Unexplained Wealth Orders
What are Unexplained Wealth Orders
An unexplained wealth order (UWO) is an investigatory order placed on a respondent whose assets appear disproportionate to their income to explain the origins of their wealth.
Account Freezing Orders (AFOs) – What You Need to Know
An Unexplained Wealth Order (UWO) requires a person who is a Politically Exposed Person (PEP) or reasonably suspected of involvement in, or of being connected to a person involved in, serious crime to explain the origin of assets (minimum combined value of £50,000) that appear to be disproportionate to their known lawfully obtained income.
As noted in the joint Home Office and HM Treasury National Risk Assessment of money laundering and terrorist financing 2020, property in the UK is attractive to both foreign and domestic criminals seeking to conceal large amounts of illicit funds, disguise their ownership, and realise the proceeds of their criminal activities.
A UWO is not (by itself) a power to recover assets. However, any response from a UWO can be used in subsequent civil recovery proceedings.
A failure to respond will mean that the assets can be made subject to civil recovery action under the Proceeds of Crime Act 2002.
A person can also be found guilty of an offence if they provide false or misleading information in response to an UWO.
The desired outcome of these amendments is to strengthen the UWO regimes to enable law enforcement to take more effective action against kleptocrats, corrupt elites and serious and organised criminals who launder their funds in the UK. In turn, this will lead to greater prospects of the recovery of assets bought with the proceeds of serious and organised crime, particularly corruption.
Key Facts
1. Serious and organised crimes (SOC), for example, corruption, money laundering, ransomware attacks and terrorism-financing, are estimated to cost the UK economy £37 billion per year.
2. The Proceeds of Crime Act 2002 (POCA 2002) provides the statutory framework and broad powers to trace, investigate and recover illicit finance gained through unlawful conduct. In 2020/21, just under £219 million of the proceeds of crime were recovered within England, Wales, and Northern Ireland. This continues the general trend of improved performance since 2016 to 2017. Overall, just under £1.3 billion has been recovered from criminals using these powers, significantly curtailing corrupt actors’ ability to further criminality.
3. The Financial Action Task Force found that the UK has one of the strongest systems in the world for combatting money laundering.
4. UWOs have been granted in 4 cases since their introduction in relation to assets with a combined value of £143 million. In October 2020, property worth an estimated £10 million was recovered following the use of an UWO.
Why Cobleys
- Decades of experience in criminal law
- In-house barristers and solicitor-advocates
- Proven results in contested hearings and mitigation
- National reach with offices in Liverpool & London
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- From the first hearing to final outcome, we’re in your corner.
Contact us
Liverpool – Head Office
- 19-23 Sir Thomas Street
- Liverpool
- L1 6BW
- office@cobleys.com
- 0151 242 9000
