1. Unexplained Wealth Orders
Olga Tocewicz
Senior Associate, Corporate Crime

2. 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 and Wales:
the National Crime Agency,
Her Majesty’s Revenue and Customs,
The Financial Conduct Authority,
the Serious Fraud Office, or
the Crown Prosecution Service

3. 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
(broadly “holds” means exercising, being able to exercise or being entitled to acquire direct or indirect control over the property).
lack of any proper definition of “income” within the CFA

4. 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.
Involved in serious crime whether in a part of the United Kingdom or elsewhere

5. 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

6. 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

7. 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.

8. 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.

9. 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