SCHEDULES

Section 1

SCHEDULE 1 U.K. Forfeiture of terrorist [F1 cash] [F1 property]

Textual Amendments

F1 Word in Sch. 1 heading substituted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(2); S.I. 2018/78, reg. 5(1)(c)

PART 1 U.K. Introductory [F2 : forfeiture of terrorist cash]

Textual Amendments

F2 Words in Sch. 1 Pt. 1 heading inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(3); S.I. 2018/78, reg. 5(1)(c)

Terrorist cash U.K.

1 (1) This Schedule [F3 (other than Parts 4A and 4B)] applies to cash (“terrorist cash”) which— U.K.

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(2) “Cash” means—

(a) coins and notes in any currency,

(b) postal orders,

(c) cheques of any kind, including travellers’ cheques,

(d) bankers’ drafts,

(e) bearer bonds and bearer shares,

[F4 (f) gaming vouchers,

(g) fixed-value casino tokens,

(h) betting receipts,]

found at any place in the United Kingdom.

(3) Cash also includes any kind of monetary instrument which is found at any place in the United Kingdom, if the instrument is specified by the Secretary of State by order.

(4) The power to make an order under sub-paragraph (3) is exercisable by statutory instrument, which is subject to annulment in pursuance of a resolution of either House of Parliament.

[F5 (5) For the purposes of sub-paragraph (2)—

(a) “gaming voucher” means a voucher in physical form issued by a gaming machine that represents a right to be paid the amount stated on it;

(b) “fixed-value casino token” means a casino token that represents a right to be paid the amount stated on it;

(c) “betting receipt” means a receipt in physical form that represents a right to be paid an amount in respect of a bet placed with a person holding a betting licence.

(6) In sub-paragraph (5)—

• “bet”—

  (a)

  in relation to England and Wales and Scotland, has the same meaning as in section 9(1) of the Gambling Act 2005;

  (b)

  in relation to Northern Ireland, has the same meaning as in the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (S.I. 1985/1204 (N.I. 11)) (see Article 2 of that Order);

• “betting licence”—

  (a)

  in relation to England and Wales and Scotland, means a general betting operating licence issued under Part 5 of the Gambling Act 2005;

  (b)

  in relation to Northern Ireland, means a bookmaker's licence as defined in Article 2 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985;

• “gaming machine”—

  (a)

  in relation to England and Wales and Scotland, has the same meaning as in the Gambling Act 2005 (see section 235 of that Act);

  (b)

  in relation to Northern Ireland, has the same meaning as in the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (see Article 2 of that Order).

(7) In the application of sub-paragraph (5) to Northern Ireland references to a right to be paid an amount are to be read as references to the right that would exist but for Article 170 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (gaming and wagering contracts void).]

Textual Amendments

F3 Words in Sch. 1 para. 1(1) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(4); S.I. 2018/78, reg. 5(1)(c)

F4 Sch. 1 para. 1(2)(f)-(h) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(2)(a), 58(1)(6); S.I. 2018/78, reg. 3(u)

F5 Sch. 1 para. 1(5)-(7) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(2)(b), 58(1)(6); S.I. 2018/78, reg. 3(u)

PART 2 U.K. Seizure and detention [F6 of terrorist cash]

Textual Amendments

F6 Words in Sch. 1 Pt. 2 heading inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(5); S.I. 2018/78, reg. 5(1)(c)

Seizure of cash U.K.

2 (1) An authorised officer may seize any cash if he has reasonable grounds for suspecting that it is terrorist cash. U.K.

(2) An authorised officer may also seize cash part of which he has reasonable grounds for suspecting to be terrorist cash if it is not reasonably practicable to seize only that part.

Detention of seized cash U.K.

3 (1) While the authorised officer continues to have reasonable grounds for his suspicion, cash seized under this Schedule may be detained initially for a period of 48 hours. U.K.

[F7 (1A) In determining the period of 48 hours specified in sub-paragraph (1) there shall be disregarded—

(a) any Saturday or Sunday;

(b) Christmas Day;

(c) Good Friday;

(d) any day that is a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom in which the cash is seized;

(e) any day prescribed under section 8(2) of the Criminal Procedure (Scotland) Act 1995 as a court holiday in the sheriff court district in which the cash is seized.]

(2) The period for which the cash or any part of it may be detained may be extended by an order made by a magistrates’ court or (in Scotland) the sheriff; but the order may not authorise the detention of any of the cash—

(a) beyond the end of the period of [F8 three] [F8 6] months beginning with the date of the order, and

(b) in the case of any further order under this paragraph, beyond the end of the period of two years beginning with the date of the first order.

(3) A justice of the peace may also exercise the power of a magistrates’ court to make the first order under sub-paragraph (2) extending the period.

[F9 (3A) An application to [F10 a magistrates' court,] a justice of the peace or the sheriff for an order under sub-paragraph (2) making the first extension of the period—

(a) may be made and heard without notice of the application or hearing having been given to any of the persons affected by the application or to the legal representative of such a person, and

(b) may be heard and determined in private in the absence of persons so affected and of their legal representatives.]

(4) An order under sub-paragraph (2) must provide for notice to be given to persons affected by it.

(5) An application for an order under sub-paragraph (2)—

(a) in relation to England and Wales and Northern Ireland, may be made by the Commissioners of Customs and Excise or an authorised officer,

(b) in relation to Scotland, may be made by a procurator fiscal,

and the court, sheriff or justice may make the order if satisfied, in relation to any cash to be further detained, that one of the following conditions is met.

(6) The first condition is that there are reasonable grounds for suspecting that the cash is intended to be used for the purposes of terrorism and that either—

(a) its continued detention is justified while its intended use 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.

(7) The second condition is that there are reasonable grounds for suspecting that the cash consists of resources of an organisation which is a proscribed organisation and that either—

(a) its continued detention is justified while investigation is made into whether or not it consists of such resources 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.

(8) The third condition is that there are reasonable grounds for suspecting that the cash is property earmarked as terrorist property and that either—

(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.

[F11 (9) Where an application for an order under sub-paragraph (2) relates to cash seized under paragraph 2(2), the court, sheriff or justice may make the order if satisfied that—

(a) the condition in sub-paragraph (6), (7) or (8) is met in respect of part of the cash, and

(b) it is not reasonably practicable to detain only that part.]

Textual Amendments

F7 Sch. 1 para. 3(1A) inserted (with application in accordance with s. 83(4) of the amending Act) by Counter-Terrorism Act 2008 (c. 28), ss. 83(2), 100(5) (with s. 101(2)); S.I. 2009/58, art. 2(h)

F8 Word in Sch. 1 para. 3(2)(a) substituted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(3)(a), 58(1)(6); S.I. 2018/78, reg. 3(u)

F9 Sch. 1 para. 3(3A) inserted (13.4.2006) by Terrorism Act 2006 (c. 11), ss. 35(1), 39(2) (with s. 35(2)); S.I. 2006/1013, art. 2

F10 Words in Sch. 1 para. 3(3A) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(6); S.I. 2018/78, reg. 5(1)(c)

F11 Sch. 1 para. 3(9) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(3)(b), 58(1)(6); S.I. 2018/78, reg. 3(u)

Payment of detained cash into an account U.K.

4 (1) If cash is detained under this Schedule for more than 48 hours [F12 (determined in accordance with paragraph 3(1A))] , it is to be held in an interest-bearing account and the interest accruing on it is to be added to it on its forfeiture or release. U.K.

(2) In the case of cash seized under paragraph 2(2), the authorised officer must, on paying it into the account, release so much of the cash then held in the account as is not attributable to terrorist cash.

(3) Sub-paragraph (1) does not apply if the cash is required as evidence of an offence or evidence in proceedings under this Schedule.

Textual Amendments

F12 Words in Sch. 1 para. 4(1) inserted (with application in accordance with s. 83(4) of the amending Act) by Counter-Terrorism Act 2008 (c. 28), ss. 83(3), 100(5) (with s. 101(2)); S.I. 2009/58, art. 2(h)

Release of detained cash U.K.

5 (1) This paragraph applies while any cash is detained under [F13 this Schedule] [F13 any provision of this Schedule other than Part 2A] . U.K.

(2) A magistrates’ court or (in Scotland) the sheriff may direct the release of the whole or any part of the cash if satisfied, on an application by the person from whom it was seized, that the conditions in paragraph 3 for the detention of cash are no longer met in relation to the cash to be released.

(3) A authorised officer or (in Scotland) a procurator fiscal may, after notifying the magistrates’ court, sheriff or justice under whose order cash is being detained, release the whole or any part of it if satisfied that the detention of the cash to be released is no longer justified.

(4) [F14 But cash is not to be released—

(a) if an application for its forfeiture under paragraph 6, or for its release under paragraph 9, is made, until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded,

(b) if (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the cash is connected, until the proceedings are concluded.]

Textual Amendments

F13 Words in Sch. 1 para. 5(1) substituted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(7); S.I. 2018/78, reg. 5(1)(c)

F14 Sch. 1 para. 5(4) omitted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by virtue of Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(8); S.I. 2018/78, reg. 5(1)(c)

F15 [F15 PART 2A U.K. Forfeiture of terrorist cash without court order

Textual Amendments

F15 Sch. 1 Pt. 2A inserted (27.4.2017 for specified purposes, 30.1.2018 for the insertion of Sch. 1 para. 5A(10), 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(4), 58(1)(6); S.I. 2018/78, regs. 2(d), 3(u)

Cash forfeiture notice U.K.

5A (1) This paragraph applies while any cash is detained in pursuance of an order under paragraph 3(2).

(2) A senior officer may give a notice for the purpose of forfeiting the cash or any part of it if satisfied that the cash or part is terrorist cash.

(3) A notice given under sub-paragraph (2) is referred to in this Schedule as a cash forfeiture notice.

(4) A cash forfeiture notice must—

(a) state the amount of cash in respect of which it is given,

(b) state when and where the cash was seized,

(c) confirm that the senior officer is satisfied as mentioned in sub-paragraph (2),

(d) specify a period for objecting to the proposed forfeiture and an address to which any objections must be sent, and

(e) explain that the cash will be forfeited unless an objection is received at that address within the period for objecting.

(5) The period for objecting must be at least 30 days starting with the day after the notice is given.

(6) The Secretary of State must by regulations made by statutory instrument make provision about how a cash forfeiture notice is to be given.

(7) The regulations may (amongst other things) provide—

(a) for a cash forfeiture notice to be given to such person or persons, and in such manner, as may be prescribed;

(b) for a cash forfeiture notice to be given by publication in such manner as may be prescribed;

(c) for circumstances in which, and the time at which, a cash forfeiture notice is to be treated as having been given.

(8) The regulations must ensure that where a cash forfeiture notice is given it is, if possible, given to every person to whom notice of an order under paragraph 3(2) in respect of the cash has been given.

(9) A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of either House of Parliament.

(10) In this Part of this Schedule—

• “senior officer” means—

  (a)

  a senior police officer;

  (b)

  an officer of Revenue and Customs of a rank designated by the Commissioners for Her Majesty's Revenue and Customs as equivalent to that of a senior police officer;

  (c)

  an immigration officer of a rank designated by the Secretary of State as equivalent to that of a senior police officer;

• “senior police officer” means a police officer of at least the rank of superintendent.

Effect of cash forfeiture notice U.K.

5B (1) This paragraph applies if a cash forfeiture notice is given in respect of any cash.

(2) The cash is to be detained until—

(a) the cash is forfeited under this paragraph,

(b) the notice lapses under this paragraph, or

(c) the cash is released under a power conferred by this Schedule.

(3) If no objection is made within the period for objecting specified in the notice under paragraph 5A(4)(d), and the notice has not lapsed, the cash is forfeited (subject to paragraph 5D).

(4) If an objection is made within the period for objecting, the notice lapses.

(5) If an application is made for the forfeiture of the whole or any part of the cash under paragraph 6, the notice lapses.

(6) If the cash or any part of it is released under a power conferred by this Schedule, the notice lapses or (as the case may be) lapses in relation to that part.

(7) An objection may be made by anyone (whether a recipient of the notice or not).

(8) An objection means a written objection sent to the address specified in the notice; and an objection is made when it is received at the address.

(9) An objection does not prevent forfeiture of the cash under paragraph 6.

(10) Nothing in this paragraph affects the validity of an order under paragraph 3(2).

Detention following lapse of cash forfeiture notice U.K.

5C (1) This paragraph applies if—

(a) a cash forfeiture notice is given in respect of any cash,

(b) the notice lapses under paragraph 5B(4), and

(c) the period for which detention of the cash was authorised under paragraph 3(2) has expired.

(2) The cash may be detained for a further period of up to 48 hours (calculated in accordance with paragraph 3(1A)).

(3) But if within that period it is decided that neither of the applications mentioned in sub-paragraph (4) is to be made, the cash must be released.

(4) The applications are—

(a) an application for a further order under paragraph 3(2);

(b) an application for forfeiture of the cash under paragraph 6.

(5) If within that period an application is made for a further order under paragraph 3(2), the cash may be detained until the application is determined or otherwise disposed of.

Application to set aside forfeiture U.K.

5D (1) A person aggrieved by the forfeiture of cash in pursuance of paragraph 5B(3) may apply to a magistrates' court or (in Scotland) the sheriff for an order setting aside the forfeiture of the cash or any part of it.

(2) The application must be made before the end of the period of 30 days starting with the day on which the period for objecting ended (“the 30-day period”).

(3) But the court or sheriff may give permission for an application to be made after the 30-day period has ended if the court or sheriff thinks that there are exceptional circumstances to explain why the applicant—

(a) failed to object to the forfeiture within the period for objecting, and

(b) failed to make an application within the 30-day period.

(4) On an application under this paragraph the court or sheriff must consider whether the cash to which the application relates could be forfeited under paragraph 6 (ignoring the forfeiture mentioned in sub-paragraph (1)).

(5) If the court or sheriff is satisfied that the cash to which the application relates or any part of it could not be forfeited under that paragraph the court or sheriff must set aside the forfeiture of that cash or part.

(6) Where the court or sheriff sets aside the forfeiture of any cash—

(a) the court or sheriff must order the release of that cash, and

(b) the cash is to be treated as never having been forfeited.

Release of cash subject to cash forfeiture notice U.K.

5E (1) This paragraph applies while any cash is detained under paragraph 5B or 5C.

(2) The person from whom the cash was seized may apply to a magistrates' court or (in Scotland) the sheriff for the cash to be released.

(3) On an application under sub-paragraph (2), the court or sheriff may direct the release of the cash or any part of it if not satisfied that the cash to be released is terrorist cash.

(4) An authorised officer may release the cash or any part of it if satisfied that the detention of the cash to be released is no longer justified.

Application of cash forfeited under cash forfeiture notice U.K.

5F (1) Cash forfeited in pursuance of paragraph 5B(3), and any accrued interest on it—

(a) if first detained in pursuance of an order under paragraph 3(2) made by a magistrates' court or a justice of the peace, is to be paid into the Consolidated Fund;

(b) if first detained in pursuance of an order under paragraph 3(2) made by the sheriff, is to be paid into the Scottish Consolidated Fund.

(2) But it is not to be paid in—

(a) before the end of the period within which an application under paragraph 5D may be made (ignoring the possibility of an application by virtue of paragraph 5D(3)), or

(b) if an application is made within that period, before the application is determined or otherwise disposed of.]

PART 3 U.K. Forfeiture [F16 of terrorist cash]

Textual Amendments

F16 Words in Sch. 1 Pt. 3 heading inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(9); S.I. 2018/78, reg. 5(1)(c)

Forfeiture U.K.

6 (1) While cash is detained under this Schedule, an application for the forfeiture of the whole or any part of it may be made— U.K.

(a) to a magistrates’ court by the Commissioners of Customs and Excise or an authorised officer,

(b) (in Scotland) to the sheriff by the Scottish Ministers.

(2) The court or sheriff may order the forfeiture of the cash or any part of it if satisfied that the cash or part is terrorist cash.

(3) In the case of property earmarked as terrorist property which belongs to joint tenants one of whom is an excepted joint owner, the order may not apply to so much of it as the court or sheriff thinks is attributable to the excepted joint owner’s share.

(4) An excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against him) be earmarked; and references to his share of the earmarked property are to so much of the property as would have been his if the joint tenancy had been severed.

[F17 Appeal against decision in forfeiture proceedings U.K.

Textual Amendments

F17 Sch. 1 paras. 7, 7A substituted for Sch. 1 para. 7 (with application in accordance with s. 84(2) of the amending Act) by Counter-Terrorism Act 2008 (c. 28), ss. 84(1), 100(5) (with s. 101(2)); S.I. 2009/58, art. 2(h)

7 (1) A party to proceedings for an order under paragraph 6 (“a forfeiture order”) who is aggrieved by a forfeiture order made in the proceedings or by the decision of the court or sheriff not to make a forfeiture order may appeal— U.K.

(a) in England and Wales, to the Crown Court;

(b) in Scotland, to the sheriff principal;

(c) in Northern Ireland, to a county court.

(2) The appeal must be brought before the end of the period of 30 days beginning with the date on which the order is made or, as the case may be, the decision is given.

This is subject to paragraph 7A (extended time for appealing in certain cases of deproscription).

(3) The court or sheriff principal hearing the appeal may make any order that appears to the court or sheriff principal to be appropriate.

(4) If an appeal against a forfeiture order is upheld, the court or sheriff principal may order the release of [F18 the whole or any part of] the cash.

Textual Amendments

F18 Words in Sch. 1 para. 7(4) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(5), 58(1)(6); S.I. 2018/78, reg. 3(u)

Extended time for appealing in certain cases where deproscription order made U.K.

7A (1) This paragraph applies where— U.K.

(a) a successful application for a forfeiture order relies (wholly or partly) on the fact that an organisation is proscribed,

(b) an application under section 4 of the Terrorism Act 2000 for a deproscription order in respect of the organisation is refused by the Secretary of State,

(c) the forfeited cash is seized under this Schedule on or after the date of the refusal of that application,

(d) an appeal against that refusal is allowed under section 5 of that Act,

(e) a deproscription order is made accordingly, and

(f) if the order is made in reliance on section 123(5) of that Act, a resolution is passed by each House of Parliament under section 123(5)(b).

(2) Where this paragraph applies, an appeal under paragraph 7 above against the forfeiture order may be brought at any time before the end of the period of 30 days beginning with the date on which the deproscription order comes into force.

(3) In this paragraph a “deproscription order” means an order under section 3(3)(b) or (8) of the Terrorism Act 2000.]

Application of forfeited cash U.K.

8 (1) Cash forfeited under [F19 this Schedule] [F19 paragraph 6] , and any accrued interest on it— U.K.

(a) if forfeited by a magistrates’ court in England and Wales or Northern Ireland, is to be paid into the Consolidated Fund,

(b) if forfeited by the sheriff, is to be paid into the Scottish Consolidated Fund.

(2) But it is not to be paid in—

(a) before the end of the period within which an appeal under paragraph 7 may be made, or

(b) if a person appeals under that paragraph, before the appeal is determined or otherwise disposed of.

Textual Amendments

F19 Words in Sch. 1 para. 8(1) substituted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(10); S.I. 2018/78, reg. 5(1)(c)

PART 4 U.K. Miscellaneous [F20 : terrorist cash]

Textual Amendments

F20 Words in Sch. 1 Pt. 4 heading inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(11); S.I. 2018/78, reg. 5(1)(c)

Victims U.K.

9 (1) A person who claims that any cash detained under this Schedule, or any part of it, belongs to him may apply to a magistrates’ court or (in Scotland) the sheriff for the cash or part to be released to him. U.K.

(2) The application may be made in the course of proceedings under paragraph 3 or 6 or at any other time.

(3) If it appears to the court or sheriff concerned that—

(a) the applicant was deprived of the cash claimed, or of property which it represents, by criminal conduct,

(b) the property he was deprived of was not, immediately before he was deprived of it, property obtained by or in return for criminal conduct and nor did it then represent such property, and

(c) the cash claimed belongs to him,

the court or sheriff may order the cash to be released to the applicant.

[F21 (4) If sub-paragraph (5) applies, the court or sheriff may order the cash to be released to the applicant or to the person from whom it was seized.

(5) This sub-paragraph applies where—

(a) the applicant is not the person from whom the cash claimed was seized,

(b) it appears to the court or sheriff that the cash belongs to the applicant,

(c) the court or sheriff is satisfied that the release condition is met in relation to the cash, and

(d) no objection to the making of an order under sub-paragraph (4) has been made by the person from whom the cash was seized.

(6) The release condition is met—

(a) in relation to cash detained under paragraph 3, if the conditions in that paragraph for the detention of the cash are no longer met,

(b) in relation to cash detained under paragraph 5B or 5C, if the cash is not terrorist cash, and

(c) in relation to cash detained pending the conclusion of proceedings in pursuance of an application under paragraph 6, if the court or sheriff decides not to make an order under that paragraph in relation to the cash.]

Textual Amendments

F21 Sch. 1 para. 9(4)-(6) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(6), 58(1)(6); S.I. 2018/78, reg. 3(u)

[F22 Restrictions on release U.K.

Textual Amendments

F22 Sch. 1 para. 9A and cross-heading inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(12); S.I. 2018/78, reg. 5(1)(c)

9A U.K. Cash is not to be released under any power or duty conferred or imposed by this Schedule (and so is to continue to be detained)—

(a) if an application for its forfeiture under paragraph 6, or for its release under paragraph 9, is made, until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded;

(b) if (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the cash is connected, until the proceedings are concluded.]

Compensation U.K.

10 (1) If no forfeiture order is made in respect of any cash detained under this Schedule, [F23 and the cash is not otherwise forfeited in pursuance of a cash forfeiture notice,] the person to whom the cash belongs or from whom it was seized may make an application to the magistrates’ court or (in Scotland) the sheriff for compensation. U.K.

(2) If, for any period after the initial detention of the cash for 48 hours [F24 (determined in accordance with paragraph 3(1A))] , the cash was not held in an interest-bearing account while detained, the court or sheriff may order an amount of compensation to be paid to the applicant.

(3) The amount of compensation to be paid under sub-paragraph (2) is the amount the court or sheriff thinks would have been earned in interest in the period in question if the cash had been held in an interest-bearing account.

(4) If the court or sheriff is satisfied that, taking account of any interest to be paid under this Schedule or any amount to be paid under sub-paragraph (2), the applicant has suffered loss as a result of the detention of the cash and that the circumstances are exceptional, the court or sheriff may order compensation (or additional compensation) to be paid to him .

(5) The amount of compensation to be paid under sub-paragraph (4) is the amount the court or sheriff thinks reasonable, having regard to the loss suffered and any other relevant circumstances.

(6) If the cash was seized by a customs officer, the compensation is to be paid by the Commissioners of Customs and Excise.

(7) If the cash was seized by a constable, the compensation is to be paid as follows—

(a) in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met,

(b) in the case of a constable of [F25 the Police Service of Scotland, it is to be paid by the Scottish Police Authority,]

(c) in the case of a police officer within the meaning of the Police (Northern Ireland) Act 2000 (c. 32), it is to be paid out of money provided by the Chief Constable.

[F26 (7A) If the cash was seized by a counter-terrorism financial investigator, the compensation is to be paid as follows—

(a) in the case of a counter-terrorism financial investigator who was—

(i) a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of the Police Reform and Social Responsibility Act 2011, or

(ii) a member of staff of the City of London police force,

it is to be paid out of the police fund from which the expenses of the police force are met,

(b) in the case of a counter-terrorism financial investigator who was a member of staff of the Police Service of Northern Ireland, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.]

(8) If the cash was seized by an immigration officer, the compensation is to be paid by the Secretary of State.

[F27 (8A) If any cash is detained under this Schedule and part only of the cash is forfeited in pursuance of a cash forfeiture notice, this paragraph has effect in relation to the other part.]

(9) If a forfeiture order is made in respect only of a part of any cash detained under this Schedule, this paragraph has effect in relation to the other part.

(10) This paragraph does not apply if the court or sheriff makes an order under paragraph 9.

Textual Amendments

F23 Words in Sch. 1 para. 10(1) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(13); S.I. 2018/78, reg. 5(1)(c)

F24 Words in Sch. 1 para. 10(2) inserted (with application in accordance with s. 83(4) of the amending Act) by Counter-Terrorism Act 2008 (c. 28), ss. 83(3), 100(5) (with s. 101(2)); S.I. 2009/58, art. 2(h)

F25 Words in Sch. 1 para. 10(7)(b) substituted (1.4.2013) by The Police and Fire Reform (Scotland) Act 2012 (Consequential Provisions and Modifications) Order 2013 (S.I. 2013/602), art. 1(2), Sch. 2 para. 37(4)

F26 Sch. 1 para. 10(7A) inserted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 41(6)(a), 58(4)(6)

F27 Sch. 1 para. 10(8A) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(14); S.I. 2018/78, reg. 5(1)(c)

F28 [F28 PART 4A U.K. Forfeiture of terrorist assets

Textual Amendments

F28 Sch. 1 Pt. 4A inserted (27.4.2017 for specified purposes, 30.1.2018 for the insertion of Sch. 1 para. 10G(9), 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 3 para. 2; S.I. 2018/78, regs. 2(h), 3(cc)

Definition of “listed asset” U.K.

10A (1) In this Part of this Schedule, a “listed asset” means an item of property that falls within one of the following descriptions of property— U.K.

(a) precious metals;

(b) precious stones;

(c) watches;

(d) artistic works;

(e) face-value vouchers;

(f) postage stamps.

(2) The Secretary of State may by regulations made by statutory instrument amend sub-paragraph (1)—

(a) by removing a description of property;

(b) by adding a description of tangible personal (or corporeal moveable) property.

(3) A statutory instrument containing regulations under sub-paragraph (2) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(4) In this paragraph—

(a) “precious metal” means gold, silver or platinum (whether in an unmanufactured or a manufactured state);

(b) “artistic work” means a piece of work falling within section 4(1)(a) of the Copyright, Designs and Patents Act 1988;

(c) “face-value voucher” means a voucher in physical form that represents a right to receive goods or services to the value of an amount stated on it.

Seizure of listed assets U.K.

10B (1) An authorised officer may seize any item of property if the authorised officer has reasonable grounds for suspecting that— U.K.

(a) it is a listed asset, and

(b) it is within subsection (1)(a) or (b) of section 1 or it is property earmarked as terrorist property.

(2) An authorised officer may also seize any item of property if—

(a) the authorised officer has reasonable grounds for suspecting the item to be a listed asset,

(b) the authorised officer has reasonable grounds for suspecting that part of the item is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property, and

(c) it is not reasonably practicable to seize only that part.

Initial detention of seized property U.K.

10C (1) Property seized under paragraph 10B may be detained for an initial period of 48 hours. U.K.

(2) Sub-paragraph (1) authorises the detention of property only for so long as an authorised officer continues to have reasonable grounds for suspicion in relation to that property as described in paragraph 10B(1) or (2) (as the case may be).

(3) In calculating a period of hours for the purposes of this paragraph, no account shall be taken of—

(a) any Saturday or Sunday,

(b) Christmas Day,

(c) Good Friday,

(d) any day that is a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom within which the property is seized, or

(e) any day prescribed under section 8(2) of the Criminal Procedure (Scotland) Act 1995 as a court holiday in a sheriff court in the sheriff court district within which the property is seized.

Further detention of seized property U.K.

10D (1) The period for which property seized under paragraph 10B, or any part of that property, may be detained may be extended by an order made— U.K.

(a) in England and Wales or Northern Ireland, by a magistrates' court;

(b) in Scotland, by the sheriff.

(2) An order under sub-paragraph (1) may not authorise the detention of any property—

(a) beyond the end of the period of 6 months beginning with the date of the order, and

(b) in the case of any further order under this paragraph, beyond the end of the period of 2 years beginning with the date of the first order.

(3) A justice of the peace may also exercise the power of a magistrates' court to make the first order under sub-paragraph (1) extending a particular period of detention.

(4) An application to a magistrates' court, a justice of the peace or the sheriff to make the first order under sub-paragraph (1) extending a particular period of detention—

(a) may be made and heard without notice of the application or hearing having been given to any of the persons affected by the application or to the legal representatives of such a person, and

(b) may be heard and determined in private in the absence of persons so affected and of their legal representatives.

(5) An application for an order under sub-paragraph (1) may be made—

(a) in relation to England and Wales and Northern Ireland, by the Commissioners for Her Majesty's Revenue and Customs or an authorised officer;

(b) in relation to Scotland, by a procurator fiscal.

(6) The court, sheriff or justice may make the order if satisfied, in relation to the item of property to be further detained, that—

(a) it is a listed asset, and

(b) condition 1, condition 2 or condition 3 is met.

(7) Condition 1 is that there are reasonable grounds for suspecting that the property is intended to be used for the purposes of terrorism and that either—

(a) its continued detention is justified while its intended use 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 property is connected, or

(b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded.

(8) Condition 2 is that there are reasonable grounds for suspecting that the property consists of resources of an organisation which is a proscribed organisation and that either—

(a) its continued detention is justified while investigation is made into whether or not it consists of such resources or consideration is given to bringing (in the United Kingdom or elsewhere) proceedings against any person for an offence with which the property is connected, or

(b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded.

(9) Condition 3 is that there are reasonable grounds for suspecting that the property is property earmarked as terrorist property and that either—

(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 property is connected, or

(b) proceedings against any person for an offence with which the property is connected have been started and have not been concluded.

(10) Where an application for an order under sub-paragraph (1) relates to an item of property seized under paragraph 10B(2), the court, sheriff or justice may make the order if satisfied that—

(a) the item of property is a listed asset,

(b) condition 1, 2 or 3 is met in respect of part of the item, and

(c) it is not reasonably practicable to detain only that part.

(11) An order under sub-paragraph (1) must provide for notice to be given to persons affected by it.

Testing and safekeeping of property seized under paragraph 10B U.K.

10E (1) An authorised officer may carry out (or arrange for the carrying out of) tests on any item of property seized under paragraph 10B for the purpose of establishing whether it is a listed asset. U.K.

(2) An authorised officer must arrange for any item of property seized under paragraph 10B to be safely stored throughout the period during which it is detained under this Part of this Schedule.

Release of detained property U.K.

10F (1) This paragraph applies while any property is detained under this Part of this Schedule. U.K.

(2) A magistrates' court or (in Scotland) the sheriff may direct the release of the whole or any part of the property if satisfied, on an application by the person from whom the property was seized, that the conditions in paragraph 10C or 10D (as the case may be) for the detention of the property are no longer met in relation to the property to be released.

(3) An authorised officer or (in Scotland) a procurator fiscal may, after notifying the magistrates' court, sheriff or justice under whose order property is being detained, release the whole or any part of it if satisfied that the detention of the property to be released is no longer justified.

(4) But property is not to be released under this paragraph—

(a) if an application for its release under paragraph 10O is made, until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded;

(b) if (in the United Kingdom or elsewhere) proceedings are started against any person for an offence with which the property is connected, until the proceedings are concluded.

See also paragraph 10G(7).

Forfeiture U.K.

10G (1) While property is detained under this Part of this Schedule, an application for the forfeiture of the whole or any part of it may be made— U.K.

(a) to a magistrates' court, by the Commissioners for Her Majesty's Revenue and Customs or an authorised officer;

(b) to the sheriff, by the Scottish Ministers.

(2) The court or sheriff may order the forfeiture of the property or any part of it if satisfied that—

(a) the property is a listed asset, and

(b) what is to be forfeited is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property.

(3) An order under sub-paragraph (2) made by a magistrates' court may provide for payment under paragraph 10N of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of—

(a) the proceedings in which the order is made, or

(b) any related proceedings under this Part of this Schedule.

(4) A sum in respect of a relevant item of expenditure is not payable under paragraph 10N in pursuance of provision under sub-paragraph (3) unless—

(a) the person who applied for the order under sub-paragraph (2) agrees to its payment, or

(b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount.

(5) For the purposes of sub-paragraph (4)—

(a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (2) had instead been a recovery order made under section 266 of that Act;

(b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations;

(c) if the person who applied for the order under sub-paragraph (2) was an authorised officer, that person may not agree to the payment of a sum unless the person is a senior officer or is authorised to do so by a senior officer.

(6) Sub-paragraph (2) ceases to apply on the transfer of an application made under this paragraph in accordance with paragraph 10J(1)(a) or (b).

(7) Where an application for the forfeiture of any property is made under this paragraph, the property is to be detained (and may not be released under any power conferred by this Part of this Schedule) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded.

(8) Where the property to which the application relates is being detained under this Part of this Schedule as part of an item of property, having been seized under paragraph 10B(2), sub-paragraph (7) is to be read as if it required the continued detention of the whole of the item of property.

(9) For the purposes of sub-paragraph (5)(c), a “senior officer” means—

(a) in relation to an application made by a constable or a counter-terrorism financial investigator, a senior police officer;

(b) in relation to an application made by an officer of Revenue and Customs, such an officer of a rank designated by the Commissioners for Her Majesty's Revenue and Customs as equivalent to that of a senior police officer;

(c) in relation to an application made by an immigration officer, such an officer of a rank designated by the Secretary of State as equivalent to that of a senior police officer.

(10) In sub-paragraph (9), a “senior police officer” means a police officer of at least the rank of superintendent.

Associated and joint property U.K.

10H (1) Paragraphs 10I and 10J apply if— U.K.

(a) an application is made under paragraph 10G in respect of property detained under this Part of this Schedule,

(b) the court or sheriff is satisfied that the property is a listed asset,

(c) the court or sheriff is satisfied that all or part of the property is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property, and

(d) there exists property that is associated with the property in relation to which the court or sheriff is satisfied as mentioned in paragraph (c).

(2) Paragraphs 10I and 10J also apply in England and Wales and Northern Ireland if—

(a) an application is made under paragraph 10G in respect of property detained under this Part of this Schedule,

(b) the court is satisfied that the property is a listed asset,

(c) the court is satisfied that all or part of the property is property earmarked as terrorist property, and

(d) the property in relation to which the court or sheriff is satisfied as mentioned in paragraph (c) belongs to joint tenants and one of the tenants is an excepted joint owner.

(3) In this paragraph and paragraphs 10I and 10J “associated property” means property of any of the following descriptions that is not itself the forfeitable property—

(a) any interest in the forfeitable property;

(b) any other interest in the property in which the forfeitable property subsists;

(c) if the forfeitable property is a tenancy in common, the tenancy of the other tenant;

(d) if (in Scotland) the forfeitable property is owned in common, the interest of the other owner;

(e) if the forfeitable property is part of a larger property, but not a separate part, the remainder of that property.

References to property being associated with forfeitable property are to be read accordingly.

(4) In this paragraph and paragraphs 10I and 10J the “forfeitable property” means the property in relation to which the court or sheriff is satisfied as mentioned in sub-paragraph (1)(c) or (2)(c) (as the case may be).

(5) For the purposes of this paragraph and paragraphs 10I and 10J—

(a) an excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against him or her) be earmarked, and

(b) references to the excepted joint owner's share of property are to so much of the property as would have been his or hers if the joint tenancy had been severed.

Agreements about associated and joint property U.K.

10I (1) Where— U.K.

(a) this paragraph applies, and

(b) the person who applied for the order under paragraph 10G (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree,

the magistrates' court or sheriff may, instead of making an order under paragraph 10G(2), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order.

(2) The amount of the payment is (subject to sub-paragraph (3)) to be the amount which the persons referred to in sub-paragraph (1)(b) agree represents—

(a) in a case where this paragraph applies by virtue of paragraph 10H(1), the value of the forfeitable property;

(b) in a case where this paragraph applies by virtue of paragraph 10H(2), the value of the forfeitable property less the value of the excepted joint owner's share.

(3) The amount of the payment may be reduced if the person who applied for the order under paragraph 10G agrees that the other party to the agreement has suffered loss as a result of the seizure of the forfeitable property and any associated property under paragraph 10B and its subsequent detention.

(4) The reduction that is permissible by virtue of sub-paragraph (3) is such amount as the parties to the agreement agree is reasonable, having regard to the loss suffered and any other relevant circumstances.

(5) An order under sub-paragraph (1) may, so far as required for giving effect to the agreement, include provision for vesting, creating or extinguishing any interest in property.

(6) An order under sub-paragraph (1) made by a magistrates' court may provide for payment under sub-paragraph (11) of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of—

(a) the proceedings in which the order is made, or

(b) any related proceedings under this Part of this Schedule.

(7) A sum in respect of a relevant item of expenditure is not payable under sub-paragraph (11) in pursuance of provision under sub-paragraph (6) unless—

(a) the person who applied for the order under paragraph 10G agrees to its payment, or

(b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount.

(8) For the purposes of sub-paragraph (7)—

(a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (1) had instead been a recovery order made under section 266 of that Act;

(b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations.

(9) If there is more than one item of associated property or more than one excepted joint owner, the total amount to be paid under sub-paragraph (1), and the part of that amount which is to be provided by each person who holds any such associated property or who is an excepted joint owner, is to be agreed between both (or all) of them and the person who applied for the order under paragraph 10G.

(10) If the person who applied for the order under paragraph 10G was an authorised officer, that person may enter into an agreement for the purposes of any provision of this paragraph only if the person is a senior officer or is authorised to do so by a senior officer.

(11) An amount received under an order under sub-paragraph (1) must be applied as follows—

(a) first, it must be applied in making any payment of legal expenses which, after giving effect to sub-paragraph (7), are payable under this sub-paragraph in pursuance of provision under sub-paragraph (6);

(b) second, it must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the forfeitable property and any associated property whilst detained under this Part of this Schedule;

(c) third, it must be paid—

(i) if the order was made by a magistrates' court, into the Consolidated Fund;

(ii) if the order was made by the sheriff, into the Scottish Consolidated Fund.

Associated and joint property: default of agreement U.K.

10J (1) Where this paragraph applies and there is no agreement under paragraph 10I, the magistrates' court or sheriff— U.K.

(a) must transfer the application made under paragraph 10G to the relevant court if satisfied that the value of the forfeitable property and any associated property is £10,000 or more;

(b) may transfer the application made under paragraph 10G to the relevant court if satisfied that the value of the forfeitable property and any associated property is less than £10,000.

(2) The “relevant court” is—

(a) the High Court, where the application under paragraph 10G was made to a magistrates' court;

(b) the Court of Session, where the application under paragraph 10G was made to the sheriff.

(3) Where (under sub-paragraph (1)(a) or (b)) an application made under paragraph 10G is transferred to the relevant court, the relevant court may order the forfeiture of the property to which the application relates, or any part of that property, if satisfied that—

(a) the property is a listed asset, and

(b) what is to be forfeited is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property.

(4) An order under sub-paragraph (3) made by the High Court may include provision of the type that may be included in an order under paragraph 10G(2) made by a magistrates' court by virtue of paragraph 10G(3).

(5) If provision is included in an order of the High Court by virtue of sub-paragraph (4) of this paragraph, paragraph 10G(4) and (5) apply with the necessary modifications.

(6) The relevant court may, as well as making an order under sub-paragraph (3), make an order—

(a) providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner's interest to be extinguished, or

(b) providing for the excepted joint owner's interest to be severed.

(7) Where (under sub-paragraph (1)(b)) the magistrates' court or sheriff decides not to transfer an application made under paragraph 10G to the relevant court, the magistrates' court or sheriff may, as well as making an order under paragraph 10G(2), make an order—

(a) providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner's interest to be extinguished, or

(b) providing for the excepted joint owner's interest to be severed.

(8) An order under sub-paragraph (6) or (7) may be made only if the relevant court, the magistrates' court or the sheriff (as the case may be) thinks it just and equitable to do so.

(9) An order under sub-paragraph (6) or (7) must provide for the payment of an amount to the person who holds the associated property or who is an excepted joint owner.

(10) In making an order under sub-paragraph (6) or (7), and including provision in it by virtue of sub-paragraph (9), the relevant court, the magistrates' court or the sheriff (as the case may be) must have regard to—

(a) the rights of any person who holds the associated property or who is an excepted joint owner and the value to that person of that property or (as the case may) of that person's share (including any value that cannot be assessed in terms of money), and

(b) the interest of the person who applied for the order under paragraph 10G in realising the value of the forfeitable property.

(11) If the relevant court, the magistrates' court or the sheriff (as the case may be) is satisfied that—

(a) the person who holds the associated property or who is an excepted joint owner has suffered loss as a result of the seizure of the forfeitable property and any associated property under paragraph 10B and its subsequent detention, and

(b) the circumstances are exceptional,

an order under sub-paragraph (6) or (7) may require the payment of compensation to that person.

(12) The amount of compensation to be paid by virtue of sub-paragraph (11) is the amount the relevant court, the magistrates' court or the sheriff (as the case may be) thinks reasonable, having regard to the loss suffered and any other relevant circumstances.

(13) Compensation to be paid by virtue of sub-paragraph (11) is to be paid in the same way that compensation is to be paid under paragraph 10P.

Paragraphs 10G to 10J: appeals U.K.

10K (1) Any party to proceedings for an order for the forfeiture of property under paragraph 10G may appeal against— U.K.

(a) the making of an order under paragraph 10G;

(b) the making of an order under paragraph 10J(7);

(c) a decision not to make an order under paragraph 10G unless the reason that no order was made is that an order was instead made under paragraph 10I;

(d) a decision not to make an order under paragraph 10J(7).

Paragraphs (c) and (d) do not apply if the application for the order under paragraph 10G was transferred in accordance with paragraph 10J(1)(a) or (b).

(2) Where an order under paragraph 10I is made by a magistrates' court, any party to the proceedings for the order (including any party to the proceedings under paragraph 10G that preceded the making of the order) may appeal against a decision to include, or not to include, provision in the order under sub-paragraph (6) of paragraph 10I.

(3) An appeal under this paragraph lies—

(a) in relation to England and Wales, to the Crown Court;

(b) in relation to Scotland, to the Sheriff Appeal Court;

(c) in relation to Northern Ireland, to a county court.

(4) An appeal under this paragraph must be made before the end of the period of 30 days starting with the day on which the court makes the order or decision.

(5) Sub-paragraph (4) is subject to paragraph 10L.

(6) The court hearing the appeal may make any order it thinks appropriate.

(7) If the court upholds an appeal against an order forfeiting property, it may order the release of the whole or any part of the property.

Extended time for appealing in certain cases where deproscription order made U.K.

10L (1) This paragraph applies where— U.K.

(a) a successful application for an order under paragraph 10G relies (wholly or partly) on the fact that an organisation is proscribed,

(b) an application under section 4 of the Terrorism Act 2000 for a deproscription order in respect of the organisation is refused by the Secretary of State,

(c) the property forfeited by the order under paragraph 10G was seized under this Part of this Schedule on or after the date of the refusal of that application,

(d) an appeal against that refusal is allowed under section 5 of the Terrorism Act 2000,

(e) a deproscription order is made accordingly, and

(f) if the order is made in reliance on section 123(5) of the Terrorism Act 2000, a resolution is passed by each House of Parliament under section 123(5)(b) of that Act.

(2) Where this paragraph applies, an appeal under paragraph 10K against the making of an order under paragraph 10G, and against the making (in addition) of any order under paragraph 10J(7), may be brought at any time before the end of the period of 30 days beginning with the date on which the deproscription order comes into force.

(3) In this paragraph a “deproscription order” means an order under section 3(3)(b) or (8) of the Terrorism Act 2000.

Realisation of forfeited property U.K.

10M (1) If property is forfeited under paragraph 10G or 10J, an authorised officer must realise the property or make arrangements for its realisation. U.K.

(2) But the property is not to be realised—

(a) before the end of the period within which an appeal may be made (whether under paragraph 10K or otherwise), or

(b) if an appeal is made within that period, before the appeal is determined or otherwise disposed of.

(3) The realisation of property under sub-paragraph (1) must be carried out, so far as practicable, in the manner best calculated to maximise the amount obtained for the property.

Proceeds of realisation U.K.

10N (1) The proceeds of property realised under paragraph 10M must be applied as follows— U.K.

(a) first, they must be applied in making any payment required to be made by virtue of paragraph 10J(9);

(b) second, they must be applied in making any payment of legal expenses which, after giving effect to paragraph 10G(4) (including as applied by paragraph 10J(5)), are payable under this sub-paragraph in pursuance of provision under paragraph 10G(3) or, as the case may be, 10J(4);

(c) third, they must be applied in payment or reimbursement of any reasonable costs incurred in storing or insuring the property whilst detained under this Part of this Schedule and in realising the property;

(d) fourth, they must be paid—

(i) if the property was forfeited by a magistrates' court or the High Court, into the Consolidated Fund;

(ii) if the property was forfeited by the sheriff or the Court of Session, into the Scottish Consolidated Fund.

(2) If what is realised under paragraph 10M represents part only of an item of property seized under paragraph 10B and detained under this Part of this Schedule, the reference in sub-paragraph (1)(c) to costs incurred in storing or insuring the property is to be read as a reference to costs incurred in storing or insuring the whole of the item of property.

Victims U.K.

10O (1) A person who claims that any property detained under this Part of this Schedule, or any part of it, belongs to him or her may apply for the property or part to be released. U.K.

(2) An application under sub-paragraph (1) is to be made—

(a) in England and Wales or Northern Ireland, to a magistrates' court;

(b) in Scotland, to the sheriff.

(3) The application may be made in the course of proceedings under paragraph 10D or 10G or at any other time.

(4) The court or sheriff may order the property to which the application relates to be released to the applicant if it appears to the court or sheriff that—

(a) the applicant was deprived of the property to which the application relates, or of property which it represents, by criminal conduct,

(b) the property the applicant was deprived of was not, immediately before the applicant was deprived of it, property obtained by or in return for criminal conduct and nor did it then represent such property, and

(c) the property belongs to the applicant.

(5) If sub-paragraph (6) applies, the court or sheriff may order the property to which the application relates to be released to the applicant or to the person from whom it was seized.

(6) This sub-paragraph applies where—

(a) the applicant is not the person from whom the property to which the application relates was seized,

(b) it appears to the court or sheriff that the property belongs to the applicant,

(c) the court or sheriff is satisfied that the release condition is met in relation to the property, and

(d) no objection to the making of an order under sub-paragraph (5) has been made by the person from whom the property was seized.

(7) The release condition is met—

(a) in relation to property detained under paragraph 10C or 10D, if the conditions in paragraph 10C or (as the case may be) 10D for the detention of the property are no longer met, and

(b) in relation to property detained under paragraph 10G, if the court or sheriff decides not to make an order under that paragraph in relation to the property.

Compensation U.K.

10P (1) If no order under paragraph 10G, 10I or 10J is made in respect of any property detained under this Part of this Schedule, the person to whom the property belongs or from whom it was seized may make an application for compensation. U.K.

(2) An application under sub-paragraph (1) is to be made—

(a) in England and Wales or Northern Ireland, to a magistrates' court;

(b) in Scotland, to the sheriff.

(3) If the court or sheriff is satisfied that the applicant has suffered loss as a result of the detention of the property and that the circumstances are exceptional, the court or sheriff may order compensation to be paid to the applicant.

(4) The amount of compensation to be paid is the amount the court or sheriff thinks reasonable, having regard to the loss suffered and any other relevant circumstances.

(5) If the property was seized by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for Her Majesty's Revenue and Customs.

(6) If the property was seized by a constable, the compensation is to be paid as follows—

(a) in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met;

(b) in the case of a constable of the Police Service of Scotland, it is to be paid by the Scottish Police Authority;

(c) in the case of a police officer within the meaning of the Police (Northern Ireland) Act 2000, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.

(7) If the property was seized by a counter-terrorism financial investigator, the compensation is to be paid as follows—

(a) in the case of a counter-terrorism financial investigator who was—

(i) a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of the Police Reform and Social Responsibility Act 2011, or

(ii) a member of staff of the City of London police force,

it is to be paid out of the police fund from which the expenses of the police force are met;

(b) in the case of a counter-terrorism financial investigator who was a member of staff of the Police Service of Northern Ireland, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.

(8) If the property was seized by an immigration officer, the compensation is to be paid by the Secretary of State.

(9) If an order under paragraph 10G, 10I or 10J is made in respect only of a part of any property detained under this Part, this paragraph has effect in relation to the other part.

(10) This paragraph does not apply if the court or sheriff makes an order under paragraph 10O.]

[F29 PART 4B U.K. Forfeiture of terrorist money held in [F30 certain] accounts

Textual Amendments

F29 Sch. 1 Pt. 4B inserted (27.4.2017 for specified purposes, 30.1.2018 for the insertion of Sch. 1 para. 10X so far as not already in force, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 4 para. 2; S.I. 2018/78, regs. 2(i), 3(dd)

F30 Word in Sch. 1 Pt. 4B heading substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 3 (with s. 33(4))

Application for account freezing order U.K.

10Q (1) This paragraph applies if an enforcement officer has reasonable grounds for suspecting that money held in an account maintained with a [F31 relevant financial institution]— U.K.

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

[F32 (1A) In this Part of this Schedule, “relevant financial institution” means—

(a) a bank,

(b) a building society,

(c) an electronic money institution, or

(d) a payment institution.]

(2) Where this paragraph applies the enforcement officer may apply to the relevant court for an account freezing order in relation to the account in which the money is held.

(3) But—

(a) an enforcement officer may not apply for an account freezing order unless the officer is a senior officer or is authorised to do so by a senior officer, and

(b) the senior officer must consult the Treasury before making the application for the order or (as the case may be) authorising the application to be made, unless in the circumstances it is not reasonably practicable to do so.

(4) For the purposes of this Part of this Schedule—

(a) an account freezing order is an order that, subject to any exclusions (see paragraph 10U), prohibits each person by or for whom the account to which the order applies is operated from making withdrawals or payments from the account;

(b) an account is operated by or for a person if the person is an account holder or a signatory or identified as a beneficiary in relation to the account.

(5) An application for an account freezing order may be made without notice if the circumstances of the case are such that notice of the application would prejudice the taking of any steps under this Part of this Schedule to forfeit money that is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property.

(6) The money referred to in sub-paragraph (1) may be all or part of the credit balance of the account.

(7) In this Part of this Schedule—

• “bank” has the meaning given by paragraph 10R;

• “building society” has the same meaning as in the Building Societies Act 1986;

• [F33 “electronic money institution” has the same meaning as in the Electronic Money Regulations 2011 (S.I. 2011/99) (see regulation 2 of those Regulations);]

• “enforcement officer” means—

  (a)

  a constable, or

  (b)

  a counter-terrorism financial investigator;

• [F33 “payment institution” means an authorised payment institution or a small payment institution (each as defined in regulation 2 of the Payment Services Regulations 2017 (S.I. 2017/752));]

• “relevant court”—

  (a)

  in England and Wales and Northern Ireland, means a magistrates' court, and

  (b)

  in Scotland, means the sheriff;

• “senior officer” means a police officer of at least the rank of superintendent.

Textual Amendments

F31 Words in Sch. 1 para. 10Q(1) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 4(2) (with s. 33(4))

F32 Sch. 1 para. 10Q(1A) inserted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 4(3) (with s. 33(4))

F33 Words in Sch. 1 para. 10Q(1A) inserted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 4(4) (with s. 33(4))

Meaning of “bank” U.K.

10R (1) “Bank” means an authorised deposit-taker, other than a building society, that has its head office or a branch in the United Kingdom. U.K.

(2) In sub-paragraph (1), “authorised deposit-taker” means—

(a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits;

(b) a person who—

(i) is specified, or is within a class of persons specified, by an order under section 38 of that Act (exemption orders), and

(ii) accepts deposits;

(c) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act that has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits.

(3) A reference in sub-paragraph (2) to a person or firm with permission to accept deposits does not include a person or firm with permission to do so only for the purposes of, or in the course of, an activity other than accepting deposits.

Making of account freezing order U.K.

10S (1) This paragraph applies where an application for an account freezing order is made under paragraph 10Q in relation to an account. U.K.

(2) The relevant court may make the order if satisfied that there are reasonable grounds for suspecting that money held in the account (whether all or part of the credit balance of the account)—

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(3) An account freezing order ceases to have effect at the end of the period specified in the order (which may be varied under paragraph 10T) unless it ceases to have effect at an earlier or later time in accordance with the provision made by paragraphs 10W(6)(c), 10Y(2) to (7), 10Z2(6) to (8) and 10Z3.

(4) The period specified by the relevant court for the purposes of sub-paragraph (3) (whether when the order is first made or on a variation under paragraph 10T) may not exceed the period of 2 years, starting with the day on which the account freezing order is (or was) made.

(5) An account freezing order must provide for notice to be given to persons affected by the order.

Variation and setting aside of account freezing order U.K.

10T (1) The relevant court may at any time vary or set aside an account freezing order on an application made by— U.K.

(a) an enforcement officer, or

(b) any person affected by the order.

(2) But an enforcement officer may not make an application under sub-paragraph (1) unless the officer is a senior officer or is authorised to do so by a senior officer.

(3) Before varying or setting aside an account freezing order the court must (as well as giving the parties to the proceedings an opportunity to be heard) give such an opportunity to any person who may be affected by its decision.

(4) In relation to Scotland, the references in this paragraph to setting aside an order are to be read as references to recalling it.

Exclusions U.K.

10U (1) The power to vary an account freezing order includes (amongst other things) power to make exclusions from the prohibition on making withdrawals or payments from the account to which the order applies. U.K.

(2) Exclusions from the prohibition may also be made when the order is made.

(3) An exclusion may (amongst other things) make provision for the purpose of enabling a person by or for whom the account is operated—

(a) to meet the person's reasonable living expenses, or

(b) to carry on any trade, business, profession or occupation.

(4) An exclusion may be made subject to conditions.

(5) Where a magistrates' court exercises the power to make an exclusion for the purpose of enabling a person to meet legal expenses that the person has incurred, or may incur, in respect of proceedings under this Schedule, it must ensure that the exclusion—

(a) is limited to reasonable legal expenses that the person has reasonably incurred or that the person reasonably incurs,

(b) specifies the total amount that may be released for legal expenses in pursuance of the exclusion, and

(c) is made subject to the same conditions as would be the required conditions (see section 286A of the Proceeds of Crime Act 2002) if the order had been made under section 245A of that Act (in addition to any conditions imposed under sub-paragraph (4)).

(6) A magistrates' court, in deciding whether to make an exclusion for the purpose of enabling a person to meet legal expenses in respect of proceedings under this Schedule—

(a) must have regard to the desirability of the person being represented in any proceedings under this Schedule in which the person is a participant, and

(b) must disregard the possibility that legal representation of the person in any such proceedings might, were an exclusion not made—

(i) be made available under arrangements made for the purposes of Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, or

(ii) be funded by the Northern Ireland Legal Services Commission.

(7) The sheriff's power to make exclusions may not be exercised for the purpose of enabling any person to meet any legal expenses in respect of proceedings under this Schedule.

(8) The power to make exclusions must, subject to sub-paragraph (6), be exercised with a view to ensuring, so far as practicable, that there is not undue prejudice to the taking of any steps under this Part of this Schedule to forfeit money that is within subsection (1)(a) or (b) of section 1 or is property earmarked as terrorist property.

Restriction on proceedings and remedies U.K.

10V (1) If a court in which proceedings are pending in respect of an account maintained with a [F34 relevant financial institution] is satisfied that an account freezing order has been applied for or made in respect of the account, it may either stay the proceedings or allow them to continue on any terms it thinks fit. U.K.

(2) Before exercising the power conferred by sub-paragraph (1), the court must (as well as giving the parties to any of the proceedings concerned an opportunity to be heard) give such an opportunity to any person who may be affected by the court's decision.

(3) In relation to Scotland, the reference in sub-paragraph (1) to staying the proceedings is to be read as a reference to sisting the proceedings.

Textual Amendments

F34 Words in Sch. 1 para. 10V(1) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 5 (with s. 33(4))

Account forfeiture notice U.K.

10W (1) This paragraph applies while an account freezing order has effect. U.K.

(2) A senior officer may give a notice for the purpose of forfeiting money held in the frozen account (whether all or part of the credit balance of the account) if satisfied that the money—

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(3) A notice given under sub-paragraph (2) is referred to in this Part of this Schedule as an account forfeiture notice.

(4) An account forfeiture notice must—

(a) state the amount of money held in the frozen account which it is proposed be forfeited,

(b) confirm that the senior officer is satisfied as mentioned in sub-paragraph (2),

(c) specify a period for objecting to the proposed forfeiture and an address to which any objections must be sent, and

(d) explain that the money will be forfeited unless an objection is received at that address within the period for objecting.

(5) The period for objecting must be at least 30 days starting with the day after the notice is given.

(6) If no objection is made within the period for objecting, and the notice has not lapsed under paragraph 10Y—

(a) the amount of money stated in the notice is forfeited (subject to paragraph 10Z),

(b) the [F35 relevant financial institution] with which the frozen account is maintained must transfer that amount of money into an interest-bearing account nominated by an enforcement officer, and

(c) immediately after the transfer has been made, the account freezing order made in relation to the frozen account ceases to have effect.

(7) An objection may be made by anyone (whether a recipient of the notice or not).

(8) An objection means a written objection sent to the address specified in the notice; and an objection is made when it is received at the address.

(9) An objection does not prevent forfeiture of the money held in the frozen account under paragraph 10Z2.

Textual Amendments

F35 Words in Sch. 1 para. 10W(6)(b) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 6 (with s. 33(4))

Giving of account forfeiture notice U.K.

10X (1) The Secretary of State must by regulations made by statutory instrument make provision about how an account forfeiture notice is to be given. U.K.

(2) The regulations may (amongst other things) provide—

(a) for an account forfeiture notice to be given to such person or persons, and in such manner, as may be prescribed;

(b) for circumstances in which, and the time at which, an account forfeiture notice is to be treated as having been given.

(3) The regulations must ensure that where an account forfeiture notice is given it is, if possible, given to every person to whom notice of the account freezing order was given.

(4) A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of either House of Parliament.

Lapse of account forfeiture notice U.K.

10Y (1) An account forfeiture notice lapses if— U.K.

(a) an objection is made within the period for objecting specified in the notice under paragraph 10W(4)(c),

(b) an application is made under paragraph 10Z2 for the forfeiture of money held in the frozen account, or

(c) an order is made under paragraph 10T setting aside (or recalling) the relevant account freezing order.

(2) If an account forfeiture notice lapses under sub-paragraph (1)(a), the relevant account freezing order ceases to have effect at the end of the period of 48 hours starting with the making of the objection (“the 48-hour period”).

(3) If within the 48-hour period an application is made—

(a) for a variation of the relevant account freezing order under paragraph 10T so as to extend the period specified in the order, or

(b) for forfeiture of money held in the frozen account under paragraph 10Z2,

the order continues to have effect until the relevant time (and then ceases to have effect).

(4) In the case of an application of the kind mentioned in sub-paragraph (3)(a), the relevant time means—

(a) if an extension is granted, the time determined in accordance with paragraph 10S(3), or

(b) if an extension is not granted, the time when the application is determined or otherwise disposed of.

(5) In the case of an application of the kind mentioned in sub-paragraph (3)(b), the relevant time is the time determined in accordance with paragraph 10Z2(6).

(6) If within the 48-hour period it is decided that no application of the kind mentioned in sub-paragraph (3)(a) or (b) is to be made, an enforcement officer must, as soon as possible, notify the [F36 relevant financial institution] with which the frozen account is maintained of that decision.

(7) [F37 If the relevant financial institution] is notified in accordance with sub-paragraph (6) before the expiry of the 48-hour period, the relevant account freezing order ceases to have effect [F38 on the institution] being so notified.

(8) In relation to an account forfeiture notice—

(a) “the frozen account” is the account in which the money to which the account forfeiture notice relates is held;

(b) “the relevant account freezing order” is the account freezing order made in relation to the frozen account.

(9) In calculating a period of 48 hours for the purposes of this paragraph no account is to be taken of—

(a) any Saturday or Sunday,

(b) Christmas Day,

(c) Good Friday, or

(d) any day that is a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom in which the account freezing order was made.

Textual Amendments

F36 Words in Sch. 1 para. 10Y(6) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 7(2) (with s. 33(4))

F37 Words in Sch. 1 para. 10Y(7) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 7(3)(a) (with s. 33(4))

F38 Words in Sch. 1 para. 10Y(7) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 7(3)(b) (with s. 33(4))

Application to set aside forfeiture U.K.

10Z (1) A person aggrieved by the forfeiture of money in pursuance of paragraph 10W(6)(a) may apply to the relevant court for an order setting aside the forfeiture of the money or any part of it. U.K.

(2) The application must be made before the end of the period of 30 days starting with the day on which the period for objecting ended (“the 30-day period”).

(3) But the relevant court may give permission for an application to be made after the 30-day period has ended if it thinks that there are exceptional circumstances to explain why the applicant—

(a) failed to object to the forfeiture within the period for objecting, and

(b) failed to make an application within the 30-day period.

(4) On an application under this paragraph the relevant court must consider whether the money to which the application relates could be forfeited under paragraph 10Z2 (ignoring the forfeiture mentioned in sub-paragraph (1)).

(5) If the relevant court is satisfied that the money to which the application relates or any part of it could not be forfeited under that paragraph it must set aside the forfeiture of that money or part.

(6) Where the relevant court sets aside the forfeiture of any money—

(a) it must order the release of that money, and

(b) the money is to be treated as never having been forfeited.

(7) Where money is released by virtue of sub-paragraph (6)(a), there must be added to the money on its release any interest accrued on it whilst in the account referred to in paragraph 10W(6)(b).

Application of money forfeited under account forfeiture notice U.K.

10Z1 (1) Money forfeited in pursuance of paragraph 10W(6)(a), and any interest accrued on it whilst in the account referred to in paragraph 10W(6)(b)— U.K.

(a) if, before being forfeited, the money was held in an account in relation to which an account freezing order made by a magistrates' court had effect, is to be paid into the Consolidated Fund;

(b) if, before being forfeited, the money was held in an account in relation to which an account freezing order made by the sheriff had effect, is to be paid into the Scottish Consolidated Fund.

(2) But it is not to be paid in—

(a) before the end of the period within which an application under paragraph 10Z may be made (ignoring the possibility of an application by virtue of paragraph 10Z(3)), or

(b) if an application is made within that period, before the application is determined or otherwise disposed of.

Forfeiture order U.K.

10Z2 (1) This paragraph applies while an account freezing order has effect. U.K.

(2) An application for the forfeiture of money held in the frozen account (whether all or part of the credit balance of the account) may be made—

(a) to a magistrates' court, by an enforcement officer, or

(b) to the sheriff, by the Scottish Ministers.

(3) The court or sheriff may order the forfeiture of the money or any part of it if satisfied that the money or part—

(a) is within subsection (1)(a) or (b) of section 1, or

(b) is property earmarked as terrorist property.

(4) But in the case of property earmarked as terrorist property which belongs to joint tenants, one of whom is an excepted joint owner, an order by a magistrates' court may not apply to so much of it as the court thinks is attributable to the excepted joint owner's share.

(5) For the purposes of sub-paragraph (4)—

(a) an excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against him or her) be earmarked, and

(b) references to the excepted joint owner's share of property are to so much of the property as would have been his or hers if the joint tenancy had been severed.

(6) Where an application is made under sub-paragraph (2), the account freezing order is to continue to have effect until the time referred to in sub-paragraph (7)(b) or (8).

(7) Where money held in a frozen account is ordered to be forfeited under sub-paragraph (3)—

(a) the [F39 relevant financial institution] with which the frozen account is maintained must transfer that amount of money into an interest-bearing account nominated by an enforcement officer, and

(b) immediately after the transfer has been made the account freezing order made in relation to the frozen account ceases to have effect.

(8) Where, other than by the making of an order under sub-paragraph (3), an application under sub-paragraph (2) is determined or otherwise disposed of, the account freezing order ceases to have effect immediately after that determination or other disposal.

Textual Amendments

F39 Words in Sch. 1 para. 10Z2(7)(a) substituted (retrospectively) by Financial Services Act 2021 (c. 22), s. 33(2), Sch. 12 para. 8 (with s. 33(4))

Continuation of account freezing order pending appeal U.K.

10Z3 (1) This paragraph applies where, on an application under sub-paragraph (2) of paragraph 10Z2 in relation to an account to which an account freezing order applies, the court or sheriff decides— U.K.

(a) to make an order under sub-paragraph (3) of that paragraph in relation to part only of the money to which the application related, or

(b) not to make an order under sub-paragraph (3) of that paragraph.

(2) The person who made the application under paragraph 10Z2(2) may apply without notice to the court or sheriff that made the decision referred to in sub-paragraph (1)(a) or (b) for an order that the account freezing order is to continue to have effect.

(3) Where the court or sheriff makes an order under sub-paragraph (2) the account freezing order is to continue to have effect until—

(a) the end of the period of 48 hours starting with the making of the order under sub-paragraph (2), or

(b) if within that period of 48 hours an appeal is brought under paragraph 10Z4 against the decision referred to in sub-paragraph (1)(a) or (b), the time when the appeal is determined or otherwise disposed of.

(4) Sub-paragraph (9) of paragraph 10Y applies for the purposes of sub-paragraph (3) as it applies for the purposes of that paragraph.

Appeal against decision under paragraph 10Z2 U.K.

10Z4 (1) Any party to proceedings for an order for the forfeiture of money under paragraph 10Z2 who is aggrieved by an order under that paragraph or by the decision of the court not to make such an order may appeal— U.K.

(a) from an order or decision of a magistrates' court in England and Wales, to the Crown Court;

(b) from an order or decision of the sheriff, to the Sheriff Appeal Court;

(c) from an order or decision of a magistrates' court in Northern Ireland, to a county court.

(2) An appeal under sub-paragraph (1) must be made before the end of the period of 30 days starting with the day on which the court makes the order or decision.

(3) Sub-paragraph (2) is subject to paragraph 10Z5.

(4) The court hearing the appeal may make any order it thinks appropriate.

(5) If the court upholds an appeal against an order forfeiting the money, it may order the release of the whole or any part of the money.

(6) Where money is released by virtue of sub-paragraph (5), there must be added to the money on its release any interest accrued on it whilst in the account referred to in paragraph 10Z2(7)(a).

Extended time for appealing in certain cases where deproscription order made U.K.

10Z5 (1) This paragraph applies where— U.K.

(a) a successful application for an order under paragraph 10Z2 relies (wholly or partly) on the fact that an organisation is proscribed,

(b) an application under section 4 of the Terrorism Act 2000 for a deproscription order in respect of the organisation is refused by the Secretary of State,

(c) the money forfeited by the order under paragraph 10Z2 was made subject to an account freezing order on or after the date of the refusal of that application,

(d) an appeal against that refusal is allowed under section 5 of the Terrorism Act 2000,

(e) a deproscription order is made accordingly, and

(f) if the order is made in reliance on section 123(5) of the Terrorism Act 2000, a resolution is passed by each House of Parliament under section 123(5)(b) of that Act.

(2) Where this paragraph applies, an appeal under paragraph 10Z4 against the making of an order under paragraph 10Z2 may be brought at any time before the end of the period of 30 days beginning with the date on which the deproscription order comes into force.

(3) In this paragraph a “deproscription order” means an order under section 3(3)(b) or (8) of the Terrorism Act 2000.

Application of money forfeited under account forfeiture order U.K.

10Z6 (1) Money forfeited by an order under paragraph 10Z2, and any interest accrued on it whilst in the account referred to in sub-paragraph (7)(a) of that paragraph— U.K.

(a) if forfeited by a magistrates' court, is to be paid into the Consolidated Fund, and

(b) if forfeited by the sheriff, is to be paid into the Scottish Consolidated Fund.

(2) But it is not to be paid in—

(a) before the end of the period within which an appeal under paragraph 10Z4 may be made, or

(b) if a person appeals under that paragraph, before the appeal is determined or otherwise disposed of.

Compensation U.K.

10Z7 (1) This paragraph applies if— U.K.

(a) an account freezing order is made, and

(b) none of the money held in the account to which the order applies is forfeited in pursuance of an account forfeiture notice or by an order under paragraph 10Z2.

(2) Where this paragraph applies a person by or for whom the account to which the account freezing order applies is operated may make an application to the relevant court for compensation.

(3) If the relevant court is satisfied that the applicant has suffered loss as a result of the making of the account freezing order and that the circumstances are exceptional, the relevant court may order compensation to be paid to the applicant.

(4) The amount of compensation to be paid is the amount the relevant court thinks reasonable, having regard to the loss suffered and any other relevant circumstances.

(5) If the account freezing order was applied for by a constable, the compensation is to be paid as follows—

(a) in the case of a constable of a police force in England and Wales, it is to be paid out of the police fund from which the expenses of the police force are met;

(b) in the case of a constable of the Police Service of Scotland, it is to be paid by the Scottish Police Authority;

(c) in the case of a police officer within the meaning of the Police (Northern Ireland) Act 2000, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.

(6) If the account freezing order was applied for by a counter-terrorism financial investigator, the compensation is to be paid as follows—

(a) in the case of an investigator who was—

(i) a member of the civilian staff of a police force (including the metropolitan police force), within the meaning of Part 1 of the Police Reform and Social Responsibility Act 2011, or

(ii) a member of staff of the City of London police force,

it is to be paid out of the police fund from which the expenses of the police force are met;

(b) in the case of an investigator who was a member of staff of the Police Service of Northern Ireland, it is to be paid out of money provided by the Chief Constable of the Police Service of Northern Ireland.]

[F40 PART 4C E+W+N.I. OFFENCES

Textual Amendments

F40 Sch. 1 Pt. 4C inserted (E.W.N.I.) (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 42(2), 58(4)(6)

Offences in relation to counter-terrorism financial investigators E+W+N.I.

10Z8 (1) A person commits an offence if the person assaults a counter-terrorism financial investigator who is acting in the exercise of a power under this Schedule.

(2) A person commits an offence if the person resists or wilfully obstructs a counter-terrorism financial investigator who is acting in the exercise of a power under this Schedule.

(3) A person guilty of an offence under sub-paragraph (1) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 51 weeks, or to a fine, or to both;

(b) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 6 months, or to a fine not exceeding level 5 on the standard scale, or to both.

(4) A person guilty of an offence under sub-paragraph (2) is liable—

(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 51 weeks, or to a fine not exceeding level 3 on the standard scale, or to both;

(b) on summary conviction in Northern Ireland, to imprisonment for a term not exceeding 1 month, or to a fine not exceeding level 3 on the standard scale, or to both.

(5) In relation to an offence committed before the coming into force of section 281(5) of the Criminal Justice Act 2003 (alteration of penalties for certain summary offences: England and Wales)—

(a) the reference to 51 weeks in sub-paragraph (3)(a) is to be read as a reference to 6 months;

(b) the reference to 51 weeks in sub-paragraph (4)(a) is to be read as a reference to 1 month.]

[F41 PART 4D U.K. Proceedings under this Schedule

Textual Amendments

F41 Sch. 1 Pt. 4D inserted (27.4.2017 for specified purposes) by Criminal Finances Act 2017 (c. 22), s. 58(5)(6), Sch. 5 para. 16(15)

Powers for prosecutors to appear in proceedings U.K.

10Z9 (1) The Director of Public Prosecutions or the Director of Public Prosecutions for Northern Ireland may appear for a person mentioned in sub-paragraph (2) in proceedings under this Schedule if the Director— U.K.

(a) is asked by, or on behalf of, the person to do so, and

(b) considers it appropriate to do so.

(2) The persons referred to in sub-paragraph (1) are—

(a) a constable;

(b) a counter-terrorism financial investigator;

(c) the Commissioners for Her Majesty's Revenue and Customs;

(d) an officer of Revenue and Customs;

(e) an immigration officer.

(3) The Director of Public Prosecutions may authorise a person (generally or specifically) to carry out the functions of the Director under sub-paragraph (1) if the person is—

(a) a member of the Director's staff;

(b) a person providing services under arrangements made by the Director.

(4) The Director of Public Prosecutions and the Director of Public Prosecutions for Northern Ireland may charge fees for the provision of services under this paragraph.]

PART 5 U.K. Property earmarked as terrorist property

Property obtained through terrorism U.K.

11 (1) A person obtains property through terrorism if he obtains property by or in return for acts of terrorism, or acts carried out for the purposes of terrorism. U.K.

(2) In deciding whether any property was obtained through terrorism—

(a) it is immaterial whether or not any money, goods or services were provided in order to put the person in question in a position to carry out the acts,

(b) it is not necessary to show that the act was of a particular kind if it is shown that the property was obtained through acts of one of a number of kinds, each of which would have been an act of terrorism, or an act carried out for the purposes of terrorism.

Property earmarked as terrorist property U.K.

12 (1) Property obtained through terrorism is earmarked as terrorist property. U.K.

(2) But if property obtained through terrorism has been disposed of (since it was so obtained), it is earmarked as terrorist property only if it is held by a person into whose hands it may be followed.

(3) Earmarked property obtained through terrorism may be followed into the hands of a person obtaining it on a disposal by—

(a) the person who obtained the property through terrorism, or

(b) a person into whose hands it may (by virtue of this sub-paragraph) be followed.

Tracing property U.K.

13 (1) Where property obtained through terrorism (“the original property”) is or has been earmarked as terrorist property, property which represents the original property is also earmarked. U.K.

(2) If a person enters into a transaction by which—

(a) he disposes of earmarked property, whether the original property or property which (by virtue of this Part) represents the original property, and

(b) he obtains other property in place of it,

the other property represents the original property.

(3) If a person disposes of earmarked property which represents the original property, the property may be followed into the hands of the person who obtains it (and it continues to represent the original property).

Mixing property U.K.

14 (1) Sub-paragraph (2) applies if a person’s property which is earmarked as terrorist property is mixed with other property (whether his property or another’s). U.K.

(2) The portion of the mixed property which is attributable to the property earmarked as terrorist property represents the property obtained through terrorism.

(3) Property earmarked as terrorist property is mixed with other property if (for example) it is used—

(a) to increase funds held in a bank account,

(b) in part payment for the acquisition of an asset,

(c) for the restoration or improvement of land,

(d) by a person holding a leasehold interest in the property to acquire the freehold.

Accruing profits U.K.

15 (1) This paragraph applies where a person who has property earmarked as terrorist property obtains further property consisting of profits accruing in respect of the earmarked property. U.K.

(2) The further property is to be treated as representing the property obtained through terrorism.

General exceptions U.K.

16 (1) If— U.K.

(a) a person disposes of property earmarked as terrorist property, and

(b) the person who obtains it on the disposal does so in good faith, for value and without notice that it was earmarked,

the property may not be followed into that person’s hands and, accordingly, it ceases to be earmarked.

(2) If—

(a) in pursuance of a judgment in civil proceedings (whether in the United Kingdom or elsewhere), the defendant makes a payment to the claimant or the claimant otherwise obtains property from the defendant,

(b) the claimant’s claim is based on the defendant’s criminal conduct, and

(c) apart from this sub-paragraph, the sum received, or the property obtained, by the claimant would be earmarked as terrorist property,

the property ceases to be earmarked.

In relation to Scotland, “claimant” and “defendant” are to be read as “pursuer” and “defender”; and, in relation to Northern Ireland, “claimant” is to be read as “plaintiff”.

(3) If—

(a) a payment is made to a person in pursuance of a compensation order under Article 14 of the Criminal Justice (Northern Ireland) Order 1994 (S.I. 1994/2795 (N.I. 15)), section 249 of the Criminal Procedure (Scotland) Act 1995 (c. 46) or section 130 of the Powers of Criminal Courts (Sentencing) Act 2000 (c. 6), [F42 or in pursuance of a service compensation order under the Armed Forces Act 2006,] and

(b) apart from this sub-paragraph, the sum received would be earmarked as terrorist property,

the property ceases to be earmarked.

(4) If—

(a) a payment is made to a person in pursuance of a restitution order under section 27 of the Theft Act (Northern Ireland) 1969 (c.16 (NI)) or section 148(2) of the Powers of Criminal Courts (Sentencing) Act 2000 or a person otherwise obtains any property in pursuance of such an order, and

(b) apart from this sub-paragraph, the sum received, or the property obtained, would be earmarked as terrorist property,

the property ceases to be earmarked.

(5) If—

(a) in pursuance of an order made by the court under section 382(3) or 383(5) of the Financial Services and Markets Act 2000 (c. 8) (restitution orders), an amount is paid to or distributed among any persons in accordance with the court’s directions, and

(b) apart from this sub-paragraph, the sum received by them would be earmarked as terrorist property,

the property ceases to be earmarked.

(6) If—

(a) in pursuance of a requirement of the [F43 Financial Conduct Authority, the Prudential Regulation Authority or the Bank of England under or by virtue of] section 384(5) of the Financial Services and Markets Act 2000 (c. 8) (power F44 ... to require restitution), an amount is paid to or distributed among any persons, and

(b) apart from this sub-paragraph, the sum received by them would be earmarked as terrorist property,

the property ceases to be earmarked.

(7) Where—

(a) a person enters into a transaction to which paragraph 13(2) applies, and

(b) the disposal is one to which sub-paragraph (1) applies,

this paragraph does not affect the question whether (by virtue of paragraph 13(2)) any property obtained on the transaction in place of the property disposed of is earmarked.

Textual Amendments

F42 Words in Sch. 1 para. 16(3)(a) inserted (28.3.2009 for specified purposes, 31.10.2009 in so far as not already in force) by Armed Forces Act 2006 (c. 52), s. 383(2), Sch. 16 para. 196; S.I. 2009/812, art. 3(a)(b) (with transitional provisions in S.I. 2009/1059); S.I. 2009/1167, art. 4

F43 Words in Sch. 1 para. 16(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 93(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F44 Words in Sch. 1 para. 16(6) omitted (1.4.2013) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 93(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Modifications etc. (not altering text)

C1 Sch. 1 para. 16(3) modified (24.4.2009 for specified purposes, 31.10.2009 in so far as not already in force) by The Armed Forces Act 2006 (Transitional Provisions etc) Order 2009 (S.I. 2009/1059), art. 1(3), Sch. 1 para. 50

PART 6 U.K. Interpretation

Property U.K.

17 (1) Property is all property wherever situated and includes— U.K.

(a) money,

(b) all forms of property, real or personal, heritable or moveable,

(c) things in action and other intangible or incorporeal property.

(2) Any reference to a person’s property (whether expressed as a reference to the property he holds or otherwise) is to be read as follows.

(3) In relation to land, it is a reference to any interest which he holds in the land.

(4) In relation to property other than land, it is a reference—

(a) to the property (if it belongs to him), or

(b) to any other interest which he holds in the property.

Obtaining and disposing of property U.K.

18 (1) References to a person disposing of his property include a reference— U.K.

(a) to his disposing of a part of it, or

(b) to his granting an interest in it,

(or to both); and references to the property disposed of are to any property obtained on the disposal.

(2) If a person grants an interest in property of his which is earmarked as terrorist property, the question whether the interest is also earmarked is to be determined in the same manner as it is on any other disposal of earmarked property.

(3) A person who makes a payment to another is to be treated as making a disposal of his property to the other, whatever form the payment takes.

(4) Where a person’s property passes to another under a will or intestacy or by operation of law, it is to be treated as disposed of by him to the other.

(5) A person is only to be treated as having obtained his property for value in a case where he gave unexecuted consideration if the consideration has become executed consideration.

General interpretation U.K.

19 (1) In this Schedule— U.K.

• [F45 “account forfeiture notice” (in Part 4B) has the meaning given by paragraph 10W(3),]

• [F45 “account freezing order” (in Part 4B) has the meaning given by paragraph 10Q(4)(a),]

• “authorised officer” means a constable [F46 , a counter-terrorism financial investigator] , a customs officer or an immigration officer,

• [F45 “bank” (in Part 4B) has the meaning given by paragraph 10R,]

• [F45 “building society” (in Part 4B) has the meaning given by paragraph 10Q(7),]

• “cash” has the meaning given by paragraph 1,

• [F47 “cash forfeiture notice” has the meaning given by paragraph 5A(3),]

• “constable”, in relation to Northern Ireland, means a police officer within the meaning of the Police (Northern Ireland) Act 2000 (c. 32),

• [F48 “counter-terrorism financial investigator” is to be read in accordance with section 63F of the Terrorism Act 2000,]

• “criminal conduct” means conduct which constitutes an offence in any part of the United Kingdom, or would constitute an offence in any part of the United Kingdom if it occurred there,

• “customs officer” means an officer commissioned by the Commissioners of Customs and Excise under section 6(3) of the Customs and Excise Management Act 1979 (c. 2),

• [F45 “enforcement officer” (in Part 4B) has the meaning given by paragraph 10Q(7),]

• “forfeiture order” has the meaning given by paragraph 7,

• “immigration officer” means a person appointed as an immigration officer under paragraph 1 of Schedule 2 to the Immigration Act 1971 (c. 77),

• “interest”, in relation to land—

  (a)

  in the case of land in England and Wales or Northern Ireland, means any legal estate and any equitable interest or power,

  (b)

  in the case of land in Scotland, means any estate, interest, servitude or other heritable right in or over land, including a heritable security,

• “interest”, in relation to property other than land, includes any right (including a right to possession of the property),

• [F49 “listed asset” has the meaning given by paragraph 10A,]

• “part”, in relation to property, includes a portion,

• “property obtained through terrorism” has the meaning given by paragraph 11,

• “property earmarked as terrorist property” is to be read in accordance with Part 5,

• “proscribed organisation” has the same meaning as in the Terrorism Act 2000 (c. 11),

• [F45 “relevant court” (in Part 4B) has the meaning given by paragraph 10Q(7),]

• [F47 “senior officer” (in Part 2A) has the meaning given by paragraph 5A(10),]

• [F45 “senior officer” (in Part 4B) has the meaning given by paragraph 10Q(7),]

• “terrorism” has the same meaning as in the Terrorism Act 2000,

• “terrorist cash” has the meaning given by paragraph 1,

• “value” means market value.

(2) Paragraphs 17 and 18 and the following provisions apply for the purposes of this Schedule.

(3) For the purpose of deciding whether or not property was earmarked as terrorist property at any time (including times before commencement), it is to be assumed that this Schedule was in force at that and any other relevant time.

(4) References to anything done or intended to be done for the purposes of terrorism include anything done or intended to be done for the benefit of a proscribed organisation.

(5) An organisation’s resources include any cash which is applied or made available, or is to be applied or made available, for use by the organisation.

(6) Proceedings against any person for an offence are concluded when—

(a) the person is convicted or acquitted,

(b) the prosecution is discontinued or, in Scotland, the trial diet is deserted simpliciter, or

(c) the jury is discharged without a finding [F50 otherwise than in circumstances where the proceedings are continued without a jury] .

[F51 (7) References (in Part 4B) to an account being operated by or for a person are to be read in accordance with paragraph 10Q(4)(b).]

Textual Amendments

F45 Words in Sch. 1 para. 19(1) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 4 para. 3(2); S.I. 2018/78, reg. 3(dd)

F46 Words in Sch. 1 para. 19(1) inserted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 41(6)(b)(i), 58(4)(6)

F47 Words in Sch. 1 para. 19(1) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 38(7), 58(1)(6); S.I. 2018/78, reg. 3(u)

F48 Words in Sch. 1 para. 19(1) inserted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), ss. 41(6)(b)(ii), 58(4)(6)

F49 Words in Sch. 1 para. 19(1) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 3 para. 3; S.I. 2018/78, reg. 3(cc)

F50 Words in Sch. 1 para. 19(6)(c) inserted (24.7.2006 for E.W. and otherwise 8.1.2007) by Criminal Justice Act 2003 (c. 44), ss. 331, 336, Sch. 36 para. 77; S.I. 2006/1835, art. 2(h); S.I. 2006/3422, art. 2(c)

F51 Sch. 1 para. 19(7) inserted (27.4.2017 for specified purposes, 31.1.2018 in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 4 para. 3(3); S.I. 2018/78, reg. 3(dd)