Cash Seizure and Detention
Law enforcement agencies are able to exercise significant civil powers in respect of cash which is believed to be connected to unlawful conduct
Under powers found in Part 5 of POCA, law enforcement agencies may seize cash suspected of being derived from, or to be used in unlawful conduct. They can then make applications to the court for detention of the cash for up to 2 years, to allow enquiries and investigations to take place.
Given the very low threshold of reasonable suspicion, these orders are relatively straightforward and easy to obtain. Where you are targeted by such proceedings, it is vital to quickly obtain good quality advice from an experienced lawyer.
We have extensive experience of:
- Advising on the lawfulness of a cash seizure or detention
- Making representations to law enforcement in relation to a proposed seizure
- Opposing a cash seizure application or an application to extend a detention period
Frequently Asked Questions
What does ‘cash’ mean in this context?
Section 289(6) of POCA defines ‘cash or cash equivalent’ to mean:
- Notes or coins of any currency.
- Bankers’ drafts.
- Bearer bonds.
- Bearer shares.
- Postal orders.
- Cheques of any kind, including travellers’ cheques
What are the grounds for cash to be seized?
Section 294 of POCA sets out a civil procedure which can be used by law enforcement to seize any cash which they have reasonable grounds for suspecting is ‘recoverable property’ or intended for use in unlawful conduct.
‘Recoverable property’ is property obtained through unlawful conduct. Importantly, the person from whom cash is to be seized does not have to be suspected of, charged with, or convicted of a crime.
Law enforcement must, however, have a reasonable suspicion that the cash in question is either intended for use in crime, or is the proceeds of crime.
Can any amount of cash be seized?
The cash must have a value of £1,000 or more.
Who can seize cash?
Under section 294 of POCA, as amended, cash that is recoverable property may be seized by:
- an officer of revenue and customs (HMRC)
- a police constable.
- an officer of the Serious Fraud Office
- an accredited financial investigator
How long can cash be seized for?
Cash may only be seized for up to 48 hours. In order to seize cash for a longer period, an officer must make an application to a magistrates’ court.
The court can grant permission for a further period of detention up to 6 months. On further application, a period of up to two years (from the date of the first order) may be granted.
After this period has expired, and if no decision has been made regarding the cash, law enforcement must be returned or a cash forfeiture hearing must take place.
