How EncroChat Sparked a Surge in POCA Work
EncroChat, Operation Venetic and the Surge in POCA Work
In 2020, the National Crime Agency (NCA) led the UK response to the takedown of EncroChat, an encrypted communications platform used exclusively by criminals, under the banner of Operation Venetic.
The scale of criminal activity uncovered was unprecedented. As of October 2023, the NCA reported:
“So far under Venetic, across UK law enforcement, 3,147 suspects have been arrested, 1,240 offenders convicted, more than nine tonnes of cocaine and heroin seized, and 173 firearms seized. Offenders have been jailed for more than 7,930 years.”
— National Crime Agency, October 2023
The EncroChat breach offered investigators a rare, real-time glimpse into the operations of serious organised crime. But the legal consequences have extended well beyond arrest and prosecution, particularly in the field of financial recovery.
The POCA Fallout: From Encrypted Messages to Confiscation Orders
Following conviction, many defendants in Operation Venetic cases are pursued under Part 2 of the Proceeds of Crime Act 2002 (POCA). The Crown frequently asserts that defendants have a criminal lifestyle, which activates POCA’s powerful financial assumptions, including:
That any assets held at the time of conviction were obtained through crime
That any income, transfers, or spending in the six years prior are tainted
That the burden of proof lies with the defendant to prove otherwise
These assumptions can lead to inflated benefit figures and speculative valuations, particularly when based on chat messages rather than transactional evidence.
How It’s Kept Me Busy
The aftermath of Operation Venetic has resulted in a stream of complex, high-value confiscation cases, and a steady demand for forensic accountancy support. In recent years, I’ve been involved in numerous Venetic-linked matters involving:
Detailed review of bank records to distinguish lawful income from alleged benefit
Challenging POCA assumptions, especially where assets were acquired legitimately
Rebutting hidden asset allegations, often based on cash use, crypto holdings, or unsubstantiated lifestyle claims
Assessing available amounts, including joint property, liabilities, and asset dissipation
Critiquing Crown methodologies, particularly when based on encrypted chat rather than financial evidence
In these cases, the Crown often draws sweeping financial conclusions from limited, non-financial material. That’s where expert analysis makes a difference.
Final Thoughts
Operation Venetic revealed the scale of encrypted criminal communication, but it also unleashed a second wave of litigation: the fight over financial recovery.
Forensic accountants play a vital role in this process. We bring clarity to complex financial data, challenge flawed assumptions, and ensure confiscation orders reflect real-world evidence, not speculative arithmetic.
