Many of you will have heard of the Proceeds of Crime Act or ‘POCA’. This legislation along with the Anti-terrorism, Crime and Security Act 2001 is often linked with the need to fight money laundering and combat the funding of terrorism. But as the Icelandic Government will attest the legislation can be used for wider purposes, even against friendly nations. In October 2008 the British Government used so called ‘anti-terrorist’ legislation to freeze £7bn worth of British assets of the Icelandic Bank, Landsbanki. Reportedly, the Icelandic Ministry of Finance and Central Bank even found themselves briefly on the list of terrorist organisations published on the Web site of the British Treasury, alongside al Qaeda and the Taliban. These British Government measures not only created a diplomatic crisis but significantly worsened Iceland’s financial crisis. Iceland’s banking system and foreign trade collapsed. Referring to the British move, Geir Haarde the Icelandic Prime Minister commented, in what must rank as the understatement of the century: “I told the chancellor that we consider this to be a completely unfriendly act.” Asked if the financial crisis engulfing Iceland had become a diplomatic crisis with Britain, Haarde added: “I thought so for a few minutes this morning when I realised that a terrorist law was being applied against us. That was not very pleasant. I’m afraid not many governments would have taken that very kindly, to be put into that category.” Well the British Government’s actions clearly upset the Icelandic Government and caused financial turmoil, so how would you fare if similar legislation was applied against you? Recently a number of our clients have found themselves at the wrong end of such legislation. In one case criminal charges had not even been issued. Yet in all cases personal and business assets were placed under restraint to prevent such assets from being dissipated as a precursor to confiscation proceedings. In every case this has caused high anxiety, distress and extremely tough trading conditions. The Restraint Orders were made by Judges ‘behind closed doors’ acting on information and evidence produced by or for the Environment Agency. In other words our clients, who were on the receiving end, were in no position to challenge the making of the orders. In one case the evidence was fundamentally flawed but the damage was done. In another case property was restrained belonging to a completely innocent party. Hardly cricket now is it?
To level the playing field we have set up a specialist team to respond to the new tactics being adopted by the Environment Agency. Whilst we sincerely hope you never have to resort to us for legal assistance because of this ‘anti-terrorist legislation’ at least you know where to come if the balloon does go up. A restraint order could be served on you ‘out of the blue’ but here are a few potential tell-tale signs of impending trouble: Some say if you don’t break any laws you have nothing to fear. But is it really that clear cut? Environmental issues are often highly complex. Interpretation of environmental law is often painfully so, particularly if the issue in question revolves around what is and isn’t ‘waste’. Environmental laws, like speeding laws, impose strict liability meaning that even if breaches are not the result of negligent, deliberate or reckless acts or omissions you will still be convicted. Likewise any individual, organisation or business carrying out activities regulated by UK Environmental Laws, however hardworking, well intentioned, decent or honourable, could potentially fall foul of POCA.
If you have any queries or concerns or regarding this subject matter then feel free to contact John Dyne or Kathryn Lucas on 01829 773 100 for an informal chat, or e-mail John or Kathryn at respectively at jbd@dynesolicitors.co.uk or kjl@dynesolicitors.co.uk.
Dyne Solicitors Limited - 01829 773100, info@dynesolicitors.co.uk
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