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Cash Seizure & Forfeiture
The Proceeds of Crime Act (POCA) 2002 combines previous legislation and introduced wide-ranging, groundbreaking powers to enable the police and law enforcement authorities to reduce the harm caused by crime and the perceptions of crime.
POCA was intended to enforce the 'crime does not pay' message by depriving offenders of the benefits obtained from their criminality (i.e. preventing them living the life of luxury on the proceeds of their crimes). The power to seize, detain and forfeit cash is a powerful tool in the asset recovery process and POCA is now the primary legislation used in financial investigations.
On this Page:
What is the minimum amount of cash that can be seized?
As of 31 July 2006, the minimum amount is £1,000.
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What conditions must be in place for cash to be seized?
An officer may seize cash under POCA if the following conditions apply:
- Their presence is lawful;
- There are reasonable grounds to suspect that the cash is 'recoverable property' (obtained by 'unlawful conduct') or is intended for use by any person in 'unlawful conduct'; and
- There appears to be more than £1,000.
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What reasonable grounds are required to seize cash?
Officers must use their discretion and take account of all of the circumstances associated with the cash find. There must be some objective grounds based on facts, information, and/or intelligence to justify cash being seized. The lower the sum involved the more discretion that must be used to avoid unnecessary interference with people's rights.
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What is the definition of 'cash'?
The definition of 'cash' is wide ranging and includes notes or coins of any currency, banker's drafts, bearer bonds/shares, postal orders and traveller cheques.
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How long can cash be seized for?
Generally, seized cash may not be detained for more than 48 hours (excluding weekends and bank holidays) except by order of a magistrate. A magistrate may make such an order for a period not exceeding three months if satisfied that there are reasonable grounds for the officer's suspicion and that the continued detention is justified for the purposes of investigating the origin of the cash or its intended use. The magistrate may also make an order for continued detention if consideration is being given to the bringing of criminal proceedings or if such proceedings have been commenced and not concluded. A Magistrates' Court can order continued detention for up to two years from the date of the first order.
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Can you make an application for the release of the cash?
Yes Applications can be made to the Magistrates Court for the release of the cash (and any accrued interest). If the Court is satisfied that all, or part, of the cash is not 'recoverable property' and is lawfully claimed by that person, it may order release of the cash. Specialist advice in making the application is essential. The Court can also order release of the cash if it is not satisfied that there are grounds for continued detention of the cash.
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What is an application for forfeiture of the cash?
At any time whilst the cash is being detained, an officer may apply for the cash (and accrued interest) to be forfeited after the investigation into the origins of the cash has been completed. Notice must be served on the person(s) from whom the cash was seized and all other interested parties at least seven days before the date of the court hearing. The officer must also provide the information that will be produced in support of the forfeiture application. Specialist representation at the hearing is essential.
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What is the standard of proof in the cash seizure, detention and forfeiture proceedings?
The standard of proof is on the balance of probabilities.
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Is cash seizure, detention and forfeiture being extensively used?
Yes. The Serious Organised Crime Agency alone reported that its cash seizures totalled £5.7 million in 2010/11 (up from £5.1 million in 2009/10).
Law enforcement is incentivised and can receive 50% of the funds recovered from cash seizure and subsequent forfeiture. Consequently, law enforcement is increasingly prepared to take action using POCA powers (see our work on Operation Rize).
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I am subject of cash seizure, detention and forfeiture proceedings. What should I do?
If you are subject of cash seizure, detention and forfeiture proceedings the worst thing you can do is nothing. Specialist advice is essential and OneE TDI can help.
We have assisted numerous clients and helped successfully defend cash forfeiture applications. Our biggest success story, to date, was assisting a businessman make a successful application for the release of £1 million seized cash.
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How can OneE TDI help?
POCA is a draconian piece of legislation. In many cases, it has been properly used and led to criminals losing their 'ill-gotten gains'. However, OneE TDI has acted or been instructed in a number of cases where we have successfully demonstrated that the Prosecution's assertions either had no supporting evidence, were unjust or there would be a serious risk of injustice were the Court to agree them.
At the core of OneE TDI is a highly experienced team specialising in all areas of POCA investigations. Mark Taylor was a Case Director in HMRC's Restraint, Confiscation & Civil Forfeiture Unit and became an Accredited Financial Investigator authorised by the Asset Recovery Agency. He successfully obtained and executed POCA Court Orders and so knows how best to present and defend a case. He is now an associate member of the Proceeds of Crime Lawyers Association (POCLA) and is a recognised expert in this area of law.
We offer confidential, non-judgemental and invaluable advice and have a proven track record both in successfully challenging Prosecution assertions that seized cash was from (or to be used in) crime and defending clients in applications for forfeiture of the cash and applying for the release of seized cash.
Please see the Testimonials kindly provided by our clients (or their accountants or lawyers), which confirm our levels of client service.
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How can I contact OneE TDI?
If you would like a free, no obligation discussion with us please contact either Gary Rowson or Mark Taylor on 0800 652 6156 or complete and submit the online form below:
Whilst we endeavour to provide informative and accurate information, the content on this site is for general information purposes only and should not be taken to constitute tax or legal advice which must always be tailored to individual circumstances. Please contact us if you would like to discuss matters.
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Proceeds of Crime Act (POCA) Investigations