Proceeds of crime and shareholdings

Proceeds of Crime and setting up a company years later. Can company assets be taken?

Didn't find your answer?

I know this is more of a legal/solicitor question but maybe somebody here has experience/knowledge of my type of situation that they could share please.

I have recently taken on a client that has been subject to a Proceeds of crime confiscation order. It has been several years since the order was made and there is still a large amount outstanding.
My questions is, if he were to set up a company as the only director and shareholder, if it eventually built up a decent cash balance/asset list that remained in the company, could these then be seized under the order?

I would have thought that they couldn't until the assets were passed to the shareholder (dividends etc) but my zero experience on this subject doesn't help.
Maybe the POCA removes that requirement and they can go directly for the company assets. Maybe they could only take up to the value of any credit in your DLA - that would make the most sense to me.

Thanks in advance for any help and guidance on my predicament here!

Replies (6)

Please login or register to join the discussion.

By Ruddles
31st Oct 2018 20:36

I may be wrong but I suspect that the number of members here with any experience of such a scenario is 1. In you come, David.

Thanks (0)
Replying to Ruddles:
avatar
By OldSchoolAccounting
31st Oct 2018 20:42

I imagine most wouldn't want to talk about it publicly but if even 1 person can help, that's more help than I've found on google so far!

Thanks (0)
avatar
By Accountant A
31st Oct 2018 21:12

I'm rather "old school" myself and wouldn't touch a client like that with a barge pole. I certainly wouldn't be exploring with them ways (legal or otherwise) of avoiding a proceeds of crime confiscation order.

If you are a member of a professional body, I would definitely be speaking to their ethics helpline - sooner rather than later.

Thanks (3)
Replying to Accountant A:
avatar
By OldSchoolAccounting
31st Oct 2018 21:44

The person in question has been PAYE for several years and is looking to set up his own company to do the same thing. I don't see why I should turn them down for trying to make a go of starting a legitimate trade; a trade that I will be monitoring very closely.

I'm not exploring ways to avoid the order. He simply wants to set up himself and the assets/liabilities/profits involved could, potentially, be quite high.
I would be advising a limited company to this person even without the order but would like to know how the company could be affected by the order.

So long as I monitor the company closely with my AML policies, I don't see a reason to involve my professional bodies (yet).

Everyone deserves a second chance in my opinion AccountantA.

Thanks (0)
Replying to OldSchoolAccounting:
avatar
By Accountant A
01st Nov 2018 12:31

OldSchoolAccounting wrote:

Everyone deserves a second chance in my opinion AccountantA.

He has been required to repay the proceeds of his criminal activity. Once he's done that, I might give him a second chance. The fact that he is looking for ways to avoid his obligations would tell me all I needed to know about him as a prospective client.

I assume you wouldn't be so sanguine if he left you with unpaid fees.

Thanks (0)
avatar
By bernard michael
01st Nov 2018 11:36

If the POCA order is still in existence any assets he acquires could be subject to investigation as to their origin.This includes the shares in the new company. To answer you question. No the assets cannot be seized per se except as assets of the company is the shares were seized.
This is a client to walk away from with his record. Why put yourself through the mill of never actually trusting him and having to check everything he does " just in case"

Thanks (0)