OUTLOOK
W
hile we are in the age of digital
payments, many individuals and
Small and Medium Enterprises
(SMEs) continue to conduct
business in cash. This is more
prevalent in cases where business dealings are
carried out abroad, as a means of circumventing
the notorious exchange fees of card and bank
transactions. This is not illegal, and there are no
strict requirements to declare large amounts of
cash when traveling within Europe. However, it is
unsurprising that authorities have a heightened
sensitivity to the potential of cash being ill-gotten
from criminality or being used to fund criminal
conduct.
Kartik Mittal
Senior Solicitor, Zaiwalla & Co.
Chapter 3 of part 5 of the UK’s Proceeds of Crime
Act, 2002, provides for ‘recovery of cash in summary
proceedings’, by clearly stating, “A customs officer,
a constable or an accredited financial investigator
may seize cash if he has reasonable grounds for
suspecting that it is… recoverable property [derived
from criminal conduct], or intended by any person
for use in unlawful conduct.” 1
Matters which may cause or increase an officer’s
‘suspicion’ and lead to seizure of cash include
concealing the cash, the amount of cash (if large),
any weak reasons for not using the banking
system to transfer the money, any lack of cogency
of the explanation provided at the time, and most
importantly, what documentary evidence is carried
with the cash to show its provenance and intended
purpose.
Following seizure, the seized cash may be initially
detained for up to 48 hours after which, detention
may be authorized by a Magistrates’ Court for a
period of no more than three months 2 while its origin
is investigated or consideration is given to bringing
(in the United Kingdom or elsewhere) proceedings
against any person for an offense with which the
cash is connected. That period can be subsequently
extended by further application to the Court for no
more than three months at a time up to a maximum
of two years from the date of the first order. Within
two years, any application for forfeiture must be
brought.
By way of case study, in early 2016, Mr. A (a
respectable businessman with no previous
convictions or cautions) was on his way to Italy where
Section 294. The amount must be at least £1,000. A customs
officer or constable may also seize cash part of which he has
reasonable grounds for suspecting fall into these categories
if it is not reasonably practicable to seize only that part so
long as the part in question is above the minimum amount.
2
Section 295(1).
1
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| L egal E ra | N ovember 2017
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