Proceeds of Crime

It is an offence to use or benefit from any property, money or assets obtained through criminal conduct. Government authorities such as the Crown Prosecution Service or HMRC have responsibility for recovering the assets or money that is the result of criminal activity.  The law is complex and sometimes the litigation can take years to resolve.

Money laundering

The Proceeds of Crime Act defines money laundering as “the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises”.

There are three money laundering offences under the Proceeds of Crimes Act 2002:

1. Concealment – for example, putting money into a bank or gambling account
2. Arranging – this will typically be applied to someone in a credit or finance institution who launders money on behalf of someone else
3. Acquisition – where someone acquires, uses, or possesses criminal property such as real estate

The prosecution will need to prove that the property was obtained through criminal conduct and that you knew or suspected that the property was criminal property.

Confiscation proceedings

Confiscation proceedings can take place after you have been convicted of a certain offence and proceedings are instigated at the request of the Prosecution. The court does not actually “confiscate” the property, but they require you to pay back a certain amount. The Court can consider an individual has a ‘criminal lifestyle’, this has implications for how far back they can go assessing what recoverable amount is payable. The court will be entitled to assume that any transaction within the six-year period prior to the court case is the proceeds of crime. It will be up to you to prove otherwise.

When a Confiscation Order is made in the Crown Court, the Judge will make the determination as to the “benefit” from criminal conduct and the “available assets”, the Judge will then set the time to pay the order and a default term of imprisonment if this is not paid.

Enforcement

If an order is not paid in full by the expiry of the time to pay, the Magistrates Court is responsible for enforcing the payment.  The Magistrate’s Court does not have the power to amend the amount payable, reduce the default term or extend the time to pay they are only able to enforce the order or activate the default term of imprisonment.  The default term of imprisonment is reduced by monies paid towards the order and interest accrues on the outstanding amount on a daily basis once time to pay has expired

The law surrounding proceeds of crime is complex and, if you are involved in an investigation, we strongly recommend obtaining assistance from an experienced lawyer. As one of the largest and most well-respected criminal law practices in Kent, we are well placed to assist and guide you through such investigations, we have extensive experience in dealing with both confiscation and enforcement proceedings and our staff will be happy to guide you through this difficult area of law.

If you need assistance, email [email protected] or call us on 01303 246444 for expert criminal law advice.