The Proceeds of Crime Act 2002 (POCA) Explained
Frozen bank accounts, restraint orders, and confiscation demands all trace back to one statute: the Proceeds of Crime Act 2002 (POCA). POCA lets courts and enforcement agencies take money and property gained through crime. It also creates the main money laundering offences. The Act covers confiscation after a conviction, civil recovery without one, account freezing, and investigation powers. Many people meet POCA when a bank closes an account, or an officer serves a court order. This guide explains each part and what to do next.
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What is POCA?
POCA is the main UK law on criminal property. Parliament passed it to remove the financial reward from crime, and it applies to money from fraud, drug supply, tax evasion, and any other offence. It also reaches property that represents the proceeds of crime, even after the property changes form. A car bought with stolen funds, for example, falls within its scope. The Act came into force in 2003.
Several agencies use POCA. The Crown Prosecution Service (CPS), the Serious Fraud Office (SFO), His Majesty's Revenue and Customs (HMRC), the police, the National Crime Agency (NCA), and local authorities all hold powers under it. Each agency applies the Act to its own cases. An HMRC tax inquiry follows a different route from a police drugs investigation, yet both can end in a restraint or confiscation order against you.
You will see the Act written as POCA, POCA 2002, and P.O.C.A. All three forms refer to the same statute. Lawyers add the year because Parliament has amended the Act many times, and the 2026 confiscation reforms are the latest example.
The Main Parts of POCA
POCA runs to a long list of parts, but four matter most in practice. Each part gives the state a different tool, and each tool applies at a different stage of a case. Scotland and Northern Ireland have their own confiscation rules in other parts of the Act. The table below covers the four parts that affect most clients in England and Wales.
The full text of the Act is available on legislation.gov.uk.
How POCA Confiscation Works
Confiscation follows a conviction in the Crown Court. The prosecution asks the court to recover what you gained from the crime, and the judge decides the figure in three steps:
- Benefit. The court measures what you gained from your offending.
- Criminal lifestyle. The court decides whether you have a criminal lifestyle under Schedule 2 and the Section 75 tests. If you do, Section 10 requires the court to apply assumptions to property you held over the previous six years.
- Available amount. The court identifies what you can pay, including the value of your assets and certain gifts you made.
The order equals the lower of your benefit and your available amount. The court sets a deadline for payment. Unpaid orders attract interest, and the court can impose a default prison term. Serving that term does not cancel the outstanding debt. The order may be enforced subject to the statutory provisions relating to enforcement and provisional discharge. Section 6 of POCA sets out the court's duty to act.
The six-year assumption catches many people off guard. The six years run back from the start of the criminal proceedings. The court presumes that property you held in that period came from crime, unless you show otherwise or the court finds a serious risk of injustice. Gather evidence of your legitimate income early, because the burden sits with you.
Changes to Confiscation from The Crime and Policing Act 2026
The Crime and Policing Act 2026 overhauls Part 2 of POCA. From 29 June 2026, the court must set a confiscation timetable before the sentencing hearing ends. New section 15A creates this duty and replaces the old power to postpone proceedings for up to two years. Schedule 21 to the Act contains the details, and Home Office Circular 008/2026 explains the timetable.
The timetable fixes deadlines for the exchange of financial statements and the date of the confiscation hearing. The court can also order an early resolution of confiscation (EROC) meeting. This gives you and the prosecution a structured chance to narrow or settle the issues before a contested hearing. Other reforms address hidden assets, enforcement plans, and the provisional discharge of orders that cannot be paid.
The reforms come into force in stages, and some provisions depend on when the offending took place. Check the commencement position on legislation.gov.uk, and ask your solicitor which rules govern your case. The GOV.UK proceeds of crime factsheet summarises the changes.
Restraint Orders: Freezing Assets During an Investigation
A POCA restraint order freezes your assets before any confiscation order exists. Under section 41, the Crown Court can make the order once a criminal investigation has started and there is reasonable cause to believe you benefited from criminal conduct. The prosecutor often applies without notice to you, so the first sign is frequently a call or letter from your bank.
The court may allow funds to be released for reasonable living expenses and business costs. However, under section 41(4), restrained funds generally cannot be used to pay legal costs for the criminal case itself. Many people do not expect this, so plan how you will fund your defence early and ask your solicitor which assets sit outside the order. The availability of these exceptions depends on the circumstances and the terms of the order.
Breaching a restraint order is contempt of court, and it can lead to imprisonment. Keep to every term, tell your solicitor before you move or spend any asset, and apply to the court for a variation when your circumstances change. Read more about confiscation and asset restraint.
POCA Money Laundering Offences
Part 7 creates the offences most people link to the Act. Section 327 covers concealing criminal property. Section 328 covers entering into an arrangement that you know, or suspect, helps another person to use criminal property. Section 329 covers acquiring, using, or possessing it. Each offence carries up to 14 years in prison.
Section 330 targets the regulated sector, such as banks, accountants, and solicitors. It makes failure to disclose a suspicion of money laundering an offence, with a maximum sentence of five years. Section 333A creates an offence of tipping off in the regulated sector. It can apply where a person discloses that a suspicious activity report has been made, or that an investigation is being contemplated or carried out, and the disclosure is likely to prejudice that investigation.
Two defences matter most. The first is an authorised disclosure, often called a defence against money laundering (DAML) request. You report your suspicion to the NCA and proceed only after you receive consent or the statutory notice period ends. The second applies to section 329 alone: you acquired, used, or held the property for adequate consideration. Read more about money laundering defences and the work of money laundering solicitors.
Civil Recovery and Account Freezing Orders (No Conviction Needed)
POCA also works without a conviction. Part 5 lets enforcement agencies pursue property through civil proceedings, and the court decides forfeiture cases on the balance of probabilities rather than beyond reasonable doubt. You can lose property even when the police never charge you.
Account freezing orders go through the Magistrates' Court under section 303Z1. An officer applies, often without notice, when there are reasonable grounds to suspect that money in an account is the proceeds of crime or is intended for use in unlawful conduct. A freezing order lasts for the period the court sets, up to a maximum of two years. Forfeiture then follows through a separate application.
Unexplained wealth orders go through the High Court under section 362A. The court can order a person to explain how they obtained property worth more than £50,000 if there are reasonable grounds to suspect that known income was insufficient, and the owner is a politically exposed person or is suspected of involvement in serious crime. Read the guide to unexplained wealth orders.
What to do if your bank account is frozen
- Read the order and note every date in it.
- Contact a criminal defence solicitor on the same day.
- Gather payslips, tax returns, contracts, invoices, and bank statements that show where the money came from.
- Apply to the magistrates' court to vary the order for living and legal expenses.
- Keep a record of every contact with the investigating officer and the bank.
- Avoid moving money through other accounts or third parties.
Read more about whether HMRC can check your bank accounts.
What to Do If POCA is Used Against You
Act early, because the deadlines in POCA cases are short. A missed date in confiscation proceedings can cost you the chance to challenge the prosecution's figures. Contact a solicitor with POCA experience as soon as you learn of an investigation, a restraint order, or a freezing order.
Gather evidence of your legitimate income. Payslips, tax returns, business accounts, loan agreements, and property records all help to show where your assets came from. Keep to the terms of any order, and do not sell, transfer, or hide assets while it applies. Breaches harm your position and can lead to separate proceedings.
If you already face confiscation after a conviction, read how to protect your assets after conviction. If the police charge you with a money laundering offence, read what to expect when charged with money laundering or POCA offences. Holborn Adams advises on POCA matters across England and Wales, from restraint and freezing orders to confiscation hearings. Call our helpline on +44 (20) 3870 2249, or contact the team to speak with an experienced solicitor about your case.
Frequently Asked Questions
What does POCA stand for?
POCA stands for the Proceeds of Crime Act 2002. People also write it as P.O.C.A. The Act is the main UK law on confiscating criminal property, and it creates the money laundering offences in sections 327 to 329.
What is a POCA charge?
A POCA charge is usually a money laundering offence under section 327, 328, or 329. Confiscation is not a charge. It is a process that follows a conviction for another offence, such as fraud or drug supply.
Can POCA take my house?
Yes, if the house counts towards your available amount. The court looks at your interest in the property and hears from other people with an interest, such as a spouse, a co-owner, or a lender. It decides each person's share before it fixes the amount. The court can then appoint an enforcement receiver to sell the property if you do not pay.
What happens if I cannot pay a confiscation order?
Interest builds on the unpaid sum, and the court can enforce the default prison term. Serving that term does not cancel the debt. Tell your solicitor immediately. You can apply under section 23 to reduce the order if your available assets turn out to be worth less than the court found.
How far back can POCA go?
The criminal lifestyle assumptions reach back six years from the start of the criminal proceedings. The court presumes that property you held in that period came from crime. Benefit from earlier conduct can still count if the prosecution proves it.
Can the police freeze my bank account without charging me?
Yes. An account freezing order does not require a charge. The police, HMRC, the NCA, or another enforcement agency applies to the magistrates' court, and the court needs reasonable grounds to suspect that the money is the proceeds of crime. You can apply to vary or set aside the order.
This blog is for general legal information only and does not constitute legal advice. For confidential advice about POCA confiscation, restraint, and account freezing, contact Holborn Adams to speak with an experienced solicitor.
