Call us: 0113 244 0597
3rd November 2023
Cryptoassets and Proceeds of Crime. The Economic Crime and Corporate Transparency Act 2023 has received Royal Assent and, when in force, will implement a large number of changes aimed at fighting economic crime and other illegal activity.
One major reform in the Act is in relation to Cryptoassets and how they can be seized under amendments to the Proceeds of Crime Act 2002.
Cryptoassets serve as a pseudo-anonymous, low-cost, and relatively quick method to move funds globally. There are low barriers to entry, users merely need an internet-connected device to transact with cryptoassets.
Given these characteristics, it is little surprise that this technology is increasingly popular and law enforcement are already investigating terrorist financing cases where cryptoassets have been used.
The NCA’s National Strategic Assessment noted a particular acceleration in the criminal use of these assets during the pandemic.
Further, cryptoassets are one of only a few accepted payment mechanisms most used by cyber criminals demanding payment following a ransomware attack. These attacks are increasingly common and are said to pose a significant threat to the UK public and businesses.
The ability to move property quickly, across borders, without the need for standard banking services, and often to hold it anonymously, can make these assets attractive to those engaged in economic crime and terrorist financing.
The measures in the Act will:
These reforms will: enable officers to seize cryptoassets during the course of an investigation without first having arrested someone for an offence; enable officers to seize cryptoasset-related items; and enable the courts to better enforce unpaid confiscation orders against a defendant’s cryptoassets.
These new powers will be used alongside extensive new money laundering provisions. We will be carefully assessing the scope of these new powers and monitoring how police and prosecuting authorities propose to respond.
All of our lawyers have an intimate understanding of confiscation powers and should be consulted as soon as possible if you are being investigated or prosecuted for any crime that might result in an application under the Proceeds of Crime Act 2002.
We ensure we keep up to date with any changes in legislation and case law so that we are always best placed to advise you properly. If you would like to discuss any aspect of your case, please call 0113 2440597 or email info@ogcclaw.com and let us help.
Image credit: “alt crypto” by TLC-kios is marked with CC0 1.0.