Paragraph 10Z7CB Forfeiture: supplementaryF1

(1)

Sub-paragraph (2) applies where an application is made under paragraph 10Z7CA for the forfeiture of any cryptoassets detained under Part 4BA.

(2)

The cryptoassets are to continue to be detained under Part 4BA (and may not be released under any power conferred by this Schedule) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded.

This is subject to Part 4BD (conversion to money).

(3)

Where an application is made under paragraph 10Z7CA in relation to cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order—

(a)

sub-paragraphs (4) and (5) apply, and

(b)

the crypto wallet freezing order is to continue to have effect until the time referred to in sub-paragraph (4)(b) or (5).

(4)

Where the cryptoassets are ordered to be forfeited under paragraph 10Z7CA (3) or 10Z7CE (3)—

(a)

the cryptoasset service provider that administers the crypto wallet must transfer the cryptoassets into a crypto wallet nominated by an authorised officer, and

(b)

immediately after the transfer has been made, the freezing order ceases to have effect.

(5)

Where the application is determined or otherwise disposed of other than by the making of an order under paragraph 10Z7CA (3) or 10Z7CE (3), the crypto wallet freezing order ceases to have effect immediately after that determination or other disposal.

(6)

Sub-paragraphs (4)(b) and (5) are subject to paragraph 10Z7CF and Part 4BD.

(7)

The Secretary of State may by regulations made by statutory instrument amend this paragraph to make provision about the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order.

(8)

Regulations under sub-paragraph (7) may in particular make provision about—

(a)

the process for the forfeiture of cryptoassets;

(b)

the realisation of forfeited cryptoassets;

(c)

the application of the proceeds of such realisation.

(9)

Regulations under sub-paragraph (7) may—

(a)

make different provision for different purposes;

(b)

make consequential, supplementary, incidental, transitional, transitory or saving provision, including provision which makes consequential amendments to this Part.

(10)

A statutory instrument containing regulations under sub-paragraph (7) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

Annotations

Textual amendments

F1: Sch. 1 Pts. 4BA-4BD inserted (26.10.2023 for specified purposes, 26.4.2024 in so far as not already in force) by Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b), Sch. 10 para. 2; S.I. 2024/269, reg. 4(c)

Notes on Schedule 1

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)