The Criminal Procedure Rules 2020

[F1Application to realise seized property or to realise or destroy cryptoassetsE+W

This section has no associated Explanatory Memorandum

33.25.—(1) This rule applies where a magistrates’ court can make an order—

(a)under section 67A of the Proceeds of Crime Act 2002 authorising the realisation of seized personal property;

(b)under section 67B of the 2002 Act determining any storage, insurance or realisation costs recoverable by the officer;

(c)under section 67ZA of the 2002 Act requiring the realisation of seized cryptoassets; or

(d)under section 67AA of the 2002 Act authorising the destruction of seized cryptoassets.

(2) An applicant for such an order must—

(a)apply in writing; and

(b)serve the application on—

(i)the court officer, and

(ii)any person whom the applicant believes would be affected by an order, including (where the application concerns cryptoassets) the UK-connected cryptoasset service provider which administers the crypto wallet in which the cryptoassets are held.

(3) The application must—

(a)specify the property or cryptoassets concerned;

(b)explain the applicant’s entitlement to apply and, as applicable—

(i)how the proposed realisation of personal property meets the conditions prescribed by section 67A of the 2002 Act,

(ii)how any storage, etc. costs have been calculated,

(iii)how the proposed realisation of cryptoassets meets the conditions prescribed by section 67ZA of the 2002 Act, and

(iv)how the proposed destruction of cryptoassets meets the conditions prescribed by section 67AA of the 2002 Act;

(c)attach any material on which the applicant relies; and

(d)propose the terms of the order, including an assessment of the market value of any cryptoassets ordered to be destroyed.

(4) The court may—

(a)determine the application at a hearing, or without a hearing;

(b)consider an application made orally instead of in writing; and

(c)consider an application which has not been served on a person likely to be affected by an order.

(5) If the court authorises a realisation of personal property or a realisation or destruction of cryptoassets, the applicant must—

(a)notify any person affected by the order who was absent when it was made; and

(b)serve on the court officer a list of those so notified.

[Note. Under sections 67ZA and 67A of the Proceeds of Crime Act 2002, one of the officers listed in section 41A of the Act may apply to a magistrates’ court for authority to realise personal property or cryptoassets seized by such an officer if—

(a)a confiscation order has been made against a person who holds that property or those cryptoassets;

(b)no receiver has been appointed in relation to that property or those cryptoassets; and

(c)any period allowed for payment of the confiscation order has expired.

Under section 67AA of the 2002 Act, in those same circumstances an officer may apply to a magistrates’ court for authority to destroy cryptoassets if it is not reasonably practicable to realise them or there are reasonable grounds to believe that their realisation would be contrary to the public interest, having regard in particular to how likely it is that the entry of the cryptoassets into general circulation would facilitate criminal conduct by any person.

Under section 67B of the 2002 Act, if a magistrates’ court makes an order under section 67A then on the same or a subsequent occasion the court may determine an amount which may be recovered by the applicant in respect of reasonable costs incurred in storing or insuring the property, or realising it.

In the 2002 Act, for the purposes of the provisions to which this rule refers—

(a)section 84 makes general provisions about property; and

(b)section 84A defines ‘cryptoasset’ and related expressions.]]

Textual Amendments