Application to Release Cash Seized Under POCA
KANGS has successfully assisted our client secure the release of cash seized amounting to more than half a million pounds which had initially been seized by the police and, thereafter, had become the subject of an investigation by HMRC.
Our client is a limited company which operates a Money Sender Business involving the collection of cash from individuals in the UK for onward distribution abroad and is fully authorised by the Financial Conduct Authority and HMRC.
As part of its operation, our client collects and delivers cash utilising security vans and in 2024 an armed robbery was attempted against one of its vans. Following the failed attempt, the police retained the vehicle, for evidential purposes, and seized the cash under s.19 Police and Criminal Evidence Act 1984.
In due course, the police cleared the money for release to our client but HMRC, as part of its ongoing investigations wished to continue withholding the cash seized and sought an Order from Westminster Magistrates’ Court allowing such retention.
Our client sought to oppose such Application and secure the release of the detained money.
Nazaqat Maqsoom of KANGS explains how we assisted our client.
The Relevant Law
The Proceeds of Crime Act 2002 (POCA)
S.294 (1) provides that an appropriate officer may seize any cash if reasonable grounds for suspecting that it is:
- recoverable property, or
- intended by any person for use in unlawful conduct.
S. 47 contains extensive provisions governing detention of property and provides that a Magistrates’ Court may by order extend the period for which the property may be detained but:
- may not extend the period beyond six months beginning with the date of the order,
- this does not prevent the period from being further extended by another order under this section.
Police and Criminal Evidence Act 1984 (PACE)
S.19 provides that a constable may seize anything if he has reasonable grounds for believing that:
- it has been obtained in consequence of the commission of an offence and
- it is necessary to seize it in order to prevent it being concealed, lost, damaged altered or destroyed.
S. 22 Retention
With exceptions, anything:
- which has been seized or taken away by a constable may be retained so long as is necessary in all the circumstances.
- may be retained in order to establish its lawful owner, where there are reasonable grounds for believing that it has been obtained in consequence of the commission of an offence.
Circumstances of the Cash Seizure
Following the cash seizure, the police conducted a money laundering investigation and, after approximately five months, agreed that the money could be returned and made appropriate arrangements with our client.
Immediately prior to the agreed hand over of the money, HMRC decided to conduct further investigations into its provenance and applied to Westminster Magistrates’ Court for a further detention period of six months under s. 47 of POCA, mentioned above.
Some of the grounds for the application were:
- a suspected discrepancy between cash receipts and the amount found in the safe,
- issues concerning the manner of transportation of the cash,
- concerns relating to company record keeping.
How We Assisted Our Client
Upon learning of the Application by HMRC, our client instructed the team at KANGS to contest it but provided little more than forty-eight hours in which to prepare a detailed opposition.
By way of preparation our team:
- examined the details of the Application made by HMRC,
- attended our client advising upon its position and the appropriate procedure to adopt to oppose the Application,
- collated and examined all available evidence to oppose the Application of HMRC,
- prepared a detailed Witness Statement outlining client’s position which was supported by a considerable amount of contemporaneous evidence,
- identified and instructed appropriately experienced counsel,
- attended conferences with both our client and counsel.
The Hearing
Having considered all the legal submissions including the extensive and detailed representations presented on behalf of our client, the Magistrates’ Court agreed that the period of six months requested by HMRC was unreasonable and allowed an extension of twenty-one days.
Naturally, our client was delighted at this outcome, particularly as the team at KANGS was given such a short period of time in which to prepare and present the objections to the excessive retention period requested.
How Can We Help You?
It is highly likely that without the detailed representations prepared and submitted to the Magistrates’ Court, HMRC would have been granted the additional six months retention period which it sought.
KANGS provides a wealth of experience gained from representing clients subjected to Restraint and Detention Orders of every nature and enjoys an enviable reputation for defending clients subjected to Proceeds of Crime (POCA) at every level.
If we can be of assistance, our team would be delighted to hear from you.
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
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