Debate contribution: The draft Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Order (Northern Ireland) 2024

Debate contribution by Mrs Naomi Long on 25 June 2024.

MLA

Mrs Naomi Long

Party at the time

Alliance Party

Date

25 June 2024

Type

Debate contribution (made as a minister)

Business

Executive Committee Business

Heading

The draft Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Order (Northern Ireland) 2024

Assembly identifier

Official Report component 4498348

Read the official Assembly record

Text

I beg to move

Thank you, Madam Principal Deputy Speaker. The purpose of the order is to bring into operation three codes of practice for the use of powers under the Proceeds of Crime Act 2002, as amended by the Economic Crime and Corporate Transparency Act 2023. By way of background, the Proceeds of Crime Act 2002, which is otherwise known as POCA, is a UK-wide Act designed to provide law enforcement partners with tools to recover the proceeds of crime and deny criminals the opportunity to accumulate assets secured by illegal means. POCA contains a wide range of provisions that deal with, amongst other things, cash seizure; forfeiture; asset freezing; the disclosure of information by financial institutions during investigations; and requirements on professionals in the regulated industries to submit suspicious activity reports. POCA has, since its inception, proven to be an integral part of the response to organised criminality, which, as Members will know, is driven by sheer greed and a disregard for the harmful impact that crime has on our society.

The POCA regime has been further enhanced by the Economic Crime and Corporate Transparency Act 2023, giving law enforcement partners new powers to seize crypto assets when investigating the proceeds of crime. Crypto assets are digital assets that can be transferred, stored or traded electronically. They exist electronically and use a peer-to-peer system. Perhaps the most commonly known are those such as bitcoin. Crypto assets are increasingly being used by criminals to move and launder the profits of various crimes, including drug crime, fraud and money laundering. Members are invited to approve the three codes of practice that give guidance to officers in Northern Ireland who are exercising POCA functions following commencement of the relevant provisions relating to crypto assets. Those officers are primarily PSNI officers and accredited financial investigators in the PSNI, the Department for Communities and the Northern Ireland Environment Agency. The designation of the powers is subject to ongoing training and accreditation. Taking into account appropriate jurisdictional differences, the codes are closely aligned to those prepared by the Home Office for officers exercising POCA powers in reserved agencies or on behalf of other bodies in England and Wales. Two of the codes relate to existing codes that have been subject to minor updates to reflect how the new crypto asset powers should be exercised in relation to search, seizure and detention, as well as investigations. One new code advises officers on how to exercise powers in respect of the recovery of crypto assets. It is anticipated, subject, of course, to the Assembly's approval today, that the two revised codes and one new code will take effect on 17 July, with draft codes of practice having been made available online since the new crypto assets powers were commenced. Whilst I do not propose to go into the full technical detail of each code, Members may find a brief summary of their content helpful.

First, the search, seizure and detention of property (Northern Ireland) code of practice is issued under section 195T of the 2002 Act and provides guidance to constables and accredited financial investigators on the exercise of powers to search, seize and detain property that may be needed to satisfy a future confiscation order following conviction. Secondly, the investigations (Northern Ireland) code of practice, issued under section 377ZA of the 2002 Act, provides guidance to constables and accredited financial investigators on the exercise of the investigation powers in POCA. Finally, the recovery of crypto assets search powers (Northern Ireland) code of practice is a new code of practice, issued under section 303Z25 of the 2002 Act. The new code provides guidance to constables and accredited financial investigators on the exercise of powers to search for crypto assets. It also provides guidance on applications by officers to judicial officers or senior officers for prior approval to exercise the powers. POCA stipulates that the Department of Justice must prepare and publish a draft of any new or revised code of practice. My Department ran an eight-week public consultation on the three codes, from 15 February until 10 April 2024. No adverse impacts were mentioned, and no amendments were suggested, so there were no material changes made to the codes as a result of the consultation. Setting aside the technical detail, it is important to reflect on what the codes help deliver. We know that criminals are motivated by greed and personal gain. Removing the profits from their criminal activity reduces incentives and has a disruptive effect on the cycle that sustains serious and organised crime. In turn, that reduces harm to individuals, families and businesses across communities. It is therefore important to recognise that the POCA regime is an integral part of the overall response to tackling organised criminality in all its forms. Enhancing the POCA framework is also consistent with what my Department and its partners on the organised crime task force (OCTF) seek to achieve under the organised crime strategy for Northern Ireland, particularly on pursuing offenders. The codes are important safeguards that underpin the whole POCA regime and are specifically intended to deal with the new and emerging issue of crypto assets. Collectively, we must ensure that organised criminality is both socially unacceptable and economically unviable. I therefore ask the Assembly to support the strengthening of POCA in Northern Ireland and approve the order. We need to send a clear, consistent and collective message that crime will not pay and that we will do everything in our power to ensure that law enforcement agencies have all the powers that they need to deny criminals the use of their assets, to recover the proceeds of crime and to disrupt and deter criminality. I commend the order to the House.

955 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 10:49 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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