Captured statutory text (L5)
2
(7)In this Part—
“enforcement officer” means—
a constable, or
a counter-terrorism financial investigator;
“relevant court” means—
in England and Wales and Northern Ireland, a magistrates’ court, and
in Scotland, the sheriff;
“senior officer” means a police officer of at least the rank of superintendent;
“UK-connected cryptoasset service provider” means a cryptoasset service provider which—
is acting in the course of business carried on by it in the United Kingdom,
has terms and conditions with the persons to whom it provides services which provide for a legal dispute to be litigated in the courts of a part of the United Kingdom,
holds, in the United Kingdom, any data relating to the persons to whom it provides services, or
meets the condition in sub-paragraph (8).
(8)The condition in this sub-paragraph is that—
(a)the cryptoasset service provider has its registered office, or if it does not have one, its head office in the United Kingdom, and
(b)the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in the United Kingdom.
Application for crypto wallet freezing order(10Z7BA)
(1)This paragraph applies if an enforcement officer has reasonable grounds for suspecting that cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider are terrorist cryptoassets.
(2)Where this paragraph applies the enforcement officer may apply to the relevant court for a crypto wallet freezing order in relation to the crypto wallet in which the cryptoassets are held.
(3)But—
(a)an enforcement officer may not apply for a crypto wallet freezing order unless the officer is a senior officer or is authorised to do so by a senior officer, and
(b)the senior officer must consult the Treasury before making the application for the order or (as the case may be) authorising the application to be made, unless in the circumstances it is not reasonably practicable to do so.
(4)An application for a crypto wallet freezing order may be made without notice if the circumstances of the case are such that notice of the application would prejudice the taking of any steps under this Schedule to forfeit cryptoassets that are terrorist cryptoassets.
(5)An application for a crypto wallet freezing order under this paragraph may be combined with an application for an account freezing order under paragraph 10Q where a single entity—
(a)is both a relevant financial institution for the purposes of paragraph 10Q and a cryptoasset service provider for the purposes of this Part, and
(b)operates or administers, for the same person, both an account holding money and a crypto wallet.
Making of crypto wallet freezing order(10Z7BB)
(1)This paragraph applies where an application for a crypto wallet freezing order is made under paragraph 10Z7BA in relation to a crypto wallet.
(2)The relevant court may make the order if satisfied that there are reasonable grounds for suspecting that some or all of the cryptoassets held in the crypto wallet are terrorist cryptoassets.
(3)A crypto wallet freezing order ceases to have effect at the end of the period specified in the order (which may be varied under paragraph 10Z7BC) unless it ceases to have effect at an earlier or later time in accordance with this Part or Part 4BC or 4BD.
(4)The period specified by the relevant court for the purposes of sub-paragraph (3) (whether when the order is first made or on a variation under paragraph 10Z7BC) may not exceed the period of 2 years, beginning with the day on which the crypto wallet freezing order is (or was) made; but this is subject to sub-paragraph (5).
(5)The relevant court may make an order for the period of 2 years in sub-paragraph (4) to be extended to a period of up to 3 years beginning with the day on which the crypto wallet freezing order is (or was) made.
(6)The relevant court may make an order under sub-paragraph (5) if satisfied that a request for assistance is outstanding in relation to some or all of the cryptoassets held in the crypto wallet.
(7)A “request for assistance” in sub-paragraph (6) means a request for assistance in obtaining evidence (including information in any form or article) in connection with some or all of the cryptoassets held in the crypto wallet, made—
(a)by a judicial authority in the United Kingdom under section 7 of the Crime (International Co-operation) Act 2003,
(b)by an enforcement officer, to an authority exercising equivalent functions in a foreign country,
(c)by the Scottish Ministers in connection with their functions under this Schedule, to an authority exercising equivalent functions in a foreign country, or
(d)by a person under section 375A or 408A of the Proceeds of Crime Act 2002 (evidence overseas).
(8)A crypto wallet freezing order must provide for notice to be given to persons affected by the order.
Variation and setting aside of crypto wallet freezing order(10Z7BC)
(1)The relevant court may at any time vary or set aside a crypto wallet freezing order on an application made by—
(a)an enforcement officer, or
(b)any person affected by the order.
(2)But an enforcement officer may not make an application under sub-paragraph (1) unless the officer is a senior officer or is authorised to do so by a senior officer.
(3)Before varying or setting aside a crypto wallet freezing order the court must (as well as giving the parties to the proceedings an opportunity to be heard) give such an opportunity to any person who may be affected by its decision.
(4)In relation to Scotland, the references in this paragraph to setting aside an order are to be read as references to recalling it.
Exclusions(10Z7BD)
(1)The power to vary a crypto wallet freezing order includes (amongst other things) power to make exclusions from the prohibition on making withdrawals or payments from the crypto wallet to which the order applies.
(2)Exclusions from the prohibition may also be made when the order is made.
(3)An exclusion may (amongst other things) make provision for the purpose of enabling a person by or for whom the crypto wallet is administered—
(a)to meet the person’s reasonable living expenses, or
(b)to carry on any trade, business, profession or occupation.
(4)An exclusion may be made subject to conditions.
(5)Where a magistrates’ court exercises the power to make an exclusion for the purpose of enabling a person to meet legal expenses that the person has incurred, or may incur, in respect of proceedings under this Schedule, it must ensure that the exclusion—
(a)is limited to reasonable legal expenses that the person has reasonably incurred or that the person reasonably incurs,
(b)specifies the total amount that may be released for legal expenses in pursuance of the exclusion, and
(c)is made subject to the same conditions as would be the required conditions (see section 286A of the Proceeds of Crime Act 2002) if the order had been made under section 245A of that Act (in addition to any conditions imposed under sub-paragraph (4)).
(6)A magistrates’ court, in deciding whether to make an exclusion for the purpose of enabling a person to meet legal expenses in respect of proceedings under this Schedule—
(a)must have regard to the desirability of the person being represented in any proceedings under this Schedule in which the person is a participant, and
(b)must disregard the possibility that legal representation of the person in any such proceedings might, were an exclusion not made—
(i)be made available under arrangements made for the purposes of Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, or
(ii)be funded by the Department of Justice in Northern Ireland.
(7)The sheriff’s power to make exclusions may not be exercised for the purpose of enabling any person to meet any legal expenses in respect of proceedings under this Schedule.
(8)The power to make exclusions must, subject to sub-paragraph (6), be exercised with a view to ensuring, so far as practicable, that there is not undue prejudice to the taking of any steps under this Schedule to forfeit cryptoassets that are terrorist cryptoassets.
Restriction on proceedings and remedies(10Z7BE)
(1)If a court in which proceedings are pending in respect of a crypto wallet administered by a UK-connected cryptoasset service provider is satisfied that a crypto wallet freezing order has been applied for or made in respect of the crypto wallet, it may either stay the proceedings or allow them to continue on any terms it thinks fit.
(2)Before exercising the power conferred by sub-paragraph (1), the court must (as well as giving the parties to any of the proceedings concerned an opportunity to be heard) give such an opportunity to any person who may be affected by the court’s decision.
(3)In relation to Scotland, the reference in sub-paragraph (1) to staying the proceedings is to be read as a reference to sisting the proceedings.
PART 4BCForfeiture of terrorist cryptoassetsInterpretation(10Z7C)
(1)In this Part—
“cryptoasset service provider” has the same meaning as in Part 4BB (see paragraph 10Z7B(1));
“crypto wallet freezing order” has the same meaning as in Part 4BB (see paragraph 10Z7B(6));
“senior officer” means—
a senior police officer;
an officer of Revenue and Customs of a rank designated by the Commissioners for His Majesty’s Revenue and Customs as equivalent to that of a senior police officer;
an immigration officer of a rank designated by the Secretary of State as equivalent to that of a senior police officer;
“senior police officer” means a police officer of at least the rank of superintendent.
(2)Paragraph 10Z7B(6)(b) (administration of crypto wallets) applies in relation to this Part as it applies in relation to Part 4BB.
Forfeiture(10Z7CA)
(1)This paragraph applies—
(a)while any cryptoassets are detained under Part 4BA, or
(b)while a crypto wallet freezing order made under paragraph 10Z7BB has effect.
(2)An application for the forfeiture of some or all of the cryptoassets that are detained or held in the crypto wallet that is subject to the crypto wallet freezing order may be made—
(a)to a magistrates’ court by the Commissioners for His Majesty’s Revenue and Customs or an authorised officer, or
(b)to the sheriff by the Scottish Ministers.
(3)The court or sheriff may order the forfeiture of some or all of the cryptoassets if satisfied that the cryptoassets are terrorist cryptoassets.
(4)An order under sub-paragraph (3) made by a magistrates’ court may provide for payment under paragraph 10Z7CJ of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of—
(a)the proceedings in which the order is made, or
(b)any related proceedings under this Part.
(5)A sum in respect of a relevant item of expenditure is not payable under paragraph 10Z7CJ in pursuance of provision under sub-paragraph (4) unless—
(a)the person who applied for the order under sub-paragraph (3) agrees to its payment, or
(b)the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount.
(6)For the purposes of sub-paragraph (5)—
(a)a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (3) had instead been a recovery order made under section 266 of that Act;
(b)an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations;
(c)if the person who applied for the order under sub-paragraph (3) was an authorised officer, that person may not agree to the payment of a sum unless the person is a senior officer or is authorised to do so by a senior officer.
(7)Sub-paragraph (3) ceases to apply on the transfer of an application made under this paragraph in accordance with paragraph 10Z7CE.
Forfeiture: supplementary(10Z7CB)
(1)Sub-paragraph (2) applies where an application is made under paragraph 10Z7CA for the forfeiture of any cryptoassets detained under Part 4BA.
(2)The cryptoassets are to continue to be detained under Part 4BA (and may not be released under any power conferred by this Schedule) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded.
This is subject to Part 4BD (conversion to money).
(3)Where an application is made under paragraph 10Z7CA in relation to cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order—
(a)sub-paragraphs (4) and (5) apply, and
(b)the crypto wallet freezing order is to continue to have effect until the time referred to in sub-paragraph (4)(b) or (5).
(4)Where the cryptoassets are ordered to be forfeited under paragraph 10Z7CA(3) or 10Z7CE(3)—
(a)the cryptoasset service provider that administers the crypto wallet must transfer the cryptoassets into a crypto wallet nominated by an authorised officer, and
(b)immediately after the transfer has been made, the freezing order ceases to have effect.
(5)Where the application is determined or otherwise disposed of other than by the making of an order under paragraph 10Z7CA(3) or 10Z7CE(3), the crypto wallet freezing order ceases to have effect immediately after that determination or other disposal.
(6)Sub-paragraphs (4)(b) and (5) are subject to paragraph 10Z7CF and Part 4BD.
(7)The Secretary of State may by regulations made by statutory instrument amend this paragraph to make provision about the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order.
(8)Regulations under sub-paragraph (7) may in particular make provision about—
(a)the process for the forfeiture of cryptoassets;
(b)the realisation of forfeited cryptoassets;
(c)the application of the proceeds of such realisation.
(9)Regulations under sub-paragraph (7) may—
(a)make different provision for different purposes;
(b)make consequential, supplementary, incidental, transitional, transitory or saving provision, including provision which makes consequential amendments to this Part.
(10)A statutory instrument containing regulations under sub-paragraph (7) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
Associated and joint property(10Z7CC)
(1)Paragraphs 10Z7CD and 10Z7CE apply if—
(a)an application is made under paragraph 10Z7CA in respect of cryptoassets,
(b)the court or sheriff is satisfied that some or all of the cryptoassets are terrorist cryptoassets, and
(c)there exists property that is associated with the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in paragraph (b).
(2)Paragraphs 10Z7CD and 10Z7CE also apply in England and Wales and Northern Ireland if—
(a)an application is made under paragraph 10Z7CA in respect of cryptoassets,
(b)the court is satisfied that some or all of the cryptoassets are earmarked as terrorist property, and
(c)the cryptoassets in relation to which the court is satisfied as mentioned in paragraph (b) belong to joint tenants and one of the tenants is an excepted joint owner.
(3)In this paragraph and paragraphs 10Z7CD and 10Z7CE, “associated property” means property of any of the following descriptions that is not itself the forfeitable property—
(a)any interest in the forfeitable property;
(b)any other interest in the property in which the forfeitable property subsists;
(c)if the forfeitable property is part of a larger property, but not a separate part, the remainder of that property.
References to property being associated with forfeitable property are to be read accordingly.
(4)In this paragraph and paragraphs 10Z7CD and 10Z7CE, the “forfeitable property” means the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in sub-paragraph (1)(b) or (2)(b) (as the case may be).
(5)For the purposes of this paragraph and paragraphs 10Z7CD and 10Z7CE—
(a)an excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against them) be earmarked, and
(b)references to the excepted joint owner’s share of property are to so much of the property as would have been theirs if the joint tenancy had been severed.
Agreements about associated and joint property(10Z7CD)
(1)Where—
(a)this paragraph applies, and
(b)the person who applied for the order under paragraph 10Z7CA (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree,
the magistrates’ court or sheriff may, instead of making an order under paragraph 10Z7CA(3), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order.
(2)The amount of the payment is (subject to sub-paragraph (3)) to be the amount which the persons referred to in sub-paragraph (1)(b) agree represents—
(a)in a case where this paragraph applies by virtue of paragraph 10Z7CC(1), the value of the forfeitable property;
(b)in a case where this paragraph applies by virtue of paragraph 10Z7CC(2), the value of the forfeitable property less the value of the excepted joint owner’s share.
(3)The amount of the payment may be reduced if the person who applied for the order under paragraph 10Z7CA agrees that the other party to the agreement has suffered loss as a result of—
(a)the seizure of the forfeitable property under paragraph 10Z7AD and its subsequent detention, or
(b)the making of a crypto wallet freezing order under paragraph 10Z7BB.
(4)The reduction that is permissible by virtue of sub-paragraph (3) is such amount as the parties to the agreement agree is reasonable, having regard to the loss suffered and any other relevant circumstances.
(5)An order under sub-paragraph (1) may, so far as required for giving effect to the agreement, include provision for vesting, creating or extinguishing any interest in property.
(6)An order under sub-paragraph (1) made by a magistrates’ court may provide for payment under sub-paragraph (11) of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of—
(a)the proceedings in which the order is made, or
(b)any related proceedings under this Part.
(7)A sum in respect of a relevant item of expenditure is not payable under sub-paragraph (11) in pursuance of provision under sub-paragraph (6) unless—
(a)the person who applied for the order under paragraph 10Z7CA agrees to its payment, or
(b)the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount.
(8)For the purposes of sub-paragraph (7)—
(a)a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (1) had instead been a recovery order made under section 266 of that Act;
(b)an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations.
(9)If there is more than one item of associated property or more than one excepted joint owner, the total amount to be paid under sub-paragraph (1), and the part of that amount which is to be provided by each person who holds any such associated property or who is an excepted joint owner, is to be agreed between both (or all) of them and the person who applied for the order under paragraph 10Z7CA.
Full captured verbatim text
(7) In this Part— “enforcement officer” means— a constable, or a counter-terrorism financial investigator; “relevant court” means— in England and Wales and Northern Ireland, a magistrates’ court, and in Scotland, the sheriff; “senior officer” means a police officer of at least the rank of superintendent; “UK-connected cryptoasset service provider” means a cryptoasset service provider which— is acting in the course of business carried on by it in the United Kingdom, has terms and conditions with the persons to whom it provides services which provide for a legal dispute to be litigated in the courts of a part of the United Kingdom, holds, in the United Kingdom, any data relating to the persons to whom it provides services, or meets the condition in sub-paragraph (8). (8) The condition in this sub-paragraph is that— (a) the cryptoasset service provider has its registered office, or if it does not have one, its head office in the United Kingdom, and (b) the day-to-day management of the provider’s business is the responsibility of that office or another establishment maintained by it in the United Kingdom. Application for crypto wallet freezing order(10Z7BA) (1) This paragraph applies if an enforcement officer has reasonable grounds for suspecting that cryptoassets held in a crypto wallet administered by a UK-connected cryptoasset service provider are terrorist cryptoassets. (2) Where this paragraph applies the enforcement officer may apply to the relevant court for a crypto wallet freezing order in relation to the crypto wallet in which the cryptoassets are held. (3) But— (a) an enforcement officer may not apply for a crypto wallet freezing order unless the officer is a senior officer or is authorised to do so by a senior officer, and (b) the senior officer must consult the Treasury before making the application for the order or (as the case may be) authorising the application to be made, unless in the circumstances it is not reasonably practicable to do so. (4) An application for a crypto wallet freezing order may be made without notice if the circumstances of the case are such that notice of the application would prejudice the taking of any steps under this Schedule to forfeit cryptoassets that are terrorist cryptoassets. (5) An application for a crypto wallet freezing order under this paragraph may be combined with an application for an account freezing order under paragraph 10Q where a single entity— (a) is both a relevant financial institution for the purposes of paragraph 10Q and a cryptoasset service provider for the purposes of this Part, and (b) operates or administers, for the same person, both an account holding money and a crypto wallet. Making of crypto wallet freezing order(10Z7BB) (1) This paragraph applies where an application for a crypto wallet freezing order is made under paragraph 10Z7BA in relation to a crypto wallet. (2) The relevant court may make the order if satisfied that there are reasonable grounds for suspecting that some or all of the cryptoassets held in the crypto wallet are terrorist cryptoassets. (3) A crypto wallet freezing order ceases to have effect at the end of the period specified in the order (which may be varied under paragraph 10Z7BC) unless it ceases to have effect at an earlier or later time in accordance with this Part or Part 4BC or 4BD. (4) The period specified by the relevant court for the purposes of sub-paragraph (3) (whether when the order is first made or on a variation under paragraph 10Z7BC) may not exceed the period of 2 years, beginning with the day on which the crypto wallet freezing order is (or was) made; but this is subject to sub-paragraph (5). (5) The relevant court may make an order for the period of 2 years in sub-paragraph (4) to be extended to a period of up to 3 years beginning with the day on which the crypto wallet freezing order is (or was) made. (6) The relevant court may make an order under sub-paragraph (5) if satisfied that a request for assistance is outstanding in relation to some or all of the cryptoassets held in the crypto wallet. (7) A “request for assistance” in sub-paragraph (6) means a request for assistance in obtaining evidence (including information in any form or article) in connection with some or all of the cryptoassets held in the crypto wallet, made— (a) by a judicial authority in the United Kingdom under section 7 of the Crime (International Co-operation) Act 2003, (b) by an enforcement officer, to an authority exercising equivalent functions in a foreign country, (c) by the Scottish Ministers in connection with their functions under this Schedule, to an authority exercising equivalent functions in a foreign country, or (d) by a person under section 375A or 408A of the Proceeds of Crime Act 2002 (evidence overseas). (8) A crypto wallet freezing order must provide for notice to be given to persons affected by the order. Variation and setting aside of crypto wallet freezing order(10Z7BC) (1) The relevant court may at any time vary or set aside a crypto wallet freezing order on an application made by— (a) an enforcement officer, or (b) any person affected by the order. (2) But an enforcement officer may not make an application under sub-paragraph (1) unless the officer is a senior officer or is authorised to do so by a senior officer. (3) Before varying or setting aside a crypto wallet freezing order the court must (as well as giving the parties to the proceedings an opportunity to be heard) give such an opportunity to any person who may be affected by its decision. (4) In relation to Scotland, the references in this paragraph to setting aside an order are to be read as references to recalling it. Exclusions(10Z7BD) (1) The power to vary a crypto wallet freezing order includes (amongst other things) power to make exclusions from the prohibition on making withdrawals or payments from the crypto wallet to which the order applies. (2) Exclusions from the prohibition may also be made when the order is made. (3) An exclusion may (amongst other things) make provision for the purpose of enabling a person by or for whom the crypto wallet is administered— (a) to meet the person’s reasonable living expenses, or (b) to carry on any trade, business, profession or occupation. (4) An exclusion may be made subject to conditions. (5) Where a magistrates’ court exercises the power to make an exclusion for the purpose of enabling a person to meet legal expenses that the person has incurred, or may incur, in respect of proceedings under this Schedule, it must ensure that the exclusion— (a) is limited to reasonable legal expenses that the person has reasonably incurred or that the person reasonably incurs, (b) specifies the total amount that may be released for legal expenses in pursuance of the exclusion, and (c) is made subject to the same conditions as would be the required conditions (see section 286A of the Proceeds of Crime Act 2002) if the order had been made under section 245A of that Act (in addition to any conditions imposed under sub-paragraph (4)). (6) A magistrates’ court, in deciding whether to make an exclusion for the purpose of enabling a person to meet legal expenses in respect of proceedings under this Schedule— (a) must have regard to the desirability of the person being represented in any proceedings under this Schedule in which the person is a participant, and (b) must disregard the possibility that legal representation of the person in any such proceedings might, were an exclusion not made— (i) be made available under arrangements made for the purposes of Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, or (ii) be funded by the Department of Justice in Northern Ireland. (7) The sheriff’s power to make exclusions may not be exercised for the purpose of enabling any person to meet any legal expenses in respect of proceedings under this Schedule. (8) The power to make exclusions must, subject to sub-paragraph (6), be exercised with a view to ensuring, so far as practicable, that there is not undue prejudice to the taking of any steps under this Schedule to forfeit cryptoassets that are terrorist cryptoassets. Restriction on proceedings and remedies(10Z7BE) (1) If a court in which proceedings are pending in respect of a crypto wallet administered by a UK-connected cryptoasset service provider is satisfied that a crypto wallet freezing order has been applied for or made in respect of the crypto wallet, it may either stay the proceedings or allow them to continue on any terms it thinks fit. (2) Before exercising the power conferred by sub-paragraph (1), the court must (as well as giving the parties to any of the proceedings concerned an opportunity to be heard) give such an opportunity to any person who may be affected by the court’s decision. (3) In relation to Scotland, the reference in sub-paragraph (1) to staying the proceedings is to be read as a reference to sisting the proceedings. PART 4BCForfeiture of terrorist cryptoassetsInterpretation(10Z7C) (1) In this Part— “cryptoasset service provider” has the same meaning as in Part 4BB (see paragraph 10Z7B(1)); “crypto wallet freezing order” has the same meaning as in Part 4BB (see paragraph 10Z7B(6)); “senior officer” means— a senior police officer; an officer of Revenue and Customs of a rank designated by the Commissioners for His Majesty’s Revenue and Customs as equivalent to that of a senior police officer; an immigration officer of a rank designated by the Secretary of State as equivalent to that of a senior police officer; “senior police officer” means a police officer of at least the rank of superintendent. (2) Paragraph 10Z7B(6)(b) (administration of crypto wallets) applies in relation to this Part as it applies in relation to Part 4BB. Forfeiture(10Z7CA) (1) This paragraph applies— (a) while any cryptoassets are detained under Part 4BA, or (b) while a crypto wallet freezing order made under paragraph 10Z7BB has effect. (2) An application for the forfeiture of some or all of the cryptoassets that are detained or held in the crypto wallet that is subject to the crypto wallet freezing order may be made— (a) to a magistrates’ court by the Commissioners for His Majesty’s Revenue and Customs or an authorised officer, or (b) to the sheriff by the Scottish Ministers. (3) The court or sheriff may order the forfeiture of some or all of the cryptoassets if satisfied that the cryptoassets are terrorist cryptoassets. (4) An order under sub-paragraph (3) made by a magistrates’ court may provide for payment under paragraph 10Z7CJ of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of— (a) the proceedings in which the order is made, or (b) any related proceedings under this Part. (5) A sum in respect of a relevant item of expenditure is not payable under paragraph 10Z7CJ in pursuance of provision under sub-paragraph (4) unless— (a) the person who applied for the order under sub-paragraph (3) agrees to its payment, or (b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount. (6) For the purposes of sub-paragraph (5)— (a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (3) had instead been a recovery order made under section 266 of that Act; (b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations; (c) if the person who applied for the order under sub-paragraph (3) was an authorised officer, that person may not agree to the payment of a sum unless the person is a senior officer or is authorised to do so by a senior officer. (7) Sub-paragraph (3) ceases to apply on the transfer of an application made under this paragraph in accordance with paragraph 10Z7CE. Forfeiture: supplementary(10Z7CB) (1) Sub-paragraph (2) applies where an application is made under paragraph 10Z7CA for the forfeiture of any cryptoassets detained under Part 4BA. (2) The cryptoassets are to continue to be detained under Part 4BA (and may not be released under any power conferred by this Schedule) until any proceedings in pursuance of the application (including any proceedings on appeal) are concluded. This is subject to Part 4BD (conversion to money). (3) Where an application is made under paragraph 10Z7CA in relation to cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order— (a) sub-paragraphs (4) and (5) apply, and (b) the crypto wallet freezing order is to continue to have effect until the time referred to in sub-paragraph (4)(b) or (5). (4) Where the cryptoassets are ordered to be forfeited under paragraph 10Z7CA(3) or 10Z7CE(3)— (a) the cryptoasset service provider that administers the crypto wallet must transfer the cryptoassets into a crypto wallet nominated by an authorised officer, and (b) immediately after the transfer has been made, the freezing order ceases to have effect. (5) Where the application is determined or otherwise disposed of other than by the making of an order under paragraph 10Z7CA(3) or 10Z7CE(3), the crypto wallet freezing order ceases to have effect immediately after that determination or other disposal. (6) Sub-paragraphs (4)(b) and (5) are subject to paragraph 10Z7CF and Part 4BD. (7) The Secretary of State may by regulations made by statutory instrument amend this paragraph to make provision about the forfeiture of cryptoassets held in a crypto wallet that is subject to a crypto wallet freezing order. (8) Regulations under sub-paragraph (7) may in particular make provision about— (a) the process for the forfeiture of cryptoassets; (b) the realisation of forfeited cryptoassets; (c) the application of the proceeds of such realisation. (9) Regulations under sub-paragraph (7) may— (a) make different provision for different purposes; (b) make consequential, supplementary, incidental, transitional, transitory or saving provision, including provision which makes consequential amendments to this Part. (10) A statutory instrument containing regulations under sub-paragraph (7) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament. Associated and joint property(10Z7CC) (1) Paragraphs 10Z7CD and 10Z7CE apply if— (a) an application is made under paragraph 10Z7CA in respect of cryptoassets, (b) the court or sheriff is satisfied that some or all of the cryptoassets are terrorist cryptoassets, and (c) there exists property that is associated with the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in paragraph (b). (2) Paragraphs 10Z7CD and 10Z7CE also apply in England and Wales and Northern Ireland if— (a) an application is made under paragraph 10Z7CA in respect of cryptoassets, (b) the court is satisfied that some or all of the cryptoassets are earmarked as terrorist property, and (c) the cryptoassets in relation to which the court is satisfied as mentioned in paragraph (b) belong to joint tenants and one of the tenants is an excepted joint owner. (3) In this paragraph and paragraphs 10Z7CD and 10Z7CE, “associated property” means property of any of the following descriptions that is not itself the forfeitable property— (a) any interest in the forfeitable property; (b) any other interest in the property in which the forfeitable property subsists; (c) if the forfeitable property is part of a larger property, but not a separate part, the remainder of that property. References to property being associated with forfeitable property are to be read accordingly. (4) In this paragraph and paragraphs 10Z7CD and 10Z7CE, the “forfeitable property” means the cryptoassets in relation to which the court or sheriff is satisfied as mentioned in sub-paragraph (1)(b) or (2)(b) (as the case may be). (5) For the purposes of this paragraph and paragraphs 10Z7CD and 10Z7CE— (a) an excepted joint owner is a joint tenant who obtained the property in circumstances in which it would not (as against them) be earmarked, and (b) references to the excepted joint owner’s share of property are to so much of the property as would have been theirs if the joint tenancy had been severed. Agreements about associated and joint property(10Z7CD) (1) Where— (a) this paragraph applies, and (b) the person who applied for the order under paragraph 10Z7CA (on the one hand) and the person who holds the associated property or who is the excepted joint owner (on the other hand) agree, the magistrates’ court or sheriff may, instead of making an order under paragraph 10Z7CA(3), make an order requiring the person who holds the associated property or who is the excepted joint owner to make a payment to a person identified in the order. (2) The amount of the payment is (subject to sub-paragraph (3)) to be the amount which the persons referred to in sub-paragraph (1)(b) agree represents— (a) in a case where this paragraph applies by virtue of paragraph 10Z7CC(1), the value of the forfeitable property; (b) in a case where this paragraph applies by virtue of paragraph 10Z7CC(2), the value of the forfeitable property less the value of the excepted joint owner’s share. (3) The amount of the payment may be reduced if the person who applied for the order under paragraph 10Z7CA agrees that the other party to the agreement has suffered loss as a result of— (a) the seizure of the forfeitable property under paragraph 10Z7AD and its subsequent detention, or (b) the making of a crypto wallet freezing order under paragraph 10Z7BB. (4) The reduction that is permissible by virtue of sub-paragraph (3) is such amount as the parties to the agreement agree is reasonable, having regard to the loss suffered and any other relevant circumstances. (5) An order under sub-paragraph (1) may, so far as required for giving effect to the agreement, include provision for vesting, creating or extinguishing any interest in property. (6) An order under sub-paragraph (1) made by a magistrates’ court may provide for payment under sub-paragraph (11) of reasonable legal expenses that a person has reasonably incurred, or may reasonably incur, in respect of— (a) the proceedings in which the order is made, or (b) any related proceedings under this Part. (7) A sum in respect of a relevant item of expenditure is not payable under sub-paragraph (11) in pursuance of provision under sub-paragraph (6) unless— (a) the person who applied for the order under paragraph 10Z7CA agrees to its payment, or (b) the court has assessed the amount allowed in respect of that item and the sum is paid in respect of the assessed amount. (8) For the purposes of sub-paragraph (7)— (a) a “relevant item of expenditure” is an item of expenditure to which regulations under section 286B of the Proceeds of Crime Act 2002 would apply if the order under sub-paragraph (1) had instead been a recovery order made under section 266 of that Act; (b) an amount is “allowed” in respect of a relevant item of expenditure if it would have been allowed by those regulations. (9) If there is more than one item of associated property or more than one excepted joint owner, the total amount to be paid under sub-paragraph (1), and the part of that amount which is to be provided by each person who holds any such associated property or who is an excepted joint owner, is to be agreed between both (or all) of them and the person who applied for the order under paragraph 10Z7CA.