Unexplained Wealth Orders

An Unexplained Wealth Order (UWO) is a legal instrument introduced in 2018 under the Criminal Finances Act.

It empowers law enforcement agencies to investigate and uncover the origins of significant unexplained wealth held by individuals.

A UWO requires the subject to provide a legitimate and reasonable explanation for their wealth's source if it appears disproportionate to their known income or legitimate activities. It is aimed at combating financial crimes like money laundering and corruption, allowing authorities to target individuals suspected of using illicit funds for purchasing assets like property or luxury items.

Failure to provide a satisfactory explanation could lead to the assets being seized. UWOs are part of broader efforts to enhance transparency, accountability, and the fight against financial crime by targeting those who may be exploiting the country's financial system for unlawful purposes.

Our team of expert lawyers can assist with matters such as:

Taking measures to prevent an Unexplained Wealth Order
Evaluating the legality of an Unexplained Wealth Order
Gathering evidence to respond to an Unexplained Wealth Order
Responding to an Unexplained Wealth Order
Opposing interim orders, including freezing orders

We specialise in representing clients being investigated and charged with serious criminal offences. We can help you understand the best way to tackle an UWO and how we can challenge you being made subject to one.

If you have any questions and wish to speak to either Alan Burcombe or Ravinder Khumra, partners and heads of our fraud department, please contact them in our London office based in West Drayton on 01895 449 288.

For general enquiries contact us today in London (West Drayton) on 01895 449288 or in Hertfordshire (St Albans) on 01727 840900 or email us at info@wellsburcombe.co.uk.

Our expertise with Unexplained Wealth Orders

Taking measures to prevent an Unexplained Wealth Order

Taking measures to prevent an Unexplained Wealth Order involves transparently documenting the source of your wealth, providing legitimate financial records, and cooperating with authorities. This ensures compliance with regulations and prevents suspicion of illicit funds, fostering a transparent and accountable financial environment.

Our solicitors can aid in preventing Unexplained Wealth Orders by offering legal guidance, verifying the legitimacy of our clients' financial sources, ensuring accurate documentation, and advising on compliance with relevant laws. Our expertise helps our clients avoid suspicion of illicit wealth and navigate transparent financial practices effectively.

Evaluating the legality of an Unexplained Wealth Order

Evaluating the legality of an Unexplained Wealth Order involves a thorough review of the evidence, adherence to legal standards, and consideration of human rights. This ensures the order is justified, respects due process, and aligns with established legal principles while targeting unexplained wealth and potential illicit activities.

Our solicitors can assist by meticulously analysing the Unexplained Wealth Order, ensuring proper procedural compliance, examining evidence, and safeguarding your legal rights. Our expertise ensures the order's validity, upholds due process, and guarantees fair treatment in cases involving potential unexplained wealth and associated legal implications.

Gathering evidence to respond to an Unexplained Wealth Order

Gathering evidence for an Unexplained Wealth Order involves compiling relevant financial and legal documents to account for the legitimacy of a person's wealth source. It aims to clarify discrepancies between their wealth and reported income, aiding authorities in assessing potential illicit activity or unexplained origins of assets.

Our solicitors can assist with Unexplained Wealth Orders by advising you on legal obligations, guiding you in collecting necessary financial records, analysing complex transactions, and formulating robust explanations for the origin of your wealth. We play a crucial role in building a comprehensive and compelling response to the authorities.

Responding to an Unexplained Wealth Order

Responding to an Unexplained Wealth Order involves providing a detailed account of the source of wealth associated with assets. It includes gathering and presenting evidence to explain the legitimate origins, addressing suspicions of illicit activity, and cooperating with authorities to satisfy legal requirements and prevent asset forfeiture.

Our solicitors can help with Unexplained Wealth Order responses by guiding you through the legal complexities, coordinating evidence collection, analysing financial records, and crafting compelling explanations for asset origins. Our expertise ensures effective cooperation with authorities, minimising risks and ensuring a comprehensive and compliant response.

Opposing interim orders, including freezing orders

Opposing interim orders, like freezing orders, involves challenging their imposition in court. It necessitates presenting compelling arguments and evidence to demonstrate the order's potential injustice, disproportionate impact, or lack of necessity. The goal is to persuade the court to revoke or modify the order before a final determination is made.

Our solicitors can assist with contesting interim orders, such as freezing orders, by providing legal expertise to challenge their imposition. We analyse the case, gather relevant evidence, formulate persuasive arguments, and present a robust defence in court. Our aim is to secure a favourable outcome for our clients by addressing the order's potential shortcomings.

Our Unexplained Wealth Order solicitor’s fees

We are confident that our fees are fair and offer excellent value for money in respect of the level of skill and expertise of our solicitors.

Before taking on any case, we will have an initial consultation with you where we will gather as much information as possible about your case so that we may allocate the most appropriate member of staff to handle your case and provide you with clear information about fee costs.

Unexplained Wealth Order FAQs

What is an Unexplained Wealth Order?

An Unexplained Wealth Order (UWO) is a request for an investigation issued to someone whose assets appear disproportionate to their income. The purpose is to clarify the source of their wealth.

When authorities suspect that a person, particularly a Politically Exposed Person (PEP) or someone associated with serious criminal activities, possesses suspicious wealth that appears disproportionate to their legitimate earnings, a UWO can be issued. This order requires the individual to provide a clear and lawful explanation for the origins of their assets, with a minimum combined value of at least £50,000.

If the party fails to provide a satisfactory explanation or sufficient evidence, their asset will be classified as "recoverable property" under POCA, and a civil recovery order may be issued.

It is possible to pursue a UWO without any civil or criminal proceedings having begun. It is not necessary for the subject of a UWO to have been convicted of a crime or to have had a court judgment against them.

What is the unexplained wealth law in the UK?

Unexplained Wealth Orders (UWOs) are civil powers and an investigation tool. These powers were introduced in the Criminal Finances Act 2017 which amended the Proceeds of Crime Act 2002, adding new sections 362A – 362R and 396A – 396U.

They are issued by the High Court. Satisfying the test demonstrates to the court that the individual is involved in serious crime, as defined by the Serious Crime Act 2007.

What is the Unexplained Wealth Order relationship with POCA?

The Criminal Finances Act 2017 (CFA 2017) built upon the Proceeds of Crime Act 2002 (POCA) to enhance the powers of authorities to combat financial crimes. Together, the two pieces of legislation form a comprehensive approach to addressing money laundering, corruption, and the illegal use of financial resources.

Unexplained Wealth Orders were introduced by the Criminal Finances Act in 2017. They provide law enforcement agencies with the authority to investigate individuals who own assets that appear disproportionate to their lawful income, aligning with the broader objectives of POCA to tackle the proceeds of crime.

The Criminal Finances Act 2017 also strengthened the authority's powers to tackle criminal liability and the facilitation of tax evasion. It introduced corporate offences, holding companies accountable for failing to prevent the facilitation of tax evasion. This extended the legal framework of the POCA, to address financial crimes involving corporations.

The Criminal Finances Act 2017 works in conjunction with the Proceeds of Crime Act 2002, expanding the legal tools available to authorities to combat financial misconduct, money laundering, and illicit financial activities.

How far back can POCA go?

The Proceeds of Crime Act (POCA) allows for the pursuit of assets linked to criminal activities over a six-year period before legal proceedings commenced.

This means that authorities can investigate and potentially confiscate assets acquired through criminal means within this timeframe.

However, certain circumstances may extend this timeframe, especially when dealing with complex financial crimes or cases involving a delay in the discovery of criminal conduct.

The application of Unexplained Wealth Orders, introduced by the Criminal Finances Act 2017, allows authorities to scrutinise assets acquired over a more extended period, as it focuses on wealth appearing disproportionate to known sources of income, irrespective of the six-year limit.

How do Unexplained Wealth Orders work?

UWOs are used to get people who are suspected of being involved or being connected to others involved in serious crime to explain the nature and extent of their interests in property, how it was obtained and the funding for the property.

If you are asked to provide information, then as a respondent you could be asked to demonstrate your lawful ownership of the property and how you came to obtain it. This can also lead to the ‘Use of Others’ powers under POCA 2002 to forfeit the property.

How do I get an Unexplained Wealth Order?

The following enforcement authorities can seek an Unexplained Wealth Order from the High Court:

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

By enabling law enforcement to request information about a person’s wealth, the government aims to take more effective action against corrupt elites and serious and organised criminals who launder their funds.

What is the test for making an UWO?

When deciding whether to approve an Unexplained Wealth Order, a High Court judge needs to establish if the individual targeted by the UWO is either:

A politically exposed person (PEP) who is not a citizen of the European Economic Area.
Someone suspected of serious crime domestically or internationally.
Someone who is linked to a person suspected of serious crime domestically or internationally.

The following criteria must also be met:

The respondent’s known income is insufficient to obtain the asset.
The value of the asset is greater than £50,000.

A Politically Exposed Person (PEP) is an individual holding a significant political role outside the UK or the European Economic Area. This extends to their close associates and relatives or anyone with ties to them. Noteworthy political roles include heads of state, parliament members and deputy directors or board members of international organisations.

To obtain an Unexplained Wealth Order (UWO) against an individual suspected of serious crimes or someone associated with them, the court must be convinced that there are reasonable grounds to suspect their involvement in serious criminal activities. Serious crimes include drug trafficking, modern slavery, firearms offences, armed robbery, child exploitation, money laundering, bribery, fraud, and tax evasion.

Companies may become the target of a UWO if they have connections to a PEP or someone suspected of serious crimes. This order applies to companies registered in the UK or abroad.

The Criminal Finances Act 2017 holds companies and partnerships accountable for not preventing individuals who work for or represent them from engaging in tax evasion activities. This means that if any such activity is carried out, the company or partnership can face criminal charges.

What to do if you have been made subject to an UWO?

You are given a limited timeframe to respond with information. If you fail to respond, then it may allow the presumption that the property is recoverable. A recovery procedure will then begin in the High Court to recover the proceeds of crime under POCA 2002.

However, you can also commit an offence if while complying with an UWO you make a statement which you know to be false or misleading in a material way, or recklessly make a statement that is false or misleading in a material way.

In doing so you can be guilty of an offence which can be dealt with at the crown court, subject to imprisonment not exceeding two years and/or a fine; or on at the magistrates’ court, to imprisonment not exceeding twelve months and/or a fine.

Contact our solicitors in West Drayton and St Albans

If you have any questions and wish to speak to either Alan Burcombe and Ravinder Khumra partners and heads of our fraud department, please contact them in our London office based in West Drayton on 01895 449 288.