Explanatory note
(This note is not part of the Regulations)
These Regulations make amendments to the Proceeds of Crime Act 2002 (c. 29) (“the 2002 Act”) consequential on the Criminal Finances Act 2017 (c. 22) (“the 2017 Act”) and the Economic Crime and Corporate Transparency Act 2023 (c. 56) (“the 2023 Act”).
Regulation 2(2) amends section 341(3) of the 2002 Act to ensure that cryptoasset investigations (a type of investigation introduced by the 2023 Act) do not fall within the definition of a ‘civil recovery investigation’ in section 341(2) of the 2002 Act.
Regulation 2(3)(a) amends section 352(3) of the 2002 Act, which details what the application for a search and seizure warrant must specify. Consequential on the 2017 Act, it adds references to subsections (7C) to (7F) of section 353 which deal with detained property investigations and frozen funds investigations. Consequential on the 2023 Act, it adds references to subsections (7G) and (7H) which deal with cryptoasset investigations. Regulation 2(3)(b) also amends section 352(5) and (7) of the 2002 Act to define an ‘appropriate person’ for the purposes of cryptoasset investigations in England and Wales and Northern Ireland. Regulation 2(4)(c) and 2(4)(d) make equivalent amendments to section 353(10) of the 2002 Act.
Regulation 2(4) further amends section 353 by inserting new subsections (7G) and (7H) to specify additional conditions required to issue search and seizure warrants in relation to cryptoassets in England and Wales and Northern Ireland. Regulation 2(6) inserts the equivalent new subsections into section 388 of the 2002 Act to specify the conditions required for the exercise of search and seizure warrants in Scotland.
Regulation 2(5) amends section 387(2) of the 2002 Act. It adds reference to cryptoasset investigations into that provision which specifies that sheriffs in Scotland act in the exercise of their civil jurisdiction when issuing certain search warrants.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.