# The Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005, Article 194: Compensation

Extent: E+W+S+N.I.

(1) If, in the case of any property to which a property freezing order, an interim receiving order, a prohibitory property order or an interim administration order has at any time applied, the court does not in the course of the proceedings, decide that the property is recoverable property or associated property, the person whose property it is may make an application to the court for compensation.
(2) Paragraph (1) does not apply if the court—
(a) has made a declaration in respect of the property by virtue of article 192, or
(b) makes an order under article 187.
(3) If the court has made a decision by reason of which no recovery order could be made in respect of the property, the application for compensation must be made within the period of three months beginning—
(a) in relation to a decision of the High Court in England and Wales, with the date of the decision or, if any application is made for leave to appeal, with the date on which the application is withdrawn or refused or (if the application is granted) on which any proceedings on appeal are finally concluded,
(b) in relation to a decision of the Court of Session or of the High Court in Northern Ireland, with the date of the decision or, if there an appeal against the decision, with the date on which any proceedings on appeal are finally concluded.
(4) If, in England and Wales or Northern Ireland, the proceedings in respect of the property have been discontinued, the application for compensation must be made within the period of three months beginning with the discontinuance.
(5) If the court is satisfied that the applicant has suffered loss as a result of the order mentioned in paragraph (1), it may require the enforcement authority to pay compensation to him.
(6) If, but for article 180(2), any right mentioned there would have operated in favour of, or become exercisable by, any person, he may make an application to the court for compensation.
(7) The application for compensation under paragraph (6) must be made within the period of three months beginning with the vesting referred to in article 180(2).
(8) If the court is satisfied that, in consequence of the operation of article 180, the right in question cannot subsequently operate in favour of the applicant or (as the case may be) become exercisable by him, it may require the enforcement authority to pay compensation to him.
(9) The amount of compensation to be paid under this article is the amount the court thinks reasonable, having regard to the loss suffered and any other relevant circumstances.
(10) In the case of an enforcement authority in relation to England and Wales or Northern Ireland—
(a) the reference in paragraph (5) to the enforcement authority is a reference to the enforcement authority which obtained the property freezing order or interim receiving order concerned, and
(b) the reference in paragraph (8) to the enforcement authority is a reference to the enforcement authority which obtained the recovery order concerned.

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Source: https://www.legislation.gov.uk/uksi/2005/3181/article/194 (the official version)
Page: https://openlegislation.uk/proceeds-of-crime-act-2002-external-requests-and-orders-order-2005/article-194
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

