The Proceeds of Crime Act 2002 (External Investigations and External Orders and Requests) (Amendment) Order 2021

EXPLANATORY NOTE

(This note is not part of the Order)

This Order amends the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005 (S.I. 2005/3181) (the “2005 Order”), the Proceeds of Crime Act 2002 (External Investigations) Order 2013 (S.I. 2013/2605) and the Proceeds of Crime Act 2002 (External Investigations) Order 2014 (S.I. 2014/1893) (the “2014 Order”) (together, the “relevant Orders”).

The relevant Orders were made for the purpose of giving effect to overseas requests, orders and investigations into financial matters resulting from criminal conduct (external requests, external orders and external investigations, as defined in section 447 of the Proceeds of Crime Act 2002 (c. 29) (the “2002 Act”)). The relevant Orders correspond to certain provisions of the 2002 Act and are made under sections 444 and 445 of that Act.

The provisions of the 2002 Act to which the relevant Orders correspond were amended by the Criminal Finances Act 2017 (c. 22) (“the 2017 Act”). The changes included new substantive powers (for example, to provide for the making of unexplained wealth orders and interim freezing orders and to provide for the freezing and forfeiture of certain moveable property or money held in bank and building society accounts). They also made changes to the agencies entitled to enforce certain provisions of the 2002 Act. These amendments were commenced in 2018, but not in relation to Northern Ireland. The amendments arising in consequence of this were made to the relevant Orders by the Proceeds of Crime Act 2002 (External Investigations and External Orders and Requests) (Amendment) Order 2018 (S.I. 2018/1078) (the “2018 Order”).

This Order, in Chapter 1 of Part 2, Part 3 and Part 4, makes the amendments necessary to the relevant Orders to reflect the commencement of the amendments made by the 2017 Act to the 2002 Act in Northern Ireland. Minor corrections are also made to the relevant Orders.

Part 5B of the 2005 Order makes provision corresponding to Chapter 3B of Part 5 of the 2002 Act (as amended by the 2017 Act). This concerns powers to freeze and forfeit money held in bank and building society accounts. Part 3B of the 2002 Act was amended by the Financial Services Act 2021 (c. 22). The amendments broaden the definition of financial institutions to which these powers apply in England and Wales and in Scotland (using a new definition of “relevant financial institution”, which is given a narrower meaning in relation to Northern Ireland). Chapter 2 of Part 2 of this Order makes the amendments necessary to the 2005 Order to reflect the changes to these underlying provisions to which the 2005 Order, in this respect, corresponds.

Article 63 updates references to codes of practice applied for the purposes of the 2014 Order for both England and Wales and Northern Ireland.

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