POCA news 30/10/2008 Proceeds of Crime Act extension allows councils to seize property

The Proceeds of Crime Act (POCA), originally intended to deprive criminals of their ill-gotten gains and part of the international fight against money laundering, is being extended to allow councils, quangos and agencies to use its legal powers against members of the public.

The Home Secretary has pushed through a Statutory Instrument, which has not been debated by MPs, to allow the powerful legislation to be applied by local authorities, giving them the right to search homes, seize cash, freeze bank accounts and confiscate property. It could be used against people who have committed minor misdemeanours such as fare dodgers and families in arrears of council tax.

The move, which came into force in the first week of November, was greeted with shock by the chairman of the Police Federation, Paul McKeever, who said, There is a behind the scenes creep of powers occurring here and I think the public will be very surprised. They would want such very intrusive powers to be kept in the hands of warranted officers and other law enforcement bodies which are vetted to a very high standard rather than given to local councils.

The expansion of seizure powers is part of a Home Office plan to embed financial seizure across the criminal justice system. Ministers set a target to recover £250m in criminal assets by 2010.

A Government explanatory memorandum says that financial investigators attached to the newly-empowered bodies will be accredited, trained and monitored by another quango, the National Policing Improvement Agency. Asset seizure will result in financial rewards with investigation bodies receiving a share of money recovered.

Previously, councils and other agencies could use asset recovery powers but only with authorization and involvement by the police. Now, they will be able to act independently.

The Proceeds of Crime Act 2002 redefined money laundering and associated offences and introduced stricter rules on reporting suspicions of criminal activity. It was amended by the Serious Organised Crime and Police Act 2005. The Money Laundering Regulations 2007, which updated the 2003 Regulations, contain detailed requirements about compliance and came into force on December 15, 2007.

For guidance on money laundering, the 2007 Regulations and establishing compliance procedures appropriate to your own organisation, please contact ML Solutions via our online enquiry form or telephone: 0845 872 7361.

News « Councils can use extended Proceeds of Crime Act

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