UK Parliament
Proceeds of Crime Act 2002 (References to Financial Investigators) (England, Wales and Northern Ireland) Order 2021 - 7 June 2021
The Proceeds of Crime Act 2002 (References to Financial Investigators) (England, Wales and Northern Ireland) Order 2021 (SI 2021/640) has been published, alongside an explanatory memorandum. The Order expands the list of organisations whose accredited financial investigation staff can exercise powers under the Proceeds of Crime Act 2002 (POCA) to include investigators of the London Fire Commissioner, the Information Commissioner’s Office, the Department for Transport and the Department for the Economy, Northern Ireland.
Accredited financial investigators may exercise a number of powers under POCA including, for example, applying for and executing search warrants in financial investigations (sections 352 and 353).
The Order enters into force on 28 June 2021.
The Proceeds of Crime Act 2002 (References to Financial Investigators) (England, Wales and Northern Ireland) Order 2021 (SI 2021/640)
Explanatory memorandum
Webpage
Law Commission
Corporate criminal liability - Law Commission publishes discussion paper - 9 June 2021
The Law Commission has published a discussion paper on corporate criminal liability. According to the press release:
“There is clear concern that laws relating to corporate criminal liability are not working as well as they could. Reform may be needed to ensure that organisations of all sizes can be held to account and serious crimes can be punished. However, reform of corporate criminal liability must also take account of the impact of increased costs on law-abiding corporations to ensure they are not overburdened by processes they’re expected to follow.”
In the discussion paper, the Law Commission seeks views from stakeholders on how to achieve this by asking a range of questions dealing with topics such as reform of the identification principle, further ‘failure to prevent’ offences and the possibility of additional civil penalties. More specifically, the questions posed include:
- What principles should govern the attribution of criminal liability to non-natural persons?
- Does the identification principle provide a satisfactory basis for attributing criminal responsibility to non-natural persons? If not, is there a merit in providing a broader basis for corporate criminal liability?
- Should there be ‘failure to prevent’ offences akin to those covering bribery and facilitation of tax evasion in respect of fraud and other economic crimes? If so, which offences should be covered and what defences should be available to companies, and what would the economic and other consequences be for companies of introducing such offences?
- Is there a merit in extending the powers of authorities in England and Wales to impose civil penalties and in what circumstances might this be appropriate?
- What principles should govern the individual criminal liability of directors for the actions of corporate bodies? Are statutory ‘consent or connivance’ or ‘consent, connivance or neglect’ provisions necessary, or is the general law of accessorial liability sufficient to enable prosecutions to be brought against directors where they bear some responsibility for a corporate body’s criminal conduct?
The consultation closes on 31 August 2021. The responses will inform the Law Commission’s options for reform to the Government and an options paper is due to be published towards the end of 2021.
Discussion paper: Corporate Criminal Liability
Press release
Webpage
Crown Prosecution Service
Prosecuting “failure to disclose” offences - CPS updates guidance - 2 June 2021
The Crown Prosecution Service (CPS) has updated its guidance on prosecuting standalone “failure to disclose” cases under section 330 of the Proceeds of Crime Act 2002 (POCA). The guidance now makes it possible to prosecute a section 330 offence regardless of whether an offence of money laundering has been substantiated, with a view to encouraging professionals working in the regulated sector to disclose any suspicion of money laundering to law enforcement.
The updated guidance notes that: “… where individuals in the regulated sector receive information giving rise to a suspicion, or provid[ing] reasonable grounds for suspecting, that another is engaged in money laundering, an offence is committed by failing to make a report under section 330, regardless of whether it subsequently transpires that the money laundering cannot be proven, or that it did not occur.”
Updated guidance: Money Laundering Offences
Law Society guidance
