How can the government take my assets if they suspect I'm involved in crime?

In Plain English

If the government suspects you're involved in a crime, they can take steps to freeze or seize your assets. Here's a breakdown:

• Restraining Order: A court can issue a restraining order to prevent you from selling or dealing with your property. This can happen if there are reasonable grounds to suspect the property is connected to a crime, even if you haven't been charged yet. The Proceeds of Crime Act 2002 allows for this.
• Forfeiture Order: If you're convicted of a crime, or in some cases even if you aren't, the court can issue a forfeiture order to permanently take your property. This usually happens if the property is considered proceeds of the crime or was used in committing it.
• Unexplained Wealth: The government can also target assets if your wealth appears to exceed what you could have legitimately earned.

Detailed Explanation

The government's power to seize assets in connection with suspected criminal activity is primarily governed by the Proceeds of Crime Act 2002 and related legislation. Here's a more detailed look:

• Restraining Orders:
  • A proceeds of crime authority can apply to a court for a restraining order to prevent the disposal of property if there are reasonable grounds to suspect the property is proceeds of crime or an instrument of a serious offence. See section 19 of the Proceeds of Crime Act 2002.
  • The application must be supported by an affidavit from an authorised officer stating their suspicion and the grounds for it.
  • The court must make a restraining order even if there is no risk of the property being disposed of Proceeds of Crime Act 2002.
  • The restraining order can cover property acquired after the order is made, if specified by the court Proceeds of Crime Act 2002.
  • The reasonable grounds for suspicion don't need to be based on a finding about the commission of a particular offence Proceeds of Crime Act 2002.
• Property Covered by Restraining Orders:
  • Property subject to the effective control of a suspect can be included in a restraining order, even if the suspect doesn't have a direct interest in it Crimes (Superannuation Benefits) Act 1989.
  • This can include property transferred as a gift within 2 years before the restraining order or charging of the relevant offence Crimes (Superannuation Benefits) Act 1989.
  • When determining effective control, the court may consider shareholdings, directorships, trusts, and family/business relationships Crimes (Superannuation Benefits) Act 1989.
• Forfeiture Orders:
  • If a court makes a forfeiture order against property, the property vests absolutely in the Commonwealth Proceeds of Crime Act 1987.
• Pecuniary Penalty Orders:
  • A court can order a person to pay an amount to the Commonwealth if they have been convicted of an indictable offence and derived benefits from it, or if they have committed a serious offence Proceeds of Crime Act 2002.
  • The court may treat property under a person's effective control as their property when determining benefits Proceeds of Crime Act 2002.
• Unexplained Wealth:
  • The Proceeds of Crime Act 2002 also allows for actions against unexplained wealth, where a person's total wealth is suspected of exceeding the value of wealth that was lawfully acquired.