Crypto-assets: Codes of Practice Consultation

Tom Tugendhat Excerpts

Tuesday 28th March 2023 Written Statements

[The Minister for Security (Tom Tugendhat)]

The Proceeds of Crime Act (POCA) 2002 contains a comprehensive package of measures designed to make the recovery of unlawfully held assets more effective. The operation of certain powers within POCA are subject to guidance in various codes of practice issued by the Home Secretary, the Attorney General and the Advocate General for Northern Ireland, the Department of Justice Northern Ireland and Scottish Ministers.

Three existing codes of practice need to be updated and one new code of practice made, to reflect possible changes made to POCA by the Economic Crime and Corporate Transparency (ECCT) Bill, which subject to being passed by Parliament and receiving Royal Assent will amend and insert new civil forfeiture powers into POCA, to increase the recovery of crypto-assets.

It is intended that the new civil forfeiture crypto-asset powers will be replicated in schedule 1 to the Anti-Terrorism Crime and Security Act 2001 (ATCSA) and Schedule 6 to the Terrorism Act 2000 (TACT). The equivalent code of practice also needs to be updated.

POCA and TACT provide that before a code of practice is issued, I must consider any representations made, modify the codes as appropriate, and subsequently lay the codes before Parliament for approval.

I intend to consult on changes to the following codes of practice:

Code of practice issued under section 47S of the Proceeds of Crime Act 2002—Search, Seizure and Detention of Property (England and Wales).

Code of practice issued under section 195S of the Proceeds of Crime Act 2002—Search, Seizure and Detention of Property (Northern Ireland).

Code of practice issued under the proposed section 303Z25 of the Proceeds of Crime Act 2002 (as inserted by schedule 7 to the ECCT Bill) - Recovery of Crypto-assets and Related Items: Search Powers (NEW CODE).

Code of practice issued under section 377 of the Proceeds of Crime Act 2002—Investigations.

Code of practice for officers acting under schedule 1 to the Anti-Terrorism, Crime and

Security Act 2001—amended through powers under Schedule 14 to TACT.

In tandem the Attorney General’s Office will also launch a consultation on its equivalent code of practice.

I will arrange for a copy of the consultation document and the five draft codes to be placed in the Libraries of both Houses.

Following this consultation, I intend to lay a statutory instrument to issue these updated codes of practice under the Proceeds of Crime Act 2002 (POCA) to reflect changes as a result of both the Economic Crime, Transparency and Enforcement Act, and the Economic Crime and Corporate Transparency Bill.

[HCWS682]