Section 303Z42: Forfeiture order: supplementary, Proceeds of Crime Act 2002

Subsection (2) applies where an application is made under section 303Z41 for the forfeiture of any cryptoassets detained under Chapter 3C.

Where an application is made under section 303Z41 in relation to cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order—

subsections (4) and (5) apply, and

the crypto wallet freezing order is to continue to have effect until the time referred to in subsection (4)(b) or (5).

Where the cryptoassets are ordered to be forfeited under section 303Z41(4) or 303Z45(3)—

the cryptoasset service provider that administers the crypto wallet must transfer the cryptoassets into a crypto wallet nominated by an enforcement officer, and

immediately after the transfer has been made, the freezing order ceases to have effect.

Where the application is determined or otherwise disposed of other than by the making of an order under section 303Z41(4) or 303Z45(3), the crypto wallet freezing order ceases to have effect immediately after that determination or other disposal.

Subsections (4)(b) and (5) are subject to section 303Z46 and Chapter 3F.

The Secretary of State may by regulations amend this section to make provision about the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order.

Regulations under subsection (7) may in particular make provision about—

the process for the forfeiture of cryptoassets;

the realisation of forfeited cryptoassets;

the application of the proceeds of such realisation.

Regulations under subsection (7) may make consequential amendments of this Chapter.

The Secretary of State may not make regulations under subsection (7) unless the Secretary of State has—

consulted the Scottish Ministers and the Department of Justice, and

given a notice containing the relevant information to the Scottish Ministers and the Department of Justice.

Consultation under subsection (10)(a) must include consultation about any effects that the Secretary of State considers the regulations may have on—

a person in Scotland or Northern Ireland (as the case may be) applying for the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order, and

a sheriff or court in Scotland or a court in Northern Ireland (as the case may be) considering such an application or making an order for such forfeiture.

In subsection (10)(b) "relevant information" means—

a description of—

the process undertaken in order to comply with subsection (10)(a) in relation to the Scottish Ministers or the Department of Justice (as the case may be), and

any agreement, objection or other views expressed as part of that process by the Scottish Ministers or the Department of Justice (as the case may be), and

an explanation of whether and how such views have been taken into account in the regulations (including, in a case where the Secretary of State proposes to make the regulations despite an objection, an explanation of the reasons for doing so).

Section 303Z42: Forfeiture order: supplementary

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