1. REDUCING CRIME AND THE FEAR OF CRIME BY MAKING SURE CRIME DOES NOT PAY
South East Proceeds of Crime Act Conference
9 September 2003
ASSETS RECOVERY
AGENCY
REDUCING CRIME AND THE FEAR OF CRIME BY MAKING SURE CRIME DOES NOT PAY
John Tanner
Head of Policy and Performance

2. This presentation will cover:
South East Proceeds of Crime Act Conference
9 September 2003
This presentation will cover:
Why we do asset recovery
Why we have a new structure
What asset recovery means
Our powers and examples of cases

3. Why recover criminal assets?
South East Proceeds of Crime Act Conference
9 September 2003
Why recover criminal assets?
Problems identified by research:
Criminals left to enjoy fruits of wrongdoing even if successfully convicted and punished, sending message that crime does pay;
Assets used to fund further criminal activity;
Large criminal money flows destabilise financial systems;
Confiscation orders only made in about 2% of potential cases;
When confiscation orders made, poor enforcement processes.

4. South East Proceeds of Crime Act Conference
9 September 2003
How Big is the Problem?
Organised crime is a multi-billion pound business
Latest estimates:
Fraud - £14 billion (total economic cost)
Illegal drugs - £6.6 billion
Vehicle thefts - £900 million
Arts & antiques - £3-500 million
While not all of this is organised crime, it is all committed for profit

5. High level political support
South East Proceeds of Crime Act Conference
9 September 2003
High level political support
“It is not acceptable that people should enjoy the proceeds of criminal activity and live a life of luxury when it is built on the misery of victims or activities which damage or exploit society”
Rt. Hon Tony Blair MP June 2000

6. The Hierarchy of Action
South East Proceeds of Crime Act Conference
9 September 2003
The Hierarchy of Action
1. Confiscation–
Action by prosecuting authorities to obtain conviction and confiscation in criminal courts will remain the priority
Linking benefit to assets

7. The Hierarchy of Action
South East Proceeds of Crime Act Conference
9 September 2003
The Hierarchy of Action
2. Civil Recovery
If conviction/confiscation not feasible
Linking unlawful conduct to recoverable property

8. The Hierarchy of Action
South East Proceeds of Crime Act Conference
9 September 2003
The Hierarchy of Action
3. Taxation
If civil recovery not effective or feasible
No need to demonstrate
- taxable source of income
- link from income to crime

9. Examples of potential use of civil recovery power
South East Proceeds of Crime Act Conference
9 September 2003
Examples of potential use of civil recovery power
Criminal case cannot be brought because of the circumstances
Prosecution unsuccessful, but prospect of success in civil proceedings because issue to be proved different
Prosecution successful but either no confiscation or confiscation order overturned on a legal technicality

10. Confiscation
In June 2004 ARA obtained Confiscation Order assisting Trading Standards Officers in prosecution for the sale of counterfeit mobile phone covers.
Fined £50 for each of four offences.
Judge made a Confiscation Order of £335,000.

11. Civil Recovery
Leading terrorist in Northern Ireland with many convictions for serious crime. Released from prison in 1988 with no assets.
Became a major drugs trafficker and was arrested on suspicion of murder on five separate occasions.
May 2003 he was shot dead.
ARA used its powers to require the disclosure of information and search.
September 2003 ARA obtained orders restraining almost £2m of assets.
Now seeking final judgement.

12. Tax Cases The Agency currently has 7 tax investigations under way.
3 tax assessments for total value £0.58m have been issued
Enforcement action in 1 case

13. Impact Under £25m in 2001/2 Over £45 million recovered in 2003-04
1331 cash seizures under new powers in POCA, over £63 million
112 confiscation orders under new powers, over £1.2m
ARA - 20 confiscation cases, £4.4m; 59 civil recovery cases, £14.1m restrained; 7 tax cases

14. South East Proceeds of Crime Act Conference
9 September 2003
Summary
Purpose of the Act and the Agency is to reduce crime and contribute to safer communities by:
Seizing criminals assets through criminal confiscation, civil recovery or taxation
Disrupting criminals ability to conduct their business
Promoting the use of financial investigation as a tool to fight crime.