The Proceeds of Crime Act 2002 (External Investigations and External Orders and Requests) (Amendment) Order 2024

14 Forfeiture of cryptoassets and cryptoasset-related items

After article 213Z13 (interpretation), insert— Part 5C Giving effect to external requests and orders by means of the forfeiture of cryptoassets and cryptoasset-related items Chapter 1 Introduction General 213Z14. (1) This Part has effect for the purpose of enabling— (a) the search for, seizure and detention of cryptoassets and cryptoasset-related items (see article 213Z19); (b) the freezing of crypto wallets (see article 213Z20); (c) the forfeiture of cryptoassets following a detention or freezing order (see article 213Z21); and (d) the conversion of cryptoassets (see article 213Z22), in relevant civil proceedings for the purpose of giving effect to external requests and external orders. (2) In paragraph (1), “relevant civil proceedings” means civil proceedings before— (a) in England and Wales or Northern Ireland, the magistrates’ court or the High Court; or (b) in Scotland, the sheriff court or (if the sheriff court has transferred an application under section 303Z45 of the Act (associated and joint property: default of agreement), as applied by article 213Z21(5)), the Court of Session. (3) The powers conferred by this Part are exercisable in relation to any cryptoasset-related item, cryptoasset or crypto wallet (“the property”) whether or not proceedings have been brought in the country from which the external order or external request was sent for criminal conduct (within the meaning of section 447(8) of the Act (interpretation)) in connection with the property. Action on receipt of an external request 213Z15. The Secretary of State may refer an external request to prohibit dealing with cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider to— (a) the Chief Constable of a police force in England and Wales or the Chief Constable of the Police Service of Scotland; (b) the Commissioners for His Majesty’s Revenue and Customs; (c) the Director of the Serious Fraud Office; (d) the Director of the National Crime Agency. Action to give effect to an external order 213Z16. The Secretary of State may forward an external order in relation to cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider to— (a) the Chief Constable of a police force in England and Wales or the Chief Constable of the Police Service of Scotland; (b) the Commissioners for His Majesty’s Revenue and Customs; (c) the Director of the Serious Fraud Office; (d) the Director of the National Crime Agency. Interpretation 213Z17. In this Part, unless otherwise provided— (a) any reference to a section is a reference to a section of the Act, (b) any reference to Chapter 3C, 3D, 3E or 3F of Part 5 of the Act, or to a section in any of those Chapters, is a reference to that Chapter or section as applied and modified by this Part. Extent 213Z18. This Part extends to England and Wales, Northern Ireland and Scotland. Chapter 2 Application of Chapters 3C to 3F of Part 5 of the Act with modifications Recovery of cryptoassets: searches, seizure and detention 213Z19. (1) Chapter 3C of Part 5 of the Act applies for the purposes of this Part— (a) with the modifications set out in paragraphs (2) to (7), and (b) as if section 303Z25 were omitted. (2) Section 303Z20 (definitions) applies as if subsections (1), (2) and (3) were omitted. (3) Section 303Z21 (searches) applies as if for subsection (2) there were substituted— (2) For the purposes of this Chapter, a “cryptoasset related item” is an item of property that is, or that contains or gives access to information that is, likely to assist in the seizure under this Part of cryptoassets that are— (a) the subject of an external request which has been referred or an external order which has been forwarded in accordance with article 213Z15 or 213Z16 of the Proceeds of Crime Act 2002 (External Requests and Orders) Order 2005, and (b) recoverable property. . (4) Section 303Z28 (further detention of seized cryptoasset related items) applies as if— (a) subsection (4) were omitted; (b) in subsection (5), “or (4)” were omitted; (c) subsections (7) and (8) were omitted. (5) Section 303Z29 (seizure of cryptoassets) applies as if in subsection (1), “or intended by any person for use in unlawful conduct” were omitted. (6) Section 303Z30 (prior authorisation for detention of cryptoassets) applies as if in subsection (3) “or intended by any person for use in unlawful conduct” were omitted. (7) Section 303Z32 (further detention of seized cryptoassets) applies as if— (a) subsection (4) were omitted, (b) in subsection (5), “or (4)” were omitted, (c) in subsection (6), “or intended by any person for use in unlawful conduct”, and (d) subsections (7) and (8) were omitted. (8) A Code of Practice made under section 303Z25 applies to the powers conferred by this article as it applies to the powers conferred by section 303Z21. Freezing of crypto wallets 213Z20. (1) Chapter 3D (recovery of cryptoassets: freezing orders) applies for the purposes of this Part— (a) with the modifications in this article, and (b) as if section 303Z35 (definitions) were omitted. (2) Section 303Z36 (application for crypto wallet freezing order) applies for the purposes of this Chapter as if— (a) for subsection (1) there were substituted— (1) This section applies if— (a) the Secretary of State has referred an external request or forwarded an external order in accordance with article 213Z15 or 213Z16 of the Proceeds of Crime Act 2002 (External Orders and Requests) Order 2005, and (b) an enforcement officer has reasonable grounds for suspecting that cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider are recoverable property. ; (b) in subsection (8), the definition of “UK-connected cryptoasset service provider” were omitted; (c) subsection (9) were omitted. (3) Section 303Z37 (making of a crypto wallet freezing order) applies as if— (a) in subsection (2), paragraph (b) and the preceding “or” were omitted; (b) the references in subsection (3) to “this Chapter or Chapter 3E or 3F” were to those Chapters as applied by this Part; (c) subsections (5), (6) and (7) were omitted. (4) Section 303Z39 (exclusions) applies as if— (a) any references in that section to proceedings under Part 5 of the Act were to proceedings under that Part as applied by this Part of the Order; (b) in subsection (8)— (i) the reference to steps under Part 5 of the Act were a reference to steps under this Part of the Order; (ii) the words “or intended” to the end were omitted. Forfeiture 213Z21. (1) Chapter 3E of Part 5 of the Act (forfeiture of cryptoassets following detention or freezing order) applies for the purposes of this Part with the modifications in this article. (2) Section 303Z41 (forfeiture order) applies as if in subsection (4), paragraph (b) and the preceding “or” were both omitted. (3) Section 303Z42 (forfeiture order: supplementary) applies as if subsections (7) to (12) were omitted. (4) Section 303Z43 (associated and joint property) applies as if in subsection (1)(b) the words “or are intended by any person for use in criminal conduct” were omitted. (5) Section 303Z45 (associated and joint property: default of agreement) applies as if, in subsection (3), the words “or intended by any person for use in unlawful conduct” were omitted. (6) Section 303Z52 (compensation) applies as if subsections (10) to (12) were omitted. Conversion, detention, release and forfeiture of converted cryptoassets 213Z22. (1) Section 303Z57 (detained cryptoassets: detention of proceeds of conversion) applies as if— (a) subsection (5) were omitted; (b) in subsection (6), for “subsections (4) and (5)” there were substituted “subsection (4)”; (c) in subsection (7), “or (5)” were omitted; (d) in subsection (8), paragraph (b) and the preceding “or” were omitted; (e) subsections (9) and (10) were omitted. (2) Section 303Z58 (frozen crypto wallets: detention of proceeds of conversion) applies as if— (a) subsection (5) were omitted; (b) in subsection (6), “or (5)” were omitted; (c) in subsection (7), paragraph (b) and the preceding “or” were omitted; (d) subsections (8) and (9) were omitted. (3) Section 303Z59 (release of detained converted cryptoassets) applies as if in subsection (3), paragraph (b) and the preceding “or” were omitted. (4) Section 303Z60 (forfeiture order) applies as if in subsection (4), paragraph (b) and the preceding “or” were omitted. (5) Section 303Z64 (compensation) applies as if subsections (10) and (11) were omitted. .