Jurisdiction(s):
United Kingdom

Forced labour and money laundering: Court of Appeal clarifies POCA 2002 risks for UK importers; ‘adequate consideration’ no shield; due diligence limits in high-risk supply chains (cotton, cocoa, cobalt)

Published on: 05 August 2024

Published by a Law360 reporter

Legal News

Article summary

This creates a significant legal exposure for UK businesses that import cotton from the Xinjiang Uyghur Autonomous Region (XUAR), alongside other higher-risk goods like cocoa, sugar and cobalt, too. This piece examines the Court of Appeal’s judgment and considers what it means in practice for businesses, including in relation to companies’ supply chain due diligence.

Background

In April 2020, the World Uyghur Congress (WUC) submitted material to the NCA alleging that grave human rights violations were occurring in the XUAR and asserting that cotton from the region was likely the product of forced labour. The NCA refused to open an inquiry, saying it was not obliged to act unless a particular consignment of cotton had been identified as criminal property. It further maintained that where a party in the supply chain had paid adequate consideration, ie, market value, the goods could no longer constitute criminal property, relying on the exemption in section 329(2)(c) of the Proceeds of Crime Act 2002 (POCA 2002). The WUC’s judicial review of that position was unsuccessful, and it appealed. The Court of Appeal allowed the WUC’s appeal and quashed the NCA’s decision...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...