The Advocate General for Scotland against Alexander Watt McCartney and others (Court of Session) [2026] CSIH 5 (27 January 2026)

The Advocate General for Scotland against Alexander Watt McCartney and others (Court of Session) [2026] CSIH 5 (27 January 2026)

The appellant failed to establish that the circumstances were exceptional as required by section 303Z18(3) of the Proceeds of Crime Act 2002. HMRC acted honestly, reasonably, and properly in seeking and maintaining the AFO. The unexplained large credits to the appellant's accounts justified reasonable suspicion. Delays were largely attributable to the appellant's lack of cooperation. The conduct of the CRU was not improper. Therefore, no compensation was payable.

Citation
[2026] CSIH 5
Parties
Pursuer and Respondent: The Advocate General for Scotland; Defender and Appellant: Alexander Watt McCartney; Interveners: The Scottish Ministers
Jurisdiction
Scotland
Judgment Date
27 January 2026
Procedural Posture
Appeal / Judgment on Appeal and Cross Appeal From Sheriff's Decision Refusing Compensation Under Section 303 Z18 of the Proceeds of Crime Act 2002
Outcome
Appeal and cross-appeal refused.
Legal Topics
Proceeds of Crime, Account Freezing Orders, Compensation for Freezing Orders, Exceptional Circumstances, Civil Recovery, Judicial Review of Public Authority Actions
Civil Procedure Criminal Law Public Law Proceeds of Crime Account Freezing Orders Compensation for Freezing Orders Exceptional Circumstances Civil Recovery +1 more

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Parties

The Advocate General for Scotland

Pursuer and Respondent

Alexander Watt McCartney

Defender and Appellant

The Scottish Ministers

Interveners

Procedural Posture

Appeal / Judgment on Appeal and Cross Appeal From Sheriff's Decision Refusing Compensation Under Section 303 Z18 of the Proceeds of Crime Act 2002

Legal Issues

  1. 1 Whether the appellant suffered compensable loss as a result of an account freezing order (AFO) under section 303Z18 of the Proceeds of Crime Act 2002
  2. 2 Whether the circumstances were 'exceptional' so as to justify compensation under section 303Z18(3)
  3. 3 Whether the conduct of the Scottish Ministers' Civil Recovery Unit (CRU) is relevant to the assessment of exceptional circumstances

Ratio Decidendi

The appellant failed to establish that the circumstances were exceptional as required by section 303Z18(3) of the Proceeds of Crime Act 2002. HMRC acted honestly, reasonably, and properly in seeking and maintaining the AFO. The unexplained large credits to the appellant's accounts justified reasonable suspicion. Delays were largely attributable to the appellant's lack of cooperation. The conduct of the CRU was not improper. Therefore, no compensation was payable.

Court Disposition

Appeal and cross-appeal refused.

Orders

  • Refuse the appeal by Alexander Watt McCartney.
  • Refuse the cross-appeal by the Advocate General for Scotland.