Can you pay off your POCA monthly?
The Proceeds of Crime Act 2002 (POCA) is a significant piece of legislation in the UK, aimed at preventing criminals from benefiting from their illegal activities. It allows for the recovery of assets gained through crime and serves as a deterrent against further criminal conduct. Under POCA, individuals may find themselves required to repay sums of money, which can have a substantial impact on their personal and professional lives, especially if they are unable to pay the full amount at once.
POCA grants authorities the power to seize, freeze, and confiscate assets linked to serious crimes such as money laundering, organized crime, and fraud. This includes both tangible assets like cash, luxury items, and property, and intangible assets like money in bank accounts.
The Act encompasses various actions:
- Courts can issue confiscation orders post-conviction, requiring the convicted person to pay an amount deemed equivalent to the benefit received from their criminal conduct.
- Civil recovery provisions enable the recovery of assets when a criminal conviction isn’t possible.
- Law enforcement agencies can seize cash suspected to be proceeds of crime or intended for unlawful conduct.
- POCA criminalizes money laundering and related activities.
The minimum amount of cash that can be seized under POCA is £1,000
This includes physical cash and other forms of money like cheques and digital currencies. The wide range of assets that can be seized under POCA reflects its broad powers.
If a court issues a confiscation order, an assessment of your available assets is made. Sometimes, the actual value of these assets may be less than the court’s estimation due to factors like market conditions. If you’re unable to pay the full amount immediately or within the initially decided timeframe (usually three months), there are options for alternative payment timelines. The court may extend the deadline by up to six months, during which you can make payments monthly, in small lump sums, or as a single large payment.
All confiscated criminal assets under POCA are paid into the UK’s Consolidated Fund. Half of the value of the recovered assets is allocated for use under the Asset Recovery Incentivisation Scheme (ARIS) and distributed to frontline agencies like the police. The remaining 50% is kept by the Home Office.
You can appeal a confiscation order on grounds such as legal errors, factual mistakes, or disproportionality of the order to the crime committed. Appeals must be lodged within 28 days of the order at the Court of Appeal.
Legal aid is generally available for individuals facing POCA proceedings, subject to eligibility criteria. If you’re ineligible for legal aid, you’ll need to cover legal advice and representation costs privately.
For those facing a confiscation order or managing its consequences and repayment, it’s crucial to seek advice from solicitors experienced in handling POCA matters. They can guide you on protecting your assets and navigating the legal process effectively.