Unexplained Wealth Orders Olga Tocewicz Senior Associate Corporate

Unexplained Wealth Orders Olga Tocewicz Senior Associate, Corporate Crime

Background • New powers under Part 8 of the Proceeds of Crime Act 2002 (‘POCA’) • Came into force on 31 January 2018 • Can be sought by an “enforcement authority”, in England Wales: – – – the National Crime Agency, Her Majesty’s Revenue and Customs, The Financial Conduct Authority, the Serious Fraud Office, or the Crown Prosecution Service

Conditions • The High Court may grant a UWO if: – The respondent “holds” the property and – the property is worth over £ 50, 000 • The High Court must be satisfied that there are reasonable grounds for suspecting that the legitimate income of the respondent is insufficient to enable them to acquire the property

Conditions • The High Court must be satisfied that: – the respondent is a politically exposed person OR – there are reasonable grounds for suspecting that: • the respondent is, or has been, involved in serious crime, or • a person connected with the respondent is, or has been, so involved.

The Order • The UWO requires the respondent to provide a statement explaining: – nature and extent of the interest – how the respondent obtained the property – details of any trust, and – any other information as specified by the UWO

Politically exposed person (‘PEP’) • an individual who is, or has been, entrusted with prominent public functions by an international organisation or by a State • a member of their family • someone known to be a close associate of such a person • someone otherwise connected with such a person

Far reaching powers • It does not matter: – whether or not there are other persons who also hold the property; or – whether the property was obtained by the respondent before or after the date the new legislation came into force.

What if I don’t comply? • If the respondent fails, without reasonable excuse, to comply the property is to be presumed to be recoverable property using POCA’s civil recovery powers. • It is a criminal offence to knowingly or recklessly make a false declaration in response to a UBO.

The case of “Mrs A” • Wife of a "fat cat banker" • The NCA believes two homes worth £ 22 million were bought with cash stolen by the woman's husband while he was working for a state bank in their home country • The couple have an estimated wealth of more than £ 55 million • The court heard that Mrs A led an extravagant lifestyle, spending £ 16 million in Harrods over 10 years

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