I beg to move

That the draft Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Order (Northern Ireland) 2024 be approved.

The Business Committee has agreed that there should be no time limit on this debate. I call the Minister to open the debate on the motion.

Thank you, Madam Principal Deputy Speaker. The purpose of the order is to bring into operation three codes of practice for the use of powers under the Proceeds of Crime Act 2002, as amended by the Economic Crime and Corporate Transparency Act 2023.

By way of background, the Proceeds of Crime Act 2002, which is otherwise known as POCA, is a UK-wide Act designed to provide law enforcement partners with tools to recover the proceeds of crime and deny criminals the opportunity to accumulate assets secured by illegal means. POCA contains a wide range of provisions that deal with, amongst other things, cash seizure; forfeiture; asset freezing; the disclosure of information by financial institutions during investigations; and requirements on professionals in the regulated industries to submit suspicious activity reports. POCA has, since its inception, proven to be an integral part of the response to organised criminality, which, as Members will know, is driven by sheer greed and a disregard for the harmful impact that crime has on our society.

(Mr Deputy Speaker [Mr Blair] in the Chair)

The POCA regime has been further enhanced by the Economic Crime and Corporate Transparency Act 2023, giving law enforcement partners new powers to seize crypto assets when investigating the proceeds of crime. Crypto assets are digital assets that can be transferred, stored or traded electronically. They exist electronically and use a peer-to-peer system. Perhaps the most commonly known are those such as bitcoin. Crypto assets are increasingly being used by criminals to move and launder the profits of various crimes, including drug crime, fraud and money laundering.

Members are invited to approve the three codes of practice that give guidance to officers in Northern Ireland who are exercising POCA functions following commencement of the relevant provisions relating to crypto assets. Those officers are primarily PSNI officers and accredited financial investigators in the PSNI, the Department for Communities and the Northern Ireland Environment Agency. The designation of the powers is subject to ongoing training and accreditation. Taking into account appropriate jurisdictional differences, the codes are closely aligned to those prepared by the Home Office for officers exercising POCA powers in reserved agencies or on behalf of other bodies in England and Wales.

Two of the codes relate to existing codes that have been subject to minor updates to reflect how the new crypto asset powers should be exercised in relation to search, seizure and detention, as well as investigations. One new code advises officers on how to exercise powers in respect of the recovery of crypto assets. It is anticipated, subject, of course, to the Assembly's approval today, that the two revised codes and one new code will take effect on 17 July, with draft codes of practice having been made available online since the new crypto assets powers were commenced.

Whilst I do not propose to go into the full technical detail of each code, Members may find a brief summary of their content helpful.

First, the search, seizure and detention of property (Northern Ireland) code of practice is issued under section 195T of the 2002 Act and provides guidance to constables and accredited financial investigators on the exercise of powers to search, seize and detain property that may be needed to satisfy a future confiscation order following conviction. Secondly, the investigations (Northern Ireland) code of practice, issued under section 377ZA of the 2002 Act, provides guidance to constables and accredited financial investigators on the exercise of the investigation powers in POCA. Finally, the recovery of crypto assets search powers (Northern Ireland) code of practice is a new code of practice, issued under section 303Z25 of the 2002 Act. The new code provides guidance to constables and accredited financial investigators on the exercise of powers to search for crypto assets. It also provides guidance on applications by officers to judicial officers or senior officers for prior approval to exercise the powers.

POCA stipulates that the Department of Justice must prepare and publish a draft of any new or revised code of practice. My Department ran an eight-week public consultation on the three codes, from 15 February until 10 April 2024. No adverse impacts were mentioned, and no amendments were suggested, so there were no material changes made to the codes as a result of the consultation.

Setting aside the technical detail, it is important to reflect on what the codes help deliver. We know that criminals are motivated by greed and personal gain. Removing the profits from their criminal activity reduces incentives and has a disruptive effect on the cycle that sustains serious and organised crime. In turn, that reduces harm to individuals, families and businesses across communities. It is therefore important to recognise that the POCA regime is an integral part of the overall response to tackling organised criminality in all its forms. Enhancing the POCA framework is also consistent with what my Department and its partners on the organised crime task force (OCTF) seek to achieve under the organised crime strategy for Northern Ireland, particularly on pursuing offenders.

The codes are important safeguards that underpin the whole POCA regime and are specifically intended to deal with the new and emerging issue of crypto assets. Collectively, we must ensure that organised criminality is both socially unacceptable and economically unviable. I therefore ask the Assembly to support the strengthening of POCA in Northern Ireland and approve the order. We need to send a clear, consistent and collective message that crime will not pay and that we will do everything in our power to ensure that law enforcement agencies have all the powers that they need to deny criminals the use of their assets, to recover the proceeds of crime and to disrupt and deter criminality. I commend the order to the House.

Minister, thank you for opening the debate.

I welcome the opportunity to speak briefly on the motion as Chair of the Committee for Justice and declare that I have an immediate family member who works in the legal profession.

The Committee was first alerted to the Department's intention to propose the rule at its meeting on 16 May and raised no issues with its so doing. The Committee then considered the draft statutory rule (SR) at its meeting on 30 May. We were advised that the reforms that would be made as a result of the rule would enable officers to seize crypto assets and other property during an investigation. It would also enable officers to seize crypto asset-related items and enable the courts to better enforce unpaid confiscation orders against a defendant's crypto assets. The rule would also bring crypto assets within the scope of civil forfeiture powers, as outlined in Part 5 of the Proceeds of Crime Act 2002, and would ensure that forfeiture powers were accompanied by supplementary investigative powers, as outlined in Part 8 of the 2002 Act, similar to investigatory powers that exist to support the forfeiture of cash, listed assets and funds in certain accounts.

The Committee was informed that a public consultation on the changes was conducted between February and April 2024 and that only one response, which did not contain substantive comments, was received. Furthermore, the Committee was notified that codes of practice equivalent to those that are being introduced through the rule are in place in England, Scotland and Wales and that, because the parent legislation applies UK-wide in order to ensure that there is consistency of approach and language across jurisdictions, the Department closely followed the codes for England and Wales, with appropriate adaptations.

At that same meeting of 30 May, the Committee for Justice formally agreed to recommend that the rule be approved by the Assembly, subject to the report from the Examiner of Statutory Rules (ESR). Subsequently, the Examiner reported on the rule in her report, which was published on 4 June 2024, and raised no concerns regarding its technical aspects. On behalf of the Committee for Justice, therefore, I support the motion before the House.

I turn now to the views of the Democratic Unionist Party. Our position is reflected in that of the Committee. Where assets, including crypto assets, have potentially been acquired through crime, it is right that they are seized until such times as that is determined or otherwise, and that any ill-gotten gains are forfeited. That said, where assets are seized, investigation should be progressed as quickly as possible so that there is no reason for the money to be retained, and it should also be returned without delay. Of course, crime should not pay, and any sanction should serve as a deterrent. Hitting such criminals in their pockets is certainly a worthy and valuable part of that. As the cyberworld and that of crypto expands, so must the instruments and powers to detect and address criminality within that arena. We support the rule.

I will speak briefly on behalf of the Opposition to say that we support the order and welcome the fact that it has been brought forward. Clearly, it is important that the investigatory powers of the police reflect the changing technological landscape. There is clear evidence of the increased use of crypto assets by criminals here in holding their assets, so it is welcome and right that this updated provision and code has been brought forward by the Minister. I welcome the fact that it has happened speedily. It illustrates the importance of having a devolved legislature and serving Ministers who can bring forward necessary legislation or secondary legislation or codes under legislation, as this is.

Will the Minister update us on a couple of things when she is wrapping up? First, section 7 of the updated order makes clear that an officer who fails to comply with the code is not going to be held legally responsible. That is clearly a reflection of the fact that it is not a legally binding or justiciable code, in that sense. It would be helpful if the Minister reminded us what penalties there are, or how it will be viewed, if an officer does not abide by the code. Clearly, it is a code; it is not criminal law. That is fair enough. Secondly, does the Minister have either specific examples or a broader sense of the prevalence of the use of crypto assets amongst criminals? What is the profile of those criminals in Northern Ireland who are making use of these crypto assets? Other than that, the Opposition are, of course, happy to support the order proceeding, and we welcome the fact that the Minister has brought it forward.

Like everybody else, I support the rule. There was unanimous support for it at the Committee. Obviously, the rule revises two of the codes, and it adds an additional code. As was said earlier, we need to make sure that our justice system is up to date with regard to the evolution of technology. It also allows for assets to be seized during the course of an investigation and enables the courts to better enforce unpaid confiscation orders against defendants regarding those crypto assets. On behalf of Sinn Féin, I support the rule.

As justice spokesperson for the Alliance Party, not only do I support the Minister on the introduction of the statutory rule but applaud her and the Department for wishing to keep ahead with this type of legislation. These items are important. While we may look at normal types of criminality here in Northern Ireland, it is vital to all of us that this order will thwart international and online criminality. I commend the order to the House.

I thank all the Members who have spoken. I call the Minister to conclude and wind up the debate on the motion.

I put on record my thanks to all Members for this positive debate and for the contributions that they have made. I also place on record my thanks to the Chair of the Committee for her remarks, as well as the Deputy Chair, and put on record my appreciation for the scrutiny that has been applied by the Committee on these issues.

In response to the question about the safeguards in the exercise of POCA powers, POCA contains a wide range of very important tools to be able to tackle criminal finances. The search and investigation powers are, as acknowledged in the debate, invasive in respect of an individual's privacy, so oversight obviously has to be applied to agencies when they use them. The exercise of powers by the PSNI is subject to the usual oversight of the Policing Board. However, in addition to the codes of practice, which provide an additional layer of protection to the public, there is judicial oversight of the use of those codes.

Organised crime is not victimless and is not conducted in a vacuum. Its detrimental impact can be seen and felt in our communities, where it causes real harm and wrecks lives and livelihoods. It also diverts money away from the public services that we need to use on a day-to-day basis. Organised crime is completely and utterly unacceptable, and we want to do all that we can to stop it. Law enforcement partners in the organised crime task force are committed to tackling organised criminality in all its forms. Removing the proceeds of crime is an important part of our combined efforts. Investigating and removing criminal assets has a powerful disruptive effect on organised criminals, can impact on their so-called status, can cause problems between criminal groups and restricts their ability to fund further criminality.

Whilst the use of crypto assets in the Northern Ireland context has been assessed as still not as prevalent as it is in other parts, it is, nevertheless, a growing area of concern for the PSNI and other investigatory bodies. Therefore, it is important that we keep pace with change and stay ahead of those criminals who are very agile in how they change their modes of operation to try to evade scrutiny and detection.

The order that is being debated ensures that Northern Ireland officers with functions under the Proceeds of Crime Act can exercise their powers, which are underpinned by up-to-date and effective guidance. The order also ensures that safeguards are in place for those who may be the subject of a POCA-related investigation. I commend the order and ask that the Assembly accept it by approving the motion before the House.

Thank you, Minister, for that conclusion.

Question put and agreed to. Resolved:

That the draft Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Order (Northern Ireland) 2024 be approved.

Members, take your ease for a moment before we move on to the next item.