World Uyghur Congress v National Crime Agency [2024] EWCA Civ 715

Background: In April 2020, the World Uyghur Congress (WUC) presented evidence to the NCA regarding severe human rights abuses in the Xinjiang Uyghur Autonomous Region. They argued that cotton from this region, likely produced through forced labour, constitutes criminal property under the Proceeds of Crime Act 2002 (POCA) and urged the NCA to investigate these imports for money laundering offenses.

NCA's Initial Decision: The NCA declined to investigate, stating:

1. They required identification of a specific shipment of cotton as criminal property.
2. Products could not be deemed criminal property once someone in the supply chain had paid "adequate consideration" or market value for them.

Judicial Review and Appeal: WUC sought judicial review of this decision. The High Court dismissed their challenge, prompting WUC to appeal. During the appeal hearing, the NCA conceded that:

• It is not necessary to identify a specific consignment as criminal property to commence an investigation.
• The possibility of adequate consideration being paid at some point in the supply chain should not prevent an investigation under POCA.

Court of Appeal Ruling: The Court of Appeal found the NCA's reasons for refusing to investigate were legally flawed. The court quashed the NCA's decision and mandated a reconsideration of whether to investigate on a lawful basis.

Implications: The ruling has significant implications for companies involved in global trade:

• Companies buying and selling goods suspected to be products of forced labour can be investigated and prosecuted for money laundering under POCA.
• Adequate consideration paid for such products does not absolve their criminal status.
• The judgment emphasises the responsibility of companies to ensure their supply chains are free from forced labour and other criminal activities.

Statements from Legal Experts and Representatives:

• Alice Hardy, Bindmans LLP: "This judgment should lead to companies taking more care to ensure their supply chains are not tainted by forced labour or other criminal practices. The NCA did not contest that products of forced labuor are criminal, nor that 85% of Chinese cotton comes from the Uyghur region with clear evidence of human rights abuses."

• Dearbhla Minogue, GLAN Senior Lawyer: "This litigation has been critical in recognising the mass atrocities committed against Uyghur and other Turkic Muslim people. There is ample evidence that UK companies import forced labour cotton from China. Following this ruling, we expect the NCA to investigate and prosecute appropriately."

• Leanna Burnard, GLAN Lawyer: "This judgment is a watershed moment for supply chains profiting from forced labour. Companies trading the proceeds of crime will themselves be committing a crime whenever they transfer those goods."

• Rahima Mahmut, UK Director, World Uyghur Congress: "This is a monumental victory and a moral triumph. Our fight has been against genocide and forced labour imposed on countless Uyghurs. This win represents a measure of justice for those subjected to slave labour. We call on the government to implement tougher legislation."

Legal Representation: The World Uyghur Congress was represented by Dearbhla Minogue and Leanna Burnard of the Global Legal Action Network, supervised by Alice Hardy at Bindmans LLP, along with a team of barristers from 18 Red Lion Court, Temple Garden Chambers, and Landmark Chambers.

This landmark ruling underscores the legal accountability of companies for ensuring ethical supply chains and highlights the significant role of legal frameworks in combating human rights abuses linked to forced labour.

Background: In April 2020, the World Uyghur Congress (WUC) presented evidence to the NCA regarding severe human rights abuses in the Xinjiang Uyghur Autonomous Region. They argued that cotton from this region, likely produced through forced labour, constitutes criminal property under the Proceeds of Crime Act 2002 (POCA) and urged the NCA to investigate these imports for money laundering offenses.

NCA's Initial Decision: The NCA declined to investigate, stating:

1. They required identification of a specific shipment of cotton as criminal property.
2. Products could not be deemed criminal property once someone in the supply chain had paid "adequate consideration" or market value for them.

Judicial Review and Appeal: WUC sought judicial review of this decision. The High Court dismissed their challenge, prompting WUC to appeal. During the appeal hearing, the NCA conceded that:

• It is not necessary to identify a specific consignment as criminal property to commence an investigation.
• The possibility of adequate consideration being paid at some point in the supply chain should not prevent an investigation under POCA.

Court of Appeal Ruling: The Court of Appeal found the NCA's reasons for refusing to investigate were legally flawed. The court quashed the NCA's decision and mandated a reconsideration of whether to investigate on a lawful basis.

Implications: The ruling has significant implications for companies involved in global trade:

• Companies buying and selling goods suspected to be products of forced labour can be investigated and prosecuted for money laundering under POCA.
• Adequate consideration paid for such products does not absolve their criminal status.
• The judgment emphasises the responsibility of companies to ensure their supply chains are free from forced labour and other criminal activities.

Statements from Legal Experts and Representatives:

• Alice Hardy, Bindmans LLP: "This judgment should lead to companies taking more care to ensure their supply chains are not tainted by forced labour or other criminal practices. The NCA did not contest that products of forced labour are criminal, nor that 85% of Chinese cotton comes from the Uyghur region with clear evidence of human rights abuses."

• Dearbhla Minogue, GLAN Senior Lawyer: "This litigation has been critical in recognising the mass atrocities committed against Uyghur and other Turkic Muslim people. There is ample evidence that UK companies import forced labour cotton from China. Following this ruling, we expect the NCA to investigate and prosecute appropriately."

• Leanna Burnard, GLAN Lawyer: "This judgment is a watershed moment for supply chains profiting from forced labour. Companies trading the proceeds of crime will themselves be committing a crime whenever they transfer those goods."

• Rahima Mahmut, UK Director, World Uyghur Congress: "This is a monumental victory and a moral triumph. Our fight has been against genocide and forced labour imposed on countless Uyghurs. This win represents a measure of justice for those subjected to slave labour. We call on the government to implement tougher legislation."

Legal Representation: The World Uyghur Congress was represented by Dearbhla Minogue and Leanna Burnard of the Global Legal Action Network, supervised by Alice Hardy at Bindmans LLP, along with a team of barristers from 18 Red Lion Court, Temple Garden Chambers, and Landmark Chambers.

This landmark ruling underscores the legal accountability of companies for ensuring ethical supply chains and highlights the significant role of legal frameworks in combating human rights abuses linked to forced labour.