Proceeds of Crime Act 2002
The act was enacted following the publication on 14 June 2000 of new government policy as set out in the Performance and Innovation Unit's report "Recovering the Proceeds of Crime".The 2002 Act removed the need to make a distinction between these types as the source of the proceeds in relation to alleged money laundering in the UK commencing after 24 February 2003.These acts of Parliament were introduced following the House of Lords ruling that under the law as it then was some £750,000 had to be returned to a gang of drug dealers.The office of director has legal personality representing the agency as a whole in much the same manner as the office of chief constable or responsible minister for their respective public bodies, and would therefore be named as a party in any legal case involving the department e.g. Stoner v Director of the Assets Recovery Agency.The section makes it clear that director must pay attention to guidance given by the Secretary of State which is calculated to contribute to the reduction of crime.Where there are reasonable grounds to suspect there is taxable income gain or profit the Agency also has the power to issue tax assessments.The Crown Court is obliged to make a confiscation order if requested to do so by the prosecutor following the conviction of the defendant of an offence from which he has obtained a benefit.In relation to benefit the court is obliged to apply the statutory assumptions set out in section 10 if the defendant has a criminal lifestyle.If the defendant fails to pay the sum ordered by the due date then payment may be enforced by various means and interest will commence to run on the amount unpaid.Parts 3 & 4 of the Act apply similar provisions to Scotland and Northern Ireland but in a modified form to suit the different legal traditions and structures in those jurisdictions.Having adopted those powers they (in addition to HM Revenue and Customs) may issue tax assessments (covering both legitimate and illegitimate income and gains).Part 7 of the Act contains the primary UK anti-money laundering legislation,[27] including provisions requiring businesses within the 'regulated sector' (banking, investment, money transmission, certain professions, etc.)[32] One consequence of the Act is that banks, as well as professional firms such as solicitors, accountants, and insolvency practitioners, who suspect (as a consequence of information received in the course of their work) that their customers or clients (or others) have engaged in tax evasion or other criminal conduct from which a benefit has been obtained, are now required to report their suspicions to the authorities (since these entail suspicions of money laundering).There is however, under UK legislation, no obligation upon banks or others to routinely report all deposits or transfers having a value greater than a specified amount even in the absence of any suspicion that money laundering may be involved (as there is in some other countries).[38] The offence of failing to report a suspicion of money laundering by another person carries a maximum penalty of 5 years imprisonment and/or a fine.