Criminal Finances Bill Proposes Some Intrusive & Impractical POCA Measures

On 25 October 2016, the Criminal Finances Bill 2016–2017 (the "Bill") had its second reading in the House of Commons and passed without objection. In addition to containing the proposed new offence of failing to prevent the facilitation of tax evasion, the Bill is the vehicle being used to implement the legislative elements of the Government's Anti-Money Laundering/Counter-Terrorist Finance Action Plan. This article considers some of the Bill's proposed amendments to the Proceeds of Crime Act 2002 ("POCA"), including the controversial introduction of unexplained wealth orders ("UWOs") and changes to the Suspicious Activity Report ("SAR") regime.

1. UWOs

If enacted, the Bill would amend POCA so as to empower the High Court, on application by the relevant enforcement authority, to make UWOs in certain circumstances. An UWO would essentially require the respondent company or individual to explain how specified property was obtained, where there is a