Proceeds of Crime Act 2002, section 362C

Effect of order: cases of non-compliance

Part 8 Investigations

(1)This section applies in a case where [F1429 the respondent and the specified responsible officer (if any), between them, failF1429] , without reasonable excuse, to comply with the requirements imposed by an unexplained wealth order in respect of any property before the end of the response period.

(2)The property is to be presumed to be recoverable property for the purposes of any proceedings taken in respect of the property under Part 5, unless the contrary is shown.

(3)The presumption in subsection (2) applies in relation to property—

(a)only so far as relating to the respondent's interest in the property, and

(b)only if the value of that interest is greater than the sum specified in section 362B(2)(b).

It is for the court hearing the proceedings under Part 5 in relation to which reliance is placed on the presumption to determine the matters in this subsection.

(4) The “response period” is whatever period the court specifies under section 362A(6) as the period within which the requirements imposed by the order are to be complied with (or the period ending the latest, if more than one is specified in respect of different requirements).

(5)For the purposes of subsection (1)—

(a)a respondent [F1430 or a specified responsible officerF1430] who purports to comply with the requirements imposed by an unexplained wealth order is not to be taken to have failed to comply with the order (see instead section 362D);

(b)where an unexplained wealth order imposes more than one requirement, F1431... [F1432 the respondent and the specified responsible officer (if any) areF1432] to be taken to have failed to comply with the requirements imposed by the order unless each of the requirements is complied with or is purported to be complied with.

(6)Subsections (7) and (8) apply in determining the respondent's interest for the purposes of subsection (3) in a case where the respondent to the unexplained wealth order—

(a)is connected with another person who is, or has been, involved in serious crime (see subsection (4)(b)(ii) of section 362B), or

(b)is a politically exposed person of a kind mentioned in paragraph (b), (c) or (d) of subsection (7) of that section (family member, known close associates etc of individual entrusted with prominent public functions).

(7)In a case within subsection (6)(a), the respondent's interest is to be taken to include any interest in the property of the person involved in serious crime with whom the respondent is connected.

(8)In a case within subsection (6)(b), the respondent's interest is to be taken to include any interest in the property of the person mentioned in subsection (7)(a) of section 362B.

(9)Where an unexplained wealth order is made in respect of property comprising more than one item of property, the reference in subsection (3)(b) to the value of the respondent's interest in the property is to the total value of the respondent's interest in those items.

Definitions used in section 362C 2

responsible officer

(8) For the purposes of this Chapter, each of the following is a “responsible officer” of the respondent (in a case where the respondent is not an individual)—

(a)any director of the respondent, including any person occupying the position of a director, by whatever name called;

(b)any member of a body of the respondent equivalent to a board of directors;

(c)any other manager, secretary or similar officer of the respondent;

(d)where the respondent is a partnership, a partner or a member of the partnership;

(e)any person in accordance with whose directions or instructions the board of directors or equivalent body of the respondent are accustomed to act.

Defined in s.362A(8) · see it in the full Act
the court

(10) In this section, sections 120 to 140 and Schedule 3 “the court” means—

(a)the Court of Session, where a trial diet or a diet fixed for the purposes of section 76 of the Procedure Act in proceedings for the offence or offences concerned is to be, is being or has been held in the High Court of Justiciary;

(b)the sheriff exercising his civil jurisdiction, where a diet referred to in paragraph (a) is to be, is being or has been held in the sheriff court.

Defined in s.119(10) · see it in the full Act

Cases considering section 362C 5

National Crime Agency v Chameleon Capital Holdings Ltd & Ors

[2026] EWHC 1745 (Admin) · 15 July 2026

Applies the statutory consequence of a specified responsible officer’s failure without reasonable excuse to comply with an unexplained wealth order. The court rejected Enspire’s claimed peril because the order’s duties were imposed on the respondents. (see paras [33(iv)], [34(ii)]) Applies the reasonable-excuse qualification to the statutory consequence of non-compliance with an unexplained wealth order. The court concluded that any issue would concern the respondents’ obligations, not a duty owed by Enspire. (see para [34(ii)])

National Crime Agency v Baker & Ors

[2020] EWHC 822 (Admin) · 8 April 2020Limits

The court explained that failure without reasonable excuse to comply with a UWO may create a presumption that the property is recoverable property in later civil recovery proceedings. (see para [18]) The presumption applies only to the respondent’s interest in the property. (see para [18]) The court noted that, in specified PEP circumstances, the respondent’s interest may include the interest of the connected prominent public function holder. (see para [18]) The court noted the provision extending the respondent’s interest in the specified PEP circumstances. (see para [18])

National Crime Agency v Hajiyeva (Rev 1)

[2018] EWHC 2534 (Admin) · 3 October 2018Limits

Interprets the provision as addressing the statutory effect of non-compliance on the recoverability of property. It does not create a complete code excluding contempt enforcement (see paras [89]-[97]).

What each judgment says about section 362C is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F1429Words in s. 362C(1) substituted (15.5.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 45(8)(a), 69(1); S.I. 2022/519, regs. 1(3), 2
  2. F1430Words in s. 362C(5)(a) inserted (15.5.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 45(8)(b), 69(1); S.I. 2022/519, regs. 1(3), 2
  3. F1431Words in s. 362C(5)(b) omitted (15.5.2022) by virtue of Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 45(8)(c)(i), 69(1); S.I. 2022/519, regs. 1(3), 2
  4. F1432Words in s. 362C(5)(b) substituted (15.5.2022) by Economic Crime (Transparency and Enforcement) Act 2022 (c. 10), ss. 45(8)(c)(ii), 69(1); S.I. 2022/519, regs. 1(3), 2