Overview

This bill amends the Criminal Finances Bill, primarily focusing on unexplained wealth orders, compensation for interim freezing orders, and information sharing regarding beneficial ownership. It also clarifies the definition of "holding property," introduces provisions for legal expense payments in certain circumstances, and makes adjustments to the enforcement of orders across different parts of the UK.

Description

The bill makes several key changes:

Unexplained Wealth Orders

Amendments lower the threshold for unexplained wealth orders from £100,000 to £50,000. The definition of "holding property" is broadened to include individuals with effective control, trustees of settlements, and beneficiaries. The bill also clarifies how interests in settled property are treated.

Compensation for Interim Freezing Orders

The bill introduces a mechanism for compensation if an interim freezing order is discharged due to serious default by the enforcement authority (High Court) or Scottish Ministers (Court of Session). Applicants must apply within three months of the order's discharge and demonstrate they suffered loss as a direct result of the default.

Beneficial Ownership Information

A new clause mandates a report by July 1, 2019, assessing the effectiveness of information sharing arrangements for beneficial ownership between the UK and relevant territories (Channel Islands, Isle of Man, British Overseas Territories). This report must cover arrangements in place from July 1, 2017, to December 31, 2018.

Legal Expenses

The bill allows magistrates' courts to order the payment of reasonable legal expenses incurred by individuals in proceedings related to certain orders, subject to agreement or court assessment.

Enforcement Across the UK

A new clause enables Orders in Council to ensure investigatory orders made in one part of the UK can be enforced in others.

Government Spending

The bill is likely to increase government spending on compensation payments for wrongly issued interim freezing orders and on the production of the report on beneficial ownership information sharing. Precise figures are unavailable from the provided text.

Groups Affected

• Individuals subject to unexplained wealth orders: May face greater scrutiny and potential financial penalties.
• Individuals affected by interim freezing orders: May be entitled to compensation if the order was improperly issued.
• Law enforcement agencies: Will have enhanced powers to investigate and seize assets.
• Trustees and beneficiaries of settlements: Will be subject to expanded definitions of property ownership.
• Financial institutions: Will be required to cooperate with information requests, including those related to beneficial ownership.
• Local authorities in Scotland: Must be notified of applications for decree of removing and warrant for ejection concerning dwellinghouses.
• Tenants in Scotland: Occupancy rights may be terminated upon granting of a decree of removing and warrant for ejection in civil recovery proceedings.

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