Schedule 2 POCA: Triggering a Criminal Lifestyle

Understanding Schedule 2 of the Proceeds of Crime Act 2002: The Gateway to Criminal Lifestyle

Schedule 2 of the Proceeds of Crime Act 2002 (POCA) plays a critical role in confiscation proceedings. If a defendant is convicted of an offence listed in Schedule 2, the court must treat them as having a criminal lifestyle under section 75(2)(a) POCA.

A criminal lifestyle finding dramatically changes the landscape of a confiscation case, triggering powerful statutory assumptions that can massively inflate the defendant’s benefit figure.

In this post, we unpack Schedule 2 POCA: what offences it covers, how it affects confiscation proceedings, and why understanding it is crucial for practitioners and defendants alike.

What Is Schedule 2 POCA?

Schedule 2 is a list of serious criminal offences.

Conviction for any offence listed means the defendant is automatically treated as having a criminal lifestyle for the purposes of confiscation under POCA.

This triggers the application of the lifestyle assumptions under section 10 POCA.

In essence, the court is entitled to assume that:

• Property transferred to the defendant after the relevant day was obtained through criminal conduct,

• Property held by the defendant at any time after conviction represents the proceeds of crime,

• Expenditure incurred by the defendant after the relevant day was funded by criminal conduct.

Unless the defendant can rebut these assumptions on the balance of probabilities, they are treated as having benefited from these amounts.

Quick Guide: What Is the "Relevant Day"?

The relevant day is defined by section 10(8) POCA.

For defendants with a criminal lifestyle, the relevant day is typically six years before the date on which proceedings were started against them.

What Offences Are Listed in Schedule 2 POCA?

Schedule 2 includes a wide range of serious criminal conduct, grouped into key categories:

Drug Trafficking

Production, supply, possession with intent to supply (Misuse of Drugs Act 1971), drug import/export offences

Money Laundering

Concealing or assisting retention of criminal property (POCA sections 327–328)

Terrorism

Directing terrorist organisation activities (Terrorism Act 2000 section 56)

Modern Slavery

Slavery, servitude, forced labour (Modern Slavery Act 2015 section 1)

People Trafficking

Assisting unlawful immigration, human trafficking (Modern Slavery Act 2015)

Arms Trafficking

Dealing in or exporting firearms illegally

Counterfeiting

Making or possessing counterfeit currency

Intellectual Property Offences

Dealing in counterfeit copyrighted goods and trademarks

Prostitution and Child Sexual Exploitation

Brothel-keeping, arranging or facilitating child sexual exploitation

Blackmail

Blackmail (Theft Act 1968 section 21)

Gangmasters Offences

Operating as an unlicensed gangmaster

Inchoate Offences

Attempting, conspiring, inciting, or assisting any listed Schedule 2 offence

Over time, new offences like those under the Psychoactive Substances Act 2016 and the Modern Slavery Act 2015 have expanded the list.

Why Does a Schedule 2 Conviction Matter in Confiscation Proceedings?

A Schedule 2 conviction fundamentally alters confiscation proceedings.

Without a criminal lifestyle:

• Confiscation is limited to the benefit of the particular offence(s) of conviction.

With a criminal lifestyle:

• The court can assume that property the defendant holds is tainted.

• The court can assume that any spending or any assets transferred to the defendant after the relevant day represent proceeds of crime.

• The defendant must rebut these assumptions on the balance of probabilities — a much harder task than facing a simple burden of proof on the prosecution.

The result?

Confiscation orders can cover a far wider pool of assets and expenditure history than just the crime the defendant was convicted of.

Practical Points for Practitioners

• Identify Schedule 2 risk early: If charged with a Schedule 2 offence, prepare immediately for the criminal lifestyle consequences.

• Gather financial evidence proactively: Defendants must be ready to prove legitimate sources of property and expenditure.

• Challenge assumptions smartly: Not all assumptions will always survive scrutiny. Property held post-conviction could be demonstrably legitimate.

• Use expert forensic accountants: Detailed financial analysis is often critical to rebutting assumptions and minimising benefit findings.

Conclusion

Schedule 2 of POCA is not just a list of serious offences: it is the gateway to the harshest confiscation regime the law allows.

Conviction for a Schedule 2 offence means a defendant must be ready to rebut assumptions about assets, spending, and transfers — or risk facing a confiscation order far greater than the proceeds of the crime itself.

Early preparation, expert financial analysis, and clear legal advice are essential tools for managing the risks that Schedule 2 triggers.