SMW POCA Civil Recovery Proceedings Successes

In July 2024, Sonn Macmillan Walker achieved notable successes for clients facing civil recovery proceedings under Part 5 of the Proceeds of Crime Act 2002.

Client A is a registered Charity. Its NatWest business bank account, which held a credit balance of £23.5k, was frozen on an application made without notice by the Metropolitan Police.

The Met suspected that the frozen funds represented recoverable property under the Act and that funds (£714k) transferred out of the account over the preceding 12 months were withdrawn as part of a sophisticated layering operation involving the proceeds of crime.

We provided a 462-page bundle of evidence including a 17-page witness statement from the principal trustee explaining how the Charity fulfils its charitable objectives. We were able to document its income sources and fully explain its donations, including in cash to individual beneficiaries and community projects. The Charity directly supports 150 financially disadvantaged families on a weekly basis and provides lunches and after-school care provisions to a local girls’ primary school.

The Charity - and its beneficiaries - were delighted at the Met decision to apply to have the account freezing order set aside. The Charity Commission has also closed its regulatory case into our client meaning the Charity can continue to operate and use its NatWest account.

Client B is an individual who had £43,410 in cash seized by HMRC in March 2023. The cash was kept (in pounds sterling and Swiss francs) in two envelopes in the safe of a money service business (MSB).

English is not our client’s first language and in November and December 2023, he tried unsuccessfully to explain to HMRC by phone and email what he was intending to do with the money and how family members had brought it to the UK from overseas in 2023.

HMRC applied in May 2024 for the forfeiture of the cash on the basis that the explanations lacked credibility, and the few copies of passports which had been provided did not correlate with Border Force records.

Once instructed, we prepared our client’s comprehensive statement and supporting evidence bundle, which included four witness statements and relevant, cogent exhibits. Within 7 days of receiving our client’s bundle, HMRC withdrew its application and have now returned the full amount to our very grateful client.

David Bloom of Sonn Macmillan Walker represented both clients, with paralegal assistance provided by Izzy Fish and Allison Hochhalter.