Civil Recovery & Asset Forfeiture in the UK: What You Need to Know
In the UK, civil recovery and asset forfeiture are legal processes used to seize property or money linked to criminal activity. Unlike criminal cases, where a conviction is needed, civil recovery allows authorities to reclaim assets even if no criminal charges are brought. But what does this mean for individuals and businesses? This guide breaks it down in simple terms.
What is Civil Recovery?
Civil recovery is a legal tool that allows authorities to seize assets obtained through unlawful means. It is handled in civil courts, meaning the standard of proof is lower than in criminal cases. Instead of proving guilt "beyond a reasonable doubt," the authorities must show that it is more likely than not that the assets were obtained through criminal activity.
Who Can Use Civil Recovery?
Civil recovery is primarily used by agencies such as:
The National Crime Agency (NCA)
The Serious Fraud Office (SFO)
The Crown Prosecution Service (CPS)
Local authorities in certain cases
These bodies can apply to the High Court for a Civil Recovery Order (CRO) to seize assets they believe are linked to crime.
What is Asset Forfeiture?
Asset forfeiture is the process of permanently confiscating assets believed to be linked to criminal conduct. This can be done in two ways:
Criminal Forfeiture
Happens after a criminal conviction.
The court orders that assets gained from criminal activity be seized.
Used in cases like drug trafficking, fraud, and money laundering.
Civil Forfeiture
Does not require a criminal conviction.
Allows authorities to seize assets if they can show, on the balance of probabilities, that the assets are linked to crime.
Often used against organised crime and large-scale fraud.
What Can Be Seized?
Authorities can seize various types of property, including:
Cash (under the Proceeds of Crime Act 2002)
Bank accounts and funds
Vehicles and luxury items
Real estate and property
Cryptocurrency and digital assets
How Does the Process Work?
Investigation: Authorities investigate suspicious assets and gather evidence.
Freezing Orders: A Property Freezing Order (PFO) may be issued to prevent assets from being moved or sold.
Court Proceedings: A case is presented in the High Court.
Seizure or Return: If the court rules in favour of the authorities, the assets are seized. If not, they are returned to the owner.
Can You Challenge a Civil Recovery or Asset Forfeiture Order?
Yes. If your assets are seized, you have the right to challenge the decision. Here’s how:
Seek Legal Advice: An experienced lawyer can help contest the case.
Prove Legitimate Ownership: Show that the assets were obtained legally.
Challenge the Evidence: If the authorities lack strong proof, the order may be overturned.
Key Laws Governing Civil Recovery and Asset Forfeiture
Proceeds of Crime Act 2002 (POCA): The main law governing asset seizure in the UK.
The Serious Crime Act 2015: Strengthened law enforcement powers in asset recovery.
The Criminal Finances Act 2017: Introduced new powers like Unexplained Wealth Orders (UWOs).
Conclusion
Civil recovery and asset forfeiture are powerful tools used to tackle crime and recover unlawfully obtained wealth. Unlike criminal proceedings, these cases rely on a lower burden of proof, meaning assets can be seized without a conviction. However, individuals and businesses have the right to challenge asset seizures if they can prove legitimate ownership.
If you or your business are facing asset seizure, seeking professional legal advice is essential to protect your rights and financial interests. Millennium Chambers has a team of expert barristers specialising in civil recovery and asset forfeiture cases. We provide strategic legal guidance and robust representation to ensure the best possible outcome.