Proceeds of Crime Act 2002, section 294

Seizure of cash

Part 5 Civil recovery of the proceeds etc. of unlawful conduct

(1)[F948 An officer of Revenue and CustomsF948][F949 , a constable [F950 , an SFO officerF950] or an accredited financial investigatorF949] may seize any cash if he has reasonable grounds for suspecting that it is—

(a)recoverable property, or

(b)intended by any person for use in unlawful conduct.

(2)[F948 An officer of Revenue and CustomsF948][F951 , a constable [F952 , an SFO officerF952] or an accredited financial investigatorF951] may also seize cash part of which he has reasonable grounds for suspecting to be—

(a)recoverable property, or

(b)intended by any person for use in unlawful conduct,

if it is not reasonably practicable to seize only that part.

F953 (2A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F954 (2B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F955 (2C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)This section does not authorise the seizure of an amount of cash if it or, as the case may be, the part to which his suspicion relates, is less than the minimum amount.

[F956 (4)This section does not authorise the seizure by [F957 an SFO officer orF957] an accredited financial investigator of cash found in Scotland.F956]

Definitions used in section 294 7

constable

“constable”, in relation to Northern Ireland, means a police officer within the meaning of the Police (Northern Ireland) Act 2000 (c. 32),

Defined in s.316(1) · see it in the full Act
SFO officer

For the purposes of this Act “SFO officer” means a member of staff of the Serious Fraud Office.

Defined in s.454A · see it in the full Act
cash

“cash” has the meaning given by section 289(6) or (7),

Defined in s.316(1) · see it in the full Act
recoverable property

“recoverable property” is to be read in accordance with sections 304 to 310,

Defined in s.316(1) · see it in the full Act
unlawful conduct

“unlawful conduct” has the meaning given by section 241,

Defined in s.316(1) · see it in the full Act
part

“part”, in relation to property, includes a portion,

Defined in s.316(1) · see it in the full Act
the minimum amount

“the minimum amount” (in Chapter 3B) has the meaning given by section 303Z8

Defined in s.316(1) · see it in the full Act

“the minimum amount” (in Chapter 3) has the meaning given by section 303,

Defined in s.316(1) · see it in the full Act

Cases considering section 294 23

Kingdom Corporate Ltd & Anor, R (on the application of) v Commissioners for HMRC & Anor

[2023] EWHC 3315 (Admin) · 21 December 2023Interprets

Section 294 permits lawful seizure of cash where there are reasonable grounds for suspecting that it is recoverable property or intended for unlawful conduct. It contains no restriction preventing re-seizure of cash previously lawfully seized under the same section. (see paras [15], [33]-[38])

Merida Oil Traders Ltd, R (On the Application Of) v Central Criminal Court & Ors

[2017] EWHC 747 (Admin) · 11 April 2017Limits

The court held that the seizure power could not be used for cheques created at the police’s instigation to exploit the summary cash-recovery regime. Lawful access was not required, but the engineered seizure was an abuse of statutory power (see paras [55], [62]-[65]).

Secretary of State for the Home Department v Tuncel & Anor

[2012] EWHC 402 (Admin) · 28 February 2012Limits

Applies the reasonable-suspicion threshold governing the initial seizure of cash. The judgment distinguishes that threshold from the separate statutory test for forfeiture and holds that it is not a condition precedent to forfeiture (see paras [3]; [17]-[19]).

3 more judgments, and what each says about section 294, are in the case-law panel in the full Act.

Explanatory note

409.Chapter 3 expands and replaces the scheme set out in Part II of the Drug Trafficking Act 1994 which provides for the seizure and forfeiture of cash which is being imported into or exported from the United Kingdom, and which represents the proceeds of, or is intended for use in, drug trafficking. This scheme is expanded to include cash related to all unlawful conduct and also provides for the seizure of such cash inland. Section 294 enables a customs officer or a constable to seize cash at the borders or inland if he has reasonable grounds for suspecting that the cash is recoverable property or intended for use in unlawful conduct. Subsection (2) allows for the seizure of indivisible cash only part of which is under suspicion. An example of this is a single cheque of £50,000 where the cash under suspicion is only £25,000. Section 296(2) provides that when such cash can be divided on payment into an interest bearing account, the part not under suspicion must be released.

410.Section 289(6) and (7) defines cash for the purposes of Chapter 3 and enables the Secretary of State following consultation with Scottish Ministers to prescribe by order other monetary instruments. Such monetary instruments must be of a kind that can be paid into an interest bearing account, so as to comply with the requirements of section 296. In order to guard against excessive and disproportionate use of the power, there is to be a threshold below which the powers will not be available; this is specified in an order under section 303. A definition of unlawful conduct is to be found in section 241, and of recoverable property at section 304 to310.

All the explanatory notes for the Act

Amendments and notes

11 notes from legislation.gov.uk

Amendments

  1. F948Words in s. 294(1)(2) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 48 para. 6(2)
  2. F949Words in s. 294(1) substituted (6.4.2008) by Serious Crime Act 2007 (c. 27), s. 94(1), Sch. 11 para. 6(2); S.I. 2008/755, art. 17(1)(f)
  3. F950Words in s. 294(1) inserted (27.4.2017 for specified purposes, 31.1.2018 for E.W.S. in so far as not already in force, 28.6.2021 for N.I. in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 1 para. 15(2); S.I. 2018/78, reg. 3(aa); S.I. 2021/724, reg. 3(b)
  4. F951Words in s. 294(2) substituted (6.4.2008) by Serious Crime Act 2007 (c. 27), s. 94(1), Sch. 11 para. 6(2); S.I. 2008/755, art. 17(1)(f)
  5. F952Words in s. 294(2) inserted (27.4.2017 for specified purposes, 31.1.2018 for E.W.S. in so far as not already in force, 28.6.2021 for N.I. in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 1 para. 15(3); S.I. 2018/78, reg. 3(aa); S.I. 2021/724, reg. 3(b)
  6. F953S. 294(2A) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Criminal Finances Act 2017 (c. 22), ss. 18(4)(b), 58(4)(6)
  7. F954S. 294(2B) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Criminal Finances Act 2017 (c. 22), ss. 18(4)(b), 58(4)(6)
  8. F955S. 294(2C) omitted (27.4.2017 for specified purposes, 27.6.2017 in so far as not already in force) by virtue of Criminal Finances Act 2017 (c. 22), ss. 18(4)(b), 58(4)(6)
  9. F956S. 294(4) inserted (6.4.2008) by Serious Crime Act 2007 (c. 27), s. 94(1), Sch. 11 para. 6(3); S.I. 2008/755, art. 17(1)(f)
  10. F957Words in s. 294(4) inserted (27.4.2017 for specified purposes, 31.1.2018 for E.W.S. in so far as not already in force, 28.6.2021 for N.I. in so far as not already in force) by Criminal Finances Act 2017 (c. 22), s. 58(1)(6), Sch. 1 para. 15(4); S.I. 2018/78, reg. 3(aa); S.I. 2021/724, reg. 3(b)

Modifications

  1. C77S. 294 restricted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 2 para. 13; S.I. 2005/1126, art. 2(2)(d)