9Meaning of “serious crime derived property” and “illegally acquired property”

9 Meaning of “serious crime derived property” and “illegally acquired property”

9 Meaning of “serious crime derived property” and “illegally acquired property”

(1) An interest in property is serious crime derived property if—

(a) it is all or part of the proceeds of a serious crime related activity, or

(b) it is all or part of the proceeds of the disposal of or other dealing in serious crime derived property, or

(c) it was wholly or partly acquired using serious crime derived property.

(2) The references in subsection (1) (b) and (c) to serious crime derived property are not limited to serious crime derived property described in subsection (1) (a) but also include interests in property that are serious crime derived property because of a previous operation or previous operations of subsection (1) (b) or (c) or their combined operation.

(2A) Without limiting subsection (1), an interest in property is taken to be wholly or partly acquired using serious crime derived property if it is, or has been, subject to a mortgage, lien, charge, security or other encumbrance wholly or partly discharged using all or part of the proceeds of a serious crime related activity or serious crime derived property.

(3) Once an interest in property becomes serious crime derived property it remains serious crime derived property even if the interest is disposed of or otherwise dealt with (including by being used to acquire an interest in property), but this is qualified by subsection (5).

(4) The meaning of illegally acquired property is ascertained by substituting, in subsections (1)–(3), illegally acquired property for serious crime derived property and illegal activity for serious crime related activity.

(5) An interest in property ceases to be serious crime derived property or illegally acquired property—

(a) when it is acquired by a person for sufficient consideration without knowing, and in circumstances that would not arouse a reasonable suspicion, that the interest was, at the time of acquisition, serious crime derived property or illegally acquired property, or

(b) when it vests in a person as a result of the distribution of the estate of a deceased person, or

(c) when the interest is sold or otherwise disposed of under the authority of this Act (including when discharging a proceeds assessment order or unexplained wealth order), or