The Proceeds of Crime Act 2002 (External Investigations and External Orders and Requests) (Amendment) Order 2018

Appointment of receivers in connection with prohibitory property orders - external orders (Scotland)

26.  After article 166 (inhibition of property affected by prohibitory property order), insert—

“Receivers in connection with prohibitory property orders

166A.— (1) Paragraph (2) applies if—

(a) the Court of Session makes a prohibitory property order on an application by an enforcement authority, and

(b) the authority applies to the court to proceed under paragraph (2) (whether as part of the application for the prohibitory property order or at any time afterwards).

(2) The Court of Session may by order appoint a person (a “PPO receiver”) in respect of any property to which the prohibitory property order applies.

(3) An application for an order under this article may be made without notice if the circumstances are such that notice of the application would prejudice any right of the enforcement authority to obtain a recovery order in respect of any property.

(4) In its application for an order under this article, the enforcement authority must nominate a suitably qualified person for appointment as a PPO receiver.

(5) Such a person may be a member of staff of the enforcement authority.

(6) The enforcement authority may apply a sum received by it under article 191(2) (applying realised proceeds) in making payment of the remuneration and expenses of a PPO receiver appointed under this article.

(7) Paragraph (6) does not apply in relation to the remuneration of a PPO receiver who is a member of the staff of the enforcement authority (but it does apply in relation to such remuneration if the PPO receiver is a person providing services under arrangements made by the enforcement authority).

Powers of receivers appointed under article 166A

166B.— (1) If the Court of Session appoints a PPO receiver under article 166A (receivers in connection with prohibitory property orders) on an application by an enforcement authority, the court may act under this article on the application of the authority.

(2) The court may by order authorise or require the PPO receiver—

(a) to exercise any of the powers mentioned in paragraph 5 of Schedule 2 (management powers) in relation to any property in respect of which the PPO receiver is appointed,

(b) to take any other steps the court thinks appropriate in connection with the management of any such property (including securing the detention, custody or preservation of the property in order to manage it).

(3) The court may by order require any person in respect of whose property the PPO receiver is appointed—

(a) to bring the property to a place in Scotland specified by the PPO receiver or to place it in the custody of the PPO receiver (if, in either case, the person is able to do so),

(b) to do anything the person is reasonably required to do by the PPO receiver for the preservation of the property.

(4) The court may by order require any person in respect of whose property the PPO receiver is appointed to bring any documents relating to the property which are in the person’s possession or control to a place in Scotland specified by the PPO receiver or to place them in the custody of the PPO receiver.

(5) In paragraph (4) “document” means anything in which information of any description is recorded.

(6) Any prohibition on dealing with property imposed by a prohibitory property order does not prevent a person from complying with any requirements imposed by virtue of this article.

(7) If—

(a) the PPO receiver deals with any property which is not property in respect of which the PPO receiver is appointed under article 166A, and

(b) at the time of dealing with the property the PPO receiver believes on reasonable grounds that they are entitled to do so by virtue of being appointed under article 166A,

the PPO receiver is not liable to any person in respect of any loss or damage resulting from the PPO receiver dealing with the property except so far as the loss or damage is caused by the PPO receiver’s negligence.

Supervision of PPO receiver and variations

166C.— (1) Any of the following persons may at any time apply to the Court of Session for directions as to the exercise of the functions of a PPO receiver—

(a) the PPO receiver,

(b) any party to the proceedings for the appointment of the PPO receiver or the prohibitory property order concerned,

(c) any person affected by any action taken by the PPO receiver,

(d) any person who may be affected by any action proposed to be taken by the PPO receiver.

(2) Before giving any directions under paragraph (1), the court must give an opportunity to be heard to—

(a) the PPO receiver,

(b) the parties to the proceedings for the appointment of the PPO receiver and for the prohibitory property order concerned,

(c) any person who may be interested in the application under paragraph (1).

(3) The court may at any time vary or recall—

(a) an order appointing a PPO receiver,

(b) any order under article 166B (powers of receivers appointed under article 166A), or

(c) any directions under this article.

(4) Before exercising any power under paragraph (3), the court must give an opportunity to be heard to—

(a) the PPO receiver,

(b) the parties to the proceedings for—

(i) the appointment of the PPO receiver,

(ii) the order under article 166B, or

(iii) (as the case may be) the directions under this article,

(c) the parties to the proceedings for the prohibitory property order concerned,

(d) any person who may be affected by the court’s decision.”.