Further information orders under Proceeds of Crime Act 2002
Produced in partnership with Rebecca Cooke of Shearman Bowen Solicitors
Further information orders under Proceeds of Crime Act 2002

The following Corporate Crime guidance note Produced in partnership with Rebecca Cooke of Shearman Bowen Solicitors provides comprehensive and up to date legal information covering:

  • Further information orders under Proceeds of Crime Act 2002
  • Background
  • Key requirements in the making of an order
  • What must the court be satisfied of before making the order?
  • FIOs—procedure
  • Relevant considerations for the respondent
  • Failure to comply—the penalty
  • Can further information orders be challenged?

This Practice Note considers the powers created under sections 339ZH to 339ZK of the Proceeds of Crime Act 2002 (POCA 2002) (inserted by section 12 of the Criminal Finances Act 2017 (CFA 2017)) pursuant to which the National Crime Agency (NCA) may obtain further information orders (FIOs) against any person in the regulated sector who has submitted a suspicious activity report (SAR).

For further information on SARs generally, see Practice Notes: Authorised disclosure, protected disclosure and appropriate consent and Reporting suspicions of money laundering.

Background

There are both legal and practical reasons why FIOs have been introduced.

Article 32, paragraph 3 of the The Fourth Money Laundering Directive 2015/849/EU (MLD4) states that Financial Intelligence Units (FIU), including the NCA in the UK, ‘shall be able to obtain additional information from obliged entities’. In its Action Plan for anti-money laundering and counter-terrorist finance, the Government first proposed legislating to provide a power for the NCA to oblige reporters to provide further information on a SAR where there is a need to do so. MLD4 was formally adopted by the Council of the EU (the Council) in May 2015 after lengthy and interesting negotiations. Every Member State was required to transpose MLD4 into national legislation by 26 June 2017. For more information, see Practice Note: Money Laundering Directive 4 (MLD4)—essentials.

The NCA has itself