Textual Amendments
F1Pt. 5 Chs. 3C-3F inserted (26.10.2023 for specified purposes) by Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b)(c), Sch. 9 para. 1
(1)Subsection (2) applies while any cryptoassets are detained in pursuance of an order under section 303Z30 or 303Z32 (including where cryptoassets are subject to forfeiture proceedings).
(2)A person within subsection (3) may apply to the relevant court for an order requiring all of the cryptoassets detained pursuant to the order to be converted into money.
(3)The following persons are within this subsection—
(a)an enforcement officer;
(b)a person from whom the cryptoassets were seized.
(4)In deciding whether to make an order under this section, the court must have regard to whether the cryptoassets (as a whole) are likely to suffer a significant loss in value during the period before they are released or forfeited (including the period during which an appeal against an order for forfeiture may be made).
(5)Before making an order under this section the court must give an opportunity to be heard to—
(a)the parties to the proceedings, and
(b)any other person who may be affected by its decision.
(6)As soon as practicable after an order is made under this section, an enforcement officer must convert the cryptoassets, or arrange for the cryptoassets to be converted, into money.
(7)The conversion of cryptoassets under subsection (6) must be carried out, so far as practicable, in the manner best calculated to maximise the amount of money obtained for the cryptoassets.
(8)At the first opportunity after the cryptoassets are converted, the enforcement officer must arrange for the amount of money obtained for the cryptoassets to be paid into an interest-bearing account and held there.
(9)Interest accruing on the amount is to be added to it on its forfeiture or release.
(10)Where cryptoassets are converted into money in accordance with an order made under this section—
(a)the cryptoassets are no longer to be treated as being detained in pursuance of an order under section 303Z30 or 303Z32, and
(b)any application made under section 303Z41(2) in relation to the cryptoassets which has not yet been determined or otherwise disposed of (including under section 303Z44 or 303Z45) is to be treated as if it were an application made under section 303Z60(2) in relation to the converted cryptoassets.
(11)An order made under this section must provide for notice to be given to persons affected by the order.
(12)No appeal may be made against an order made under this section.
(1)This section applies while a crypto wallet freezing order under section 303Z37 has effect (including where cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order are subject to forfeiture proceedings).
(2)A person within subsection (3) may apply to the relevant court for an order requiring all of the cryptoassets held in the crypto wallet to be converted into money.
(3)The following persons are within this subsection—
(a)an enforcement officer;
(b)a person by or for whom the crypto wallet is administered.
(4)In deciding whether to make an order under this section, the court must have regard to whether the cryptoassets (as a whole) are likely to suffer a significant loss in value during the period before—
(a)the crypto wallet freezing order ceases to have effect, or
(b)the cryptoassets are forfeited (including the period during which an appeal against an order for forfeiture may be made).
(5)Before making an order under this section the court must give an opportunity to be heard to—
(a)the parties to the proceedings, and
(b)any other person who may be affected by its decision.
(6)As soon as practicable after an order is made under this section, the UK-connected cryptoasset service provider that administers the crypto wallet must convert the cryptoassets, or arrange for the cryptoassets to be converted, into money.
(7)The conversion of cryptoassets under subsection (6) must be carried out, so far as practicable, in the manner best calculated to maximise the amount of money obtained for the cryptoassets.
(8)At the first opportunity after the cryptoassets are converted, the UK-connected cryptoasset service provider must arrange for the amount of money obtained for the cryptoassets to be paid into an interest-bearing account nominated by an enforcement officer and held there.
(9)But—
(a)the UK-connected cryptoasset service provider may deduct any reasonable expenses incurred by the provider in connection with the conversion of the cryptoassets, and
(b)the amount to be treated as the proceeds of the conversion of the cryptoassets is to be reduced accordingly.
(10)Interest accruing on the amount obtained for the cryptoassets is to be added to it on its forfeiture or release.
(11)Where cryptoassets are converted in accordance with an order made under this section—
(a)the crypto wallet freezing order ceases to have effect,
(b)any application made under section 303Z41(2) in relation to the cryptoassets which has not yet been determined or otherwise disposed of (including under section 303Z44 or 303Z45) is to be treated as if it were an application made under section 303Z60(2) in relation to the converted cryptoassets, and
(c)any application made under section 303Z46(2) in relation to the crypto wallet which has not yet been determined or otherwise disposed of may not be proceeded with.
(12)An order made under this section must provide for notice to be given to persons affected by the order.
(13)No appeal may be made against an order made under this section.
(1)Where—
(a)cryptoassets are forfeited under section 303Z41 or 303Z45, and
(b)before the cryptoassets are realised or destroyed in accordance with section 303Z48, an order is made under section 303Z54 requiring the cryptoassets to be converted into money,
section 303Z62(1) applies in relation to the converted cryptoassets as if they had been detained under section 303Z57 and forfeited under section 303Z60 (and accordingly section 303Z48 ceases to apply).
(2)Where—
(a)cryptoassets are forfeited under section 303Z41 or 303Z45, and
(b)before the cryptoassets are realised or destroyed in accordance with section 303Z48, an order is made under section 303Z55 requiring the cryptoassets to be converted into money,
section 303Z62(2) applies in relation to the converted cryptoassets as if they had been detained under section 303Z58 and forfeited under section 303Z60 (and accordingly section 303Z48 ceases to apply).
(3)Where—
(a)an appeal may be made under section 303Z47(1) or (2) in relation to the determination of an application under section 303Z41(2) for the forfeiture of cryptoassets (including where section 303Z44 or 303Z45 applies), and
(b)an order is made under section 303Z54 or 303Z55 requiring the cryptoassets to be converted into money,
the appeal may instead be made under section 303Z61 (within the time allowed by section 303Z47(4)) as if it were an appeal against the determination of an application under section 303Z60.
(4)Where—
(a)an appeal is made under section 303Z47(1) or (2) in relation to the determination of an application under section 303Z41(2) for the forfeiture of cryptoassets (including where section 303Z44 or 303Z45 applies), and
(b)before the appeal is determined or otherwise disposed of, an order is made under section 303Z54 or 303Z55 requiring the cryptoassets to be converted into money,
the appeal is to be treated as if it had been made under section 303Z61(1) in relation to the determination of an application under section 303Z60 for the forfeiture of the converted cryptoassets.
(1)This section applies where cryptoassets are converted into money in accordance with an order under section 303Z54.
(2)The proceeds of the conversion (the “converted cryptoassets”) may be detained initially until the end of the period that the cryptoassets could, immediately before the conversion, have been detained under Chapter 3C (ignoring the possibility of any extension of that period).
(3)The period for which the converted cryptoassets may be detained may be extended by an order made by the relevant court.
(4)An order under subsection (3) may not authorise the detention of the converted cryptoassets beyond the end of the period of 2 years beginning with the relevant date; but this is subject to subsection (5).
(5)The relevant court may make an order for the period of 2 years in subsection (4) to be extended to a period of up to 3 years beginning with the relevant date.
(6)In subsections (4) and (5) “the relevant date” means the date on which the first order under section 303Z30 or 303Z32 (as the case may be) was made in relation to the cryptoassets.
(7)An application for an order under subsection (3) or (5) may be made—
(a)in relation to England and Wales and Northern Ireland, by—
(i)the Commissioners for His Majesty’s Revenue and Customs,
(ii)a constable,
(iii)an SFO officer, or
(iv)an accredited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453, and
(b)in relation to Scotland, by the Scottish Ministers in connection with their functions under section 303Z41 or by a procurator fiscal.
(8)The relevant court may make an order under subsection (3) only if satisfied that there are reasonable grounds for suspecting that the converted cryptoassets to be further detained—
(a)are recoverable property, or
(b)are intended by any person for use in unlawful conduct.
(9)The relevant court may make an order under subsection (5) only if satisfied that a request for assistance is outstanding in relation to the cryptoassets mentioned in subsection (1).
(10)A “request for assistance” in subsection (9) means a request for assistance in obtaining evidence (including information in any form or article) in connection with the cryptoassets, made—
(a)by a judicial authority in the United Kingdom under section 7 of the Crime (International Co-operation) Act 2003,
(b)by an enforcement officer, to an authority exercising equivalent functions in a foreign country,
(c)by the Scottish Ministers in connection with their functions under this Part, to an authority exercising equivalent functions in a foreign country, or
(d)by a person under section 375A or 408A (evidence overseas).
(1)This section applies where cryptoassets held in a crypto wallet subject to a crypto wallet freezing order are converted into money in accordance with an order under section 303Z55.
(2)The proceeds of the conversion (the “converted cryptoassets”) may be detained initially until the end of the period that the crypto wallet freezing order was, immediately before the conversion, due to have effect under Chapter 3D (ignoring the possibility of any extension of that period).
(3)The period for which the converted cryptoassets may be detained may be extended by an order made by the relevant court.
(4)An order under subsection (3) may not authorise the detention of the converted cryptoassets beyond the end of the period of 2 years beginning with the day on which the crypto wallet freezing order was made; but this is subject to subsection (5).
(5)The relevant court may make an order for the period of 2 years in subsection (4) to be extended to a period of up to 3 years beginning with the day on which the crypto wallet freezing order was made.
(6)An application for an order under subsection (3) or (5) may be made—
(a)in relation to England and Wales and Northern Ireland, by—
(i)the Commissioners for His Majesty’s Revenue and Customs,
(ii)a constable,
(iii)an SFO officer, or
(iv)an accredited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453, and
(b)in relation to Scotland, by the Scottish Ministers in connection with their functions under section 303Z41 or by a procurator fiscal.
(7)The relevant court may make an order under subsection (3) only if satisfied that there are reasonable grounds for suspecting that the converted cryptoassets to be further detained—
(a)are recoverable property, or
(b)are intended by any person for use in unlawful conduct.
(8)The relevant court may make an order under subsection (5) only if satisfied that a request for assistance is outstanding in relation to the cryptoassets mentioned in subsection (1).
(9)A “request for assistance” in subsection (8) means a request for assistance in obtaining evidence (including information in any form or article) in connection with the cryptoassets, made—
(a)by a judicial authority in the United Kingdom under section 7 of the Crime (International Co-operation) Act 2003,
(b)by an enforcement officer, to an authority exercising equivalent functions in a foreign country,
(c)by the Scottish Ministers in connection with their functions under this Part, to an authority exercising equivalent functions in a foreign country, or
(d)by a person under section 375A or 408A (evidence overseas).
(1)This section applies while any converted cryptoassets are detained under section 303Z57 or 303Z58.
(2)The relevant court may direct the release of the whole or any part of the converted cryptoassets if the following condition is met.
(3)The condition is that, on an application by the relevant person, the court is not satisfied that there are reasonable grounds for suspecting that the converted cryptoassets to be released—
(a)are recoverable property, or
(b)are intended by any person for use in unlawful conduct.
(4)In subsection (3) “the relevant person” means—
(a)in the case of converted cryptoassets detained under section 303Z57, the person from whom the cryptoassets mentioned in subsection (1) of that section were seized, and
(b)in the case of converted cryptoassets detained under section 303Z58, any person affected by the crypto wallet freezing order mentioned in subsection (1) of that section.
(5)A person within subsection (6) may, after notifying the magistrates’ court or sheriff under whose order converted cryptoassets are being detained, release the whole or any part of the converted cryptoassets if satisfied that the detention is no longer justified.
(6)The following persons are within this subsection—
(a)in relation to England and Wales or Northern Ireland, an enforcement officer;
(b)in relation to Scotland—
(i)the Scottish Ministers,
(ii)an officer of Revenue and Customs,
(iii)a constable, and
(iv)a procurator fiscal.
(1)This section applies while any converted cryptoassets are detained under section 303Z57 or 303Z58.
(2)An application for the forfeiture of some or all of the converted cryptoassets may be made—
(a)to a magistrates’ court by a person within subsection (3), or
(b)to the sheriff by the Scottish Ministers.
(3)The following persons are within this subsection—
(a)the Commissioners for His Majesty’s Revenue and Customs,
(b)a constable,
(c)an SFO officer, and
(d)an accredited financial investigator who falls within a description specified in an order made for the purposes of this Chapter by the Secretary of State or the Welsh Ministers under section 453.
(4)The court or sheriff may order the forfeiture of some or all of the converted cryptoassets if satisfied that the converted cryptoassets to be forfeited—
(a)are recoverable property, or
(b)are intended by any person for use in unlawful conduct.
(5)But in the case of recoverable 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 thinks is attributable to the excepted joint owner’s share.
(6)Where an application for forfeiture is made under this section, the converted cryptoassets are to continue to be detained under section 303Z57 or 303Z58 (and may not be released under any power conferred by this Chapter) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded.
(1)Any party to proceedings for an order for the forfeiture of converted cryptoassets under section 303Z60 who is aggrieved by an order under that section or by the decision of the court not to make such an order may appeal—
(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 subsection (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)The court hearing the appeal may make any order it thinks appropriate.
(4)If the court upholds an appeal against an order forfeiting the converted cryptoassets, it may order the release of some or all of the converted cryptoassets.
(1)Converted cryptoassets detained under section 303Z57 and forfeited under section 303Z60, and any accrued interest on them, must be applied as follows—
(a)first, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the safe storage of the cryptoassets mentioned in section 303Z57(1) during the period the cryptoassets were detained under Chapter 3C;
(b)second, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the conversion of those cryptoassets under section 303Z54(6);
(c)third, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the detention of the converted cryptoassets under this Chapter;
(d)fourth, they must be paid—
(i)if forfeited by a magistrates’ court in England and Wales or Northern Ireland, into the Consolidated Fund, and
(ii)if forfeited by the sheriff, into the Scottish Consolidated Fund.
(2)Converted cryptoassets detained under section 303Z58 and forfeited under section 303Z60, and any accrued interest on them, must be applied as follows—
(a)first, they must be applied in making any payment of reasonable expenses incurred by an enforcement officer in connection with the detention of the converted cryptoassets under this Chapter;
(b)second, they must be paid—
(i)if forfeited by a magistrates’ court in England and Wales or Northern Ireland, into the Consolidated Fund, and
(ii)if forfeited by the sheriff, into the Scottish Consolidated Fund.
(3)But converted cryptoassets are not to be applied or paid under subsection (1) or (2)—
(a)before the end of the period within which an appeal under section 303Z61 may be made, or
(b)if a person appeals under that section, before the appeal is determined or otherwise disposed of.
(1)This section applies where converted cryptoassets are detained under this Chapter.
(2)Where this section applies, a person (“P”) who claims that the relevant cryptoassets belonged to P immediately before—
(a)the relevant cryptoassets were seized, or
(b)the crypto wallet freezing order was made in relation to the crypto wallet in which the relevant cryptoassets were held,
may apply to the relevant court for some or all of the converted cryptoassets to be released to P.
(3)The application may be made in the course of proceedings under section 303Z57, 303Z58 or 303Z60 or at any other time.
(4)The relevant court may order the converted cryptoassets to which the application relates to be released to the applicant if it appears to the relevant court that the condition in subsection (5) is met.
(5)The condition in this subsection is that—
(a)the applicant was deprived of the relevant cryptoassets, or of property which they represent, by unlawful conduct,
(b)the relevant cryptoassets the applicant was deprived of were not, immediately before the applicant was deprived of them, recoverable property, and
(c)the relevant cryptoassets belonged to the applicant immediately before—
(i)the relevant cryptoassets were seized, or
(ii)the crypto wallet freezing order was made in relation to the crypto wallet in which the relevant cryptoassets were held.
(6)If subsection (7) applies, the relevant court may order the converted cryptoassets to which the application relates to be released to the applicant or to the person from whom the relevant cryptoassets were seized.
(7)This subsection applies where—
(a)the applicant is not the person from whom the relevant cryptoassets were seized,
(b)it appears to the relevant court that the relevant cryptoassets belonged to the applicant immediately before—
(i)the relevant cryptoassets were seized, or
(ii)the crypto wallet freezing order was made in relation to the crypto wallet in which the relevant cryptoassets were held,
(c)the relevant court is satisfied that the release condition is met in relation to the converted cryptoassets, and
(d)no objection to the making of an order under subsection (6) has been made by the person from whom the relevant cryptoassets were seized.
(8)The release condition is met—
(a)if the conditions in this Chapter for the detention of the converted cryptoassets are no longer met, or
(b)in relation to converted cryptoassets which are subject to an application for forfeiture under section 303Z60, if the court or sheriff decides not to make an order under that section in relation to the converted cryptoassets.
(9)Where subsection (2)(b) applies, references in this section to a person from whom relevant cryptoassets were seized include a reference to a person by or for whom the crypto wallet mentioned in that provision was administered immediately before the crypto wallet freezing order was made in relation to the crypto wallet.
(10)In this section “the relevant cryptoassets” means—
(a)in relation to converted cryptoassets detained under section 303Z57, some or all of the cryptoassets mentioned in subsection (1) of that section, and
(b)in relation to converted cryptoassets detained under section 303Z58, some or all of the cryptoassets mentioned in subsection (1) of that section.
(1)This section applies if no order is made under section 303Z60 in respect of converted cryptoassets detained under this Chapter.
(2)Where this section applies, the following may make an application to the relevant court for compensation—
(a)a person to whom the relevant cryptoassets belonged immediately before they were seized;
(b)a person from whom the relevant cryptoassets were seized;
(c)a person by or for whom the crypto wallet mentioned in section 303Z58(1) was administered immediately before the crypto wallet freezing order was made in relation to the crypto wallet.
(3)If the relevant court is satisfied that—
(a)the applicant has suffered loss as a result of—
(i)the conversion of the relevant cryptoassets into money, or
(ii)the detention of the converted cryptoassets, and
(b)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 relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an officer of Revenue and Customs, the compensation is to be paid by the Commissioners for His Majesty’s Revenue and Customs.
(6)If the relevant cryptoassets were seized, or the relevant crypto wallet 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.
(7)If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an SFO officer, the compensation is to be paid by the Director of the Serious Fraud Office.
(8)If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by a National Crime Agency officer, the compensation is to be paid by the National Crime Agency.
(9)If the relevant cryptoassets were seized, or the relevant crypto wallet freezing order was applied for, by an accredited financial investigator who was not an officer of Revenue and Customs, a constable, an SFO officer or a National Crime Agency officer, 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,
(c)in the case of an investigator who was a member of staff of a department of the Government of the United Kingdom, it is to be paid by the Minister of the Crown in charge of the department or by the department,
(d)in the case of an investigator who was a member of staff of a Northern Ireland department, it is to be paid by the department,
(e)in the case of an investigator who was exercising a function of the Welsh Revenue Authority, it is to be paid by the Welsh Revenue Authority, and
(f)in any other case, it is to be paid by the employer of the investigator.
(10)The Secretary of State may by regulations amend subsection (9).
(11)The power in subsection (10) is exercisable by the Department of Justice (and not by the Secretary of State) so far as it may be used to make provision that—
(a)would be within the legislative competence of the Northern Ireland Assembly if contained in an Act of that Assembly, and
(b)would not, if contained in a Bill for an Act of the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State.
(12)In this section—
“the relevant cryptoassets” means—
“the relevant crypto wallet freezing order”, in relation to converted cryptoassets detained under section 303Z58, means the crypto wallet freezing order mentioned in subsection (1) of that section.
(1)The Director of Public Prosecutions or the Director of Public Prosecutions for Northern Ireland may appear for a constable or an accredited financial investigator in proceedings under this Chapter if the Director—
(a)is asked by, or on behalf of, a constable or (as the case may be) an accredited financial investigator to do so, and
(b)considers it appropriate to do so.
(2)The Director of Public Prosecutions may appear for the Commissioners for His Majesty’s Revenue and Customs or an officer of Revenue and Customs in proceedings under this Chapter if the Director—
(a)is asked by, or on behalf of, the Commissioners for His Majesty’s Revenue and Customs or (as the case may be) an officer of Revenue and Customs to do so, and
(b)considers it appropriate to do so.
(3)The Directors may charge fees for the provision of services under this section.
(4)The references in subsection (1) to an accredited financial investigator do not include an accredited financial investigator who is an officer of Revenue and Customs but the references in subsection (2) to an officer of Revenue and Customs do include an accredited financial investigator who is an officer of Revenue and Customs.
(1)In this Chapter—
“converted cryptoassets” is to be read in accordance with sections 303Z57 and 303Z58;
“crypto wallet freezing order” has the same meaning as in Chapter 3D (see section 303Z36);
“enforcement officer” has the meaning given by section 303Z20;
“relevant court” means—
in England and Wales and Northern Ireland, a magistrates’ court, and
in Scotland, the sheriff;
“relevant financial institution” has the meaning given by section 303Z1(6);
“UK-connected cryptoasset service provider” has the meaning given by section 303Z36.
(2)Section 303Z36(4)(b) applies in relation to this Chapter as it applies in relation to Chapter 3D.
(3)In this Chapter references to the conversion of cryptoassets into money are references to the conversion of cryptoassets into—
(a)cash, or
(b)money held in an account maintained with a relevant financial institution.]