The Court of Appeal’s decision in the case of R (on the application of World Uyghur Congress) v National Crime Agency (Spotlight on Corruption intervening) serves as a significant ruling on the obligations of law enforcement agencies under the Proceeds of Crime Act 2002 (POCA 2002) concerning human rights abuses and money laundering. The Court of Appeal allowed the appeal by the World Uyghur Congress, overturning the Administrative Court’s dismissal of their application for judicial review against the National Crime Agency (NCA) and other law enforcement agencies.
The World Uyghur Congress had questioned the NCA’s decision not to investigate alleged human rights abuses by the People’s Republic of China, with particular focus on the importation of cotton produced by forced labour in Xinjiang province. The Court of Appeal found that the NCA had misunderstood the scope of its powers under Part 7 of POCA 2002 in regard to money laundering and under Part 5 concerning the civil recovery of the proceeds of crime. The court held that the NCA’s decision letter suggested that specific criminal property and conduct needed to be identified before an investigation could proceed, which was a misinterpretation of the law.
The ruling has significant implications for organisations involved in supply chains, particularly those dealing with goods from regions with known human rights abuses. The decision highlights the need for due diligence and risk management to avoid inadvertently committing money laundering offences. Organisations must ensure that they avoid knowingly or suspecting involvement with criminal property, even if they have provided adequate consideration for such goods.
In conclusion, the Court of Appeal’s decision in R (on the application of World Uyghur Congress) v National Crime Agency (Spotlight on Corruption intervening) highlights the broad scope of the NCA’s investigative powers under POCA 2002 and the importance of addressing human rights abuses in supply chains. The ruling serves as a reminder that adequate consideration does not exempt organisations from the responsibility of ensuring that their supply chains are free from criminality. It is likely to spur increased scrutiny by the NCA on supply chains involving regions with human rights concerns.
For further information on this topic or on any other legal area, please contact John Szepietowski or Kay Stewart at Audley Chaucer Solicitors on 01372 303444 or email admin@audleychaucer.com or visit our Linkedin page.
Gaina Kapoor
This information was correct as of September 2024