Part 1: Proceeds of crime Forfeiture Section 16: Forfeiture of money held in bank and building society accounts
Section 16 inserts, in Part 5 of POCA, new sections 303Z1 – 303Z19, which make provision for the freezing and forfeiture of bank and building society accounts, where those accounts contain the proceeds of unlawful conduct (as defined in section 241 of POCA), or funds which are intended for use in unlawful conduct.
	Section 303Z1 provides that the powers can be exercised by constables, HMRC officers, SFO officers or AFIs. It allows a senior officer (as defined in 303Z2(4)), or an officer who is authorised by a senior officer, to apply for an account freezing order (AFO) in respect of bank and building society accounts, where there are reasonable grounds to suspect that the money in them is recoverable property (as defined in section 316 of POCA) or is intended by any person for use in unlawful conduct. The AFO can be made without notice, if notice of application would prejudice the taking of any steps to later forfeit monies under this section.
	The AFO prohibits each person by or for whom the account is operated from making withdrawals or payments from the account. The AFO must be applied for at a magistrates’ court in England, Wales and Northern Ireland, or to the Sheriff in Scotland. The funds within the account remain with the bank or building society.
	Section 303Z2 sets out a number of restrictions on applications for the AFO, including where an account is excluded, or where the amount is below the minimum amount set by the Secretary of State, as defined in section 303Z8.
	Section 303Z3 provides that the court may make the order, if it is satisfied that the funds in the account (whether all or in part), are either recoverable property, or are intended for use in unlawful conduct. The court sets the timeframe for the freezing order which must be no more than two years.
	Section 303Z4 allows a court to vary or set aside an account freezing order at any time, and can also do so upon application by any person affected by such an order. This is at the discretion of the court.
	Section 303Z5 allows the court to make exclusions from the restriction on activity on the account for the purpose of meeting living expenses or to allow a person to carry on a business or trade. It also permits exclusions for legal expenses.
	Section 303Z6 provides that a court in which proceedings relating to a frozen account are pending can stay those proceedings, if it is satisfied that an AFO has been applied for or obtained. That court may also order that the proceedings can continue on any terms it thinks are appropriate.
	Section 303Z7 defines the term "bank".
	Section 303Z8 provides that the minimum amount of funds that an account must contain is £1000. This amount can be amended in regulations made by the Secretary of State, after consultation with the Scottish Ministers and with the Department of Justice in Northern Ireland.
	Section 303Z9 allows a senior officer to issue an "account forfeiture notice", which is a notice for the purposes of forfeiting the funds in an account. The funds must be subject to an account freezing order for an account forfeiture notice to be served. This is an administrative procedure.
	The senior officer may give a notice that they intend to seek forfeiture of the balance of the account, provided that they are satisfied that the contents are either recoverable property, or are intended to be used in unlawful conduct. The account forfeiture notice must set out the amount to be forfeited, the period for objecting to the forfeiture, and the address to which any objections must be sent. The period for objecting must be at least 30 days. An objection may be made by anyone, in writing. If no objection is received, at the end of the period the amount of money stated in the account forfeiture notice will be forfeited, and the bank or building society must transfer that money into the interest bearing account nominated by the senior officer. An objection does not prevent forfeiture of the money by court order under section 303Z14. It is not necessary for an account forfeiture notice to be sought if the senior officer wishes to seek forfeiture of the money by order of a court under section 303Z14.
	Section 303Z10 requires the Secretary of State to make regulations about how an account forfeiture notice is to be given to the interested parties.
	Section 303Z11 sets out the conditions under which an account forfeiture notice lapses. The notice lapses if an objection is received; an application for forfeiture is made; or if the AFO is recalled or set aside. The section provides for a senior officer to either apply to extend the period of the AFO, or to seek forfeiture of the money under 303Z14.
	Section 303Z12 sets out the procedure for applying for an administrative forfeiture to be set aside. The application must be made before the end of the objection period. It can be made after a longer period if the court is satisfied there are exceptional circumstances. The court must consider whether the money should be forfeited under section 303Z14 (forfeiture by court order). If it is satisfied that the funds should not be forfeited, it must order the release of that money.
	Section 303Z13 provides that any money forfeited under an account forfeiture notice is paid into the Consolidated Fund.
	Section 303Z14 defines the procedure for the relevant court to order the forfeiture of the money in an account if the court is satisfied that the money is recoverable property, or it is intended for use in unlawful conduct. If the court determines that the money meets the criteria, the bank or building society must transfer the funds to an interest bearing account nominated by the enforcement officer.
	Section 303Z15 provides that, where a court declines to order the forfeiture of an asset, and the law enforcement agency appeals, it may also apply for an extension of the account freezing order pending the appeal.
	Section 303Z16 provides for an appeal to be made against the forfeiture order. The time period for the lodging of an appeal is 30 days from the day that the court makes the order. If the appeal is upheld, it may order the release of the whole or part of the funds. If a forfeiture order is successfully appealed, and the funds are returned to the individual, any interest which accrued during the time that the funds were held by the police shall also be returned to the individual.
	Section 303Z17 provides that any funds forfeited under an order should be paid into the Consolidated Fund.
	Section 303Z18 provides that if an account freezing order is made and none of that money is later forfeited, the person by or for whom the account is operated may make an application to court for compensation. The court must be satisfied that the individual suffered loss as a result of the AFO being made, and that the circumstances are exceptional. The amount of compensation is the amount the relevant court thinks reasonable, having regard to the loss suffered and any other relevant circumstances.
	Section 303Z19 provides for prosecutors to appear in proceedings on behalf of a constable or an AFI, if asked to and they consider it appropriate.