Serious Organised Crime Agency and ARA
The Proceeds of Crime Act 2002 brought in the Asset Recovery Agency (“ARA”). Ever since 2003 ARA has been flexing its muscles in tackling what it sees as targets with funds accumulated through criminal activity. Cases are started from reports made by a Law Enforcement Agency, typically the police or HM Revenue & Customs. Often referrals follow a failed criminal prosecution of a target. Once there is a justifiable argument for taking up a case an application is made to the Courts for approval to proceed. This may lead to a request for an Interim Receiving Order or a Freezing Order. This ties up a target’s assets and in due course may lead to a Recovery Order being sought. It is a veritable minefield to chart a way through. Whereas public perception of ARA is fully supportive there may be a different view if the public became aware that a case had no real foundation to it.
POCA has in its armoury taxing rights. Former tax inspectors now working for SOCA are using those rights to tax what they see as "excess income and assets". Running alongside this is a new unit within HMRC tackling clients with, what they would describe, a potentially criminal past. Again they are not so concerned with the source of income as the rights to tax it.They begin their enquiries without a formal Code of Practise but operate very much in the mold of a Hansard style case.
Both approaches are relatively new and require very careful consideration before reacting. Clients may be wise to request Code of Practise 9 but with that comes a certain expectaion as to the quantum of settlement.