Section 18 and 18A POCA: Disclosure in Confiscation
Section 18 and 18A POCA: What Must Be Disclosed in Confiscation Proceedings?
In confiscation proceedings under the Proceeds of Crime Act 2002 (POCA), the court relies heavily on financial disclosures from the defendant and, in some cases, from third parties. Two key provisions that facilitate this are Section 18 and Section 18A POCA.
These sections empower the court to request detailed information that supports the determination of the recoverable amount, the available amount, and the extent of a person’s interest in any property. This is particularly relevant in cases involving tainted gifts or jointly owned assets.
Understanding Section 18 POCA: Disclosure by the Defendant
Section 18 allows the court to require the defendant to provide information that will assist in the confiscation process. The information commonly requested includes:
Details of all assets held, including those outside the UK
Information about financial liabilities and debts
Records of any property transfers or gifts
Expenditure incurred since the relevant day
The court may issue such an order at any stage of proceedings and can specify the manner and deadline for providing the information.
If the defendant fails to comply without reasonable excuse, the court is entitled to draw adverse inferences. For example, it may conclude that hidden assets exist or that the defendant has understated their financial position.
Although failing to comply with a Section 18 order is not a criminal offence in itself, the consequences of non-compliance can significantly affect the outcome of the case.
In certain circumstances, if the prosecutor accepts a statement made by the defendant, the court can treat that acceptance as conclusive evidence on the matter to which it relates. This creates an opportunity for defendants to resolve disputed points where the prosecution agrees.
Importantly, any information given under Section 18 that amounts to an admission of benefit from criminal conduct is not admissible in future criminal proceedings against the defendant.
Exploring Section 18A POCA: Disclosure by Interested Persons
Section 18A extends similar obligations to third parties who may have an interest in property under consideration. This provision is particularly important when the court is assessing how much of a jointly owned asset belongs to the defendant under Section 10A POCA.
An “interested person” may include a spouse, family member, business associate, or anyone the court believes might hold an interest in the property. The court can order that person to provide specified information to assist in the assessment.
Just like Section 18, the order can specify how the information must be provided and by when. If the person fails to comply without a valid excuse, the court can draw adverse inferences and may also deal with the non-compliance through other legal mechanisms.
Statements made by an interested person that are accepted by the prosecution may also be treated as conclusive by the court. However, any information provided under this section is not admissible in any subsequent criminal proceedings against that person.
This provision ensures that individuals cannot avoid scrutiny simply because they are not the defendant. It also helps the court identify the true ownership of property, especially when recoverable assets may be held in someone else’s name.
Legal Safeguards and Strategic Considerations
Both provisions provide important safeguards. The protection against the use of these statements in later prosecutions allows individuals to be candid without risking self-incrimination in separate criminal proceedings.
For defence teams, these sections present both a risk and an opportunity. The information disclosed may be used to rebut lifestyle assumptions, clarify ownership of assets, or challenge inflated valuations. However, a poorly considered response can strengthen the prosecution’s case.
Conclusion
Sections 18 and 18A of POCA are powerful disclosure tools. They form a critical part of the confiscation process and can significantly influence the calculation of the available amount and the final confiscation order.
Timely and accurate disclosure, supported by expert financial evidence, can shift the balance of the case in the defendant’s favour.
