Criminal Finances Act 2017

Key Points

• Unexplained wealth orders (UWOs) regime refined: the value threshold for orders was reduced from £100,000 to £50,000, and a 'reasonable cause to believe' test was added to determine whether orders can be made.
• Trusts and settlements expanded: new provisions (e.g., 362GA/396GA) extend 'holding' of property to include assets held in trusts or settlements, ensuring these can be targeted by UWOs even when ownership is indirect.
• Enforcement and oversight clarified: the Lord Advocate (with involvement of Scottish Ministers) gains power to determine what enforcement or investigative steps to take, and there are safeguards allowing for the possibility of halting further proceedings in some cases.
• Compensation and remedies: if an interim freezing order is discharged, the owner may apply for compensation, with a three-month deadline for making such applications in the relevant courts.
• Cross-border and information sharing: new definitions to align with foreign jurisdictions (e.g., 'corresponding disclosure requirement' and 'corresponding money laundering offence'), strengthening international cooperation in tackling money laundering and dirty money.

Progress

The bill progressed through all Commons and Lords stages and received Royal Assent on 27 April 2017, becoming law as the Criminal Finances Act 2017.

Voting

In the Commons, two opposition-proposed amendments (New Clause 19 and New Clause 17) were defeated by large margins, showing cross-party support for the main bill while Conservative MPs opposed those particular changes. Across the party lines, Labour, SNP, Lib Dems and independents voted in favour of the bill, while Conservative and Reform UK MPs opposed the amendments that attempted to alter it. In the Lords, Conservative peers successfully moved a number of detailed amendments to tighten the regime, which were agreed during the committee and report stages.