UK authorities seize £179m from suspected criminals – up 16% in a year

Concern that Confiscation Orders are too easy for authorities to obtain

“Hugely powerful weapon” may be reviewed by government

UK authorities, including the SFO, HMRC and police, seized £179m last year[1] from criminals using draconian Confiscation Orders – an increase of 16% on £154m a year earlier, according to analysis of new data by international law firm RPC.

Adam Craggs, Partner and Head of Tax, Regulatory and Financial Crime at RPC, says that authorities are increasing their use of Confiscation Orders, which permit a person's assets to be seized if they are suspected to form part of a ‘criminal lifestyle’.

There are growing concerns that Confiscation Orders are being sought in circumstances which may potentially be harmful to an individual's right to justice. The Law Commission recently recommended a raft of reforms in relation to how these orders are used, including ensuring their use does not breach the Human Rights Act.

Adam Craggs explains that Confiscation Orders often start by making a broad demand – often in relation to assets that may only have passed through an individual’s hands rather than been retained by them. If someone is unable to pay the sum demanded or negotiate a reduced figure, they risk imprisonment.

Adam Craggs adds that another concern with the growing use of Confiscation Orders is that they can leave a person unable to pay for urgent legal advice and assistance. He says: “Confiscation Orders are a very powerful weapon in the arsenal of bodies such as HMRC and the SFO and there are increasing concerns that they are being used in inappropriate circumstances with too few checks and balances.

Michelle Sloane, Partner at RPC says “Far too many defendants are having to deal with Confiscation Orders without appropriate legal advice and assistance. A system that effectively takes away a defendant’s right to legal representation should be of concern.

“There are too many instances where authorities demand unreasonable sums of money from an individual. If that person isn’t in a position to use specialist lawyers to ensure authorities act reasonably and in accordance with the law, they can easily end up with a lengthy prison sentence.”

Authorities now retaining less of the assets seized

Data from the Home Office shows that authorities seizing assets from suspected criminals retained a smaller proportion in 2022 than in the previous year. Seized assets amounting to £118m were retained last year under the Asset Recovery Incentivisation Scheme (ARIS), a 17% reduction from £142m in 2021.

ARIS aims to push authorities towards greater use of asset seizures by allowing them to keep up to 50% of the money they appropriate under the Proceeds of Crime Act (POCA).

Craggs says that the wording of ARIS leaves significant scope for the government to retain a greater proportion of seized assets (up to 50%), which may become a more attractive option in the current economic climate.