POCA: Seizure, Detention and Forfeiture of Cash

We are seeing a huge increase in the number of Police and Customs Officers seizing cash from ordinary law abiding citizens and then applying to the Court its further detention and eventually its forfeiture. This draconian power entitles the authorities to initiate this process without a shred of proof and based on the slightest of suspicions.

These powerful seizure, detention and forfeiture provisions given to the authorities are embodied in the Proceeds of Crime Act 2002; by virtues of this vested power a Customs Officer or Constable may seize any amount of cash if he has reasonable grounds for suspecting that it is "recoverable property" or it is intended to be used in "unlawful conduct". This effectively means that without an arrest; if a Customs or a Police Officer believes that money is the proceeds of crime or is to be used in crime then that money can be seized.

We are seeing cases come before the Court where individuals are not only being stopped in the Street but also during the course of their employment when they have cash in their possession, that cash then being seized by the authorities under these powers. We have come across instances where professionals have been entertaining there clients and they have been stopped as part of a routine search which in turn has lead to a cash seizure being made. We are also seeing Customs Officers seizing cash from holiday makers who then have to suffer the great inconvenience of interrupting their holiday by appearing before the Court the next day to apply for the return of their holiday money.

Once cash has been seized these monies can be further detained to allow the authorities to make enquiries into its provenance. In theory this should be a relatively straight forward process, but it is clear that these powers are being manipulated to allow the authorities to retain these monies for longer than in necessary. If evidence is obtained that the cash is the proceeds of crime or was to be used in further crime, that money can then be forfeited.

It is important to remember that an application can be made at anytime by the owner of the seized cash for those monies to be returned.

Case Studies:

Re L
A case where £8,000 was seized from a Magistrate under these powers! The money was returned once we became involved and pointed out to the police their obvious error. This case does illustrate that no one is immune from an overzealous customs or police officer.

Re Y ltd.
In this case money was seized from the driver of a very reputable business. The driver had been given £14,000 as petty cash in order to look after some overseas clients who were visiting from China. This particular exercise caused a lot of embarrassment for our client, but nevertheless we were able to persuade the authorities to return the money without the need of going to the Court.

Re MS.
An individual who was initially arrested for an offence of money laundering; those charges being discontinued but the authorities retained the seized monies amounting to approximately £200,000.

Re X Ltd.
We were called in to advise another solicitor in relation to one of her commercial clients who had been raided by the police, the proprietors had been arrested for a series of trumped up technical offences, to add insult to injury the police also seized approx £50,000 cash. This money was to be used in ordinary business related activities, paying suppliers, wages etc. The client applied to the Court for the return of his money and the police were ordered to return the same.

These case studies illustrate that the powers available to the authorities are wide ranging and can be applied in any circumstances. We routinely come across cases where this power has been used on the street, to airports and even in people's houses. It also shows that the legislation does not distinguish between law abiding citizens and cabals of criminals.

If there are any issues highlighted in this article that concern you or your clients and you require more detailed and specific advice then please contact 0845 872 6666 or fill in our online enquiry form.