Part 1: Espionage, sabotage and persons acting for foreign powers Powers of search etc. Schedule 4: Customer information orders
Schedule 4 provides for the court to make an order that enables investigators to give notice to a financial institution requiring it to provide any customer information it has in relation to a person subject to an investigation into foreign power threat activity, who is specified on application for the order.
	Paragraph 1 provides for applications to a judge for customer information order. It sets out that an appropriate officer – a constable or an NCA officer in England and Wales or Northern Ireland, or the procurator fiscal in Scotland – may apply for a customer information order, and that this may be granted if the judge is satisfied that the order is sought for the purposes of an investigation into foreign power threat activity and that it will enhance the effectiveness of the investigation. The paragraph goes on to specify what an application must state, the extent of the authority an order gives to an appropriate officer and what is required from a financial institution upon receiving a customer information order. Subparagraph (9) sets out that an application for a customer information order must be made, or authorised, by a senior officer. This does not apply in relation to Scotland given applications are made by the procurator fiscal rather than a police officer (subparagraph 10).
	Paragraph 2 is a supplementary provision to paragraph 1. It provides that an order has effect despite any other restrictions on the disclosure of information, for example data protection legislation.
	Paragraph 3 provides that an application can be made without notice to a judge in chambers.
	Paragraph 4 provides that an application may be made to the court to discharge or vary a customer information order. Subparagraph (1) sets out that this can be made either by the applicant for the order or any person affected by the order. Where the application for the order was made by a police officer or NCA officer, the application may be made by a different police or NCA officer respectively. In England & Wales and Northern Ireland, an application must be made by a senior police officer or a police officer authorised to so apply by a senior police officer. Subparagraph (4) sets out that unless they are a senior officer, or authorised by a senior officer, an appropriate officer should not make an application to discharge or vary a customer information order. Again, this does not apply in relation to Scotland.
	Paragraph 5 sets out that rules of court can make provision as to the practice and procedure of proceedings relating to customer information orders.
	Paragraph 6 sets out that it is an offence for a person to fail to comply with a requirement imposed under a customer information order without reasonable excuse. Subparagraph (2) provides that this is punishable by imprisonment (for no longer than the specified maximum term) or a fine (or both).
	Paragraph 7 provides that where a person makes a statement as a result of a requirement imposed under a customer information order, such a statement cannot be used as evidence against that person in criminal proceedings unless sub-paragraphs (2) and (3) apply.
	Paragraph 8 defines terminology relevant to Schedule 4. Customer information is defined as having the same meaning in England, Wales and Northern Ireland as section 364 of the Proceeds of Crime Act 2002. In Scotland, the definition of customer information is the same as section 398 of that Act. This definition includes things such as account name or numbers, the person’s full name, date of birth and most recent address and any previous addresses. In all parts of the UK, the definition of financial institution is the same as in Schedule 6 to the Terrorism Act 2000, and includes credit unions, the National Savings Bank and a person carrying on a relevant regulated activity such as managing investments. Accordingly, any updates to the definitions in those Acts will automatically apply to these provisions.
	A hypothetical example of the use of a customer information order would include:
Hypothetical example (use of a customer information order to identify accounts linked to the financing of state threats activity)
A foreign agent based in the UK is paying UK academics working in sensitive defence research areas to provide intelligence regarding UK defence capabilities. The police apply for a customer information order to identify, from relevant financial institutions, where the agent’s UK account is held to assist their investigation.
The customer information order requires relevant institutions where the agent holds an account to provide customer information that they hold. A financial institution holds the current address of the agent and previous addresses they have resided at in the UK which are provided to police. This provides police with further information about the agent who is suspected of conducting UK espionage activity, which provides police with further investigative leads to progress the investigation.