This item was published during the term of a previous administration that ended in April 2007
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Payback time for criminals
23/11/2003
A record amount of cash has been seized from criminals in Scotland through new powers of seizure introduced earlier this year.
Fifty per cent of the assets recovered from these criminals is retained inScotlandfor initiatives to tackle drugs, and, under a new Scottish government initiative, this money will now be allocated to improving communities that have been undermined by serious and organised crime.
First Minister Jack McConnell and Lord Advocate Colin Boyd QC announced today that £1,548,461 has been recovered from the proceeds of crime with thousands more expected to follow.
C onfiscation orders at this time last year stood at 17 orders worth £338,000 compared to 37 orders this year for £1,203,482. In total the amount of assets forfeited under the new civil recovery procedure is now £344,979.
Mr McConnell said:
"For too long, Scotland's communities have been sickened by the sight of drug dealers flaunting their ill-gotten gains. Through their criminal networks, they have been able to carry on profiting from other people's misery.
"That is why we took action to put in place tougher laws to strip the assets from the 'untouchables' ending their lavish lifestyles and bankrupting their criminal enterprises. These increased seizures show the police and courts are using the new powers to hit them where it hurts.
"Communities need to know the justice system is on their side. This means punishing criminals effectively and using their assets to improve the neighbourhoods that are often run down because of the drug dealing. As the funding available rises, I want decent people to benefit, creating safer and stronger communities in which drug pushers cannot thrive."
Mr Boyd said:
"These new powers allow us to target the proceeds of crime more effectively than ever before and we have made an excellent start in using them.
"A year ago I announced the creation of the Civil Recovery Unit and Criminal Confiscation Unit and the Proceeds of Crime Act 2002 was implemented earlier this year.
"Today more than one and a half million pounds has been recovered from drug dealers and other criminals. We are commited to using the full extent of our powers under the Proceeds of Crime Act to track down and recover these ill-gotten gains. Criminals are getting the message - crime will not pay."
It is estimated that around £440,000 will be available for awards to help communities from the income gathered in 2002-03.
This was seized under the old powers and does not include the funding that will become available from the assets that have been recovered so far this year. Much higher sums will be delivered in the future under the new Proceeds of Crime Act.
In November 2002 the heads of the Criminal Confiscation Unit and a new Civil Recovery Unit were appointed. The Units were created to enable COPFS to gear up for the implementation of tougher powers of confiscation and seizure of criminal proceeds which came into force in February and March following a change in the law under the Proceeds of Crime Act 2002.
The Proceeds of Crime Act 2002 builds upon the criminal confiscation scheme set out in the Proceeds of Crime Act (Scotland) Act 1995 and consolidates and strengthens money laundering offences. Extended powers of financial investigation are also afforded to law enforcement officers.
The Act makes provision for a civil recovery scheme, whereby the proceeds of unlawful conduct are recoverable, and an enhanced cash forfeiture scheme. The Scottish Ministers institute civil recovery proceedings and the Civil Recovery Unit is responsible for the implementation of civil recovery and cash forfeiture in Scotland. The Lord Advocate is the Scottish Minister responsible for the operation of the Unit. The cash forfeiture provisions came into force on December 31, 2002, and civil recovery on February 24, 2003.
Civil recovery, under POCA, rather than cash seizure, is a longer process, and no cases have as yet concluded. Investigations are under way, in one case the CRU has petitioned the Court of Session for civil recovery. In two other cases, petitions for interim administration have been granted. In total the amount of assets restrained under civil recovery procedure is now £285,000.
Further assets remain under investigation. In addition, the CRU has now referred two cases to the Assets Recovery agency inLondonfor the purpose of raising tax assessments under POCA in respect of criminal conduct, and both cases have been accepted for that purpose. In one of the cases, an assessment for £264,071.33 has already been issued.
The CCU currently has 61 new restraint orders under POCA 2002 with assets restrained of £3.2 million.
Following an agreement between the Scottish Executive and HM Treasury, 50 per cent of the assets recovered from the proceeds of crime are retained inScotlandfor initiatives to tackle drugs.
Previous allocations from recovered assets were £250,000 to Greater Glasgow Health Board (GGHB) to support additional addiction services for homeless people inGlasgowand a one-off payment of £180,000 to create a network of family support groups, who work with the families of drug misusers. The First Minister confirmed today that the Executive will now use the money to repair communities run down by crime. GGHB will receivea further award of £250,0000 from the Executive's drugs budget, to ensure continuity of this service. Details of the new initiative for communities will be announced early next year.