How Forensic Accountants Help in POCA Cases

How Forensic Accountants Assist in POCA Cases

When a defendant faces confiscation proceedings under the Proceeds of Crime Act 2002 (POCA), the stakes are high. Financial investigators and prosecutors will often put forward significant benefit figures, apply lifestyle assumptions, and make bold claims about hidden assets. Defending against these requires more than just legal skill — it often requires specialist financial expertise.

This is where forensic accountants come in.

A forensic accountant with POCA experience can help defence teams challenge assumptions, correct errors, and reduce the financial impact on the defendant. Below are some of the key ways forensic input can make a difference.

Benefit: Challenging the Basis of the Order

1. Verifying the Section 16 Statement of Information

The Section 16 statement prepared by the financial investigator sets out the basis for the benefit figure — and yet, it’s surprising how often it’s taken at face value.

Even when a defendant broadly agrees with the benefit figure or doesn’t identify any obvious technical issues, the document should still be independently reviewed. Financial Investigators, like all professionals, can and do make errors — and given the complexity of criminal lifestyles, bank transactions, and asset histories, those errors can have significant consequences.

A forensic accountant will:

• Check the accuracy of transaction schedules

• Identify any double-counting or inflated figures

• Evaluate the use of assumptions and inferences

• Review the evidential support for each element of alleged benefit

This can sometimes lead to significant reductions in the benefit figure, or at the very least, a more robust position from which to negotiate or contest.

2. Challenging the Criminal Lifestyle Assumptions

If the defendant is deemed to have a criminal lifestyle, the Crown can rely on a series of statutory assumptions under POCA — including that any property transferred to the defendant after the relevant day is the proceeds of crime, that any expenditure is criminal, and that property held represents criminal property.

These assumptions are powerful and far-reaching. They can:

• Inflate the benefit figure

• Create artificial gaps between benefit and available amount

• Lead to hidden asset allegations

• Trigger future s.22 applications to revisit the available amount

A forensic accountant can assist by:

• Rebutting lifestyle assumptions with clear financial evidence

• Demonstrating legitimate sources of income or assets

• Contextualising transactions or property holdings

• Preparing schedules that show a more accurate and defensible picture

Effectively challenging the assumptions can fundamentally change the outcome of the confiscation order.

Available Amount: Protecting Against Overreach

3. Rebutting Hidden Asset Allegations

Where there’s a gap between the benefit figure and the assets identified, the Crown often alleges hidden assets. This can dramatically increase the confiscation order and leave the defendant exposed to further sanctions, such as imprisonment in default.

A forensic accountant can help challenge these claims by:

• Tracing financial transactions to show where money actually went

• Demonstrating that expenditure was legitimate or dissipated

• Highlighting flaws in speculative assumptions or missing evidence

• Building a coherent financial narrative that explains the defendant’s position

Without this financial clarity, courts may side with the prosecution’s default assumptions. Proper forensic input gives the defence a solid foundation to counter vague or unsupported claims.

4. Reviewing and Evaluating Tainted Gifts

Tainted gifts are assets transferred to third parties for less than full value, which can still count against the defendant’s available amount.

This is a complex area requiring both legal and financial interpretation, especially when:

• The gift predates proceedings by several years

• It involves family members or co-owned assets

• The valuation is uncertain or disputed

A forensic accountant can:

• Assess the circumstances and valuation of any suspected tainted gifts

• Help establish whether they fall within the relevant timeframes

• Quantify the true financial impact on the defendant

• Work alongside solicitors and counsel to present a defensible position

Given the scale of some confiscation orders, even small reductions in tainted gift valuations can be meaningful.

Final Thoughts: Why Forensic Accountants Matter in POCA Proceedings

POCA cases involve a complex interplay of law, finance, and evidence. While the legal team focuses on procedural and statutory defences, the forensic accountant plays a critical role in ensuring the numbers add up — or don’t.

In summary, a forensic accountant can:

• Identify flaws and overstatements in the s.16 statement

• Rebut lifestyle assumptions with structured evidence

• Provide a credible counter-narrative to hidden asset claims

• Accurately assess the financial impact of tainted gifts

Ultimately, forensic expertise brings clarity and accuracy to a process that can otherwise rely heavily on assumptions and inferences. Whether the aim is to contest the benefit figure, protect the available amount, or assist in negotiation, the right expert input can make a significant difference.