PART 1 Introductory

Citation, commencement and extent

1.—(1) These Rules may be cited as the Magistrates’ Courts (Conversion of Terrorist Cryptoassets) Rules 2024 and come into force on 7th November 2024.

(2) These Rules extend to England and Wales.

Interpretation

2.  In these Rules—

(a) “ the Act” means the Anti-terrorism, Crime and Security Act 2001( 2), and “ Schedule 1” means Schedule 1 to the Act;

(b) “ document” includes any notification required to be given under these Rules;

(c) “ electronic communication” has the meaning given by section 15(1) of the Electronic Communications Act 2000( 3);

(d) words and expressions used otherwise have the same meaning as in Part 4BD of Schedule 1 to the Act.

PART 2 Magistrates’ Courts Rules relating to conversion of terrorist cryptoassets

Application to convert detained cryptoassets

3.—(1) An application under paragraph 10Z7DA(2) of Schedule 1 for an order requiring all of the detained cryptoassets to be converted into money under paragraph 10Z7DA must be made in writing to the court before which the applicant wishes to make the application, and must specify the grounds on which it is made.

(2) But if the applicant has been given a copy of an order under paragraph 10Z7AE(1) or paragraph 10Z7AG(1) or (4) of Schedule 1 in respect of the detained cryptoassets, then the application must be sent to the court which sent the applicant the copy of that order.

(3) Where the applicant is an authorised officer, the applicant must send a copy of the application to the authorised officer who seized the cryptoassets, if that is a different officer, and to every other person to whom a copy of an order made under paragraph 10Z7AE(1) or 10Z7AG(1) of Schedule 1 has been sent.

(4) If the applicant is a person from whom the cryptoassets were seized—

(a) the court must send copies of the application to the authorised officer who seized the cryptoassets, and

(b) the authorised officer must send a copy of the application to every other person to whom it is required to be sent under paragraph (3).

(5) The court must fix a date for a directions hearing, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed.

(6) Where the applicant is an authorised officer—

(a) the court must notify the date fixed for the directions hearing under paragraph (5) to the applicant, and

(b) the applicant must notify that date to every person to whom a copy of the application is required to be sent under paragraph (3).

(7) Where the applicant is a person from whom the cryptoassets were seized—

(a) the court must notify the date fixed for the directions hearing under paragraph (5) to the applicant and to the authorised officer who seized the cryptoassets, and

(b) the authorised officer must notify that date to every other person to whom a copy of the application is required to be sent under paragraph (3).

(8) At the directions hearing, the court may give directions relating to the management of the proceedings, including directions as to the date for the hearing of the application.

(9) If neither the person from whom the cryptoassets were seized, nor any other person who is affected by the detention of the cryptoassets, seeks to contest the application, the court may decide the application at the directions hearing.

(10) Where the applicant is an authorised officer—

(a) the court must send copies of the order to the applicant, and

(b) the applicant must send a copy of the order to—

(i) every person to whom a copy of an order made under paragraph 10Z7AE(1) or paragraph 10Z7AG(1) or (4) of Schedule 1 in respect of the cryptoassets has been given, and

(ii) any other person known to be affected by the order.

(11) Where the applicant is a person from whom the cryptoassets were seized—

(a) the court must send copies of the order to the applicant and to the authorised officer who seized the cryptoassets, and

(b) the authorised officer must send a copy of the order to the persons mentioned in sub-paragraph (i) and (ii) of paragraph 10(b).

Application to convert cryptoassets in frozen crypto wallet

4.—(1) An application under paragraph 10Z7DB(2) of Schedule 1 for an order requiring all of the cryptoassets held in a crypto wallet which is subject to a crypto wallet freezing order to be converted into money under paragraph 10Z7DB must be made in writing and sent to the court before which the applicant wishes to make the application under paragraph 10Z7DB(2) of Schedule 1.

(2) But if the applicant has been given a copy of an order under paragraph 10Z7BB(2) of Schedule 1 in respect of the crypto wallet which is the subject of the application, then the application must be sent to the court which sent the applicant the copy of that order.

(3) Where the applicant is an authorised officer, the applicant must send a copy of the application to the enforcement officer who applied for the crypto wallet freezing order, if that is a different officer, and to every other person to whom a copy of the crypto wallet freezing order has been given.

(4) If the applicant is a person by or for whom the crypto wallet which is the subject of the crypto wallet freezing order is administered—

(a) the court must send copies of the application to the authorised officer who applied for the crypto wallet freezing order, and

(b) the authorised officer must send a copy of the application to every person to whom it is required to be sent under paragraph (3).

(5) The court must fix a date for a directions hearing, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed.

(6) Where the applicant is an authorised officer—

(a) the court must notify the date fixed for the directions hearing under paragraph (5) to the applicant, and

(b) the applicant must notify that date to every person to whom a copy of the application is required to be sent under paragraph (3).

(7) Where the applicant is the person by or for whom the crypto wallet which is the subject of the crypto wallet freezing order is maintained—

(a) the court must notify the date fixed for the directions hearing under paragraph (5) to the applicant and to the authorised officer who applied for the crypto wallet freezing order, and

(b) the authorised officer must notify that date to the persons to whom the application are required to be sent under paragraph (3).

(8) At the directions hearing, the court may give directions relating to the management of the proceedings, including directions as to the date for the hearing of the application.

(9) If neither the person by or for whom the crypto wallet which is the subject of the application, nor any other person who is affected by the crypto wallet freezing order seeks to contest the application, the court may decide the application at the directions hearing.

(10) Where the applicant is an authorised officer—

(a) the court must send copies of the order to the applicant, and

(b) the applicant must send a copy of the order to—

(i) every person to whom a copy of an order under paragraph 10Z7BB(2) of Schedule 1 in respect of the crypto wallet has been given, and

(ii) any other person known to be affected by the order.

(11) Where the applicant is the person by or for whom the crypto wallet which is the subject of the crypto wallet freezing order is maintained—

(a) the court must send copies of the order to the applicant and to the authorised officer who applied for the crypto wallet freezing order, and

(b) the authorised officer must send copies of the order to the persons mentioned in sub-paragraphs (i) and (ii) of paragraph 10(b).

First application for further detention of proceeds of the conversion of detained cryptoassets

5.—(1) The first application under paragraph 10Z7DD(7) of Schedule 1 for an order under paragraph 10Z7DD(3) or (5) of Schedule 1 for the further detention of detained converted cryptoassets must be made in writing and sent to the court before which the applicant wishes to make the application.

(2) The applicant must send a copy of the application to every person to whom notice of an order made under paragraph 10Z7DA(4) of Schedule 1 has been given, and to any other person affected by the application.

(3) The court must fix a date for the hearing of the application, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed, and must notify that date to the applicant.

(4) The applicant must notify the date fixed for the hearing of the application to every person to whom notice of an order made under paragraph 10Z7DA(4) of Schedule 1 has been given, and to any other person affected by the application.

(5) The court must give copies of the order to the applicant.

(6) The applicant must give a copy of the order to every person known to be affected by the order.

Further applications for the further detention of detained converted cryptoassets

6.—(1) An application under paragraph 10Z7DD(7) of Schedule 1 for a further order under paragraph 10Z7DD(3) or (5) of Schedule 1 for the further detention of detained converted cryptoassets may be sent to the court to which the first application under paragraph 10Z7DD(7) of Schedule 1 was sent, and must specify the grounds on which it is made.

(2) The applicant must send a copy of the application to every person to whom a copy of a previous related order under paragraph 10Z7DD(3) or (5) of Schedule 1 has been given.

(3) The court must fix a date for the hearing of the application, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed, and must notify that date to the applicant.

(4) The applicant must notify the date fixed for the hearing of the application to every person to whom a copy of a previous related order under paragraph 10Z7DD(3) or (5) of Schedule 1 has been given.

(5) The court must give copies of the order to the applicant.

(6) The applicant must give a copy of the order to every person to whom a copy of a previous related order under paragraph 10Z7DD(3) or (5) of Schedule 1 has been given.

(7) The applicant must also give a copy of the order to any person other than one referred to in paragraph (6) known to be affected by the order.

First application for further detention of frozen converted cryptoassets

7.—(1) An application under paragraph 10Z7DE(6) of Schedule 1 for an order under paragraph 10Z7DE(3) or (5) of Schedule 1 for the further detention of converted cryptoassets held in a crypto wallet which is subject to a crypto wallet freezing order must be made in writing and sent to the court to which the application for an order requiring the cryptoassets to be converted into money under paragraph 10Z7DB(2) of Schedule 1 was sent.

(2) The applicant must send a copy of the application to every person to whom a copy of an order under paragraph 10Z7DB has been given, and to any other person affected by the application.

(3) The court must fix a date for the hearing of the application, which, unless directed otherwise, must be at least seven days from the date on which it is fixed, and must notify that date to the applicant.

(4) The applicant must notify the date fixed for the hearing of the application to every person to whom a copy of an order under paragraph 10Z7DB has been given, and to any other person affected by the application.

(5) The court must give copies of the order to the applicant.

(6) The applicant must give a copy of the order to every person known to be affected by the order.

Further applications for further detention of frozen converted cryptoassets

8.—(1) An application under paragraph 10Z7DE(6) of Schedule 1 for a further order under paragraph 10Z7DE(3) or (5) of Schedule 1 may be sent to the court to which the first application under paragraph 10Z7DE(6) was sent.

(2) The applicant must send a copy of the application to every person to whom a copy of a previous related order under paragraph 10Z7DE(3) or (5) of Schedule 1 has been given.

(3) The court must fix a date for the hearing of the application, which, unless directed otherwise, must not be earlier than seven days from the date it is fixed, and must notify that date to the applicant.

(4) The applicant must notify the date fixed for the hearing to every person to whom a copy of a previous related order under paragraph 10Z7DE(3) or (5) of Schedule 1 has been given.

(5) The court must give copies of the order to the applicant.

(6) The applicant must give a copy of the order to every person to whom a copy of a previous related order under paragraph 10Z7DE(3) or (5) of Schedule 1 has been given.

(7) The applicant must also give a copy of the order to any person other than one referred to in paragraph (6) known to be affected by the order.

Application for release of detained converted cryptoassets

9.—(1) An application for the release of detained converted cryptoassets under paragraph 10Z7DF(3) or paragraph 10Z7DK(2) of Schedule 1 must be made in writing and sent to the court before which the applicant wishes to make the application, and must specify the grounds on which it is made.

(2) But if the applicant has been given a copy of an order under any of paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 in respect of the detained converted cryptoassets (“an order for further detention”), then the application must be sent to the court which sent the applicant the copy of that order.

(3) The court must send copies of the application to the authorised officer who applied for the order for further detention.

(4) The authorised officer who has been sent copies of the application under paragraph (3) must send a copy of the application to any other person to whom a copy of the most recent order under paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given.

(5) The court must fix a date for the hearing of the application, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed, and must notify that date to the applicant and to the authorised officer who applied for the order for further detention.

(6) The authorised officer who has been notified of the date fixed for the hearing of the application under paragraph (5) must notify that date to any other person to whom a copy of the most recent order under paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given.

(7) At the hearing of an application under paragraph 10Z7DF(3) or paragraph 10Z7DK(2) of Schedule 1 the court may, if it thinks fit, order that the application be heard with any other relevant proceedings in relation to the detained converted cryptoassets.

(8) A direction under paragraph 10Z7DF(2) or an order under paragraph 10Z7DK(4) or (6) of Schedule 1 must provide for the release of the detained converted cryptoassets within seven days of the date of the making of the direction or order or such longer period as with the agreement of the applicant may be specified in the direction or order, except that the detained cryptoasset may not be released whilst paragraph 10Z7DF(7) of Schedule 1 applies.

(9) The court must give copies of the direction or order to the applicant and to the authorised officer who applied for the order for further detention.

(10) The authorised officer who has been given copies of the direction or order under paragraph (9) must give a copy of the direction or order to any other person to whom a copy of the most recent order under paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given.

Application for forfeiture of detained converted cryptoassets

10.—(1) An application under paragraph 10Z7DG(2) of Schedule 1 for an order under paragraph 10Z7DG(3) of Schedule 1 for the forfeiture of detained converted cryptoassets must be made in writing and sent to the court to which any applications for an order for the further detention of the detained converted cryptoassets under paragraph 10Z7DD(7) or paragraph 10Z7DE(6) of Schedule 1 have been sent.

(2) Where no applications in respect of the detained cryptoassets have been made under paragraph 10Z7DD(7) or paragraph 10Z7DE(6) of Schedule 1, the application for forfeiture must be sent to the court before which the applicant wishes to make the application.

(3) The applicant must send a copy of an application for forfeiture to every person to whom a copy of an order made under any of paragraphs 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given, and to any other person identified by the applicant as being affected by the application.

(4) The court must fix a date for a directions hearing, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed, and must notify that date to the applicant.

(5) The applicant must notify the date fixed for the directions hearing to every person to whom a copy of the application is required to be sent under paragraph (3).

(6) At the directions hearing, the court may give directions relating to the management of the proceedings, including directions as to the date for the hearing of the application.

(7) If neither the person from whom the cryptoassets were seized, nor any other person who is affected by the detention of the detained converted cryptoassets seeks to contest the application, the court may decide the application at the directions hearing.

(8) The court must give copies of the order for the forfeiture of detained converted cryptoassets under paragraph 10Z7DG(2) of Schedule 1 to the applicant.

(9) A copy of the order for forfeiture of cryptoassets must be given by the applicant to every person to whom a copy of an order made under any of paragraphs 10Z7DD(3) or (5) or 10Z7DE(3) or (5) in respect of the detained converted cryptoassets has been given.

Application for compensation

11.—(1) An application under paragraph 10Z7DL(2) of Schedule 1 for an order for compensation under paragraph 10Z7DL(3) must be made in writing and sent to the court before which the applicant wishes to make the application.

(2) But if the applicant has been given a copy of an order under any of paragraphs 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 (an order for further detention) in respect of the converted cryptoassets which are the subject of the application, then the application must be sent to the court which sent the applicant the copy of that order.

(3) The court must send copies of the application to the authorised officer who applied for the order for further detention.

(4) The authorised officer must send a copy of the application to any other person to whom a copy of the most recent order under paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given.

(5) The court must fix a date for the hearing of the application, which, unless directed otherwise, must not be earlier than seven days from the date on which it is fixed, and must notify the date to the applicant and to the authorised officer who applied for the order for further detention.

(6) The court must give copies of the order for compensation under 10Z7DL(3) of Schedule 1 to the applicant and to the authorised officer who applied for the order for further detention.

(7) The authorised officer who has been given copies of the order under paragraph (6) must give a copy of the order to any other person to whom a copy of the most recent order under paragraph 10Z7DD(3) or (5) or 10Z7DE(3) or (5) of Schedule 1 has been given.

Director of Public Prosecutions appearing in proceedings

12.  Where the Director of Public Prosecutions has agreed under paragraph 10Z9(1) of Schedule 1 to appear in proceedings under Schedule 1 for—

(a) a constable,

(b) a counter-terrorism financial investigator,

(c) the Commissioners for His Majesty’s Revenue and Customs,

(d) an officer of Revenue and Customs, or

(e) an immigration officer,

the Director must notify the court which is dealing with the proceedings if the Director wants documents given under these Rules to be given also to the Director.

Giving of documents

13.  Any document required to be given to any person under these Rules may be given—

(a) by post in accordance with rule 14,

(b) by means of electronic communication in accordance with rule 15, or

(c) by any method authorised by the court in accordance with rule 16.

Giving documents by post

14.—(1) In order to give a document by post to a person (other than to the court), it must be sent by properly addressing, pre-paying and posting to an address which has been given by that person for the purpose of receipt of documents under these Rules.

(2) If no address has been given as is mentioned in paragraph (1), the document must be sent to an address which is shown in the following table.

(3) Unless the contrary is shown, the document is to be deemed as having been given to the person on the second day after it was posted, provided that day is a business day; or if not, the next business day after that day.

Giving documents by means of electronic communication

15.—(1) In order to give a document by email or other means of electronic communication, the intended recipient of the document must previously have indicated in writing to the person giving the document the email address or other electronic identification to which documents must be sent.

(2) Giving a document by means of electronic communication is effected by sending or transmitting the document in accordance with the written indication given by the intended recipient under paragraph (1).

(3) The document is to be treated as having been given on the day on which it is sent or transmitted if the electronic communication containing it is sent or transmitted before 4.30pm. If the electronic communication is sent or transmitted after 4.30pm, the document is to be treated as having been given the following day.

(4) Where a document is given by electronic means, the person giving the document need not in addition send or deliver a hard copy.

Giving of documents by an alternative method or at an alternative place

16.—(1) Where it appears to the court that there is a good reason to authorise the giving of a document by a method or at a place not otherwise permitted by these Rules, the court may make an order permitting the giving of a document by an alternative method or at an alternative place.

(2) On an application under this rule, the court may order that steps already taken to give the document to a person by an alternative method or at an alternative place constitute the giving of that document under these Rules.

(3) An application for an order under this rule—

(a) must be supported by evidence, and

(b) may be made without notice.

(4) An order under this rule must specify—

(a) the method by which the document may be given, if it is not a method permitted by these Rules,

(b) the place at which the document may be given, if it is not a place permitted by these Rules, and

(c) the date on which the document is deemed to be given.

Giving a document to a child or protected person

17.—(1) Where the intended recipient of a document is known to be a child who is not also a protected person, the document must be given to the child and—

(a) one of the child’s parents or guardians, or

(b) if there is no parent or guardian, an adult with whom the child resides or in whose care the child is.

(2) Where the intended recipient of a document is known to be a protected person, the document must be given to the protected person and—

(a) where the protected person is resident in England and Wales, to one of the following persons—

(i) the attorney under a registered enduring power of attorney which relates to the protected person,

(ii) the donee of a lasting power of attorney which relates to the protected person, or

(iii) the deputy appointed in relation to the protected person by the Court of Protection,

(b) where the protected person is resident in Northern Ireland, to one of the following persons—

(i) the attorney under a registered enduring power of attorney which relates to the protected person;

(ii) the controller appointed in relation to the protected person by the Office of Care and Protection;

(c) where the protected person is resident in Scotland, to one of the following persons—

(i) the continuing attorney under a continuing power of attorney which relates to the protected person;

(ii) the welfare attorney under a welfare power of attorney which relates to the protected person;

(iii) the person authorised under an intervention order in respect of the protected person;

(iv) the person authorised under a guardianship order in respect of the protected person;

(v) the person authorised under a withdrawal certificate in respect of the protected person;

(d) if in any case under sub-paragraph (a), (b) or (c) there is no such person, to an adult with whom the protected person resides or in whose care the protected person is.

(3) Any reference in these Rules to a person to whom a document is to be given includes the person to be given documents on behalf of a child or protected person under paragraph (1) or (2).

(4) The court may make an order permitting a document to be given to a child or protected person, or to a person other than the person specified in paragraph (1) or (2), and an application for such an order may be made without notice.

(5) In this rule—

(a) “ child” means a person under 18 years, and

(b) “ protected person” means—

(i) in relation to England and Wales, a person who lacks capacity (within the meaning of the Mental Capacity Act 2005)( 4) to understand the nature of forfeiture proceedings;

(ii) in relation to Northern Ireland, a person who is 16 years or over who lacks capacity to understand the nature of forfeiture proceedings because of an impairment of, or a disturbance in the functioning of, the mind or brain;

(iii) in relation to Scotland, a person who is incapable, within the meaning of the Adults with Incapacity (Scotland) Act 2000( 5), of understanding the nature of forfeiture proceedings.

Giving of documents to persons outside the United Kingdom

18.—(1) If a document is to be given to a person who resides outside the United Kingdom, the document must be given in accordance with the terms of any relevant declaration.

(2) In this rule, “ relevant declaration” means—

(a) a declaration made in accordance with Article 31(2) of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism agreed at Warsaw on 16th May 2005 that judicial documents may not be sent directly to persons abroad by postal channels, or

(b) a declaration made in accordance with Article 21(2) of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime agreed at Strasbourg on 8th November 1990 that judicial documents may not be sent directly to persons abroad by postal channels.

Procedure at hearing

19.—(1) At the hearing of an application under Part 4BD of Schedule 1, any person to whom a copy of the application has been given may attend and be heard on the question of whether the application should be granted, but the fact that any such person does not attend does not prevent the court from hearing the application.

(2) Subject to the foregoing provisions of these Rules, proceedings on such an application are regulated in the same manner as proceedings on a complaint, and accordingly for the purposes of these Rules, the application is deemed to be a complaint, the applicant a complainant, a respondent to be a defendant and any notice given under rule 3(5), 4(5), 6(3), 9(5), 10(4) or 11(5) to be a summons.

(3) But nothing in this rule enables a warrant of arrest to be issued for failure to appear in answer to any such notice.

(4) At the hearing of an application under Part 4BD of Schedule 1, the court must require the matters contained in the application to be sworn by the applicant under oath, may require the applicant to answer any questions under oath and may require any response from a respondent to the application to be made under oath.

(5) The court must record or cause to be recorded the substance of any statements made under oath which are not already recorded in the written application.

EXPLANATORY NOTE

(This note is not part of the Rules)

These Rules prescribe the procedure to be followed for applications to a magistrates’ court for orders under Part 4BD of Schedule 1 to the Anti-terrorism, Crime and Security Act 2001 (c. 24)(“ ATCSA”).

This Part of Schedule 1 was inserted by Schedule 10 to the Economic Crime and Corporate Transparency Act 2023 (c. 56)and makes provision for the conversion of cryptoassets into money and for the detention, freezing and forfeiture of converted cryptoassets. Prior to their conversion, these cryptoassets will have been seized and then detained or frozen on the basis that there are reasonable grounds to suspect that they are intended to be used for the purposes of terrorism, consist of resources of a proscribed organisation, or are or represent property obtained through terrorism. “Cryptoassets” are defined by paragraph 10Z7A of Schedule 1 to ATCSA.

The Rules provide the relevant procedure for:

• applications for the conversion of detained cryptoassets into money (see paragraph 10Z7DA of Schedule 1 to ATCSA);

• applications to convert frozen cryptoassets into money (see paragraph 10Z7DB of Schedule 1 to ATCSA);

• applications for further detention of detained converted cryptoassets (see paragraph 10Z7DD of Schedule 1 to ATCSA);

• applications for further detention of frozen converted cryptoassets (see paragraph 10Z7DE of Schedule 1 to ATCSA);

• applications for release of detained converted cryptoassets (see paragraph 10Z7DF of Schedule 1 to ATCSA);

• applications for forfeiture of detained converted cryptoassets (see paragraph 10Z7DG of Schedule 1 to ATCSA);

• applications for compensation (see paragraph 10Z7DL of Schedule 1 to ATCSA)).

In addition, these Rules make provision for the manner in which documents are to be given in proceedings under Part 4BD of ATCSA, and for the procedure at hearings.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.