Part 2: Terrorist property Civil recovery Section 39: Forfeiture of Certain Personal (or Moveable) Property
Section 39 introduces Schedule 3, which amends Schedule 1 to ATCSA by inserting a new Part 4A which comprises paragraphs 10A – 10P and which makes provision for the seizure, detention and forfeiture of certain personal or moveable property ("listed assets").
	Paragraph 10A(1) defines a "listed asset" and paragraph 10A(2) provides that the Secretary of State may by regulations add or remove items from the definition of "listed asset".
	Paragraph 10B(1) provides that an authorised officer may seize any item of property if he has reasonable grounds for suspecting that it is a listed asset and it is property within the meaning of paragraph 10B(1)(b) i.e. it is intended to be used for the purposes of terrorism, or consists of resources of an organisation which is a proscribed organisation, or it is property which is earmarked as terrorist property, as defined in Part 5 of Schedule 1 to ATCSA. Under sub-paragraph 10B(2), an authorised officer may also seize any item of property if he has reasonable grounds for suspecting it is a listed asset, that part of it is property within the meaning of paragraph 10B(1)(b) and it is not reasonably practicable to seize only that part .
	Paragraph 10C provides for the detention of property seized under paragraph 10B by an authorised officer for an initial period of 48 hours providing there continues to be reasonable grounds for suspecting it is a listed asset or property within the meaning of paragraph 10B(1)(b).
	Paragraph 10D provides that the period for which property seized under paragraph 10B may be detained can be extended by a judicial authority for a period of up to six months, up to an overall maximum of two years (from the first order). The judicial authority may make this order if satisfied that the property is a listed asset and there are reasonable grounds for suspecting that it is property within the meaning of paragraph 10B(1)(b), and that its continued detention is justified whilst investigations are made into its origin or intended use, or whilst consideration is being given to the bringing of proceedings for an offence with which the property is connected, or whilst such proceedings are ongoing.
	Paragraph 10D(4) provides that the first application to extend the period of detention may be made and heard without notice, and in private.
	Paragraph 10E(1) provides that an authorised officer may carry out tests on any item of property seized under paragraph 10B for the purpose of establishing whether it is a listed asset. Paragraph 10E(2) provides that such property must be safely stored throughout the period during which it is detained.
	Paragraph 10F makes provision for the release of property detained under Part 4A. Where a judicial authority is satisfied, on application by the person from whom the property was seized, that the conditions for detention are no longer met, it may direct the release of the property, or part thereof. An authorised officer or, in Scotland, the procurator fiscal may release all or part of the property if satisfied that the detention can no longer be justified (providing the judicial authority has been notified).
	Paragraph 10G provides that a judicial authority, on application, may order the forfeiture of property or any part of it if satisfied that the property is a listed asset and what is to be forfeited is within the meaning of paragraph 10B(1)(b) i.e. it is intended for use in terrorism, or that it is the resources of a proscribed organisation, or that it is property earmarked as terrorist property. It also provides that a magistrates’ court may provide for the payment of reasonable legal expenses that a person has or may reasonably incur in certain proceedings from the proceeds of realisation.
	Paragraphs 10H to 10K explain how associated property and joint property are to be dealt with when forfeiture is ordered.
	Paragraph 10H defines "associated property" (at sub-paragraph (3)) and defines an "excepted joint owner" (at sub-paragraph (5)) for the purpose of considering forfeitable property of a joint tenant.
	Paragraph 10I provides that a judicial authority may order that a person who holds associated property or who is an excepted joint owner may retain the property but must pay the law enforcement agency a sum equivalent to the value of the recoverable share. This section applies where there is agreement amongst the parties as to the extent of the recoverable portion of the property. The section also provides that a relevant court may provide for the payment of reasonable legal expenses to the person from whom the property was seized from the proceeds of realisation.
	Paragraph 10J describes how a judicial authority can deal with a person who holds associated property or who is an excepted joint owner but where there is no agreement under Paragraph 10I. If an order for forfeiture of part of the property is made, and the court considers it is "just and equitable" to do so, it may also order that the excepted joint owner’s interest will be extinguished, or that the excepted joint owner’s interest will be severed, and it may order that a payment be made to that individual.
	Paragraph 10K provides for a right of appeal against a forfeiture decision made under Paragraph 10G to 10J.
	Paragraph 10L sets out how the right of appeal will operate in certain circumstances where an organisation is challenging its status as a proscribed organisation, as defined by section 3 of TACT.
	Paragraph 10M provides that the relevant law enforcement agency must realise the property or make arrangements for it realisation, subject to any appeal rights against the forfeiture being exhausted.
	Paragraph 10N sets out the order in which the proceeds realised should be applied.
	Paragraph 10O provides for the true owner of the property to apply for its release.
	Paragraph 10P provides that where no forfeiture is made, following seizure, the person from whom the property was seized, or the person to whom the cash belongs, may apply to the court for compensation.