Business Crime Article
03 November, 2023
The Economic Crime and Corporate Transparency Act 2023 has received Royal Assent and, when in force, will implement a large number of changes aimed at fighting economic crime and other illegal activity.
One major reform in the Act is in relation to Cryptoassets and how they can be seized under amendments to the Proceeds of Crime Act 2002.
Cryptoassets, also known as cryptocurrencies, are digital or virtual assets that utalise cryptography for secure transactions and to control the creation of new units. They are decentralised and operate on a technology called blockchain, which can make them resistant to manipulation and fraud. Examples of popular cryptoasets include Bitcoin, Ethereum, and Litecoin. These assets have gained in popularity and can be used for financial transactions, investment opportunities, and as a store of value.
Cryptoassets serve as a pseudo-anonymous, low-cost, and relatively quick method to move funds globally. There are low barriers to entry, users merely need an internet-connected device to transact with cryptoassets.
Given these characteristics, it is little surprise that this technology is increasingly popular and law enforcement are already investigating terrorist financing cases where cryptoassets have been used.
The NCA's National Strategic Assessment noted a particular acceleration in the criminal use of these assets during the pandemic.
Further, cryptoassets are one of only a few accepted payment mechanisms most used by cyber criminals demanding payment following a ransomware attack. These attacks are increasingly common and are said to pose a significant threat to the UK public and businesses.
The ability to move property quickly, across borders, without the need for standard banking services, and often to hold it anonymously, can make these assets attractive to those engaged in economic crime and terrorist financing.
The measures in the Act will:
These new powers will be used alongside extensive new money laundering provisions. We will be carefully assessing the scope of these new powers and monitoring how police and prosecuting authorities propose to respond.
Our lawyers have an intimate understanding of confiscation powers and should be consulted as soon as possible if you are being investigated or prosecuted for any crime that might result in an application under the Proceeds of Crime Act 2002.
The criminal and civil law in relation to the alleged proceeds of crime is complex and difficult, that is why it requires specialist advice from the very start. At Forbes we have a Specialist Department, which deals exclusively with both Criminal and Civil cases.
Forbes Solicitors is different if not unique. We have an expert team that deals exclusively with financial claims made by the State and public agencies. Those claims may follow a prosecution or increasingly Civil proceedings against a client and often with little or no notice.
The department works with our Commercial, Business Crime, Crime and Regulatory departments, providing specialist advice to clients. We pride ourselves in our specialism and are regularly able to provide a comprehensive in-house service. Our reputation extends this service on a national basis. We act for and advise individuals, commercial organisations and limited companies "suspected", "accused" or "convicted", together with anyone caught up in somebody else's wrongdoing, to protect innocent people's property rights. Where necessary and appropriate, specialist Barristers and Forensic Accountants are instructed.
If you would like to discuss any aspect of your case, please contact Craig MacKenzie, Partner and Head of the High-Profile & Private Crime Division.
For more information contact Craig MacKenzie in our Crime department via email or phone on 01772 220 022. Alternatively send any question through to Forbes Solicitors via our online Contact Form.
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