Part 1: Proceeds of crime Disclosure of information Section 10: Power to extend moratorium period
The money laundering offences are contained in sections 327-329 of POCA. The acts referred to in these offences are known collectively as "prohibited acts" and include concealing, arranging for the transfer of; or acquiring and using criminal property. There is a defence to each of these offences where a person has made an "authorised disclosure" and they have not been refused consent to carry out a "prohibited act". Where consent is refused, then the person making the report may not rely upon the defence should they carry out a "prohibited act" for a period of 31 days from the date of the notice of refusal. This is known as the "moratorium period". Section 10 inserts, in Part 7 of POCA, sections 335(6A), 336(8A) and 336A to 336C, which provide a scheme for the extension of the moratorium period beyond 31 days.
	Amendments to section 335 and 336 provide that the moratorium period may be extended by court order. Section 336A provides that, to extend the moratorium period, an application must be made to the relevant court before the end of an existing moratorium period. The court may only grant an extension where it is satisfied that: an investigation is being conducted diligently and expeditiously; further time is required; and the extension is reasonable. The court may extend the moratorium period for up to 31 days on any one application. The court may not grant an extension if the effect would be to extend the period by more than 186 days (in total) beginning with the day after the end of the initial 31 day period mentioned in section 335(6) or (as the case may be) section 336(8) of POCA 2002.
	Section 336B provides that an interested person or their representative may be excluded from extension proceedings and provides a process for withholding specified information from an interested person or their representative during extension proceedings. An application may be made to the relevant court to withhold information from any interested person or their representative. Where such an application is made, the court must exclude any interested person or their representative from the hearing, to determine whether the material should be withheld. The relevant court may order that material is withheld where there are reasonable grounds to believe that disclosure would lead to evidence of an offence being interfered with or harmed, the gathering of information about the possible commission of an offence would be interfered with, a person would be interfered with or physically injured, the recovery of property would be hindered, or national security would be put at risk. This section also provides for further rules of court, to make provision as to the practice and procedure to be followed in relation to these proceedings.
	Section 336C provides for the extension of the moratorium period pending determination of proceedings. The moratorium period will be extended until the court has determined the application or it has been otherwise disposed of. The moratorium period will also be extended until the proceedings have been finally determined or disposed of i.e. where an appeal has been lodged. The maximum length of each such extension is 31 days. Section 336C also provides for a five day extension where a court refuses a moratorium extension application, for the purposes of enabling the applicant to bring appeal proceedings before the period would otherwise end.
	Section 336D provides a number of definitions. An "interested person" is defined as the person who made the relevant disclosure and any person who appears to have an interest in the property that would be subject to the prohibited act. The section provides a list of who may make an application for a moratorium extension and/or application to withhold of material, including authorities which may be conducting an investigation domestically or on behalf of an overseas authority.
	Paragraph 37 of Schedule 5 to the Act disapplies the "tipping off" offence for the purposes of proceedings under section 335A (power of court to extend moratorium period). This allows the regulated company to make reference to the fact that an application to extend the moratorium period has been made (thereby confirming that a suspicious activity report exists in relation to their transaction) – without being caught by the offence. However, those in the regulated sector are restricted to providing confirmation that an application to extend the moratorium period has been made. This ensures that ongoing investigations are not compromised.