Victims let down by ‘ineffective’ system to recover proceeds of crime – report

The Law Commission said billions of pounds had not been retrieved from criminals.

The Law Commission called for a complete overhaul of the procedures used to recover the proceeds of crime (Nick Ansell/PA) (PA Archive)

Victims are being let down by an “ineffective” system which has failed to retrieve billions of pounds from criminals, a review has found.

The Law Commission called for a complete overhaul of the procedures used to recover the proceeds of crime, recommending tougher court powers to enforce confiscation orders.

It concluded the current method of recouping criminal gains under the Proceeds of Crime Act was “inefficient, complex and ineffective” and enforcement was “weak”, leading to an outstanding debt of more than £2 billion in unrecovered funds as of March last year, failing victims as a result.

According to the findings of the Home Office-commissioned review, published on Wednesday, proposed changes to the regime could see an extra £8 million recovered from criminals in England and Wales every year and returned to the public.

By boosting enforcement powers, imposing more realistic and fairer orders, and speeding up proceedings, we can ensure greater public confidence in the system, and send a strong message that crime doesn’t pay

Professor Penney Lewis, Law Commissioner for criminal law

The recommendations seek to make vast improvements, including making the process for recovering funds faster, fairer and more effective while offering more compensation for victims.

Law Commissioner for criminal law Professor Penney Lewis said: “The current system for recovering the proceeds of crime is ineffective and letting down victims and the public.

“Our reforms would make critical improvements to the current confiscation regime, allowing for millions more in funds to be successfully recovered from those who make illicit gains.

“By boosting enforcement powers, imposing more realistic and fairer orders, and speeding up proceedings, we can ensure greater public confidence in the system, and send a strong message that crime doesn’t pay.”

The recommendations include giving courts more powers to enforce confiscation orders – which compel a defendant to pay back the benefits of their crimes – and seize assets from offenders.

The changes would also limit “unrealistic orders that can never be paid back” and speed up court proceedings, allowing victims to get compensation quicker.

We are recovering more criminal assets than ever before, however we recognise there is more to be done to strengthen the law

Home Office spokeswoman

Under the suggested reforms, strict timetables for court hearings would be introduced as soon as a criminal is sentenced.

Property, funds in a bank account and other assets could be taken if the offender does not pay back the proceeds of the crime within a set time period under tougher court orders.

Other powers available to courts, such as those stopping defendants from protecting funds or assets which could later be involved in confiscation proceedings, would also be boosted.

Police bodies should also look at more training for officers working on confiscations and seizures, while the Government should establish a Criminal Asset Recovery Board to set a national strategy, the commission said.

A Home Office spokeswoman said: “This Government is fully committed to ensuring the full force of the law is used to deprive criminals of their ill-gotten gains and the confiscated assets given as compensation to innocent victims.

“We are recovering more criminal assets than ever before, however we recognise there is more to be done to strengthen the law. We welcome the Law Commission’s findings and will continue to work collaboratively with them to review and take forward the reforms.”