Assets Recovery Agency
Encyclopedia
The Assets Recovery Agency (ARA) was a non-ministerial government department
in the United Kingdom
. It was established under the Proceeds of Crime Act 2002
(POCA) to reduce crime
by confiscating the proceeds of any crime. It was granted a new power of civil recovery
through the High Court
, and could also take over the powers of the HM Revenue and Customs (HMRC) to levy tax
without identifying a source for taxed income.
The ARA became operational in February 2003, but it failed to meet its targets for the confiscation of criminal funds. It was announced in January 2007 that it would be merged with the Serious Organised Crime Agency
(SOCA), which was established in 2006. Provisions to achieve this were contained in the Serious Crime Act 2007
. There were also proposals for other law enforcement agencies, such as HMRC, to be given similar powers of civil recovery at the same time. On 1 March 2008, the transfer of the Director and staff of the Assets Recovery Agency, its property, rights and liabilities to SOCA and the National Policing Improvement Agency
started in anticipation of the Agency's abolition. The Agency ceased to exist on 1 April 2008.
and Part VI of the Criminal Justice Act 1988, with the changes recommended in a comprehensive report of a study conducted by the Performance and Innovation Unit of the Cabinet Office
in 2000.
POCA strengthened the legislation relating to seizures of cash, money laundering
, investigatory powers, and restraint and confiscation procedures. Previously, only profits from certain crimes, such as drug trafficking, were liable to confiscation.
The Agency had three strategic aims:
and Northern Ireland
, although its taxation powers extended to Scotland
. Its main offices were in London
, with a second office Belfast
. In Northern Ireland, the Director consulted with the Secretary of State for Northern Ireland
. In Scotland
, civil recovery was achieved through the Civil Recovery Unit of the Scottish Government.
The functions of the ARA were categorised into four types:
. Alan McQuillan, a former Assistant Chief Constable in the R.U.C.
, was appointed as the new director in 2007. The Director had to carry out his statutory functions with a view to the reduction of crime. The Director reported to the Home Secretary
, but was operationally independent.
By 2005, it had 180 staff, and an annual budget of £15.5m, but it recovered only £4.6m. It had more success in freezing criminal's assets, with £68.45m frozen in June 2006, but found its actions were frustrated by lengthy and expensive court cases.
directly rather than to a Minister. As an independent government department, the Agency acted completely separately from the political arena and from political interference, and adopted cases on the likelihood of a successful outcome, rather than for any political or other reasons. To this end, Agency operations were carried out when the juncture was right logistically and operationally.
Non-ministerial government department
A non-ministerial government department is a department or ministry of a government that is not headed by a Government Minister or Government Secretary, and answers directly to a legislature ....
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It was established under the Proceeds of Crime Act 2002
Proceeds of Crime Act 2002
The Proceeds of Crime Act 2002 is an Act of the Parliament of the United Kingdom which provides for the confiscation or civil recovery of the proceeds from crime and contains the principal money laundering legislation in the UK.-Background:...
(POCA) to reduce crime
Crime
Crime is the breach of rules or laws for which some governing authority can ultimately prescribe a conviction...
by confiscating the proceeds of any crime. It was granted a new power of civil recovery
Civil recovery
-United Kingdom:In the legal systems of the constituent countries of the United Kingdom, civil recovery is claimed by retailers to enable the retailer's claims handling agent to recover, in civil proceedings before the High Court or Court of Session, property which is, or represents, property...
through the High Court
High Court of Justice
The High Court of Justice is, together with the Court of Appeal and the Crown Court, one of the Senior Courts of England and Wales...
, and could also take over the powers of the HM Revenue and Customs (HMRC) to levy tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
without identifying a source for taxed income.
The ARA became operational in February 2003, but it failed to meet its targets for the confiscation of criminal funds. It was announced in January 2007 that it would be merged with the Serious Organised Crime Agency
Serious Organised Crime Agency
The Serious Organised Crime Agency is a non-departmental public body of the Government of the United Kingdom under Home Office sponsorship...
(SOCA), which was established in 2006. Provisions to achieve this were contained in the Serious Crime Act 2007
Serious Crime Act 2007
The Serious Crime Act 2007 is an Act of the Parliament of the United Kingdom that makes several radical changes to English criminal law. In particular, it creates a new scheme of serious crime prevention orders to frustrate crime in England and Wales and in Northern Ireland, replaces the common law...
. There were also proposals for other law enforcement agencies, such as HMRC, to be given similar powers of civil recovery at the same time. On 1 March 2008, the transfer of the Director and staff of the Assets Recovery Agency, its property, rights and liabilities to SOCA and the National Policing Improvement Agency
National Policing Improvement Agency
The United Kingdom's National Policing Improvement Agency is a non-departmental public body established to support police by providing expertise in such areas as information technology, information sharing, and recruitment.-Background:...
started in anticipation of the Agency's abolition. The Agency ceased to exist on 1 April 2008.
Background
The setting up of the ARA was a key aspect of the POCA, which the Government's intended to take the profit out of crime, aiming to dismantle and disrupt organised crime gangs by confiscating the financial proceeds of criminal acts. It brings together previous legislation, such as the Drug Trafficking Act 1994Drug Trafficking Act 1994
The Drug Trafficking Act 1994 is an Act of the Parliament of the United Kingdom. It largely replaced the Drug Trafficking Offences Act 1986....
and Part VI of the Criminal Justice Act 1988, with the changes recommended in a comprehensive report of a study conducted by the Performance and Innovation Unit of the Cabinet Office
Cabinet Office
The Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
in 2000.
POCA strengthened the legislation relating to seizures of cash, money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, investigatory powers, and restraint and confiscation procedures. Previously, only profits from certain crimes, such as drug trafficking, were liable to confiscation.
The Agency had three strategic aims:
- To disrupt organised criminal enterprises through the recovery of criminal assets, thereby alleviating the effects of crime on communities.
- To promote the use of financial investigation as an integral part of criminal investigation, within and outside the Agency, domestically and internationally, through training and continuing professional development.
- To operate the Agency in accordance with its vision and values.
Powers
The powers of the ARA were mostly limited to England and WalesEngland and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
and Northern Ireland
Northern Ireland
Northern Ireland is one of the four countries of the United Kingdom. Situated in the north-east of the island of Ireland, it shares a border with the Republic of Ireland to the south and west...
, although its taxation powers extended to Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
. Its main offices were in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, with a second office Belfast
Belfast
Belfast is the capital of and largest city in Northern Ireland. By population, it is the 14th biggest city in the United Kingdom and second biggest on the island of Ireland . It is the seat of the devolved government and legislative Northern Ireland Assembly...
. In Northern Ireland, the Director consulted with the Secretary of State for Northern Ireland
Secretary of State for Northern Ireland
The Secretary of State for Northern Ireland, informally the Northern Ireland Secretary, is the principal secretary of state in the government of the United Kingdom with responsibilities for Northern Ireland. The Secretary of State is a Minister of the Crown who is accountable to the Parliament of...
. In Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, civil recovery was achieved through the Civil Recovery Unit of the Scottish Government.
The functions of the ARA were categorised into four types:
- Confiscation proceedings;
- Civil recovery proceedings;
- Taxation of income or gains which are suspected of being derived from criminal activities;
- Control and supervision of the training of financial investigators in the UK.
Director
The ARA was headed by a Director, the first of whom was Jane EarlJane Earl
Jane Earl was appointed to the post of Director of the Assets Recovery Agency on 5 November 2002, and took up her post on 3 February 2003. Prior to this she was chief executive of Wokingham Unitary Council from November 1999....
. Alan McQuillan, a former Assistant Chief Constable in the R.U.C.
Royal Ulster Constabulary
The Royal Ulster Constabulary was the name of the police force in Northern Ireland from 1922 to 2000. Following the awarding of the George Cross in 2000, it was subsequently known as the Royal Ulster Constabulary GC. It was founded on 1 June 1922 out of the Royal Irish Constabulary...
, was appointed as the new director in 2007. The Director had to carry out his statutory functions with a view to the reduction of crime. The Director reported to the Home Secretary
Home Secretary
The Secretary of State for the Home Department, commonly known as the Home Secretary, is the minister in charge of the Home Office of the United Kingdom, and one of the country's four Great Offices of State...
, but was operationally independent.
By 2005, it had 180 staff, and an annual budget of £15.5m, but it recovered only £4.6m. It had more success in freezing criminal's assets, with £68.45m frozen in June 2006, but found its actions were frustrated by lengthy and expensive court cases.
Independence
The ARA was a non-Ministerial Department, meaning it answered to ParliamentParliament of the United Kingdom
The Parliament of the United Kingdom of Great Britain and Northern Ireland is the supreme legislative body in the United Kingdom, British Crown dependencies and British overseas territories, located in London...
directly rather than to a Minister. As an independent government department, the Agency acted completely separately from the political arena and from political interference, and adopted cases on the likelihood of a successful outcome, rather than for any political or other reasons. To this end, Agency operations were carried out when the juncture was right logistically and operationally.
See also
- Departments of the United Kingdom GovernmentDepartments of the United Kingdom GovernmentHer Majesty's Government of the United Kingdom contains a number of Cabinet ministers who are usually called secretaries of state when they are in charge of Government departments called ministerial departments...
- Asset forfeitureAsset forfeitureAsset forfeiture is confiscation, by the State, of assets which are either the alleged proceeds of crime or the alleged instrumentalities of crime, and more recently, alleged terrorism. Instrumentalities of crime are property that was allegedly used to facilitate crime, for example cars...
- Criminal Assets BureauCriminal Assets BureauThe Criminal Assets Bureau is a law enforcement agency in Ireland, the purpose of which is to recover the proceeds of organised crime. It is a division of the Garda , but reports annually to the Minister for Justice, Equality and Law Reform...
- British Police