Paragraph 10Z7CE Associated and joint property: default of agreementF1

(1)

Where this paragraph applies and there is no agreement under paragraph 10Z7CD, the magistrates’ court or sheriff may transfer the application made under paragraph 10Z7CA to the appropriate court.

(2)

The “appropriate court” is—

(a)

the High Court, where the application under paragraph 10Z7CA was made to a magistrates’ court;

(b)

the Court of Session, where the application under paragraph 10Z7CA was made to the sheriff.

(3)

Where (under sub-paragraph (1)) an application made under paragraph 10Z7CA is transferred to the appropriate court, the appropriate court may order the forfeiture of the property to which the application relates, or any part of that property, if satisfied that what is to be forfeited—

(a)

is within subsection (1)(a) or (b) of section 1, or

(b)

is property earmarked as terrorist property.

(4)

An order under sub-paragraph (3) made by the High Court may include provision of the type that may be included in an order under paragraph 10Z7CA (3) made by a magistrates’ court by virtue of paragraph 10Z7CA (4).

(5)

If provision is included in an order of the High Court by virtue of sub-paragraph (4) of this paragraph, paragraph 10Z7CA (5) and (6) apply with the necessary modifications.

(6)

The appropriate court may, as well as making an order under sub-paragraph (3), make an order—

(a)

providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner‘s interest to be extinguished, or

(b)

providing for the excepted joint owner‘s interest to be severed.

(7)

Where (under sub-paragraph (1)) the magistrates’ court or sheriff decides not to transfer an application made under paragraph 10Z7CA to the appropriate court, the magistrates’ court or sheriff may, as well as making an order under paragraph 10Z7CA (3), make an order—

(a)

providing for the forfeiture of the associated property or (as the case may be) for the excepted joint owner‘s interest to be extinguished, or

(b)

providing for the excepted joint owner‘s interest to be severed.

(8)

An order under sub-paragraph (6) or (7) may be made only if the appropriate court, the magistrates’ court or the sheriff (as the case may be) thinks it just and equitable to do so.

(9)

An order under sub-paragraph (6) or (7) must provide for the payment of an amount to the person who holds the associated property or who is an excepted joint owner.

(10)

In making an order under sub-paragraph (6) or (7), and including provision in it by virtue of sub-paragraph (9), the appropriate court, the magistrates’ court or the sheriff (as the case may be) must have regard to—

(a)

the rights of any person who holds the associated property or who is an excepted joint owner and the value to that person of that property or (as the case may be) of that person’s share (including any value that cannot be assessed in terms of money), and

(b)

the interest of the person who applied for the order under paragraph 10Z7CA in realising the value of the forfeitable property.

(11)

If the appropriate court, the magistrates’ court or the sheriff (as the case may be) is satisfied that—

(a)

the person who holds the associated property or who is an excepted joint owner has suffered loss as a result of—

(i)

the seizure of the forfeitable property under paragraph 10Z7AD and its subsequent detention, or

(ii)

the making of the crypto wallet freezing order under paragraph 10Z7BB, and

(b)

the circumstances are exceptional,

an order under sub-paragraph (6) or (7) may require the payment of compensation to that person.

(12)

The amount of compensation to be paid by virtue of sub-paragraph (11) is the amount the appropriate court, the magistrates’ court or the sheriff (as the case may be) thinks reasonable, having regard to the loss suffered and any other relevant circumstances.

(13)

Compensation to be paid by virtue of sub-paragraph (11) is to be paid in the same way that compensation is to be paid under paragraph 10Z7CM.

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)