UK Proceeds of Crime Act 2002: countdown to implementation 2

For now, much of the legislation that relates to how the general population of the UK deals with issues relating to money laundering remains under the law as it has been since 1993 (with subsequent amendments).

Those parts of the Act which are coming into force in 2002 or early 2003 are mainly those that deal with administrative matters and that create the definitions and offences and new or enlarged powers. For the first stage of implementation, the focus is on the money.

Sections 240-242 are those that define "unlawful conduct" and "property obtained through unlawful conduct."

Sections 289 to 311 create a mechanism for using civil recovery. It has to be noticed that this is all after conviction.

Sections 314 to 316 are the interpretation sections (which are sorely needed as this Act produces a range of new terms or simply reuses for new purposes terms that are already well known.)

The provisions that relate to money laundering do not come into force yet, and as at the date of writing no date has been fixed.

The provisions that come into force on 30 and 31 December 2002

· enable police and customs officers to seize cash anywhere in the UK provided the office believes is to be the proceeds of or funding for crime (previously this was only at borders and related to drugs money);

· allow law enforcement officers to search specifically for cash, where it is suspected of being derived from crime or the proceeds of crime (new power);

· permit seized cash to be retained initially for 48 hours, and longer if authorised by a magistrate (similar to previous provision);

· allow magistrates to order the forfeiture of seized cash if they are satisfied it is intended for use in unlawful conduct or is proceeds of crime (in newspeak "recoverable property";

· bring into force a Code of Practice which will, following consultation, provide clear guidance to law enforcement, practitioners and "stakeholders" (what are they? If it means affected persons, it means banks etc.) on the exercise of the new search powers (this provision was supposed to come into force on 30 December but the preparation time was too short); and

· create the new post of independent 'appointed person' to monitor the exercise of the search powers and prepare an annual report to be laid before Parliament. (Mr Andrew Clarke was named as the first 'appointed person' on 17th December.)