Civil Recovery Proceedings enable enforcement agencies to recover assets linked to unlawful conduct without the necessity of a criminal conviction. Commonly used by the HM Revenue & Customs (HMRC), Crown Prosecution Service (CPS), Serious Fraud Office (SFO), National Crime Agency (NCA), Insolvency Services, and Financial Conduct Authority, these proceedings are a critical component of the UK’s approach to combating economic crime.
Under Part 5 of the Proceeds of Crime Act (PoCA), enforcement agencies such as the NCA and CPS are empowered to seize and detain properties believed to represent “recoverable property.” This term encompasses assets derived from or intended for use in unlawful conduct, irrespective of the jurisdiction where the unlawful conduct occurred. If the activity is illegal in both the activity’s locale and the UK, the assets can be targeted for recovery.
Distinguishing themselves from criminal procedures, civil recovery actions can commence in the High Court independently of a criminal conviction or investigation. These actions can be initiated post-criminal investigation or even following an acquittal, relying on the civil standard of proof, “on the balance of probabilities,” rather than the criminal standard of “beyond a reasonable doubt.”
Given the lesser burden of proof and reduced resource requirement compared to criminal trials, civil recovery proceedings present an efficient, alternative route for asset recovery. This method is increasingly favoured for its streamlined process and the strategic advantage it offers in the broader fight against economic crimes.
Assets subject to civil recovery include, but are not limited to, bank account funds and tangible property. Importantly, the proceedings target the assets themselves rather than individuals or corporate entities, meaning assets held by third parties, such as family members or associates, can also be recovered.
The issuance of a Civil Recovery Order results in the freezing of the implicated property. A court-appointed receiver then manages and, if necessary, sells the property to fulfil the order, concluding the civil recovery investigation.
