Explanatory note

These Rules prescribe the procedure to be followed for applications to a magistrates’ court for orders under Chapter 3F of Part 5 of the Proceeds of Crime Act 2002 (c. 29) (“POCA”).

This Chapter was inserted by Schedule 9 to the Economic Crime and Corporate Transparency Act 2023 (c. 56) and makes provision for the conversion of cryptoassets into money and for the detention, freezing and forfeiture of converted cryptoassets. Prior to their conversion, these cryptoassets will have been detained or frozen on the basis that there are reasonable grounds to suspect that they are either recoverable property or intended for use in unlawful conduct. “Cryptoassets” are defined by section 303Z21(2) of POCA.

The Rules provide the relevant procedure for:

• applications for the conversion of detained cryptoassets (see section 303Z54 of POCA);

• applications to convert frozen cryptoassets into money (see section 303Z55 of POCA);

• applications for further detention of detained converted cryptoassets (see section 303Z57 of POCA);

• applications for further detention of frozen converted cryptoassets (see section 303Z58 of POCA);

• applications for release of detained converted cryptoassets (see section 303Z59 of POCA);

• applications for forfeiture of detained converted cryptoassets (see section 303Z60 of POCA);

• applications for compensation (see section 303Z60 of POCA).

In addition, these Rules make provision for the manner in which documents are to be given in proceedings under Chapter 3F of POCA, and for the procedure at hearings.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.