UK: Proceeds of Crime Consultation
The proposed Proceeds of Crime Act will mean massive changes for many affected by the UK's counter-money laundering laws.
The UK Home Office is seeking views on implementation and other aspects of The Proceeds of Crime Act 2002.
The government says of the consultation process, which ends on 3 January 2003, "The guidance, published for consultation today, will ensure best practice by all those who are engaged in the pursuit of the proceeds of crime. The Code also provides assurance to the financial industry that these powers will be exercised within an agreed framework that is compatible with our human rights obligations." The resulting code will be subject to an "affirmative vote" by Parliament.
Other consultation, relating to Money Laundering, was launched in August 2002.
As a result of these procedures, it is clear that the Act, already set to be brought into effect piecemeal, will not be substantially in force until at least February 2003. The police powers that are subject to the consultation include the following:
- Customer information orders which require banks to identify accounts held by a person under investigation;
- Account monitoring orders which require banks to provide transaction information on a specified account for a specified period;
- Disclosure order - this will only be available to the Director of the Assets Recovery Agency, who will be able to use it for confiscation or civil recovery investigations.
Production orders and search and seizure warrants, similar to those contained in existing legislation (the Drug Trafficking Act 1994 and Criminal Justice Act 1988), are also contained in the consultation document.
Financial Services Businesses are already concerned as to the additional work that will be created, particularly by the monitoring orders.
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