect of which there is a reasonable suspicion that it is the proceeds of crime, or is intended to be used in unlawful conduct, and in respect of which an account freezing order under section 303Z3 of the Act has been made. An account forfeiture notice informs the recipient of the senior officer’s intention to forfeit the money without a hearing before a magistrates’ court (“administrative forfeiture”). The provisions for administrative forfeiture do not apply in Scotland, and are not being commenced in Northern Ireland at this time.

Regulation 2 provides that an account forfeiture notice must be given to persons known to be affected by an order freezing the money in the account. If there are no persons falling within the description, or it would not be possible to give such a person a notice in accordance with the requirements of the Regulations, then the notice must be given instead by publication (unless the affected persons are outside the United Kingdom).

Regulation 3 sets out the manner in which an account forfeiture notice must be given. A notice being given to such a person may be sent by post or by means of an electronic communication. A notice given by publication must be published in the London Gazette, the Belfast Gazette and/or the Edinburgh Gazette, as applicable.

Regulation 4 sets out the requirements for giving an account forfeiture notice by post, and makes provision for when the notice is to be treated as having been given. Regulation 5 sets out the requirements for giving an account forfeiture notice by means of electronic communication, and makes provision for when the notice is to be treated as having been given.

Regulation 6 concerns the giving of an account forfeiture notice to a person known to be a child who is not a person lacking sufficient mental capacity (a “protected person”), or to a protected person.

Parts 3 and 4 of these Regulations amend the existing regulations (for England and Wales and Northern Ireland respectively) which govern the way in which an administrative forfeiture notice is to be given under the cash forfeiture provisions in Chapter 3 of the Act. A cash forfeiture notice may be given by a senior officer in respect of detained cash if the cash is reasonably suspected to derive from, or be intended for use in, unlawful conduct. A cash forfeiture notice informs the recipient of the senior officer’s intention to forfeit the cash without a hearing before a magistrates’ court. The amendments made by Parts 3 and 4 of these Regulations ensure that the same provisions for giving a notice to someone outside the United Kingdom will apply for forfeiture notices relating to cash as apply for forfeiture notices relating to money in bank or building society accounts. In addition, the amendments ensure that cash forfeiture notices can be given by publication, or given to a child or a protected person, in any UK jurisdiction.

An impact assessment has not been produced for this instrument as no impact is foreseen on the private, voluntary or public sectors.