In most money laundering cases, the prosecution use powers under the Proceeds of Crime Act 2002, to deprive convicted launderers of the proceeds of their crime.
However, because money laundering trials can be lengthy, and the estate of the accused can be large, the prosecution will often seek appointment of a management receiver over the estate, to ensure that assets are not actively dissipated or neglected and allowed to diminish in value. So who pays for this receiver, the accused, or the crown?
In January, the House of Lords decided the issue in Capewell v HM Revenue and Customs [2007] UKHL 2. They confirmed that the receiver's fees are to be paid out of the assets held in the receivership, whether the accused launderer is acquitted, not proceeded against or the receivership is successfully discharged.
Defence lawyers should consider this when taking into account delays in proceeding to trial and whether there are grounds to seek the discharge of the management receiver.