ASSETS RECOVERY AGENCY REDUCING CRIME AND THE FEAR

ASSETS RECOVERY AGENCY REDUCING CRIME AND THE FEAR OF CRIME BY MAKING SURE CRIME DOES NOT PAY John Tanner Head of Policy and Performance 1

This presentation will cover: • • Why we do asset recovery Why we have a new structure What asset recovery means Our powers and examples of cases ASSETS RECOVERY 2 AGENCY

Why recover criminal assets? Problems identified by research: • Criminals left to enjoy fruits of wrongdoing even if successfully convicted and punished, sending message that crime does pay; • Assets used to fund further criminal activity; • Large criminal money flows destabilise financial systems; • Confiscation orders only made in about 2% of potential cases; • When confiscation orders made, poor enforcement processes. ASSETS RECOVERY 3 AGENCY

How Big is the Problem? • Organised crime is a multi-billion pound business • Latest estimates: – – Fraud - £ 14 billion (total economic cost) Illegal drugs - £ 6. 6 billion Vehicle thefts - £ 900 million Arts & antiques - £ 3 -500 million • While not all of this is organised crime, it is all committed for profit ASSETS RECOVERY 4 AGENCY

High level political support “It is not acceptable that people should enjoy the proceeds of criminal activity and live a life of luxury when it is built on the misery of victims or activities which damage or exploit society” Rt. Hon Tony Blair MP June 2000 ASSETS RECOVERY 5 AGENCY

The Hierarchy of Action 1. Confiscation– • Action by prosecuting authorities to obtain conviction and confiscation in criminal courts will remain the priority • Linking benefit to assets ASSETS RECOVERY 6 AGENCY

The Hierarchy of Action 2. Civil Recovery • If conviction/confiscation not feasible • Linking unlawful conduct to recoverable property ASSETS RECOVERY 7 AGENCY

The Hierarchy of Action 3. Taxation • If civil recovery not effective or feasible • No need to demonstrate - taxable source of income - link from income to crime ASSETS RECOVERY 8 AGENCY

Examples of potential use of civil recovery power • Criminal case cannot be brought because of the circumstances • Prosecution unsuccessful, but prospect of success in civil proceedings because issue to be proved different • Prosecution successful but either no confiscation order overturned on a legal technicality ASSETS RECOVERY 9 AGENCY

Confiscation • In June 2004 ARA obtained Confiscation Order assisting Trading Standards Officers in prosecution for the sale of counterfeit mobile phone covers. • Fined £ 50 for each of four offences. • Judge made a Confiscation Order of £ 335, 000. ASSETS RECOVERY 10 AGENCY

Civil Recovery • Leading terrorist in Northern Ireland with many convictions for serious crime. Released from prison in 1988 with no assets. • Became a major drugs trafficker and was arrested on suspicion of murder on five separate occasions. • May 2003 he was shot dead. • ARA used its powers to require the disclosure of information and search. • September 2003 ARA obtained orders restraining almost £ 2 m of assets. • Now seeking final judgement. ASSETS RECOVERY 11 AGENCY

Tax Cases • The Agency currently has 7 tax investigations under way. • 3 tax assessments for total value £ 0. 58 m have been issued • Enforcement action in 1 case ASSETS RECOVERY 12 AGENCY

Impact • Under £ 25 m in 2001/2 • Over £ 45 million recovered in 2003 -04 • 1331 cash seizures under new powers in POCA, over £ 63 million • 112 confiscation orders under new powers, over £ 1. 2 m • ARA - 20 confiscation cases, £ 4. 4 m; 59 civil recovery cases, £ 14. 1 m restrained; 7 tax cases ASSETS RECOVERY 13 AGENCY

Summary • Purpose of the Act and the Agency is to reduce crime and contribute to safer communities by: – Seizing criminals assets through criminal confiscation, civil recovery or taxation – Disrupting criminals ability to conduct their business – Promoting the use of financial investigation as a tool to fight crime. ASSETS RECOVERY 14 AGENCY