ARA Annual Report 2006

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					FROZEN

ASSETS RECOVERY AGENCY
ANNUAL REPORT 2005/06

SOLD

MAKING SURE CRIME DOES NOT PAY

OVER m INTHEPIPELINE

£85

ASSETS UNDER RESTRAINT
Thismapshowstheestimatedvalue ofassetsrestrainedbytheAgencyin 2005/06basedontheregionthatreferred thecasetous.ReferralsfromHMRevenue andCustoms,theDepartmentforWork andPensionsandtheNationalCrime Squad(partoftheSeriousOrganisedCrime Agencyfrom1April2006)arereferred tousthroughasinglepointofcontact soarenotdisaggregatedbyregion. Fromtheregions Fromnationalagencies Total £53.4m £32.3m £85.7m

£1.4m £14.2m £4.6m £1.8m

£3.5m £1.4m £0.55m

£6.95m

£3.65m £0.95m £14.4m



AnnualReport2005/06 Contents

Contents

1.  Introduction 2.  World in which we operate        • Agencyroleandobjectives • TheAgency’soperationalrole • TheFinancialInvestigationCentreofExcellence • Workinginpartnership • Corporategovernance • Transparencyandopenness • Professionalstandards 5.  People and money    • Staffing • Finance • Nextsteps • Annex A:TheAgency’stargetsandprogressachieved    • Annex B:Detailedfinancialtables • Annex C:Organisationalchart • Annex D:Glossary 2 6
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3.  Making a difference

4.  Good governance

	 • Qualityassurance

6.  Keeping up momentum 7.  Annexes




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AnnualReport2005/06AgencyObjectives AnnualReport2005/06Contents

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Introduction

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AnnualReport2005/06 Introduction

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INTRODuCTION
IamdelightedtocommendtoyoutheAnnualReportfortheAssetsRecoveryAgency for2005/06. Thisrepresentsourthirdannualreport,andcontainsdetailsoftheAgency’sgrowing knowledgeofwhatworksinourapproachtoensuringthatcrimedoesnotpay. Overthepastyear,wehaveseensignificantdevelopmentsinanumberofareasofour work.TheCentreofExcellence,withresponsibilityformeetingtheAgency’sstatutory dutiesforthetrainingandaccreditationoffinancialinvestigators,hascontinuedto developboththenumberofcoursesofferedandstudentstrained,andtherangeof trainingoffered.Particularhighlightshavebeenthedevelopmentofthenew,advanced financialinvestigators’coursetoincreasetheupskillingoffinancialinvestigatorsacross thelawenforcementworld,andthedevelopmentofthenewfinancialinvestigators’ managers’course,togivesupervisorsabetterunderstandingofhowtoharnessthe specificskillsoffinancialinvestigatorstoreduceharmandcrime. TheAgency’sinvolvementincriminalconfiscationislimitedbecausethebulkofthiswork isdonedirectlybyprosecutors.However,inthosecaseswherewehaveassistedother bodiessuchaslocalauthoritiesinthetradingstandardsandhousingbenefitarea,and wherewehaveassistedpoliceforces,wehaveseensomeverypleasingresults.Amajor successincashtermswasaconfiscationorderof£4.2millionmadeagainstamortgage fraudsterfromSouthWales.However,thesmallervaluecaseshaveallplayedtheirpart indemonstratingthatfraudagainsthousingbenefitsorganisations,theNationalHealth Serviceandagainstlegitimatetradersthroughcounterfeiting,allcanandwillattract significantfinancialpenalties. Incivilrecovery,theAgency’sperformanceininitialcasestageshasgonefromstrengthto strength.Againstatargetof£25 millioninassetsrestrainedfortheyear,wehaveachieved £85.7 million.Thismeansthatover£85millionofassetshavebeentakenoutofactive usebycriminals.ThelegalchallengestotheProceedsofCrimeAct(POCA)2002haveall beendefeated,todate,andthepipelineofcasesandtheassetsunderrestraintcontinue togrow.However,wearestillstrivingtoturntheseearlyinterventionresultsintofinal recoveryorders.Wecontinuetobebesetbythetimetakentolitigatecasesthrough thecivillegalsystemandbytheproperdesireofrespondentstodefendtheircasesto thefull.Asaresult,wehavenotachievedthetotalamountwehadhopedforinfinal recoveryorders.




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AnnualReport2005/06Introduction

Weregretnothavingachievedourgoalsinrelationtofinalorders.Thesegoalswere establishedingoodfaithandonthebestavailableknowledgeatthetimeofproducing theBusinessPlanfor2005/06.Wehavespentconsiderabletimethroughoutthisyear workingwithcolleaguesfromtheHomeOffice,theDepartmentforConstitutionalAffairs andtheAttorneyGeneral’sOfficetoidentifywhatfurtherstepswemighttaketo speedupcaseprogress.Wehavehadanumberoflegislativechangesto easethegrantingoflegalfundingforrespondentsinourcases easethegrantingoflegalfundingforrespondentsinourcases andarestartingtouseneworders,suchastheproperty andarestartingtouseneworders,suchastheproperty freezingorders,tomakeevenmoreeffective freezingorders,tomakeevenmoreeffective useofourresources.Nevertheless, useofourresources.Nevertheless, wenowhavetoacceptthat ourinitialpredictionsfor thelengthoftimetaken forcasestobecompleted throughthelegalsystem wereoveroptimistic,andour wereoveroptimistic,andour projectedtargetsforthenext projectedtargetsforthenext yearsarestillbasedonlimited yearsarestillbasedonlimited information. information. Inspiteofnothavingachieved Inspiteofnothavingachieved ouroverallfinancialindicators,we ouroverallfinancialindicators,we shouldnotlosesightofthepublic shouldnotlosesightofthepublic reassurancevalueofourwork,as reassurancevalueofourwork,as evidencedbythepublicopinion evidencedbythepublicopinion researchwehaveundertakeninEngland researchwehaveundertakeninEngland andWalesandinNorthernIreland.This andWalesandinNorthernIreland.This reflectspublicawarenessfiguresof46%of reflectspublicawarenessfiguresof46%of respondentsinEnglandandWalesand80% respondentsinEnglandandWalesand80% ofrespondentsinNorthernIreland,and ofrespondentsinNorthernIreland,and publicconfidenceratingsof85%inEngland publicconfidenceratingsof85%inEngland andWalesand89%inNorthernIreland. andWalesand89%inNorthernIreland.

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Wewillcontinuetouseallourpowerstothefullandwewillcontinuetostrivetomeet theambitiousandstretchingtargetswehaveset.

Jane earl Director, Assets Recovery Agency

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AnnualReport2005/06


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AnnualReport2005/06AgencyObjectives

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Worldinwhichweoperate

FOZEN FR ROZE N
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AnnualReport2005/06Agencyroleandobjectives

TheAgencyhasofficesinLondonandBelfast.TheDirectoralsoconsultstheSecretaryof StateforNorthernIrelandonaspectsofARA’sBusinessPlanconcerningNorthernIreland.

the AGenCy’s tARGets AnD the PRoGRess AChIeVeD1
OurKeyPerformanceIndicators(KPIs)andsupportingtargetsforthepastyearwere publishedinourBusinessPlanin2005.ThesearereproducedinAnnexA,alongwith asummaryofprogressachievedagainstthem. Ourprogressagainsttargetsover2005/06hasbeenmarkedbynotablesuccessesand importantlearningpoints.Wearedelightedthatinmanyinstanceswehaveexceeded thetargetsthatweset:

•	 Disrupt70criminalenterprises–100disrupted. •	 Adoptafurther100cases–108adopted. •	 Earlyrestraintofassetstothevalueof£25 million – £85.7 millionofassetsunder earlyrestraint.2
Wehavealsolearnedmuchfromourexperienceoverthepastthreeyears,inparticular regardingthetimescalesoverwhichwecanexpectourcasestoprogress. Theimpactofthelegalchallenges,whileinevitablewithsuchcomplexandnew legislation,hasdelayedtheprogressofourcasesintheHighCourt.Thishashadan adverseimpactontheKPIsfromthelatterstagesofthecivilrecoveryprocess.

•	 Obtainrecoveryordersandissuetaxassessmentstothevalueofatleast £16 million–£4.6 millioninordersgranted. •	 Realisereceiptsincivilrecoveryandtaxtothevalueof£6–12 million – £4.1 millioninreceiptscollected.
Therearevariousunderlyingreasonsforthesevariances,whicharediscussedinmore detaillaterinthecivilrecoverysectionatpage11. Progressinanumberofourcurrentcasesisatanadvancedstageandweexpectto completeclaimsforrecoveryordersin15casesbeforetheHighCourtduring2006/07.

InteR-AGenCy tARGets
TherearenospecificPublicServiceAgreement(PSA)targetsonassetrecovery,butthere wasaGovernmentmanifestocommitmentin2001torecover£60millionthroughthe wholeassetrecoverycommunityby2003/04.Thistargetwasexceededwith£84million beingrecovered.TheHomeOfficehasanumberofcommitmentsintheareaofasset recovery,withinwhichtheachievementoftheAgency’stargetsiskey.

1.	 Thedisruptionandrestraintfiguresquotedthroughoutthisreportarebestestimatevaluesoftheassetsidentified throughafinancialinvestigation.Finalrecoveryamountsoftheinvestigationwillonlybeconfirmedoncerecovery ordershavebeenawardedandareenforcedandassetsrealised. 2.	 Earlyrestraintofassetsisalsoreferredtolaterinthisreportasdisruptionswhichcanbedefinedasa)thefreezingof assetsthrougharestraint,freezing,Mareva,interimreceivingorderorpropertyfreezingorder;orb)wherefreezinghas nottakenplaceeitheri)makingofaconfiscationorrecoveryorder,orii)voluntarysettlement/payment,whereno orderhasbeenmade,oriii)undertakingsgivennottodealwithassets;orc)theissueofataxassessment.



	

AnnualReport2005/06 Agencyroleandobjectives

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AGENCYROLEANDOBJECTIVES
ReMIt AnD AIMs
TheAssetsRecoveryAgency(ARA)hasthreestrategicaims: 1. Todisruptorganisedcriminalenterprisesthroughtherecoveryofcriminalassets, therebyalleviatingtheeffectsofcrimeoncommunities. 2.Topromotetheuseoffinancialinvestigationasanintegralpartofcriminal investigation,withinandoutsidetheAgency,domesticallyandinternationally,through trainingandcontinuingprofessionaldevelopment. 3.TooperatetheAgencyinaccordancewithitsvisionandvalues. InestablishingtheAgencyin2003,weworkedwithourstafftoestablishaclearsocial purposeforourwork.Thisisencapsulatedinourvisionandvaluesstatement.

VIsIon AnD VAlues
Ifwearetoachieveourchallengingtargets,weneedtolivebyasetofcommonvalues. Weareallcommittedto:

•	 workingtogethertodeliver resultsandcelebratesuccess; •	 alwaysactingwithhighstandardsofintegrity, honesty and professionalism; •	 continuouslyimprovingthequalityofourwork,throughinnovationand
 managedrisktaking;
 •	 supportinglearning and skill developmenttohelpusdoourjobsbetter;and
•	 promoting diversityandvaluingthecontributionofeveryonethroughour

workwithcolleaguesandpartners.

Duringourreviewofourstrategyandstructurein2005,weconfirmedwithour stakeholdersandourstaffthatthesestatementscontinuetorepresentoursocialpurpose andhowwegoaboutourbusiness.

ConstItutIonAl PosItIon
ARAisanon-ministerialdepartmentestablishedbytheProceedsofCrimeAct(POCA) 2002.TheDirectorreportstotheHomeSecretary,whoisresponsibleforagreeingthe businessplaneachyear.WearealsorequiredbyPOCAtoproduceanannualreportwhich islaidbeforeParliament.




	

AnnualReport2005/06 Agencyroleandobjectives

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RelAtIonshIPs

TheAgencyworkswiththepolice,HMRevenueandCustoms(HMRC),3otherinvestigating agencies,prosecutorsandprivatesectorfinancialfirms.Theoverarchingnationalpolicyfor assetrecoveryiscontainedintheHome Office Strategic Plan,4whichincludes‘recovering morecriminalassets’aspartoftheir‘commitmentstolaw-abidingcitizens’.

CIVIl CAse stuDy5
InJanuary2005,thePoliceServiceofNorthernIreland(PSNI)referredthecaseagainst MrLtotheAgency. ARA’sinitialinvestigationrevealedthatMrLappearedtohavehadameteoricrisein
 financialfortunes:bankruptin1995,withintenyearshewastheownerofarapidly
 expandinghaulagefirm,severalproperties,includingavillainSpain,andastring
 ofprestigevehicles.FurtherinvestigationrevealedthatbothMrandMrsLhad
 convictionsforcrimesofanacquisitivenature.VehiclesbelongingtoMrL’sbusiness
 hadbeenstoppedonseveraloccasionsandfoundtocontainsubstantialquantities
 ofsmuggledfuel.
 TheAgency’sdetailedexaminationoffinancialrecordsrelatingtoMrandMrsLand thehaulagefirmexposedthescaleoftheirextravagantlifestyle:thousandsofpounds spentonstaysinexclusivehotelsacrossEurope,ondesignerclothesandevenon hiringhelicopters.Examinationoftheaccountsalsoshowedthatasumofover £650,000hadbeenpaidfromMrL’sbusinessaccounttoabusinessthatdidnotexist. The‘company’s’addressturnedouttobeasmallterracedhouseinahousingestate. Investigationrevealedthatthe‘owner’ofthe‘business’wasinfactadriverforMrL’s owncompany. Onthebasisofthesesuspiciouspayments,evidenceofotherfinancialirregularities
 obtainedfrommortgageapplicationsandMrL’scriminalrecord,interimreceiving
 ordersfreezingtheassetsofMrandMrsLandtheirbusinessweregrantedon
 24February2006.Theseassetswerevaluedatapproximately£3.6million.
 Theinvestigationiscontinuing,andwehopetobeabletoreportfurtherin
 futureyears.


seRIous oRGAnIseD CRIMe AGenCy
TheSeriousOrganisedCrimeAgency(SOCA)commencedoperationson1April2006.We haveworkedwiththemontheirestablishmentandweanticipatethatSOCAwillbecome amajorsupplierofworktotheAgency,referringuptoathirdofourannualcasetarget from2006onwards. WehavehelddiscussionswiththeDirectorsresponsibleforinterventionandenforcement toclarifyourrespectiverolesandresponsibilitiesandtoplanhowwecanworktogether tomaximisetheeffectivenessofbothorganisations.Atthesametime,wehavebeen discussingwiththeIntelligenceDirectoratethesharingofafullrangeofdataaboutour respondentsasweattempttodeveloptypographiesofcriminalbehaviourinconducting illegalbehaviourandhidingtheproceedsofcrimetoassistotherlawenforcement agenciesandfinancialinstitutions.TheFinancialInvestigationCentreofExcellencewillbe workingcloselywithSOCAtodeliverfinancialinvestigationtrainingtoSOCAstaff.
3.	 HMRevenueandCustoms(HMRC)isthenewdepartmentresponsibleforthebusinessoftheformerInlandRevenue andHMCustomsandExcise. 4. Availableat:www.crimereduction.gov.uk/publications10.htm 5.	 CasestudiesarerepresentativeofthetypeofworktheAgencyundertakes.Duetothenatureofthework,the Agencyisonlyabletoprovidelimitedinformationwhileacaseisinprogress.Allup-to-datecasestudiesandpress releasesareavailableonourwebsite–www.assetsrecovery.gov.uk



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AnnualReport2005/06Agencyroleandobjectives

WheRe the Money Goes
TheRecoveredAssetsIncentivisationFund(RAIF)wassetupbytheHomeOfficein 2003/04.Itspurposeistobuildassetrecoverycapacityinfront-linelawenforcement andprosecutingagenciesasacontributiontocrimereduction.Some£15.5millionayear forthreeyearshasbeenallocatedtothefund.Thefundshavebeenfullycommitted toprojects,agreedbytheHomeOffice,onrecommendationfrommembersofthe ConcertedInter-AgencyCriminalFinancesActiongroup(CICFA),withtheaimofincreasing capacitytoimprovetheconfiscationofcriminalassets. Of£46.5millionthatwasavailableunderthefundoverthethreeyears,upto£12million ayearhasbeenallocatedtooperatethemulti-agencyRegionalAssetRecoveryTeams (RARTs)todisruptorganisedcrimegroups,confiscatemorecriminalassetsandtackle moneylaundering.ThefundhasalsobeenusedbytheHomeOfficetoresourceother crimereductionandassetrecoveryactivity.Projectsreceivingfundinginclude:

• JointAssetRecoveryDatabase(JARD); • supporttofinancialinvestigatortraining;and • CICFAcommunicationsstrategy.
Moreinformationoneachoftheseprojectscanbefoundlaterinthisreport. Additionally,theHomeOfficehasallocated£7millionperyeartocrimereduction schemestobenefitcommunities. InFebruary2005,theHomeOfficeannouncedthattheincentivisationschemeintroduced in2004/056wouldbeextendedtootherorganisationsinvolvedinrecoveringthe proceedsofcrime,includingHMRC,ARA,SOCAandtheDepartmentforConstitutional Affairs(DCA),from2006/07.Theextendedagencies(includingpoliceforcesfromthe originalscheme)willbeabletogetback50%oftheassetstheyrecover.Theywillbe encouragedtoinvestitinadvancingassetrecovery.

Asset ReCoVeRy Is not Just ABout Money: CAse stuDy
TheAgencyinvestigatedthelawfulownershipofjewelleryfoundandseizedbythe GreaterManchesterPoliceinthehomeofthelateHaroldShipman.Workingclosely withvictims’families,theAgencywasabletoreturnaplatinumanddiamondringto itslawfulowner.unclaimedjewellerywasauctionedandthe£1,700raisedwasgiven toTamesideVictimSupport.

6.	 IncentivisationenablespoliceforcesinEnglandandWales,andPSNI,toreceiveashareofthetotalcriminalassets recoveredinthefollowingyear.SeparatearrangementsexistinScotland.

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AnnualReport2005/06 TheAgency’soperationalrole

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THEAGENCY’SOPERATIONALROLE
CIVIl ReCoVeRy
ThecivilrecoveryfunctionenablesARAtorecoverincivilproceedingsbeforetheHigh Courtpropertywhichis,orrepresents,propertyobtainedthroughunlawfulconductin England,WalesandNorthernIreland.TheCivilRecoveryunitoftheCrownOffice(CRu) exercisesthisfunctioninScotland. PROGRESSONCASES2004/05–2005/06 2004/05     Referrals Casesadopted Freezingorder/ Mareva Interimreceiving order Settlement Otherdisruptions total civil disruptions Recoveryorder Settlement Finalactions Receipts 20 12 – 12 – 2005/06
  Value Number Value(£m)
   England Northern E  nglandNorthern
   and Ireland  and Ireland total Number (£m) Wales  total Wales  (£m) 103 51 6 20   10.8 5.6 – 5.6 4.7 39.0 31.0 1.4 10.8   118 68 13 10 9 8 40 2 16 18 – 49 22 1 15 4 1 21 – 4 4 – 167  90  14  25  13  9  61 2  20  22  –   10.4 12.7 1.7 6.7 31.5 0.2 3.9 4.1 3.6 0.2 10.6 15.0 27.7 0.5 0.2 15.9 – 0.3 0.3 0.8 2.2 6.9 47.4 0.2 4.2 4.4 4.3 




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AnnualReport2005/06TheAgency’soperationalrole

CAse stuDy
ThecaseofMrKwasreferredtotheAgencyinDecember2004bytheMetropolitan PoliceService(MPS).Itwasinrelationtoover£1,000,000heldbyMPSthattheyhad obtainedfromacriminalenterpriseinvolvingeightindividuals. Themoneyincluded£388,775heldincashwhichwasduetobesentabroad.The
 referralhadbeenpromptedbyoneoftheoriginaldefendantsrequestingthatthe
 £388,775cashbereturnedtohim.
 JudgeBathurst-Normanstatedintheoriginalproceedingsthathewas“quite
 satisfiedthat[therewere]reasonablegroundsforsuspectingMrKwasinvolved
 inmoneylaundering”.
 Thesuccessofthecasewasreliantonthejointworkingofthefinancialinvestigator inthecaseandtheofficersinvolvedintheoriginaltrialtoensurethatfulldisclosure couldeffectivelybeprovidedtothejudgeintheHighCourt. ThecasewassuccessfulandtheAgencycollectedachequefromMPSforthefull amount,andthedefendantwasdeprivedofover£300,000oftheproceedsofcrime. ThiscasedemonstratestheeffectivenessofcivilrecoveryunderPOCAas,even
 thoughtheMPSwasunsuccessfulinitsprosecution,theAgencywasabletostepin
 andremoveasignificantamountofmoneyfromthecriminalarena.


Foracasetobeadoptedforcivilrecovery,itmustmeetthefollowingcriteria:

•	 Formalreferralbyalawenforcementagency(LEA)orprosecutionauthority. •	 Potentiallyrecoverablepropertymusthavebeenidentifiedandhavean estimated valueofatleast£10,000. •	 Theremustbeevidenceofcriminalconductthatcanbesupportedonthe balance ofprobabilities.
Inaddition,theCaseReferralGroup(CRG)willconsiderthepotentialimpactofsuccessful civilrecoveryactionintermsofcrimeandharmreduction,andcommunityreassurance.

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CIVIl CAse stuDy
MrAwasthemanageroftwo‘saunas’intheSheffieldarea,whichapolice investigationrevealedtobebrothels.Asearchofthebrothelsbypoliceand immigrationserviceofficialsrevealedthatmanyofthefemaleworkersatthepremises wereimmigrationoffenders.MrAalsooperatedanescortcompanyandwasthe directorofacompanythatwasrunfromthesamepremises. ThepoliceinvestigationintotheseoffencesceasedwhenMrAdiedinMarch2005. Hisproperty,includingapremisesworthapproximately£120,000andcashassetsof approximately£80,000,werereferredtotheAgencybySouthYorkshirePolice.It wasbelievedthattheseassetswereobtainedthroughMrA’sunlawfulconduct,in particularlivingoffimmoralearnings,moneylaunderingandimmigrationoffences. TheAgencyinterveneddecisivelyandsuccessfullyobtainedafreezingorder,and
 simultaneouslyissuedaclaimforcivilrecoveryintheHighCourtbeforeprobate
 wasdealtwithandtheestateofMrAcouldbedissipated.


CAseWoRK

CIVIL RECOVERY CASES

167 2004/05 2005/06 90

103

51 38 26

Number of cases referred

Number of cases adopted

Number of adopted cases under litigation

ThenumberofreferralstotheAgencyrosefrom103in2004/05to167in2005/06–a 62%riseonthepreviousyear’sfigure.TheAgency’sadoptionsrosefrom51casesto90 adoptedcasesin2005/06.Similarly,thenumberofcasesthattheAgencyhasprogressed tolitigationhasalsoincreased.Therewere26casestakenbytheAgencytotheHigh Courtin2004/05inapplicationsforfreezingordersorinterimreceivingorders,andthis figureclimbedto38in2005/06,anincreaseof68%.




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AnnualReport2005/06TheAgency’soperationalrole

CAse stuDy
Overthelastyear,workingwithHMRCandaleadinghighstreetbank,theAgency
 hasinvestigatedanallegedfraudof£25million.Wehopetoreportfurtheronthis
 infutureyears.
  Ifariskofdissipationofassetsisidentifiedwhiletheinvestigationisinprogress,the Agencycanapplyforaninterimreceivingorder(IRO)attheHighCourt.Thisfreezes theidentifiedpropertyandprovidestheinterimreceiver,anindependentofficerofthe court,additionalinvestigativepowerstodeterminewhetherthepropertyintheorderis recoverable,orassociatedproperty,andwhetherthereisanyadditionalpropertythat mayhavearisenfromthesameunlawfulconduct.Theinterimreceiverhasadutyto reportbacktothecourtastowhatpropertyisrecoverable.Thispropertywillthenbethe subjectofacivilrecoveryclaimbyARA.

CASES ADOPTED AND REJECTED 2005/06

25 90 52
Cases adopted for civil recovery Cases rejected or withdrawn Cases adopted from existing referrals 2004/05

nB: there were 167 referrals to the Agency in 2005/06 of which 90 were adopted for civil recovery; 52 were rejected or withdrawn. there were a further 25 cases adopted by the Agency, which were referred in the previous year.

Ofthe167referralstotheAgencyin2005/06,90caseswereadoptedforcivilrecovery action.AcasemayberejectedattheCRGmeetingif:

•	 thereisinsufficientevidenceofcriminalitythatcouldbeusedbyARAtoprove thatthepropertyisrecoverableonthebalanceofprobabilities;

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•	 theassetsthatarepotentiallyrecoverableareunder£10,000orare disproportionatelylowinvaluecomparedwiththeamountofinvestigation workrequired; •	 confiscationproceedingsoramoneylaunderinginvestigationistheappropriate courseofaction;or •	 acriminalinvestigationintotheindividual(s)concernedhasalready recommenced, e.g.amoneylaunderinginvestigation.
OnceacaseisrejectedbytheCRGthereferringLEAwillbeinformedbyaletterfrom theDeputyDirectorofOperations.TheARAinvestigatorwillalsofeedbackthedecision directlytotheofficeratthereferringLEA,explainingthereasonswhythecasewas rejectedandanypointstoconsiderinthefutureregardingthatparticularcase,orother referralsingeneral.

CIVIl CAse stuDy
TheassetsofSatnamSinghwerereferredtoARAbyHMCustomsandExcise(HMCE) followingasuccessfulprosecutionin1998forevasionofexcisedutyworth£5million. Duringthetrial,assetsworth£300,000wererestrainedbyCustomsofficials,anda confiscationorderwasmadeforthatamount.However,thisorderwassubsequently quashedintheCourtofAppealinDecember2002duetoaproceduraldefectinthe confiscationproceedings. InMarch2003,HMCEreferredthecasetoARAand,inApril2003,theAgency obtainedthefirsteverinterimreceivingorderintheHighCourtsafeguardingthe assets.TheAgencythenpursuedacivilrecoveryclaim.Theclaimwassubjectto twolegalchallengesbyMrSingh,firstlyunderArticle6oftheEuropeanConvention onHumanRights,whichhearguedwasbreachedduetothelengthofthecriminal andcivilproceedings,andsecondlyonthebasisthattheassetshadpreviouslybeen restrainedandsubjecttothefailedconfiscationproceedingsandthereforecouldnot beconsideredundertheProceedsofCrimeAct2002forcivilrecoveryproceedings. ThefirstchallengewasdismissedbyHisHonourJusticeMcCombeinOctober2004. ThesecondchallengewasrejectedatahearingbeforeHisHonourLordJustice Latham,HisHonourLordJusticeBrookeandHisHonourLordJusticeLloydinthe CourtofAppealon17May2005.Aseriesofoffersofsettlementweremadeby MrSinghthroughouttheproceedings.Afinalofferjustshortof£300,000made inDecember2005wasacceptedbytheAgency,whichenabledMrSinghtoretain approximately£5,000worthofproperty,butnegatedthecostoffurthercourt proceedings.TheresolutionofthiscaseisasignificantmilestoneforARA,asitwas thefirstcivilrecoverycasetobeadoptedandthefirstmatterinwhichaninterim receivingorderwasobtainedbytheAgency.

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AnnualReport2005/06TheAgency’soperationalrole

VALUE OF CIVIL RECOVERY CASES (£m)

96.4

2004/05 49.7 39 31 47.4 2005/06

12.2

Referrals

Cases adopted

Total disruptions

ReferralsforcivilrecoverytotheAgencyrosedramaticallyinvaluefrom£39millionin 2004/05to£96.4millionin2005/06,anincreaseof147.2%.ThoseadoptedbytheAgency increasedfrom£31millionin2004/05to£49.7millionin2005/06.Thisrepresentsan increaseof60.3%onlastyear.ThetotalvalueofdisruptionsbytheAgencyin2005/06, includingFreezingOrders,InterimReceivingOrdersandsettlements,was£47.4million, comparedto£12.2millioninthepreviousyear.Thisequatestoa288.5%increaseonthe previousyear’sresults. Thesefiguresrepresentagreateramountoffundsfrozen,andthereforeagreaternumber ofcriminalenterprisesdisruptedbytheAgencybydeprivingthecriminaleconomyof fundsthatcanbereinvestedinfurthercriminalactivities.Theamountoffundsrecovered bywayofrecoveryordermayhavefallenduetothegreaternumberofrespondents preparedtosettleoutofcourt.ThisreflectstherobustapproachtakenbytheAgency whenlitigatingcasesandthefactthatrespondentsseemtoprefertosurrendermostof theirpropertyratherthanfundtheexpenseoffullycontestingtheapplicationatcourt.

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CAse stuDy
InOctober2004,PSNIreferredthecaseagainstMrVtotheAgency.PSNIallegedthat certainpropertyheldbyMrVhadbeenderivedfromcriminalconduct,includingfuel smuggling.MrVhadanextensivecriminalrecord,includingconvictionsforforgery, deceptionandthefraudulentevasionofcustomsduty. TheAgency’sinvestigationrevealedthatMrandMrsVoperatedanumberofbank accountsandhadbeeninvolvedinalargenumberofpropertyandlandtransactions duringthelast12years,leadingtotheacquisitionofanextensivepropertyportfolio valuedatapproximately£2.5million. AlthoughMrandMrsVhadgeneratedasubstantialincomefromtheirfarming businesses,theAgencysuccessfullyarguedthattheacquisitionofassetscouldnot havebeenfacilitatedbylegitimateincomealone.TheAgencyfurtherarguedthat theprofitsoftheirbusinesseshadbeeninflatedduetotheintegrationoffundsthat representedtheproceedsofunlawfulconduct. AninterimreceivingorderwasgrantedinMarch2006andthematteriscurrently
 inthecourtprocess.
 . ThelargeincreaseinthevalueofassetsreferredtotheAgencyisadirectresultofthe greaternumberofcaseswhichinvolveallegedVATfraudbeingreferredtotheAgency byHMRC.Thistypeofactivityofteninvolveslargesumsofmoneybeingfraudulently claimedfromHMRCandprovestobealucrativecriminalenterpriseforthosecommitting theseoffences. AslightlylargeramountoffundshasbeenfrozenbytheAgencybywayoffreezingorder ratherthanbytheappointmentofaninterimreceiver.Thistrendcouldbeexpectedto continueastheAgencyutilisesthenewpowerrepresentedbypropertyfreezingorders (PFOs),whichprovideforthefreezingofpropertythatispotentiallyrecoverable,while theinvestigationintowhetherornotitisrecoverableproceeds.




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AnnualReport2005/06TheAgency’soperationalrole

CAse stuDy
MrBwasemployedbythePostOfficeattheRoyalMailSpecialHandlingCentrein
 Preston.HewasarrestedbyPostOfficespecialinvestigatorsinconnectionwiththe
 theftof£2,500fromacashpouchthatwaspassingthroughthesortingcentre.MrB
 wasconvictedofonecountoftheftinNovember2004andsentencedtosixmonths’
 imprisonment.The£2,500wasrecovered.
 InvestigatorsbelievedthatMrBhadbeenresponsibleforanumberofsimilartypes
 oftheftanditwasreportedthatthiswaswidelyconsideredtobethecaseamong
 thestaffofthemailsortingcentre.AmoneylaunderinginvestigationintoMrsBwas
 commenced,asitwasbelievedthatmoniesfromthetheftswerebeinglaundered
 throughaccountsinhername,andthenameofarelativeresidentinanAfrican
 country.However,thisinvestigationdidnotresultinanychargesbeingbrought
 againstMrsB.Theequityintwoproperties,avehicleandthebalancesofvarious
 bankaccountsandfinancialproducts,includingPremiumBondsandbankaccounts
 intheIsleofMan,totallingapproximately£550,000,werereferredtotheAgencyas
 representingtheproceedsoftheseallegedtheftsbyMrB.
 TheAgencysuccessfullyobtainedaninterimreceivingorder,appointinganinterim
 receiverinMarch2005,andthematteriscurrentlyinthecourtprocess.Theaction
 takenbyARAisanimportantdeterrenttothoseconsideringcommittingsimilartypes
 oftheft.

 

Intelligence team
Followingareviewin2005,anewintelligencestructurehasbeenestablishedwithinARA. ThisnewstructurebringstogetherLondonandBelfastintelligencestaffinoneIntelligence Team,andprovidesincreasedsupporttotheoperationalfunctionsoftheAgency. WithintheAgency,theIntelligenceCellsprovideresearchandanalyticalsupportin ordertoassistinvestigatorsinthedevelopmentoftheircasework.Thecellsalsoactas agatewayforobtainingintelligencefrombothLEAandnon-LEAsources. Thenewstructurestreamlinesthereferralprocessesandincorporatestheuseofa dedicatedtelephonelinetocreateasinglepointofcontact(SPOC)forlawenforcement toobtainguidance,adviceandupdatesoncasesreferredtotheAgency.






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leGAl DeVeloPMent: MR C
MrCiscurrentlyservingaprisonsentenceinFranceforhumantrafficking.Hewas
 convictedinFebruary2004andfined3500,000andanapartmentinFrancewas
 confiscated.AsFrenchlawdoesnotallowaconfiscationordertoberevisited,
 MrC’sassetsintheuKcouldnothavebeenretrospectivelyincluded.
 Followingareferral,theAgencycommenceditsinvestigationsintoMrCin
 November2005.Theseinitialinvestigationsrevealedanumberofbankaccounts
 withactivitiesandtransactionsnotinkeepingwithMrC’sdeclaredincomeand
 businessactivities.Similarly,theamountofmoneyandthelevelofactivityon
 accountsinthenameofMrsCcouldnotbereconciledwithherhavingnoknown
 sourcesoflegitimateincome.
 Havingconsideredtheevidenceobtainedduringtheinvestigations,itwasfeltthat theaccountsidentifiedhadtobefrozen.Thiswasdonetopreservethefunds,which werebeingdissipatedataconsiderablerate.On12January2006,anapplication wassuccessfullymadetotheHighCourtforaPFOinrelationtoanumberofbank accounts,aswellasfurtherproductionorders. AsaPFO,incontrasttoaninterimreceivingorder,doesnotpreventtheAgency
 fromcontinuingtousetheinvestigativepowerscontainedinPart8ofPOCA,the
 financialinvestigatorswereabletosubsequentlygobackbeforetheHighCourt
 andsuccessfullyseekfurtherproductionorders.Inaddition,adisclosureorderand
 anumberofsearchandseizurewarrantsforidentifiedpremisesweregranted.The
 investigatorsarecurrentlyanalysingtheitemsobtainedduringthesearches,aswell
 asthedocumentsobtainedbytheproductionordersinJanuary.
 

Property freezing orders
On1January2006,theamendmentstoPOCAenactedintheSeriousOrganisedCrime andPoliceAct(SOCPA)2005cameintoforce.ThishasgiventheAgencytheabilityto applyforPFOsunderPOCA,wherethereisariskofdissipationoftheassets.Suchorders preventthosewhoownpotentiallyrecoverablepropertyfromdealingwiththeirassetsin anyway,whiletheinvestigationintowhetherornotthepropertyisrecoverablecontinues. Priortothisamendmenttothelegislation,ARAcouldnotapplyforinvestigativeorders underPOCAwhilepropertywassubjecttoafreezingorderorMarevainjunctionunder Part8oftheCivilProcedureRules.TheAgencywasquicktousethisnewpowerand,in January2006,successfullyobtainedPFOsintwocaseswhichtogetherrestrainednearly £800,000worthofassets,whiletheinvestigationscontinue.Inthelastquarter of2005/06,atotalof£1,421,445wasrestrainedinsixdifferentcasesusingPFOs.




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Respondents’ legal costs
Regulationsallowingfortheprovisionoffundstocoverthelegalexpensesofrespondents fromfrozenassetsincivilrecoveryclaimspursuedbytheAgencyalsocameintoforce withtheamendmentstoPOCAon1January2006.Thenewregulationsprovidea frameworkwhichshouldalleviatethedelaysinlitigationexperiencedbyARAsofarin termsofproblemswithfundingthelegalrepresentationofrespondents.Thisrepresentsa significantdevelopmentfortheAgencyandshouldreducesomeofthedelaysinlitigating casesintheHighCourt.

CAse stuDy
RonaldDavidBarrywasarrestedontwooccasionsin2002inconnectionwithan investigationbytheMPSinrelationtothesaleofstolenjewellery.Subsequentpolice searchesofhishomerevealedanumberofhigh-valuejewelleryitemshiddenin variousplacesaroundthehouse,includingthekitchen,insidecerealpackets,inside curtainsandcavitiesinthewallandloft.MrBarrywaschargedwithfivecountsof handlingstolengoodsbutwasonlyfoundguiltyononecountofdishonestlyreceiving astolenRolexwatchinNovember2002andwasfined£3,000. ThestolenjewellerywasreferredtoARAasrecoverablepropertyfollowingthe withdrawalofconfiscationproceedings.However,theinvestigationrevealed substantialassetsheldbyMrandMrsBarrythatwerealsopotentiallyrecoverable property.Thepropertyincludedhisluxuryfour-bedroomhome,whichwaspurchased byacompanycontrolledbyMrandMrsBarryin1999,and£330,000inabankaccount basedinGibraltarinthenameofMrsBarry,whichrepresentedtheproceedsof saleofaSpanishvilla.InvestigationsshowedthattheBarryshadneverdeclaredany earningsorincometotheInlandRevenue.TheAgencysuccessfullyarguedintheHigh Courtfortheappointmentofaninterimreceiverovertheassets.Thereceiverthen reportedtotheHighCourtthatthepropertywasindeedrecoverableonthebalance ofprobabilities. TheAgencycommencedproceedingsforcivilrecovery,whichwerehaltedaftera seriesofnegotiationsandoffersmadebyMrandMrsBarryculminatedinanofferof £716,000,includinga£507,500shareintheequityoftheproperty,whichwasaccepted bytheAgencyinDecember2005.


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CAse stuDy
MrsMwasdismissedfromherlastemploymentinDecember1993andclaimed IncapacityBenefit.ShewasalsoinreceiptofIncomeSupport.InJune2003,the NorthernIrelandHousingExecutive(NIHE),advisedtheNorthernIrelandSocial SecurityAgency(NISSA)thatMrsMhadappliedforaRenovationandDisabled FacilitiesGrantatherhomeaddress,whichwouldbepaidonthebasisofher underlyingentitlementtoIncomeSupport.However,NIHEpointedoutitwas awarethatshewastheowneroffivepropertiesintheBelfastarea.TheBenefits InvestigationService(BIS)ofNISSAlaunchedaninvestigationintothefinancialaffairs ofMrsMandhersisterMrsD,whohadalsobeenresidentatMrsM’shomeaddress. BISidentifiedsome35propertiesinandaroundBelfastwhichMrsMowned,and receivedincomefromNIHE.RepeatedeffortstointerviewMrsMundercautionwith aviewtocommencingcriminalproceedingsmetwithnosuccess;sheeitherpleaded ill-healthorfailedtoattendappointments.ThismatterwasthenreferredtoARA. TheAgencyquicklyidentifiedthatMrsMhad60propertiesregisteredinhername orthenameofthecompanywhichsheclaimedtorunfromherhomeaddress,and inwhichhersisterMrsDhaddeclaredaninteresttotheInlandRevenue.ARAalso identifiedsubstantialsumsmovingthroughaccountsheldwith27differentfinancial institutionsinMrsM’sname,andanaccountheldinthenameofMrsD,andanalysed whichofthemoniescouldbeaccountedforfromlegitimatesources.Inthecourse ofthisanalysis,itwasidentifiedthatvariousaccountsincludedverysubstantialsums whichcouldnotbeidentifiedtoanylegitimatesource. ARAworkedcloselywithBISinconnectionwithmoniesidentified,properties identifiedandalsotheamountofworkthatMrsMinvestedinoperatingherproperty portfolio.TheAgencyalsoworkedcloselywithNIHEinrelationtotherentalmonies paidtoMrsMandgrantsclaimedbyherinrespectofherproperties. Duringthecourseoftheinvestigation,itprovednecessarytoliaisewiththeuS DepartmentofHomelandSecurity.CorrespondencefoundduringthesearchofMrs M’shomeimpliedthatMrsDwasalong-termresidentoftheuSwhilesimultaneously makingclaimsforbenefitsinNorthernIreland,incomplicitywithMrsM. TheHighCourtgrantedaninterimreceivingorderon8September2005andthe receiverhasbeenmanagingMrsM’saffairssincethen.Theirreportisexpectedin thenearfuture.Intheinterim,NISSAhasdeterminedthat,inexaminationofher previouslyundeclaredpropertyportfolio,MrsMwasnotentitledtoanyofthe means-testedbenefitssheclaimedinthisperiod,andinexaminationofthework personallyundertakenbyherincontrollingandmanagingthisportfolio,shewasnot entitledtothedisabilitybenefitsshehadclaimedsince1993.

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CAse stuDy
TheestateofMrJwasreferredtotheAgencybyHMCEasitbelievedthattheassets originatedfromhisdrugdealingandmoneylaunderingactivities.Thetrialresulting fromtheHMCEinvestigationintoadrugtraffickingringthatinvolvedMrJwas abandonedwhenHMCEdeclinedtoeitherconfirmordenytheuseofaninformant. Followingthefailureofthistrial,HMCEandtheNationalCrimeSquad(NCS)
 commencedinvestigationsintoMrJandthelaunderingofMrJ’sproceedsofcrime.
 Whilethisinvestigationwasbeingconducted,MrJwasmurdered.Atthetimeofhis
 death,MrJ’sassetsincluded:
 • aresidentialpropertyworthapproximately£1million; • anotherpropertywithequityof£62,000;and • abalanceof£7,000inabankaccount. InvestigatorsattheAgencyrevealedthatthesepropertieswerepurchasedby fundslaunderedthroughacomplicatedseriesoftransactionsofpreviousproperty purchasesandsalesandtheuseofcompaniesregisteredbothintheuKandinforeign jurisdictionssuchastheBritishVirginIslands.MrJhadgonetogreatlengthstogive allhisbusinessdealingstheappearanceofbeinglegitimate.TheAgencysuccessfully arguedforafreezingordertobeplacedovertheestateinMarch2005andthematter iscurrentlyinthecourtprocess.

leGIslAtIVe ChAnGes
PrimarylegislationinSOCPAcreatedthepowerstodealwithproblemstheAgencyhad encounteredfromlegalfunding,toclarifyfreezingorderpowersmakinginvestigation possibleafterassetshadbeenfrozen,andtonetoffreceivers’costsfromrecoveredassets sothatthefundscouldberecycledbackintooperationalwork. section 98 (1) ofSOCPAintroducednewsections245AtoDforEngland,Walesand NorthernIrelandtocreatepropertyfreezingordersandsection 98 (2)introducedthe equivalentprovisionsforScotlandtocreateprohibitorypropertyorders.Thesehavenow beenimplementedbysecondarylegislationSI2005/3382,whichcameintoforceon 1January2006. section 99providedtheAgencywiththeabilitytonetoffreceivers’andexternaltrustees’ feesbyaddingnewsubsection(2)toSection280ofPOCAsothatrecoveredassetscould berecycledbacktotheAgency.Thismeansthatmorecasescanbedealtwithunder existingfunding.Theseprovisionscameintoforceon1July2005. schedule 6providedpowersforsecondarylegislationtoallowforlegalfundingexpenses tobeexcludedfromthescopeofpropertyfreezingordersandinterimreceivingorders. ThesecondarylegislationSI2005/3382cameintoforceon1January2006andcontains detailedrulesforitsapplication. TheremainingprovisionsofPart 11 of PoCAwhichrequiredimplementationalsocame intoforceon1January2006byOrderinCouncilSI2005/3181.ThisOrdermakesdetailed arrangementsfortheDirectortobeabletoprovideassistancetootherjurisdictionsfor thepurposeofcivilrecoveryaswellascriminalconfiscation.Theprovisionsalsoapplyto otherbodiessuchastheCrownProsecutionService(CPS),HMRCandSeriousFraudOffice (SFO),whocontinuetobeabletoassistotherjurisdictionsforcriminalconfiscation.

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CRIMInAl ConFIsCAtIon
Confiscationisdirectlylinkedtoacriminalprosecutionandconviction.Proceedingsare commencedafterconvictionwhenthecourtisrequiredtoassesseitherthebenefit derivedfromthe‘particular’criminalactivityspecificallyrelevanttotheconvictionor,in certainqualifyingcircumstances,the‘general’criminalconductobtainedbytheconvicted personoveradefinedperiod. Atthefinancialyear-end,wewereassistinginorconductingatotalof38investigations. Atotalof272investigativeorderswereobtainedfromthecourtsinthecourseofthese investigationsandassetstothevalueof£35.9millionhavebeenrestrainedinaccordance with12restraintordersobtained.Twenty-threecaseshavebeenconcludedduringthe reportingperiod,whichhaveproducedconfiscationorderstothevalueof£7.2million obtainedonbehalfof,andinpartnershipwith,prosecutingauthorities.Theseproceedings haveresultedindefaultprisonsentencesof46.5yearsbeinggiventotherespective defendants. Thevalueofanyassetsavailabletotheoffender(fromanysourcewhatsoeverandwhich neednotactuallyrepresentthebenefitsoidentified)uptoandequaltothebenefit (proceeds)certifiedbythecourtmustthenbemadethesubjectofaconfiscationorder requiringtheindividualtorepaythatamounttotheGovernmentwithinadefinedperiod orserveaprisonsentenceindefault.

CAse stuDy
Dale, major mortgage fraud, £4.2 million ThecaseofDavidEdwardDalewasapre-POCAcasereferredtotheAgencybySouth WalesPolice.TheprosecutioncaseagainstDaleconcernedlarge-scalesystematic mortgagefraudcommittedbetween1991and1997,involvingatotalofover350houses whichhadbeenpurchasedwiththeassistanceoffraudulentlyobtainedmortgages andinvolvedcriminalbenefitinexcessof£7million. ThecasewasheardatSwanseaCrownCourt.Benefit wascertifiedas£4.2 million
 withaconfiscation order madeinthesameamount.Paymentwasorderedtobe
 madewithintwo yearswithasentenceoften years in default which,ifinvoked,
 wouldbeconsecutivetothecriminalsentence.Dalewassentencedtotwo years’
 imprisonmentforhiscriminalactivityandfurtherorderedtopay£100,000towards
 thecostoftheprosecution.
 Thisformofactionisincreasinglybecominganintegralpartofcriminalinvestigations involvingacquisitivecrime.TheAgency’spowerstoundertakeaconfiscationinvestigation tookeffecton24March2003.FortheAgencytoadoptaconfiscationinvestigation insupportofanLEA,alltheoffencesallegedmusthaveoccurredafterthatdate.The Agencymay,insteadofadoptingacase,decidetogiveassistancetothereferringLEA byprovidingexpertisetoassistinthepreparation,planningandimplementationof thefinancialinvestigation,andindraftingapplicationsforordersandtheprosecutor’s statementofinformationfortheconfiscationproceedings.

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CAse stuDy
shabir, pharmaceutical prescription fraud, £212,464.17 TheNHSCounterFraudServicereferredthecaseagainstMohammedShabirtothe
 AgencyinJune2004,aspartoftheirdrivetosendoutamessagetomembersof
 thepharmaceuticalindustrythatthoseconvictedoffraudulentactivitywouldbe
 rigorouslypursued.
 OperatingfromtheCardiganRoadPharmacyinLeeds,ShabirdefraudedtheNHSby dispensingmedicinesforwhichhereceivedandretainedthestandardprescriptionfee. Healsofraudulentlyalteredtheprescriptionformstomakeitappearthatpatientswere entitledtofreemedicationbywayofexemptioninordertoclaimthefeefromthe NHSaswell.Shabirhad,therefore,deceivedtheNHSintomakingpaymentstohimfor prescriptionsforwhichhehadalreadyreceivedpaymentfromthepatient.Inaddition, healsoclaimedthecostsofdrugshedidnotdispenseandmadefalseclaimsinrespect ofmedicationsuppliedtonursinghomes. Shabirhadpreviouslybeeninvestigatedforsimilarirregularitiesatapreviousbusiness and,in2001,herefundednearly£15,000toLeedsHealthAuthorityandthePrescription PricingAuthorityComplianceunitinordertoavoidproceedingsbeinginstitutedat thattime. On16March2004policeofficers,accompaniedbymembersoftheNHS PharmaceuticalFraudTeam,attendedhishomeaddressandarrestedShabiron suspicionofforgery,obtainingpropertybydeceptionandfalseaccounting.upon hisarresthishousewassearchedandcashtotalling£23,045wasfoundhiddeninthe premises.ThiswasseizedunderPOCA.ArestraintorderwasobtainedinFebruary2005. InJuly2005,ajuryatLeedsCrownCourtconvictedShabiroffalseaccountingandsix countsofobtainingmoneytransfersbydeception.Hewassentencedtoaperiodof ninemonths’imprisonmentoneachcountconcurrent.Theactualbenefitreceived fromtheconvictionswasapproximately£480buttheconfiscationproceedingswere constructedonthebasisof‘property obtained as a result of or in connection with the criminal behaviour’,namelythegrossvalueofthemonetarytransfersdespatchedto Shabironthebasisthathadtheprescriptionauthoritiesbeenawarethatanypartofhis claimshadbeenfraudulentthennopaymentswouldhaveensued. ThefinancialhearingtookplaceatLeedsCrownCourtinJanuary2006.Aconfiscation orderwasmadefor£212,464.17tobepaidwithinfour monthsorservetwo years’ imprisonmentindefault. TheCriminalTeamcontinuestooperatefromfiveregionallocationsinEnglandand Walesandco-locateswiththeRARTs.ThisprovidesARAwithanenhancedregional presenceand,intheearlystagesoftheseappointments,workfocusedonaperiod ofconsolidationwiththeRARTsandalarge-scalevisitingprogrammetostakeholders promotingassetrecoveryandtheroleoftheAgency.Asaresult,theAgencyhasengaged withawidevarietyofstakeholdersincludingthepolice,HMRC,tradingstandards,the EnvironmentAgency,NHSCounterFraud,localauthoritybenefitdepartments,Post OfficeInvestigationsandtheDepartmentforEnvironment,FoodandRuralAffairs(Defra), includingtheSeaFisheriesInspectoratesubsidiary.

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CAse stuDy
smith, housing Benefit fraud, £19,663.66 TorbayCouncilreferredthecaseagainstTheresaAnnSmith,whoitwaspursuingfor HousingBenefitfraudwhichhadproducedabenefitof£21,166.43overathree-year periodbetween1998and2002totheAgency.Thedefendanthadfalselyclaimedthat shewasatenantinapropertypayingrenttoherlandlordwhenshewasinfactthe jointowneroftheproperty,cohabitingwithherboyfriend,theallegedlandlord.Funds receivedfromthelocalauthorityHousingBenefitwereusedtoservicethemortgage ontheproperty. SmithwasconvictedinFebruary2005onnineoffenceswithafurtherninebeing takenintoconsiderationandthecasewasadjournedforsentencingreports.Contact wasmadewiththeAgencyataverylatestageintheproceedings,witharequest forassistanceinrecoveringtheproceedsofthesaleofthehousewhichhad recentlycompleted.Themortgageproviderhadalreadycommencedrepossession proceedingsasthemortgagehadfallenintoarrearsfollowingtheenforcementaction bythecouncil. Thecouncilwereunabletofurnishanyspecificdetailofthefinancialarrangements involvedwiththeproperty.However,thefinancialinvestigatorwasabletoestablish thatthesaleofthepropertyhadresultedinadisbursementchequetothevalueof £21,166.43beingissuedjointlytoSmithandherboyfriend. Afterextensivedelaysbythedefendant,thecasewaseventuallyheardinSeptember 2005afteradefenceapplicationtofurtherpostponewasrefused.Thecourtcertified benefit in the full amount of the fraud, £21,166.43. Finally,on30September2005atExeterCrownCourt,JudgeCottle,intheabsenceof thedefendantwhohadfaxedanotetothejudgetotheeffectthatalthoughshedid nothaveamedicalcertificateshedidnot‘feeluptoattending’,orderedSmithtopay aconfiscation order of £19,663.66 within six months or serve a term of imprisonment of one yearindefault.

I would like to thank the Agency on behalf of Torbay Council for its valued assistance in obtaining the … confiscation order.… Significant publicity was generated, including a headline in the local press which stated ‘Landmark victory in battle on cheats’, which has … increased the positive impact on the community arising from the council undertaking this prosecution.… I trust there will be similar opportunities for partnership working in the future.
Senior solicitor, Torbay Council

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CAse stuDy
Martin, car clocking, £354,049 SurreyTradingStandardsreferredthecaseagainstLeeThomasMartintotheAgency inDecember2004.TheinvestigationshowedthatMartinhadbankaccountsinhis ownnameandaliasidentities,togetherwithconsiderableassets,bothintheuK andoverseas. Eventsthattookplaceduringthecourseoftheinvestigationwerethecauseofsome concernand,uniquely,thelocalauthoritywerepersuadedtoembarkonrestraint proceedings.Despitehavingnoexperienceorknowledgeofsuchprocedures,the applicationwassuccessfulandallMartin’srealisableassets,includingavillainSpain, werefrozeninMay2005. ThefinancialdeterminationwasconcludedatGuildfordCrownCourtinMarch 2006whenJudgeCrockercertifiedthecriminal benefit at £894,885andmadea confiscation order in the sum of £354,049 fromwhich £30,260 was ordered to be paid in compensation.Martin’swifewasallowedahalfshareinthemaritalhomebut nointerestwhatsoeverintheoverseasproperty.Paymentwasorderedtobemade within12monthswithaperiodoffiveyears’imprisonmentindefault.Thejudgethen proceededtosentenceMartintoaperiodoftwo years’ imprisonment.

TheworkoftheCriminalTeamhasledtothereferralof56potentialcivilrecoverycases forassessmentbytheCivilRecoveryandTaxTeams. TheCriminalTeamiscommittedtocapacitybuildingwithinEnglandandWalesand,in additiontoinvestigationandcivilrecoveryresponsibilities,hasassistedstakeholdersin mentoring29financialinvestigatorsthroughtheformaltrainingprocess.Atyear-end, 18haveprogressedtosuccessfulaccreditation.ThepromotionofPOCAactioninassisting incrimeandharmreductionhasnotbeenoverlooked,and18formalpromotional presentationshavebeendeliveredtoarangeofaudiencesduringtheyear.

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2

CAse stuDy
Daud, counterfeiting, £72,968.14 InMarch2002(pre-POCAoffences),afireoccurredatawarehouseonWestern Road,Leicester.Fireandpoliceservices,alongwithtradingstandardsofficers, attendedtheincident,duringwhichaquantityofclothingbearingwell-knownbrands wasdiscovered.Two-thirdsofthe12,000itemsinspectedwerediscoveredtobe counterfeit.MrDaudwaspresentduringtheinspectionandstatedthathecould provideinvoicesforthegoodstoprovethattheyweregenuine. On25November2003(POCAoffences),policeandtradingstandardsofficers
 searchedMrDaud’sbusinesspremises.Thedefendantstatedthathewasawarethat
 someoftheitemsmightbecounterfeitbuttheybelongedtohisson.
 Alargequantityofboxedcounterfeitclothes,footwear,perfume,bagsandjewellery wasrecovered.Over30,500itemswereseized,bearing36differenttrademarks,with anestimatedstreetvalueof£1million.Thedefendantwasinterviewedbytrading standardsofficersinFebruary2004,butafterstatinghewasaself-employedtrader made‘nocomment’repliestoallquestions.MrDaudwasconvictedinMay2005and sentencedtoninemonths’imprisonment. On16February2006,JudgeMedcalfedeterminedthatthedefendanthadbenefited
 from a course of criminal conduct to the sum of £875,950andmadeaconfiscation
 order for £72,968.14,this beingthetotalvalueofallassetsidentified.Paymentwas
 orderedtobemadewithin12 monthswithaperiodoftwo years’ imprisonment
 in default.


enFoRCeMent
TheoverallaimforthelastfinancialyearhasbeentofinalisetheprocessestheAgency willfollowincriminal,civilandtaxenforcementandtestouttheseproceduresonreal casesandbuildupexperiencetoenabletheAgencytomosteffectivelyenforceorders inthefuture. Themajorityofcasesthathaveprogressedthroughtoenforcementthisyearhavemainly consistedofsettlementsandagreementswiththerespondents.Therearetwocasesin NorthernIrelandwherereceiversareinplacetodealwiththeenforcementissuesand severalpropertieshavebeensoldbyauctionandtheproceedsofvariouspoliciesand bankaccountsrealisedasaresultoftheirwork.Towardstheendoftheyear,twomore casescametoenforcementwhichwehaveenforcedinhouse.Thesehaveinvolvedcases withmultipleinsurancepolicies,somepropertyandfundsinbankaccountsathomeand abroad.TheAgencyhasbeentestingitspowerstoenforceinhousewithouttheuseofa receiver.Wehavealsohadfivetaxcasescometofinalisationandaretryingoutvarious enforcementtechniquesintax,includingtheuseofcountycourtorders.ARAhasalso beengrantedanumberofconfiscationordersthisfinancialyear;thesewillbeenforcedin thenextfinancialyearduetotimegrantedtopayontheorders.Thisclearlydemonstrates thattheAgencyisnowusingthefullrangeofitspowersincriminal,civilandtax,and thesecasesarenowstartingtocometofruition. Asthecomingyearprogresses,anincreasingnumberofcaseswillreachenforcementand befinalised.ThiswillgivetheAgencyfurtheropportunitytoexplorethefullrangeof powersavailableandfurtherbeddowntheenforcementprocess.

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CAse stuDy
enforcement ARAwasgrantedrecoveryordersintwoofitscases,whichwedecidedtoenforce inhouse,asopposedtousingreceiverstoactastrusteesforcivilrecovery. ThesecasesinvolvedasumofmoneyheldinabankaccountinGibraltar,anumber ofinsuranceandinvestmentpoliciesheldlocallyandincompaniesintheIsleofMan, acollectionofjewelleryandavacantcommercialpremiseswithroomsabove. Inordertofinalisethesecases,aseriesofnegotiationswascarriedoutwiththe relevantrespondents.Asaresultofthesenegotiations,therespondentswereobliged torepatriatethefundsheldinGibraltarbacktosolicitorsintheuK.Thisalsorequired thecompanydirectorsinGibraltartosignuptotheagreementandtransferthefunds. AsaresultofgoodcoordinationbetweentheAgencyandtheactingsolicitors,this wasachievedwiththeminimumamountofdisruptiontoourcaseworkandin ashorttimescale. ThepoliciesheldintheIsleofManalsorequiredtherespondentstosignspecific consentformstoreleasefundstotheAgency,whichagainwasachievedquickly andefficientlythroughconstantcontactwiththerespondentsandthecompany concerned.AllpoliciesalreadyheldintheuKwerereleasedonreceiptofthe recoveryordergrantedbytheHighCourt,andthesefundshavenowbeenreceived bytheAgency. ThejewelleryrecoveredbytheAgencywastransferredfromthereceivers,whohad previouslyactedasinterimreceiversduringtheinvestigativestageofthecase,into theAgency’spossession.Thejewellerywasthensortedintocategoriesaccordingto itsvalueandwhetherornotthearticlesweregenuine.Anyitemsthatarefoundtobe fakewillbedestroyedbytheAgencyinduecourse;thisincludeditemssuchasreplica Gucci,VersaceandRolexwatches.Thehigh-valueitemshavebeensenttoaspecialist jewelleryauctionandareduetobesoldinthenextfinancialyear.Theremaining, lowervalueandlowerqualityitemshavebeensenttomoregeneralauctionand, again,willbesoldinthenextfinancialyear. Thecommercialpremises,locatedinSouthShields,hasbeenvestedintheAgency. ThepropertyhasbeenappropriatelysecuredandwillbesoldatpublicauctioninMay. BoththesecasesdemonstratethattheAgencyhastheabilityandprocessestobe abletohandleenforcingcasesinhouseandwecanachievethisinacost-effective andtimelymanner.

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2

tAXAtIon
TheAgencycarriesouttaxationinvestigationsthroughouttheuKunderPart6ofPOCAin caseswheretheDirectorhasreasonablegroundstosuspectthatanincome,gainorprofit whichischargeabletotherelevanttaxhasarisenfromcriminalconduct. WhenacaseisadoptedforPart6purposes,theDirectorservesanoticeontheBoardof HMRC,whichenableshertocarryoutthenormaldirecttaxationfunctionsofHMRCfor theperiodspecified.Inparticular,theDirectormustapplyallinterpretationsofthelaw andconcessionspublishedbytheBoardofHMRC.AnauditconductedbyHMRCofthe Agency’sworkhasconfirmedthemaintenanceofadirecttaxsystem. Duringtheyear,theAgencyemployedthreefull-timetaxinvestigatorssecondedfrom HMRC,supportedbyonefull-timeandonepart-timetaxlawyer.Asat31March2006, theyhad247workinginvestigations,morethantwicethenumberatthestartoftheyear. Inaddition,furthercaseswereunderreviewforpossibleadoption. Estimatedassessmentswereissuedin12casesonprofitsetc.of£8,722,697andthetaxand NationalInsurancecontributionsthereontotalled£3,202,070.Paymentsonaccountof outstandingliabilitiesincasesnotfinallysettledof£30,000werereceivedduringtheyear. PaymentsinrespectofsettlementoffersacceptedbytheAgencyamountedto£200,000. SuccesswasachievedatthefirstcontestedcasetobeheardinfullbytheSpecial Commissioners,aspecialisttaxtribunalthathasjurisdictiontohearPart6appealsagainst assessments,wherecriminalprofitsof£186,598weredetermined.Sevenfreezingorders havebeengrantedinatotaloffivecases,allpriortotheissueoftaxassessments,where itwasjudgedthattherewasastrongriskthatthefundstosettleanytaxliabilitymay bedissipated,typicallyoverseas.

7. 18caseswereadoptedin2005/06and6caseswerecarriedoverfrompreviousyears.

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leGAl CAse stuDy
RMK vs the Director of ARA ThiswasthesecondcasethatARAhasreceivedjudgmentonsinceitsinceptionin
 2002.FouroftheargumentspresentedtothecourtrelatedtotheHumanRights
 Act1998,onetonaturaljusticeandonetothetribunal’sjurisdiction.Allissueswere
 solelyPOCAbased.
 underPart6ofPOCA,theDirectorisabletoassumethegeneralfunctionsofthe InlandRevenue(nowHMRC)ifcertainconditionsaresatisfied.Oncethequalifying conditionismet,theDirectormaybyvirtueofSection317(2)serveanoticeonthe BoardofRevenueinrelationtoapersonorcompanyandataxperiod.Theeffectof suchanoticeistovesttherevenuefunctionsintheDirectorbySection317(3). Onthefactsofthiscase,theDirector’scasewasthatthetaxpayerhadbeen
 chargedandprosecutedwithmoneylaunderingoffencesbuthistrialhadbeen
 stayedindefinitelybytheCrownCourtonthegroundsofhisill-health.The
 receiverdiscoveredthatthetaxpayer’sbankaccountshadalargenumber
 ofunexplaineddeposits.
 Afteranumberofpreliminaryhearings,anumberoflegalissueswereraised.Aspart
 oftheAgency’songoingdevelopment,thein-housetaxbarristerrepresentedARAat
 theSpecialCommissionerswhilethetaxpayerwasrepresentedbycounsel.
 ARAwonallbutoneminorlegalpoint.Wesuccessfullycounteredfiercearguments
 baseduponthepremisethatPart6taxationwasreallyacriminalprocess,andthe
 CommissionersconcludedthatnotonlyweretheAgency’sproceedslawful,butit
 wasappropriatetopursuethemeventhoughthetaxpayerwasill.


AppealsagainstestimatedassessmentsareunderconsiderationbytheSpecial Commissionersinanumberofcases.Fullhearingswillbeheldinduecourseshould unsatisfactoryexplanationsbeputforwardand/orunacceptableoffersinsettlement bemade. Taxationcasesarenowexpectedtotake18monthstotwoyearstoreachsettlement(and, whereappropriate,recoveryaction),particularlywherethesubjectchoosestoexercise theirrightsofappeal.TheAgency’ssettlementpolicyappliestotaxationcases. FurtherguidanceinrespectoftheAgency’spolicyontheconductoftaxationcasescan befoundonourwebsite(www.assetsrecovery.gov.uk).

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PuBlIC PeRCePtIons
ARA’sKPI4isto‘maintainpublic,stakeholderandprofessionalcolleagues’confidence intheprofessionalismandintegrityoftheAgency’.Tomeasurepublicconfidence,the AgencycommissionedYouGovLtdtoundertakeanonlinesurveyinlateJanuaryinto publicattitudesinEngland,ScotlandandWalestowardscrimeandtherecoveryofassets bytheAgency.SimilarquestionswereincludedintheNorthernIrelandOfficeJanuary omnibussurvey. ThiswasthefourthsurveyconductedbyYouGovonbehalfoftheAgencyandthethird surveyinNorthernIreland.8Theoverallresultsofboth2006surveysindicatethatthe publiccontinuetosupporttheAgencyhavingpowerstoapplyforcivilrecovery;there isareductionof2%inthosewhothinkwemightuseourpowersunfairly;therehasbeen asignificant(10%)increaseofthoseinNorthernIrelandwhothinkthatwehaveactedin awaythatisfairtoallsectionsofthecommunity;andtherehasbeena10%reductionin NorthernIrelandofthosewhothinkthatpeopletheyknowmightbeunfairlytargetedby theAgency. Thetablebelowcomparesthe2005and2006resultswheretherespondentswereasked toagreeordisagreewithastatement.

Respondents were asked to agree or disagree with the following:

Agree/tend to agree (%)
e,s&W 2005 2006 14 2005 14 nI 2006 15

Isuspectthatsomeoneinmyneighbourhoodhas gotalargepartoftheirwealthfromcrime IwouldbeangryandconcernedifIfoundoutthat someonehadmovedintomyimmediate neighbourhoodandhadwealththathadcome largelyfromtheproceedsofcrime TherearemanypeopleinBritainthesedayswho arelivingofftheproceedsofcrime Therearemanycriminalswhogotoprisonbut managetohangontotheproceedsofcrime andareabletoliveaverywealthylifestylewhen theirprisonsentenceisover IsupporttheAgencyhavingpowerstoapplyfor civilrecovery IamconcernedthattheAgencymightabuse itspowers IamconcernedthatpeopleIknowmightbe unfairlytargetedbytheAgency IhaveheardorreadabouttheAgency

18

89 78

90 74

81 84

87 89

83 85 42 25 41

81 85 40 25 46

84 87 35 34 69

86 89 33 24 80

8. Theresultsofthe2003and2004surveysweresummarisedinour2004/05AnnualReport.



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AnnualReport2005/06TheAgency’soperationalrole

•	 ItappearsthatfewerpeopleinEngland,ScotlandandWalessuspectsomeone intheirneighbourhoodofhavinggainedalargepartoftheirwealthfromcrime (down4%from18%to14%). •	 InEngland,ScotlandandWalestherearesmalldecreasesinthosewho believethat(i)therearemanypeopleinBritainthesedayswhoarelivingoff theproceedsofcrimeand(ii)therearemanycriminalswhogotoprisonbut managetohangontotheproceedsofcrimeandareabletoliveaverywealthy lifestylewhentheirprisonsentenceisover. •	 Therewasan11%increaseinthenumberofrespondentsinNorthernIreland whohadheardofARAanda5%increaseinEngland,ScotlandandWales.
Otherquestionsaskedwere: IftheAgencydoessucceedinrecovering significantsumsofmoney,whateffect,ifany, doyouthinkitislikelytohaveonyour community 

A positive effect (%)
e,s&W 2005 45 2006 48 2005 49 nI 2006 56

TheresultsforEngland,ScotlandandWalesshowasmall(3%)increaseinthosebelieving thatassetrecoverycouldhaveapositiveeffectincommunities,andinNorthernIreland therehasbeena7%increase. Thinkingaboutpeoplewhohavegrownwealthy fromtheproceedsofcrime,doyouthinkitis moreimportanttosendthemtoprison,orto confiscatetheirwealth,ordoyouregardboth asequalobjectives? 

Both are equally important (%)
e,s&W 20 82 2006 81 2005 78 nI 2006 82

Theoverwhelmingmajorityofrespondentsinbothsurveysconsiderthatimposinga prisonsentenceandconfiscatingassetsareequallyimportant.

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InNorthernIreland,weaskedrespondentstoindicateiftheAgencyhadactedinaway thatwasfairtothewholecommunity.Theresponseswere:   TheAgencyhasfocusedtoomuchonassetsinLoyalisthands TheAgencyhasactedinawaythatisfairtoallsections ofthecommunity  Don’tknow     % 2005 9 2 61 28 2006 11 3 71 15

TheAgencyhasfocusedtoomuchonassetsinRepublicanhands   

Therehasbeena10%increaseinthosewhobelievetheAgencyhasactedfairlytoall sectionsofthecommunity. TheresultsofthemostrecentsurveysindicatethattheAgencyhasmaintainedpublic confidencethroughouttheuKintheprofessionalismandintegrityofitswork.Thevast majorityofpeoplesupportushavingthepowerstoapplyforcivilrecoveryandfewer peopleareconcernedthattheAgencymightabuseitspowers.

local impact research projects
TheAgencystartedtworesearchprojectsduring2005lookingattheimpactofasset recoveryatcommunitylevel.WorkingwithEnfieldBoroughPoliceandEnfieldCouncil, andwiththeNorthernIrelandOfficeandthePolicingBoardinselectedareasofNorthern Ireland,ouraimistoassesswhatimpact,ifany,assetrecoveryhasonthecommunityin termsofharmreduction.ResultsaredueinJuly2006.




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AnnualReport2005/06AgencyObjectives AnnualReport2005/06Contents

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Makingadifference


FOR
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THEFINANCIALINVESTIGATION CENTREOFExCELLENCE
BuIlDInG CAPACIty In Asset ReCoVeRy
Thedemandfortraininginfinancialinvestigationacrossthewholelawenforcement community,domesticallyandinternationally,continuedtogrowduring2005/06.Once again,theCentrehasmadesignificantcontributionstobuildingcapacityforassetrecovery, whichisreflectedintheincreasednumberofcoursesdeliveredandstudentstrained throughthefinancialinvestigationtrainingprogramme,andthehighernumbersoffinancial investigators(FIs)accreditedtousestatutorypowers. “I liked the informal approach TheCentredeliversresultsthroughdevelopment adopted for the delivery of this anddeliveryofthetrainingprogramme,theprompt well-structured course, which I have accreditationofFIs,throughitslinkswithother found invaluable and which I have organisationsinvolvedinfinancialinvestigationinthe enjoyed immensely.” uKandoverseas,andwithbespoketrainingpackages designedanddeliveredtootherjurisdictions. Detective Constable from Wiltshire Constabulary
on the FI course

ByMarch2006,atotalof2,745activeFIswereregisteredasaccreditedFIs,anincrease of82%sincethetrainingprogrammewaslaunchedin2003.

eVAluAtIon oF ARA tRAInInG PRoVIsIon
ThetrainingforpoliceandcustomsofficersiscurrentlyfundedbytheAgencyandwill continuetobesothrough2006–2007.TheCentrehasidentifiedaneedtoexaminethe effectivenessofourinvestmentandcontinuetoachievevalueformoney. AspartofacollaborativeexercisewithotherCICFAmembers,theCentresoughtto establishamoreaccuratepictureofthedeploymentofFIsandtolinkthisintoabroader evaluationoftheimpactofthetrainingprogrammeandanassessmentofthevalueof thetraininginthelightofthatinformation.Workwascarriedoutbyanindependent consultant(RichardJHarding)9betweenMayandSeptember2005.FIsthathadcompleted atleastpartofthetrainingprogrammewereinterviewed.TheHardingReportwas publishedinNovember2005andconcludedthat:

•	 trainingprovisionisfitforpurpose,coversallaspectsoffinancialinvestigation experiencedbyindividualsintheworkplaceandprovidessufficientskillsto commenceanddevelopfinancialinvestigation;

9.	 Evaluation of the Assets Recovery Agency Training Provision (RichardJHardingTrainingConsultants)–referredtoin thisdocumentastheHardingReport.

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•	 coursesprepareindividualsfortheirrolesandcanprovideevidenceof measurablecompetence.Theyresultinskill-enhancingbenefittoinvestigation whichmanifestsitselfinworkplacepractice; •	 examinationsarebeneficialandapracticaltestofindividualknowledge–the regionalisationofexaminationcentreswillreducetheredeploymentofFIsonto non-financialinvestigationworkandcoststoorganisationssendingtrainees; •	 provisionofwhatamountstofreetrainingmustprovokesomelevelofabuse byindividualsandpoliceorganisationsbysendingindividualsforwhomsuch trainingisnotappropriate.Theopportunityforthiswilldecreaseonceitis realisedthattheCentrewillpassonthecostsoftrainingtoorganisations whereindividualsdonotcompletetheirPersonalDevelopmentPortfolios (PDPs),aprerequisiteforpassingthecourse;and •	 demandsofotherareasofpolicingleadtoredeploymentofFIstofillother roles.
TheCentre’strainingprogrammehasundergoneathoroughreview,whichhasincorporated therecommendationsoftheHardingReport,andtheCentreisworkingwithLEAsto ensurethattherecommendationsofthereportareimplemented.

tRAInInG
During2005/06,theCentreprovidedtrainingfor644newFIsandenhancedtrainingfor 749existingFIs.ThetrainingwasdeliveredbytheCentresupportedbyitstrainingpartners –MPS,HMRC,NCS(partofSOCAasof1April2006)andGreaterManchesterPolice(GMP).

COURSES DELIVERED
100 90 80 Delivered Target

Number of c ourses

70 60 50 40 30 20 10 0

2005/06

new training courses
OneofthekeyrecommendationsoftheHardingReportwastheneedforatraining courseforfinancialinvestigationmanagement(FIM).Astrategicmanagementcoursehas beendesignedformiddlemanagerswhohavenotpreviouslybeentrainedasFIs,butnow haveresponsibilityfortheirsupervisionandtasking.Thistwo-daycoursewaspilotedin 2005and,asof31March2006,67managershadbeenonthecourse.

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TheHardingReportalsoconcludedthatthementoringprogrammewasnolonger adequatefortheneedsofmentors.Followingathoroughreview,aredesignedone-day coursenowincludesonlinePDPsubmissionandBusinessandTechnologyEducation Council(BTEC)andcontinuingprofessionaldevelopment(CPD)activities.Thecoursehas alsobeenmappedagainstexistingtutortrainingNationalOccupationalStandards(NOS). Thetrainingwasofferedtoallexistingtutorswhowereamongthe310tutorstrained betweenOctober2005andJanuary2006.

training for other law enforcement agencies
InadditiontothetrainingprovidedtopoliceforcesandHMRC,theCentrecontinuedto meetitscommitmenttowidentrainingprovisiontoagrowingcommunityofotherLEAs, whichhaveaccesstotheaccreditedpowersunderPOCA.On1April2005,SI2005/382 extendedthelistoforganisationswithsuchaccess,whichnownumber61and,in 2005/06,trainingwasdeliveredto50newFIsfromtheseorganisations.

CAse stuDy
Redcar and Cleveland Council’s trading standards unitisusinganewpowerinits ongoingbattletocatchcounterfeiters.Theunit’sPrincipalTradingStandardsOfficer (TSO),JulianSorrell,hasbecomethefirstTSOinthecountrytoearnaccreditation fromARAasafinancialinvestigatorunderPOCA.Juliansaid:“I’mpleasedthe qualificationwillhelpusasateam,whichalsoinvolvesthepolice,toinvestigate andhopefullysuccessfullyprosecutecounterfeiters.Italsogivesthepowerto confiscateassetsofoffendersaswellascross-checkingoffenderspickedupbyother departments,servicesandothertradingstandardsunitsacrosstheNorthEastregion onacost-sharing/recoverybasis.”

ReCoVeReD Assets InCentIVIsAtIon FunD
In2003,theAgencysecuredfundingforthreeyearsfromtheRecoveredAssets IncentivisationFund(RAIF)toassistinthedevelopmentofthetrainingneedsofother LEAs.During2005/06,undertheagreedplan,theCentredeliveredtrainingto119FIsfrom 14agenciesacrosstheassetrecoveryandlawenforcementcommunity,bringingtoatotal of239trainedsincethefundingcommencedin2003.

ReGIonAlIseD DelIVeRy oF tRAInInG AnD eXAMInAtIons
WhilecontinuingtodelivercoursesinLondon,theCentrehasfocusedondeliveryofa substantialnumberofitscoursesthroughouttheuK.During2005/06,trainingtookplace inBristol,Newcastle,Cambridge,StockportandWareham. InDecember2005andJanuary2006,twoadditionaltrainingpartnerssignedServiceLevel Agreements(SLAs)andjoinedwiththeCentretodelivertrainingacrossEngland,Wales andNorthernIreland.AlongwiththeCentre’sexistingtrainingpartners,MerseysidePolice andPSNIwillcontributetowardstheCentre’scommitmenttodeliver65%offinancial investigationcoursesregionallyin2006/07. Followingfeedbackfrompreviousstudentsandtutors,anumberofchangeswillbe implementedforthe2006/07trainingdeliveryprogramme.Wewillreportfurtheron thisinlateryears.




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ACCReDItAtIon
Duringthisyear,493newFIswereaccreditedtousefinancialinvestigativeandrestraint powersunderParts2,4and8ofPOCA. Theaccreditationprocesshascontinuedtorunsmoothly,with98%ofaccreditations completedwithinagreedtimescales.TheCentrehascompletedtwodip-sampling exercisestocarryoutin-depthverificationoftheNOSforFIs,aspartoftheDirector’s statutorydutyunderPOCAtomonitoraccreditedFIs.Moredetailedmonitoring processeswillbedevelopedoverthecomingyeartoensurethatFIscontinuetomeet therequiredaccreditationstandards.

ACTIVE FIs

Apr 05 Jul 05 Oct 05 Jan 06 Mar 06

2208 2347 2574 2649 2745
Active FIs

“FIs work in a new and developing area of law and the BTEC qualification is a public sign that high professional standards of learning and development are maintained. This recognition of FIs can only benefit those working in this field, and further opportunities for academic qualifications would be welcomed.”
Steve Fayle, London RART

BteC VoCAtIonAl QuAlIFICAtIons
Followingonfromthesuccessfulapplicationto Edexcelin2004forassessmentcentrestatusforBTEC awards,theCentreofferedthreevocationalawards infinancialinvestigation,equivalenttotheNational VocationalQualification(NVQ)Level4.During 2005/06,atotalof378awardsweremade: BTECProfessionalDiploma BTECProfessionalCertificate BTECProfessionalAward 310 64 4

TheCentrewillworktomakemoreBTECqualifications availabletoFIsasnewtrainingmodulesarevalidated byEdexcel.






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FInAnCIAl InVestIGAtIon suPPoRt systeM
Followingawide-rangingconsultationwithFIsandotherusers,inAugust2005the CentrelaunchedthesecondphaseoftheFinancialInvestigationSupportSystem(FISS). Thise-learningandsupportsystemfortraineeandexperiencedFIssupportsthetraining, accreditationandmonitoringofFIs,enablingtheDirector’sstatutorydutytobemet. Everyonewhoenrolsonthefinancialinvestigationtrainingprogrammehasaccessto onlinesupport,CPD,acontinuallyupdatedcaselawdatabase,resourcelibrary,discussion forum,theirtrainingrecordsandonlinetutorsupport. ThelaunchoftheredesignedFISSsawa92%increaseinactiveusersto1,545acrossthe uKattheendofMarch2006.FISSreceives,onaverage,inexcessof9,500hitspermonth. TheAgencyiscommittedtocontinuedinvestmentinthedevelopmentofFISStoensure thatitremainsanintegralpartoftheCentre’sbusinessdeliveryandaninvaluablemeans ofcommunicationwiththefinancialinvestigationcommunity.

ContInuInG PRoFessIonAl DeVeloPMent
Inadditiontofinancialinvestigationtraining,theCentreprovidesessentialongoing supportanddevelopmentopportunitiestoFIsthroughCPD.CPDenablesFIstomaintain, developanddemonstratecompetenceintheirroleandallowstheDirectortofulfilher statutorydutyunderPOCAtomonitoraccreditedFIs. ThroughthedatabaseofaccreditedFIsandevaluationofCPDevidenceviamonitoringand dipsamplingofinformationprovidedbyFIs,theCentreisabletoprovideSOCA10with assuranceonthecompetenceofthosewithaccesstothefinancialintelligencegateway betweenlawenforcementorganisationsandthefinancialsector. FIsrecordtheircontinuingdevelopmentonlineviaFISSandtheCentreregularly assessesCPDevidencetoensurethatFIscontinuetomeettherequiredNOS,are usingtheiraccreditedpowersandarekeepinguptodatewithchangesaffecting financialinvestigation. DevelopmentandimplementationoftheCPDstrategywillprovidebespokeCPDactivities tosupportFIsworkingwithinawiderangeofenvironments.

InteRnAl leARnInG AnD DeVeloPMent stRAteGy
ARAiscommittedtosupportingthedevelopmentofitsownstaff.TheCentrehas undertakenareviewwhichaimstoreviseandaugmenttheexistinglearningand developmentstrategytoensurethatthisissustained. TheAgency’sLearningandDevelopmentSteeringGroup(LDSG)wasestablishedin2005 toaddressorganisationandgrouptrainingneeds.Individuallearningneedsareidentified andsupportedthroughtheAgency’sperformancemanagementsystem.

10.ThisinformationwasformallyprovidedtoNCIS,butfrom1April2006NCISbecamepartofSOCA.



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WORKINGINPARTNERSHIP
JoInt Asset ReCoVeRy DAtABAse
TheJointAssetRecoveryDatabase(JARD)wasdevelopedtoprovideacentralrepository ofinformationcoveringallaspectsoftheassetrecoveryprocess.Itencompassescash seizure,assetrestraint,criminalconfiscation,civilrecoveryandcriminaltaxationcases flowingfromPOCAandallitspredecessorlegislation. JARDenablesFIs,prosecutors,magistrates’andsheriffs’courtsacrosstheassetrecovery communitytomanagetheend-to-endprocessofacaseasitpassesthroughthejustice process.Itisacross-governmentandcross-lawenforcementdatabasewhichhasnowhad twofullyearsofsuccessfulliverunningandhasausercommunitycurrentlystandingat over3,000individuals. During2005/06,JARDPhase2wasdevelopedandimplemented.Thismajorprogrammeof systemenhancementwasbasedontheexperiencesoftheusercommunityduringitsfirst yearofoperationandalsoincorporatedthestrategicaims,directionandneedsofCICFA andtheHomeOfficeRecoveredAssetsIncentivisationFund.

ConCeRteD InteR-AGenCy FInAnCes ACtIon GRouP
CICFAwaslaunchedin2002asanon-statutory,multi-agencygrouptoco-ordinatethe workofallparticipantsinassetrecoverywork.CICFAisnowchairedbySOCA,with membersdrawnfromtheAssociationofChiefPoliceOfficers(ACPO),ARA,theScottish DrugEnforcementAgency(SDEA),CPS,DCA,theDepartmentofPublicProsecutions NorthernIreland(DPPNI),theDepartmentforWorkandPensions(DWP),theEnforcement TaskForce(ETF),theForeignandCommonwealthOffice(FCO),theFinancialServices Authority(FSA),HMCourtsService(HMCS),HMRC,HomeOffice,HMTreasury(HMT), theLegalSecretariattotheLawOfficers(LSLO),MPS,theNorthernIrelandOffice(NIO), theTreasurySolicitor’sDepartment(TSol),theRARTsandtheRevenueandCustoms ProsecutionsOffice(RCPO).11Thegroupmeetsregularlytomonitorandmanageits programmeandtodriveachievementofassetrecoverytargets. TheCICFACommunicationsGroupisledbyARA,withsupportfromalltheparticipating agencies,andaimstodeliveranintegrated,comprehensiveapproachtocommunicating withawiderangeofaudiencesaboutPOCA.Thestrategyhasdelivered:

• promulgationofbestpracticethroughthePOCA UpdateandMoney Laundering
 newsletterswithover5,000regularrecipients;

• developmentoftheassetrecoverycommunicationsstrategy; • useofthe‘payback’brandingforallassetrecoveryactivity;and • aprogrammeofeventstobuildsupportforassetrecoveryasamainstreamtool
 forreducingharmandcrime. Activitiesduringthelastyeartodeliverthestrategyhaveincluded12conferences andeventstosharebestpractice,publiciseachievementsandfurthercementjoint working.Thesehaveinvolvedallpartsoftheassetrecoverycommunityand,wherever possible,colleaguesfromtheprivatesectorwithparticularinterestsinthedetection andpreventionoffinancialcrime.

11. TheRCPOisanindependentgovernmentdepartmentprosecutingmajordrugtraffickingandtaxfraudcasesintheuK. Furtherinformationcanbefoundatwww.rcpo.gov.uk

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“An excellent event with a good balance between strategic and practitioner input.”
Hertfordshire Police delegate

CICFAitselfhasalreadydelivered:

• stronginter-agencycommitmenttothedelivery
 ofchallengingfinancialtargets;and

• useofJARDtobettermanageperformanceand
 enforcement Thegrouphasalsoworkedonidentifyingblockages intheassetrecoverysystemsandhascontinuedto focusonperformanceacrossallpartsofthecommunity. Thethemeofthesecond‘payback’financialcrime conferenceinNovember2005was‘Buildingon previousknowledge,newtechniquesandtheway forwardinmakingsurethatcrimedoesnotpay.’ Attendedbyover550delegates,theconferencewas verywellreceived. Toensurethatbothinternalandexternal communicationsarejoinedupacrosstheasset recoverycommunity,theAgencyhasfacilitateda multi-agencyCommunicationsGroup. Thegroupproducesanintegratedplanandusesa singlebrand–‘payback’–toreinforcethemessage thatalloflawenforcementisworkingtogether tomakesurethat‘crimewillnotpay’.

“My message is that asset recovery must become a mainstream enforcement tool for police forces and other agencies [and] there is more to be done to build on recent successes. We need to get on the backs of the criminal fraternity, making their lives as uncomfortable as possible by freezing and seizing their assets.”
Home Secretary, keynote address to Payback Conference, 11 November 2005

Proceeds of Crime update

Thisbi-monthlyelectronicnewsletterwaslaunchedinApril2003.Weencourage recipientstoshareitwidelywithintheirownorganisationsanditisestimatedthatit reachesinexcessof2,400readersdirectly.Itcoversnewsaboutassetrecoverysuccesses andmediacoverage,legaldevelopmentsandrelevantconferencesandseminars.Including additionalsingle-subject‘specials’,31editionshavebeenpublishedduringtheyear.A monthlymoneylaunderingsupplementwithaprimarycirculationlistofover3,000 focusesonthisimportantareainmoredepthandnineeditionsweredistributedduring 2005/06.Bothnewslettersarealsoincludedonseveralinternet/intranetsiteswherethe readershipnumberwouldfarexceedthesefigures.

“I’m delighted to see such a committed multi-agency approach to asset confiscation from criminals.”
HMRC delegate

Regional conferences
Continuingtheprogrammeofregionalconferences, organisedinconjunctionwiththeHomeOfficeandthe appropriateregionalGovernmentOffice,eventswere heldinLondon,theSouthWestandEastAnglia.The conferencesspreadbestpracticeamongthefinancial investigationandlegalcommunitiesandfocusonthe impactthatassetrecoverycanhaveinreducingcrimein thelocalcommunity.For2006/07,weareconsidering anewprogrammeofeventsledbyACPOandaimed atseniorpolicemanagers.Wearealsoreviewinghow tostructureeventstosupportotherpartsoftheasset recoverycommunityandhopetoreportfurtheronthis infutureyears.

“An excellent conference giving an opportunity to see the effects of POCA and sharing good practice.”
MPS delegate

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oRGAnIseD CRIMe tAsK FoRCe
TheOrganisedCrimeTaskForce(OCTF)wascreatedinSeptember2000bythethen SecretaryofStateforNorthernIrelandtodevelopacoordinated,multi-agencyapproach toconfrontthegrowingproblemoforganisedcrimeinNorthernIreland.

• Followingadetailedreviewofthetaskforcein2005,inwhichARAplayedafullpart,
 theOCTFnowoperatesatthreelevels:

• aministeriallychairedStakeholderGroupwhichisthepublicfaceofOCTF; • asmaller,NIO-chairedStrategyGroupofseniorrepresentativesfromtheLEAs;and
 eightworkstreams,progressedbythesubandexpertgroups.

TheStakeholderGroupmeetstwiceyearlytoadviseon,andmonitorprogressin, achievingcross-cuttingobjectivestocombatorganisedcrimeinNorthernIreland.The membershipincludesPSNI,HMRC,ARA,SOCA,theHomeOffice,theHeadofthe NorthernIrelandCivilService,NIO,theNorthernIrelandPolicingBoard,theNorthern IrelandChamberofCommerceandIndustry,theFederationofSmallBusinesses(FSB) andtheConfederationofBritishIndustry(CBI). TheStrategyGroupmeetsbi-monthly.Itsaimsaretodevelopanimproved,shared understandingofthenatureoforganisedcrimeinNorthernIreland,andidentifythe barrierstotacklingorganisedcrimeanddevelopstrategiestoovercomethem. OCTFwillbeworkingonanumberofinitiativesoverthenextyearandwehopetobe abletoreportourinvolvementinmoredetailinthefuture.

InteRnAtIonAl
TheCamdenAssetRecoveryInter-AgencyNetwork(CARIN)isan informalinternationalnetworkinrespectoftracing,seizureand confiscationoftheproceedsfromcrime.TheaimofCARINisto increasetheeffectivenessofmembers’efforts,individuallyandcollectively,onamultiagencybasis,indeprivingcriminalsoftheirillicitprofits,throughitskeyobjectives.CARIN isnotasubstitutefor,oranalternativeto,theformalandlegalstructureswhichalready exist,forexample,fortheexchangeoffinancialintelligence;forthegatheringorexchange ofevidentialmaterial;orfortheprovisionofmutuallegalassistance.CARINandits networkofcontactpointscanhelpFIsandotherstomakerequestsunderthese arrangementsintherightwayandputyouincontactwithpeopleinothercountrieswho canhelpyoumakerequests.TheAgencyprovides,incollaborationwithSDEA,theuK’s contactpointsforCARIN. Duringthelastyear,wehavecontinuedtoplayanactiveroleintheinternationalCARIN network.In2005/06,theCARINcontactpointdealtwith14requestsfromtheuKto otherjurisdictionswithinCARINand13incomingrequests.Theserequestscoveredarange oftopicsfromtheexplanationoflegalprocedures,throughthefacilitationofformal requestsforinformationorassistance,totheidentificationofpossiblecontactswhich couldassistinassetrecoveryinthirdcountries.

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InteRnAtIonAl AssIstAnCe
TheCentreofExcellencecontinuestosupportthedevelopmentoffinancialinvestigation capacityintheinternationalcommunitythroughthetrainingofFIsandindevelopingand implementingsustainabletrainingstrategiesinotherjurisdictions. In2005/06,theCentrebuiltonthecooperationestablishedwiththeRussianFederation, inpartnershipwiththeCouncilofEurope,anddeliveredtrainingaimedatassistingthe RussianFederationinsettingupatrainingprogrammeformoneylaunderinginvestigation. TheCentrecontinueditsinvolvementinaEuropeanCommissionworkinggroupwhich issettingcommonstandardsinfinancialinvestigationandaccreditationacrossall25 memberstates.FollowingonfromthereporttobepresentedtotheEuinJune2006, afurtherprojecttoensurethatalltrainingdeliveredacrosstheEumeetscommon standardswillbeundertaken.Wehopetobeabletoreportagainstthisinfutureyears. TrainersfromtheCentredeliveredspecialisedfinancialinvestigationtrainingin MontenegroinOctober2005tomembersofthePublicProsecutionOffice,judiciary, FinancialIntelligenceService,CustomsAdministration,TaxAdministrationandpolice, aspartofARA’sresponsetorequestsforassistanceinlinewithHMTreasury’sstrategic targetsforpriorityjurisdictions.Thisstronglinkhasledtofurtherrequestsforassistance fromMontenegrowhichwillbefollowedupin2006/07. InMay2005,250financialinvestigatorsattendedtheCentre’sFirstAnnualEuropean ConferenceonAssetTracinginBirmingham,discussingintelligenceandevidenceexchange betweentheuKandEuropol,Italy,Spain,theNetherlandsandBelgium.

shAReD leARnInG
Aspartofourcommitmenttosharedlearningonassetrecovery,representativesofthe Agencyhave,during2005/06,spokenat:

• theCambridgeSymposiumonEconomicCrime; • theEuTechnicalAssistanceandInformationExchange; • theFinancialandRegulatoryCrimeClub; • FinancialServicesAuthority; • G8AssetRecoveryConference,Nigeria; • theInstituteofAdvancedLegalStudies; • theInternationalConferenceonJurists,Edinburgh; • LondonBoroughFraudInvestigationGroup(LBFIG); • InstituteofMoneyLaunderingPreventionOfficers,SecondAnnualConference; • TacklingOrganisedCrimeinPartnership; • ‘TakingtheProfitoutofCrime’Conference,theBahamas;and • TradingStandardsInstitute.

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During2004/05,theAgencywelcomedanumberofoverseasvisitorsincluding:


organisation
EuropeanCommission AustralianSenate FederalPolice CambodianNationalPolice ParisGendarmerie SeriousFraudOffice FederalCriminalPolice GuardiadiFinanza FinancialIntelligenceunit OfficialGovernmentRepresentatives MinistryofJustice,SpecialInvestigation Service,StateTaxInspectorateand FinancialCrimeInvestigationService DeputyFederalAttorneyGeneral’sOfficefor SpecialInvestigationintoOrganizedCrime Europol NewZealandPoliceCommissioner EconomicFinancialCrimeCommission OfficialGovernmentRepresentatives GeneralProsecutor RussiaTrainingProject–CouncilofEurope OfficialGovernmentRepresentatives OfficeforSeriousEconomicOffences ASEMAnti-MoneyLaunderingProject PresidentialSpecialEnvoyforNorthernIreland

Country
Australia Belgium Cambodia France Ghana Germany Italy Italy Latvia

Lithuania Mexico Netherlands NewZealand Nigeria Oman Romania Russia Serbia SouthAfrica Thailand uSA

Overthelastyear,wehavemetandhelddiscussionswithanumberofpeoplewhoare interestedinusingPOCAtorecovertheproceedsofcorruptionfromothercountries whichmightbeheldinEnglandandWalesorNorthernIreland.Thesediscussionsarestill atanearlystageandtheAgencyhopestobeabletoreportfurtherinlateryears.

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AnnualReport2005/06Contents

Goodgovernance

S LD SOL OLD SO LD D SO



AnnualReport2005/06 Corporategovernance

4


CORPORATEGOVERNANCE
Overthelastyear,wehavereviewedourgovernancearrangementsagainstthe IndependentCommissionforGoodGovernanceinPublicServices’Good Governance Standard for Public Services12andthesixkeyprincipleshighlightedwithinit.Theresults wereextremelypositiveandindicatedthatwemetalmostallthestandards,butwehave identifiedsomeareaswherewecanimproveoursystemsandcommunicationsandwe willbetakingtheseforwardintheyearahead.

ARA MAnAGeMent stRuCtuRe
AstheAgencyapproacheditsthirdbirthday,theManagementBoardagreedthat,for theAgencytomeetthenewchallengescausedbytherapidexpansionincaseload,it wastimelytoreviewthemanagementstructure.Inconsultationwithstaff,anewstructure wasagreedanditwillbeimplementedfrom1April2006.Thenewstructureisshown atAnnexC.

ARA MAnAGeMent BoARD
TheManagementBoardisresponsiblefortheoverallcorporategovernanceand managementoftheAgency,includingagreeingoperationalandotherstrategiesand policies;upholdingtheAgency’svisionandvalues;andsettingdeliverytargetsandensuring theirachievement.TheBoardmeetsonceamonthandischairedbytheDirectorofARA. Inaddition,regularmeetingsdealingwithdevelopmentofstrategy,policyandcrossdepartmentissuesalsotakeplace.ItsmembershipconsistedoftheDirector,Assistant DirectorforOperations,AssistantDirectorforNorthernIreland,AssistantDirectorfor BusinessDelivery,13HeadofLegal,HeadofFinance,HeadoftheCentreofExcellence, HeadofHRandServicesandthetwoNon-ExecutiveDirectors.Themembershipofthe ManagementBoardchangedon1AprilandisshownatAnnexC.

BoARD CoMPosItIon AnD sAlARIes
£  5,000–9,999 6  0,000–69,999 9  0,000–99,999 no. of board members 2 2 3 £ 50,000–59,999 70,000–79,999 130,000–139,999 no. of board members 1 1 1

12. Availableat:www.opm.co.uk/ICGGPS/download_upload/Standard.pdf 13. TheAssistantDirectorforBusinessDeliveryleftARAinNovember2005totakeupapostatSOCA.

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AnnualReport2005/06Corporategovernance

AuDIt CoMMIttee
TheAuditCommitteemeetsonaquarterlybasisandischairedbyaNon-Executive DirectorofARA.ItspurposeistosupporttheDirector,asAccountingOfficer,by monitoringcorporategovernanceandcontrolsystemswithintheAgency.Membership consistsoftheAccountingOfficer,thetwoNon-ExecutiveDirectors,theDeputy DirectorforOperationsincludingNorthernIreland,theDeputyDirectorforServicesand the(Board)LegalAdviser.MeetingsarealsoattendedbythePrincipalFinanceOfficer (ARAHeadofFinance)andrepresentativesfrominternalandexternalaudit.

RIsK MAnAGeMent
Overthepastyear,theAgency’sriskmanagementsystemswerereviewed.Arevisedrisk managementframeworkwasintroducedwhichmorefullyrecognisestherolethateach memberofstaffplaysinriskmanagementonadailybasis. WorkingcloselywithinternalauditorsandtheManagementBoard,theAgencyintroduced aRiskManagers’GroupwhorepresentedallthebusinessunitsintheAgencyandwere consultedregularlyontheframeworkdevelopments. Thenewsystemintroducesriskmanagementintotheannualbusinessplanningcycleand thesix-monthlyperformancemanagementcycles.Aclearescalationstructure,reporting structureandaudittrailreinforcestheAgency’scommitmenttoriskmanagement. ThesystemwasintroducedacrosstheAgencyfromMarch2006inadvanceoffull implementationfrom1April2006.

PAy CoMMIttee
TherearetwocommitteeswithintheAgencythatdealwithissuesofsalaryonan executivebasisfortheManagementBoard.TheARASeniorCivilService(SCS)Pay Committeemeetsannually,chairedbyaNon-ExecutiveDirector,todiscussSCSmembers’ pay.TheARAStaffPayCommittee,alsochairedbyaNon-ExecutiveDirector,meets atleastquarterlytoreviewanyexceptional,individualpayawardsandmakespay recommendationstotheBoardonAgency-widepayreviews.

stAKeholDeR RelAtIonshIP MAnAGeMent
Inadditiontosoundinternalmanagementstructures,theAgencybenefitsfromstrong relationswithkeystakeholders. TheAgencyregularlymeetswithstakeholderstodiscussissuesofcommoninterest,and wearecurrentlyreviewingourstakeholderrelationshipmanagementstrategy.

4




AnnualReport2005/06 Transparencyandopenness

4

TRANSPARENCYANDOPENNESS
MeDIA CoVeRAGe
TheAgencypublicisesinformationaboutindividualoperationsattheearliestopportunity andworkswiththeNorthernIrelandInformationServiceandtheregionalofficesofthe GovernmentNewsNetworktopubliciserelevantmessagesinlocalcommunities.Media coverageoverthepreviousyearhasgenerallybeeninformedandaccurate.

FReeDoM oF InFoRMAtIon
TheFreedomofInformation(FoI)Schemewentliveon1January2005andARAis committedtothemovetowardsgreatertransparencyandincreasedopennessin governmentdecisionmaking. TheAgency’spoliciesarebasedonthefollowing: (i)  eactonbehalfofthepublicandarefundedbythepublicandthereforehaveno W wishtoconcealallrelevantinformation. (ii) Ouroverridingdutyistoensurethatwecansuccessfullylitigatecases. (iii)  urcase-specificdata,whileinthestagesbeforebeingmadeovert,isconfidential. O (iv) Oncecasesareinthepublicdomain,wewilldiscloseallinformationwecan. (v)  urpressandmediapolicyisbasedonprinciple(iv),notleastbecauseitassistsus O bybeingopeninourcrimereductionandcommunityreassuranceobjectives. TheAgency’spublicationschemecanbefoundonourwebsiteatwww.assetsrecovery.gov.uk

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AnnualReport2005/06Professionalstandards

PROFESSIONALSTANDARDS

ARA’sapproachtoprofessionalstandardsisbasedupon:

•	 clearlydefiningthevisionandvaluesthatshouldunderpinallaspectsofour work; •	 continuallycommunicatingthesethroughouttheAgencyandregularlyusing themtoguidedecisionsonallaspectsofouroperations; •	 stressingtheirimportanceandapplicationtoallnewlyappointedstaff; •	 designingoursystemstoensurethattheyrespectthestandards;and •	 regularlyauditingagainstkeystandardstodetectanymisconduct.
ItincludesallaspectsofourworkfromourHRprocessesthroughthewaywemanageand makedecisionsoncaseworktoourcoresystemstoprotectthesafetyandsecurityofour staff,countercorruptionandsafeguardourITsystems. Wehavealsocarriedoutanumberofreviewsduringtheyearwheretherewereconcerns aboutthewayinwhichprocesseshadoperatedandwherewefeltwecouldlearnfrom experiences.Theseincluded:

•	 theprocessforselectingseniorFIs;and •	 themanagementofrecordsnotrelatedtocaseworkservicesprovidedbythe FacilitiesTeaminLondon.
Workisongoingandwewillreportonthisinfutureyears.

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AnnualReport2005/06 Qualityassurance

4

QuALITYASSuRANCE
leXCel
TheLegalServicesTeamLondongainedLexcelaccreditationinDecember2004and wassuccessfullyreaccreditedinFebruary2006againsttheupdatedandmorestringent standardwithnonon-compliances.Inhisreport,theassessorstatedthatinhiswide experience,hehadneverknownsuchagoodresulttwoyearsrunningfromany legalteam.14LexcelistheLawSociety’sexcellencestandardforlegalpractices.The accreditationcoverspracticestandardsofcommunicating,managingclientrelationships, legalresearch,traininganddevelopment,managementofpeopleandclientcareand marketingaswellascaseworkandfilekeeping,andensuresclarityandconsistencyinthe team’swork.TheBelfastLegalServicesTeamwasgrantedLexcelaccreditationinApril2005 andwillbereassessedduring2006/07.

BRItIsh stAnDARDs InstItute – Iso 9001:2000
During2005/06,theCentreofExcellenceunderwenttworobustauditswhichresultedin retentionofitsregistrationundertheBritishStandardsInstitute(BSI)ISO9001:2000quality standardinallitsfunctions.Thereportstatedthat‘[theBSI]ispleasedtorecommendthe continuationofyourregistration.Theareasassessedduringthecourseofthevisitwere foundtobeeffective.Correctiveactionswithrespecttononconformities/issuesraised atthelastassessmenthavebeenreviewedandfoundtobeeffectivelyimplemented. Nonewissuesornonconformitieswereidentifiedduringtheassessment.15Thisaward confirmsthattheCentrecontinuestodemonstrate,throughitsqualitymanagement system,itscommitmenttoprovidefinancialinvestigationtraining,accreditationand monitoringservicestoastandardthatmeetsbothourcustomers’requirementsandthe Director’sstatutoryduty.

InVestoRs In PeoPle ACCReDItAtIon
TheAgencyachievedInvestorsinPeople(IiP)accreditationinDecember2004andwas reassessedagainstthenewIiPstandardinFebruaryandMarch2006.ARAwassuccessfulin retainingaccreditationatthenewstandard.Asanorganisationcommittedtocontinuous improvement,theAgencyhasundertakentobereassessedevery12months,ratherthan everythreeyears,toensurethatweconsistentlystrivetoachievethehigheststandards.

14. Wooddissee,John,Lexcel Annual Maintenance Visit Report for ARA Legal Services Team (London),February2006. 15. BritishStandardsInstituteAssessmentReport,VisitRef:4664713,November2005.

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AnnualReport2005/06Contents

Peopleandmoney

SSOLD OLD



AnnualReport2005/06 Staffing

5

STAFFING
stAFF nuMBeRs AnD loCAtIons
Duringthecourseoftheyear,therehasbeenanoverallincreaseof46permanent positions,composedofonemovefromsecondment,loanortemporarypostsand 45brandnewroles,tosupporttheongoingdevelopmentoftheAgency.

stAFFInG As At 31 MARCh 2006
total Director’sandAssistantDirectorBelfastOffice Operations* Legal BusinessDeliveryunit** HRandFacilities Communications Finance total
*Includes8staffthatarelocatedwithintheRARTsandworkremotely. **BusinessDeliveryunit(BDu)consistsofICT(10),PolicyandPerformance(6),andtheCentreofExcellence(27).

12 75 42 43 15 5 9 201

DIVeRsIty
Duringtheyear,weconductedaprojecttoestablishhowwemightfurtherembedour diversityvalueandensurethatvaluingthecontributionofeveryoneandcelebrating successismainstreamedwithintheAgency.Theoutcomeoftheprojecthasbeen thecreationoftheDiversityFocusGroup,chairedbytheDirectorandcomposed ofrepresentativesfromacrossthebusiness.Thegrouphasdevelopedadignityat workpolicy.

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AnnualReport2005/06Staffing

stAteMent on DIVeRsIty
TheAgencyexiststomakesurethatcrimedoesnotpay.Crimeanditseffectshave animpactonallcommunities.Werecognisethevitalimportanceofrespectingand reflectingthosethatweserveinmakingusamoreeffectiveorganisation,betterable torecovertheproceedsofcrime. WithintheAgency:

•	 westrivetobeanequalopportunitiesemployerandensurethatprinciples ofequalityandfairnessarewidelypromotedandembeddedinallthatwe do; •	 weaimtoappoint,develop,promoteandtreatallourteammembersfairly andonthebasisofmerit; •	 weendeavourtoensurethatnojobapplicantorteammemberisunfairly
 discriminatedagainstonanygrounds;and
 •	 wearecommittedtoensuringthatallouroperationalactivitiesand dealingswithourpartners,stakeholdersandthecommunitiesthatweserve arefairandreasonable.

(RACe) eQuAlIty sCheMe
TheAgency’s(Race)EqualityImplementationSchemewaspublishedon31May2005. AnimplementationteamhasbeencreatedtoevaluateallAgencypoliciesandestablish whethertheyneedafullequalityimpactassessment.Teammembersareundertaking equalityimpactassessmenttrainingandwewillbereportinginfutureyearsonthe outcomeofthepolicyreview.

FINANCE
TheAgencyisanon-ministerialdepartment,withtheDirectorastheAccountingOfficer. Thetotalfinancialresourceallocationfor2005/06was£17,109million,approximately73% ofwhichwasallocatedtooperationalareas. TheAgencyhascontinuedtouseexternalspecialiststoassistintheinvestigationand recoveryofassetsinordertocomplementthein-houseteam’sabilityandexperience atkeystagesofcertaincomplexcases. Includedwithinthenon-paycostofthesupportdivisionaretheaccommodation andtelephonycostsoftheAgency’sLondonoffice.Theofficesarenotjustusedby thesupportdepartmentsoftheAgency,butwedecidednottoallocatethesecosts separatelybetweenthedepartmentsoftheAgencyatthisstageofourdevelopment. Inthefirstyearofoperation,theAgencyenteredintoanarrangementwithanother governmentdepartmentwherebypartofthisaccommodationissub-lettothem. Thisarrangementcontinuestobeinplaceandtheadditionalincomeisnettedoffas othernon-paycosts,asshowninthefinancialtable.

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5

FInAnCIAl ResouRCe AlloCAtIon InFoRMAtIon 2005/06 (£’000)
operations Pay Externalspecialists Othernon-paycosts Income(A-in-A) total 6,484 2,810 3,297 –140 12,451 support 1,061 15 3,582 – 4,658 total 7,545 2,825 6,879 –140 17,109

MoredetailedfinancialinformationisprovidedinthetablesatAnnexB.

ReCoVeReD Assets InCentIVIsAtIon FunD (RAIF) CICFA communications strategy
Asnotedinthesectiononworkinginpartnership(page40),ARAhastakentheleadin developingacommunicationsstrategyonbehalfofCICFA. Thetotalcostofthecommunicationsstrategyfor2005/06,metfromRAIF,is£465,000. Ofthistotal,£300,000wasallocatedtoconferencesforfront-lineoperationalFIsand £45,000totrainingnon-policeFIs.Some£120,000wasalsoallocatedforthefurther developmentofFISS.

Joint Asset Recovery Database
TheAgencyalsoreceivedfundingof£575,000fromRAIFin2005/06forthedevelopment ofJARD(seealsosectiononworkinginpartnership,page40).

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Keepingupmomentum

D OLLD S O N SSOL OZE OFR LD S D



AnnualReport2005/06 Nextsteps

6

NExTSTEPS
ARAwillcontinuetodevelopitsunderstandingofthelegislation,topursueanaggressive settlementpolicy,andtoinnovateandaggressivelylitigateunderthefullrangeofPOCA powers.TheAgencycontinuestomonitortheworkingofPOCA,inparticularParts 5and6,toidentifyanyimprovementsthatcanbemadetothelegislation.Asalready stated,someimprovementswereenactedinSOCPA,whileothersuggestionsarenotified totheHomeOfficeasaresultofdevelopmentsforconsideration. TheAgencywillcontinuedevelopingstrongrelationshipswithitskeystakeholdersand exploringhowbestwecanallworktogethertoensurethatcrimedoesnotpay.Wewill alsocontinuetodevelopourownfinancialinvestigationandlegalskillsthroughshared learningwithourstakeholders. Wewillstrivetogetbestvalueformoneysothatasmuchresourceaspossiblecanbe committedtofront-lineinvestigationandlitigation.

InteRnAtIonAl
TheAgencywillcontinuetoliaisewithforeignjurisdictionstomaximiseourchancesof successinrecoveringassetsheldabroadasaresultofcriminalactivityinEngland,Wales andNorthernIrelandandtoworkwiththemonrecoveringassetsheldintheuKasa resultofoverseascriminalactivity.

5


7

Annexes


FRO

ZEN

Annual report 2005/06 Annex A

7

Annex A: The Agency’s TArgeTs And Progress Achieved
	 	 civil/tax referrals16 criminal assists17 civil/tax criminal adoptions18 disruptions20 civil/tax disruptions19 Total	disruption	 civil/tax concluding actions21 criminal confiscation orders22 civil/tax/criminal receipts23 Target	 volume	 – – 100 – – –	 35 10 – Actual	 volume	 167 38 108 73 27 100		 24 23 – Target	 value	(£m)	 – – – – – –	 15.5 4.0 6.0–12.0 Actual	 value	(£m) – – – 49.7 36.0 85.7 4.6 7.2 4.1

16. number of civil/tax referrals received in year. 17. number of criminal confiscations, PocA adoptions and pre-PocA assists taken on. 18. number of civil/tax cases adopted in year. 19.	 number and value of disruptions achieved in civil recovery or tax cases, defined as: obtaining of freezing orders/Marevas/iros/PFos, issue of a tax assessment, obtaining of recovery order where freezing has not taken place, voluntary settlement/payment where no order or freezing has taken place; or undertakings given not to deal with assets, where freezing has not taken place. 20. number and value of disruptions achieved in criminal, defined as obtaining of restraint orders or obtaining of confiscation orders, where assets are not under restraint. 21. number and value of civil/tax concluding actions in year, defined as: recovery orders; voluntary settlements; tax agreements. 22. number and value of criminal confiscation orders made. 23. receipts following concluding action in civil/tax and criminal cases, as defined under fn16 and fn17.

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Annex A

Objective: To disrupt organised criminal enterprises through the powers of the Proceeds of crime Act 2002 and through meeting government targets for the recovery of criminal assets, both directly and by assisting other law enforcement agencies, thereby alleviating the effects of crime on communities. Target	 Across the London and Belfast branches of the Agency: disrupt 70 criminal enterprises at all levels of criminality through the institution of action on ArA-led criminal confiscation, civil recovery and taxation cases. Activity •	 continue to assist in the investigation
 of the existing 45 adopted criminal 
 confiscation cases.
 investigations in existing caseload 
 continued in 2005/06.
 •	 Adopt a further five cases assisting other law enforcement agencies with criminal confiscation investigations. 18 pre-PocA cases adopted.

•	 Adopt 15 PocA cases for ArA to
conduct the criminal confiscation investigation. 20 PocA cases adopted. •	 Adopt a further 100 cases for civil recovery/taxation investigation. 108 cases adopted for civil recovery/ taxation. •	 complete the investigation in at least 55% of cases, including 100% of cases under investigation on 1 April 2005, and move to litigation where appropriate. 83% of cases under investigation on 1 April 2005 now completed. 48% of cases adopted in 2005/06 now completed. •	 disrupt criminal enterprises by early restraint of assets in all cases to the value of £25 million.24 £85.7 million restrained.

24. disruption is defined as: a) the freezing of assets through a restraint, freezing, Mareva or interim receiving order; or b) where freezing has not taken place, either i) making of a confiscation or recovery order, or ii) voluntary settlement/ payment, where no order has been made, or iii) undertakings given not to deal with assets; or c) the issue of a tax assessment.

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Annual report 2005/06 Annex A

7

Objective: To disrupt organised criminal enterprises through the powers of the Proceeds of crime Act 2002 and through meeting government targets for the recovery of criminal assets, both directly and by assisting other law enforcement agencies, thereby alleviating the effects of crime on communities. Target Activity • obtain confiscation orders in at least ten cases to the value of £4 million. confiscation orders to the value of £7.2 million obtained in 23 cases. • obtain recovery orders/voluntary settlements25 and issue tax assessments in at least 35 cases, to the value of between £15.5 million and £20.5 million. recovery orders to the value of £4.6 million obtained in 24 cases. • ensure effective enforcement of all orders and realise receipts in civil recovery,26 taxation and criminal confiscation cases to the value of between £6 million and £12 million. £4.1 million of all orders enforced. in Belfast, in contribution to the above Agency-wide targets: disrupt 25 criminal enterprises at all levels of criminality through the institution of action on ArA-led civil recovery and taxation cases.

• contribute to ArA target by adopting
32 cases for civil recovery/taxation investigation. 22 cases adopted. • contribute to ArA target by disrupting criminal enterprises by early restraint of assets in all cases to the value of £6 million. £15.9 million restrained through civil recovery. •	 contribute to ArA target by obtaining recovery orders to the value of at least £7 million. recovery orders to the value of £326,000 obtained.

25. Where the Agency is able to close a civil recovery case on the basis of a payment or payments made by the person or persons believed to be in possession of recoverable property without the initiation of court proceedings. 26. includes cases both where an order is made and where a voluntary settlement is reached without the issue of proceedings.

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Annex A

Objective: To deliver high-quality training to financial investigators within and outside the law enforcement community, and to increase the capacity for high-quality financial investigation within and outside the law enforcement community. Target delivery of agreed number of courses on financial investigation and specialised modules. Activity • 80 courses delivered in coordination with our training partners by March 2006. 117 courses delivered. support the statutory duty of the director of ArA through the effective monitoring and continuing professional development of financial investigators. support delivery of training to financial investigators from other LeAs.27

• Manage the accreditation and appeals
process within agreed timescales. There were no accreditation appeals.

• Provision of 65 recovered Assets
incentivisation Fund-funded training places to financial investigators. This was achieved.

• Provision of matching number of
ArA-funded places. 54 places taken up. Objective: To have achieved orders to the value of the Agency’s revenue budget by 2005/06 and to increase this figure by at least 5% a year thereafter. Target	 recover an amount equivalent to 100% of ArA budget.	 Activity •	 obtain recovery orders/voluntary settlements and issue tax assessments to the minimum value of £15.5 million (equivalent to ArA baseline budget). recovery orders/voluntary settlements and tax assessments to the value of £4.4 million obtained. •	 Follow agreed government accounting guidelines. Accounting guidelines followed and recommendations from audit of 2004/05 accounts implemented. •	 implement all internal audit recommendations in line with timetable agreed with auditors. internal audit recommendations agreed and implemented to agreed timetable.

27. This refers to those financial investigators who have by statutory order of the secretary of state been permitted to exercise restraint and investigation powers under Parts 2, 4 and 8 of PocA.

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Annual report 2005/06 Annex A

7

Objective: To maintain public, stakeholder and professional colleagues’ confidence in the professionalism and integrity of the Agency. Target To maintain at least the levels of confidence as established in baseline surveys in 2004 (i.e. yougov, ni omnibus, stakeholder surveys). Activity • increase (from 2004 baseline) by 2%, year on year, the proportion of the population (in england and Wales and northern ireland) who agree that the Agency should have its powers. in 2005/06, as in 2004/05, 85% of respondents in england and Wales felt that the Agency should have its powers. in 2005/06, 89% of respondents in northern ireland felt that the Agency should have its powers; a 2% increase on 2004/05.

• reduce (from 2004 baseline) by 2%,
year on year, the proportion of the population (in england and Wales and northern ireland) who are concerned that the Agency may abuse its powers. A 2% decrease was recorded in england and Wales and northern ireland.

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Annex B

Annex B: deTAiLed FinAnciAL TABLes
TABLE	1:	TOTAL	PUBLIC	SPENDING	FOR	THE	ASSETS	RECOVERY	AGENCY	 (£000)
	 	 Consumption	of	 resources: helping to reduce crime by recovering the proceeds of crime by criminal and civil proceedings and by taxation Total	resource	budget	 of which: resource deL (1, 2) Capital	spending: helping to reduce crime by recovering the proceeds of crime by criminal and civil proceedings and by taxation Total	capital	budget	 of which: capital deL (1) Total	public	spending	(3)	 2003/04	 Outturn	 2004/05	 Outturn	 2005/06	 Projected	 2006/07	 Projected	 2007/08	 Projected

11,026 11,026	 11,026

14,017 14,017	 14,017

16,748 16,748	 16,748

15,551 15,551	 15,551

15,551 15,551 15,551

1,074 1,074	 1,074 12,085	

101 101	 101 13,851	

361 361	 361 16,784	

0 0	 0 15,151	

0 0 0 15,081

notes 1. departmental expenditure limits, set as part of the 2002 spending review. 2. of which, resource ‘near-cash’ deL. 3. Total public spending calculated as the total of the resource budget plus the capital budget, less depreciation.

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Annual report 2005/06 Annex B

7

TABLE	2:	RESOURCE	BUDGET:	DEL	AND	AME	(VOTED	AND	NON-VOTED)	
 (£000)

	 	 Resource	DEL Voted in estimate entitled: Assets Recovery Agency helping to reduce
 crime by recovering
 the proceeds of crime
 by criminal and civil
 proceedings and by
 taxation
 helping to reduce crime rfr 1 A Total	voted	 Total	resource	DEL	 Total	resource	budget	 of which: voted and of which: Central	government	 own	spending:	 resource deL in estimates:
 resource deL in budgets Total	resource	 consumption	in	estimate	 11,026 11,026	 14,017 14,017	 16,748 16,748	 15,551 15,551	 15,551
 15,551 11,026 11,026	 11,026	 11,026	 11,026 14,017 14,017	 14,017	 14,017	 14,017 16,748 16,748	 16,748	 16,748	 16,748 15,551 15,551	 15,551	 15,551	 15,551 15,551 15,551 15,551 15,551 15,551 2003/04	 Outturn	 2004/05	 Outturn	 2005/06	 Projected	 2006/07	 Projected	 2007/08	 Projected

11,026	

14,017	

16,748	

15,551	

15,551

NB	Voted	net	resource	outturn	in	estimate	entitled:	Assets	Recovery	Agency	

notes 1. deL limits in this table are consistent with definitions used in the 2002 spending review. 2. Figures for deL limits consistent with definitions used in the 2000 spending review are shown in table 5. 3. voted deL and AMe excludes any eU receipts included in deL and AMe in estimates.

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Annex B

TABLE	3:	CAPITAL	BUDGET:	DEL	AND	AME	(VOTED	AND	NON-VOTED)	(£000)
	 	 Capital	DEL	 helping to reduce
 crime by recovering
 the proceeds of crime
 by criminal and civil
 proceedings and by
 taxation
 helping to reduce crime rfr 1 A Total	voted	 Total	capital	DEL	 Total	capital	budget	 of which: voted and of which: Central	government	own	 spending:	 capital deL in budgets Total	capital	consumption	 in	estimate	 1,074 1,074	 1,074	 1,074	 1,074 101 101	 101	 101	 101 361 361	 361	 361	 361 0 0	 0	 0	 0 0 0 0 0 0 2003/04	 Outturn	 	 2004/05	 Outturn	 	 2005/06	 Projected	 	 2006/07	 Projected	 	 2007/08	 Projected 	

Voted in estimate entitled: Assets Recovery Agency

1,074	 1,074 1,074

101	 101 101

361	 361 361

0	 0 0

0 0 0

NB	Voted	net	capital	in	estimate	entitled:	Assets	Recovery	Agency	

notes 1. deL limits in this table are consistent with definitions used in the 2002 spending review. 2. Figures for deL limits consistent with definitions used in the 2000 spending review are shown in table 5. 3. voted deL and AMe excludes any eU receipts included in deL and AMe in estimates.

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Annual report 2005/06 Annex B

7

TABLE	4:	ASSETS	RECOVERY	AGENCY	CAPITAL	EMPLOYED	(£000)
	 Assets	on	balance	sheet		 2003/04	 	 at	end	of	year:	 Outturn	 Fixed	assets	 intangible Tangible of which: Land and buildings Plant and machinery Debtors	>	1	year	 Investments	 Current	assets	 creditors < 1 year Capital	employed	within	 main	department	 ndPB net assets Total	capital	employed	 in	departmental	group 1,866 692 1,174 34	 	 1,551	 4,693 (1,242)	 1,640 648 992 1	 	 1,798	 4,589 (1,511)	 2,500 (420)	 1,658 538 1,120 112	 	 1,150	 2,500 (53)	 1,181 461 720 116	 	 1,150	 1,150 2,500 (591) 634 384 250 125 	 2004/05	 Outturn	 	 2005/06	 Projected	 	 2006/07	 Projected	 	 2007/08	 Projected 	

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Annual report 2005/06

Annex B

TABLE	5:	
 RESOURCE	AND	CAPITAL	BUDGET	DEL	AND	AME,	ON	THE	PREVIOUS	
 DEFINITIONS	OF	RESOURCE	ACCOUNTING	AND	BUDGETING	USED	IN	THE	
 2000	SPENDING	REVIEW

	 	 Resource	budget	 Resource	DEL	 helping to reduce
 crime by recovering
 the proceeds of crime
 by criminal and civil
 proceedings and by
 taxation
 Resource	AME	 helping to reduce
 crime by recovering
 the proceeds of crime
 by criminal and civil
 proceedings and by
 taxation
 of which: non-cash items Total	resource	budget	 Capital	budget	 Capital	DEL	 helping to reduce
 crime by recovering
 the proceeds of crime
 by criminal and civil
 proceedings and by
 taxation
 Total	capital	budget	 1,074	 101	 361	 0	 0 11,026	 	 1,074	 14,017	 	 101	 16,748	 	 361	 15,551	 	 0	 0 15,551 	 	 	 	 2003/04	 Outturn	 	 11,026	 2004/05	 Outturn	 	 14,017	 2005/06	 Projected	 	 16,748	 2006/07	 Projected	 	 15,551	 2007/08	 Projected 	 15,551

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Annual report 2005/06 Annex c

7

Annex c: orgAnisATionAL chArT
The 2005/06 organisational chart
Management board member
Director Non-Executive Directors

Assistant Director Operations

Assistant Director Northern Ireland

Head of Legal

Assistant Director Business Delivery Unit

Head of Finance

Head of HR & Services

Ops Team Leader 1

Business Manager

Head of Legal Casework (E&W)

Head of Centre of Excellence

Procurement Manager

Facilities Manager

Ops Team Leader 2

Ops Team Leader 1

Head of Legal Administration

Head of Communications

Ops Team Leader 3

Ops Team Leader 2

Head of ICT

Criminal Confiscation Team Leader

Head of Legal Casework (NI)

Head of Policy & Performance

Department Security Officer

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Annual report 2005/06

Annex c

The 2006/07 organisational chart (as at 1 April 2006)
Management board member
 reports to


Director Non Executive Directors Head of Communications

Head of Finance

Deputy Director Operations including Northern Ireland

(Board) Legal Adviser28

Deputy Director Services

Civil Investigation Team 1 Head of Professional Standards including Department Security Officer Head of Facilities

Civil Investigation Team 2

Civil Investigation Team 3

Criminal Investigation Team (E&W)

Head of HR

Criminal Investigation Team (NI)

Head of ICT

Criminal Confiscation

Head of Policy & Performance

Litigation Team (E&W)

Head of Training & Development

Litigation Team (NI)

Business Manager

Business Manager

28. (Board) Legal Adviser is also responsible for cPd of all ArA legal staff.

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Annual report 2005/06 Annex d

7

Annex d: gLossAry

AcPo Association of chief Police officers of england, Wales and northern ireland A-in-A Appropriations in Aid AMe annually managed expenditure ArA Assets recovery Agency BdU Business delivery Unit Bsi British standards institute BTec Business and Technology education council cBi confederation of British industry cicFA concerted inter-Agency criminal Finances Action group cAB criminal Assets Bureau, republic of ireland cArin camden Assets recovery inter-Agency network coe Financial investigation centre of excellence cPd continuing professional development cPs crown Prosecution service crg case referral group crU civil recovery Unit, scotland dcA department for constitutional Affairs deL departmental expenditure limit disruption a) the freezing of assets through a restraint, freezing, Mareva or interim receiving order; or b) where freezing has not taken place, either i) making of a confiscation or recovery order, or ii) voluntary settlement/payment, where no order has been made, or iii) undertakings given not to deal with assets; or c) the issue of a tax assessment dPP(ni) (office of the) director of Public Prosecutions northern ireland dWP department for Work and Pensions echr eFis eTF Fco FdA Fi Fiss FsA hMce hMcs ho hMrc hr iiP ir iso JArd KPi LeA Lsc LsLo LsT Mareva MoU MPs ncis ncs ndPB nos ocTF european convention on human rights enhanced Financial investigation skills course piloted by the coe enforcement Task Force Foreign and commonwealth office First division Association (of senior civil servants) financial investigator Financial investigation support system Financial services Authority her Majesty’s customs and excise her Majesty’s courts service home office her Majesty’s revenue and customs (merge of hMce & ir) human resources investors in People inland revenue international organisation for standardization Joint Asset recovery database Key Performance indicators (see Annex A for ArA’s KPis) law enforcement agency Legal services commission Legal secretariat to the Law officers Legal services Team A Mareva injunction is the northern ireland equivalent of a freezing order memorandum of understanding Metropolitan Police service national criminal intelligence service national crime squad non-departmental public body national occupational standards organised crime Task Force, northern ireland

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Annual report 2005/06

Annex d

Pcs PdP PhAre PocA PsA Psni QMs rAiF rArT rcPo scs sFo socA socPA

Public and commercial services Union Personal development Portfolio Poland, hungary Aid for the reconstruction of the economy (an eU programme) Proceeds of crime Act 2002 Public service Agreement Police service of northern ireland quality management system recovered Assets incentivisation Fund regional Asset recovery Team revenue and customs Prosecutions office senior civil service serious Fraud office serious organised crime Agency serious organised crime and Police Act 2005

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Annual report 2005/06


Produced by coi on behalf of The Assets recovery Agency
 June 2006 ref: 274534


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if you would like an electronic copy of the Annual report and Business Plan, please go to our website www.assetsrecovery.gov.uk Alternatively, if you would like to receive a hard copy please e-mail enquiries@ara.gsi.gov.uk The Assets recovery Agency Po Box 39992 London ec4M 7xQ 020 7029 5700 www.assetsrecovery.gov.uk


				
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