Part 5: Terrorism Freezing and forfeiture of damages Schedule 16: Damages at risk of being used for the purposes of terrorism
Paragraph 1 of Schedule 16 provides that, on application by a Minister of the Crown in civil proceedings where an order for damages is made, the court may make a freezing order, freezing all or part of the damages. The court may only do so where there is a real risk that such damages would be used for the purposes of terrorism. Such an application may be made at any time during the proceedings but no later than the expiry of the period permitted for appealing the damages order. If made after the damages order, the court may suspend that order pending determination of the application. Civil proceedings are defined as any proceedings that are not criminal or family proceedings.
	A freezing order will require that the damages are paid into court, and not to the claimant, and remain there until the end of the freezing period. A freezing order will be for an initial period of two years.
	Paragraph 2 of Schedule 16 permits the court, upon application by a Minister of the Crown before the freezing order has expired, to extend it for a further period of 2 years. For that extension the court must continue to be satisfied that there is a real risk that the damages, if paid to the claimant, will be used for the purposes of terrorism. The damages will remain in court until that application is determined.
	Paragraph 3 of Schedule 16 provides a power for the court, on application by a Minister of the Crown before the expiry of the period of the extended freezing order, to make a forfeiture order, forfeiting the claimant’s entitlement to all or part of the money subject to that freezing order. Where the period of extension of the freezing order expires before determination of the application for a forfeiture order, the money must remain in court until determination of that application. A forfeiture order may only be made if the court is satisfied that if the damages were paid to the claimant there would be a real risk that they will be used for terrorist purposes. Any money forfeited under a forfeiture order must be paid into the Consolidated Fund.
	Paragraph 4 of Schedule 16 contains the interpretation provisions.