Schedule 1 Forfeiture of Terrorist Cash Part 5 Property earmarked as terrorist property
335.Paragraphs 11 to 16 say what “property earmarked as terrorist property” means. It covers:
	property obtained through terrorism, and
	property which represents property obtained through terrorism.
336.Paragraph 11 defines when property is obtained through terrorism. A person will obtain property through terrorism if he obtains it:
	by or in return for acts of terrorism – for example by being paid to commit murder, or
	by or in return for acts carried out for the purposes of terrorism – for example, stealing a car to perpetrate a terrorist act.
337.The purpose of sub-paragraph (2)(a)is to ensure that property counts as having been obtained through terrorism regardless of any investment in that terrorism. So if a person buys guns with honestly come by money, and sells them at a profit, the whole of the proceeds of the sale will count as having been obtained through terrorism, and not just the profit.
338.Sub-paragraph 2(b) provides that it is not necessary to show that property was obtained through a particular act of terrorism, so long as it can be shown to have been obtained through terrorism of one kind or another. So it will not matter, for example, if it cannot be established whether certain funds are attributable to gun smuggling, blackmail, extortion, or stealing from a bank, provided that it can be shown that they are attributable to an act of terrorism, or an act carried out for the purposes of terrorism.
339.Paragraph 12 explains that property may be earmarked as terrorist property even if it is not in the hands of the person who originally obtained it. That is to say, property obtained through terrorism may be followed.
340.Paragraphs 13 to 15 describe circumstances in which property is treated as representing property obtained through terrorism.
341.Paragraph 13 provides that, if property obtained through terrorism is disposed of, the proceeds of the disposal represent the property disposed of. In other words, property obtained through terrorism may be traced into other property. For example, if a person obtains a car in return for carrying out an act of terrorism, and then sells it, the cash that he obtains in return will be property earmarked as terrorist property. The same principle will apply again when he spends the cash.
342.Paragraph 14 provides that where property obtained through terrorism is mixed with other property, then the portion of the mixed property which is attributable the property obtained through terrorism will itself represent property obtained through terrorism. So, for example, if the car mentioned above is sold and the cash paid into a bank account which is in credit through deposits from honest sources, then a proportion of any cash withdrawn from that bank account will be property earmarked as terrorist property. Again, the same principle will apply if representative property is mixed with other property.
343.Paragraph 15 provides that if profits accrue in respect of the property obtained through terrorism, or representative property, the profits are also to be treated as representative property. So, for example, if property obtained through terrorism is placed in a bank account and interest is credited to the account, any cash taken from the account may be seized.