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The Criminal Finances Act 2017 and Economic Crime and Corporate Transparency Act 2023 (Consequential Amendments) Regulations 2024

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2024, ISBN 9780348264449

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under sections 55(4) of the Criminal Finances Act 2017 and 217(5)(i) of the Economic Crime and Corporate Transparency Act 2023, for approval by resolution of each House of Parliament.

PROCEEDS OF CRIME

Made ***

Coming into force 29th November 2024

The Secretary of State makes these Regulations in exercise of the powers conferred by section 54(1) and (5) of the Criminal Finances Act 2017 (“the 2017 Act”)f1 and section 216(1) and (2) of the Economic Crime and Corporate Transparency Act 2023 (“the 2023 Act”)f2.

The Secretary of State has consulted the Department of Justice in Northern Ireland in accordance with section 55(1) of the 2017 Act.

In accordance with section 55(4) of the 2017 Act and section 217(5)(i) of the 2023 Act, a draft of these Regulations has been laid before Parliament and approved by resolution of each House of Parliament.

Annotations to the whole text

Footnotes

f1

2017 c. 22.

f2

2023 c. 56.

Contents

  1. 1Citation, commencement and extent
  2. 2Amendments to the Proceeds of Crime Act 2002
  3. Signature
  4. Explanatory note

1Citation, commencement and extent

(1)

These Regulations may be cited as the Criminal Finances Act 2017 and Economic Crime and Corporate Transparency Act 2023 (Consequential Amendments) Regulations 2024 and come into force on 29th November 2024.

(2)

This regulation and regulation 2(1) and (2) extend to England and Wales, Scotland and Northern Ireland.

(3)

Regulation 2(3) and (4) extends to England and Wales and Northern Ireland.

(4)

Regulation 2(5) and (6) extends to Scotland.

2Amendments to the Proceeds of Crime Act 2002

(1)

The Proceeds of Crime Act 2002f1 is amended as follows.

(2)

In subsection (3) of section 341 (investigations)f2, after paragraph (d) omit “or” and after paragraph (e) insert “, or

“(f)

property detained under Chapter 3C or 3F of Part 5 or property held in an account in relation to which a crypto wallet freezing order made under section 303Z37 has effect.”.

(3)

In section 352 (search and seizure warrants)f3—

(a)

in subsection (3)(c), after “(7B)” insert “, (7C), (7D), (7E), (7F), (7G), (7H)”;

(b)

in subsection (5), after paragraph (cb) insert—

“(cc)

a constable, an SFO officer, an accredited financial investigator or an officer of Revenue and Customs, if the warrant is sought for the purposes of a cryptoasset investigation;”;

(c)

in subsection (7), for “and (cb)” substitute “, (cb) and (cc)”.

(4)

In section 353 (requirements where production order not available)f4—

(a)

in subsection (5)(a), after “(7F),” insert “(7G), (7H),”;

(b)

after subsection (7F) insert—

“(7G)

In the case of a cryptoasset investigation into the derivation of cryptoassets or converted cryptoassets, material falls within this subsection if it cannot be identified at the time of the application but it—

(a)

relates to the property specified in the application, the question whether the property, or a part of it, is recoverable property or any other question as to its derivation, and

(b)

is likely to be of substantial value (whether or not by itself) to the investigation for the purposes of which the warrant is sought.

(7H)

In the case of a cryptoasset investigation into the intended use of cryptoassets or converted cryptoassets, material falls within this subsection if it cannot be identified at the time of the application but it—

(a)

relates to property specified in the application or the question whether the property, or a part of it, is intended by any person to be used in unlawful conduct, and

(b)

is likely to be of substantial value (whether or not by itself) to the investigation for the purposes of which the warrant is sought.”;

(c)

in subsection (10), after paragraph (cb) insert—

“(cc)

a constable, an SFO officer, an accredited financial investigator or an officer of Revenue and Customs, if the warrant is sought for the purposes of a cryptoasset investigation;”;

(d)

in subsection (11), for “and (cb)” substitute “, (cb) and (cc)”.

(5)

In subsection (2) of section 387 (search warrants)f5, for “or a frozen funds investigation,” substitute “, a frozen funds investigation or a cryptoasset investigation,”.

(6)

In section 388 (requirements where production order not available)f6—

(a)

in subsection (5)(a), after “(7F)” insert “, (7G), (7H)”;

(b)

after subsection (7F) insert—

“(7G)

In the case of a cryptoasset investigation into the derivation of cryptoassets or converted cryptoassets, material falls within this subsection if it cannot be identified at the time of the application but it—

(a)

relates to the property specified in the application, the question whether the property, or a part of it, is recoverable property or any other question as to its derivation, and

(b)

is likely to be of substantial value (whether or not by itself) to the investigation for the purposes of which the warrant is sought.

(7H)

In the case of a cryptoasset investigation into the intended use of cryptoassets or converted cryptoassets, material falls within this subsection if it cannot be identified at the time of the application but it—

(a)

relates to property specified in the application or the question whether the property, or a part of it, is intended by any person to be used in unlawful conduct, and

(b)

is likely to be of substantial value (whether or not by itself) to the investigation for the purposes of which the warrant is sought.”.

Signature

Name

Minister of State

Home Office

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.