100 likes | 145 Views
Learn about Unexplained Wealth Orders, how they work, conditions for obtaining them, and consequences of non-compliance. Dive into the case of "Mrs. A" and her extravagant lifestyle.
E N D
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 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
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