Unexplained wealth orders: an in-depth guide
An unexplained wealth order (UWO) is a tool used by investigating authorities to crack down on money obtained through crime.
UWOs are served on people that are suspected of some sort of wrongdoing. It might be corruption, money laundering, ransomware attacks, tax evasion, or fraud for example.
What is a UWO?
A UWO requires an individual or an organisation to explain how they came to possess an asset, such as a house, a sports car, a yacht. The list goes on. But the UWO relates to any assets with a minimum combined value of more than £50,000.
If the assets appear to be disproportionate to a person’s income, that will raise alarm bells for the authorities.
A UWO can only be served on:
· Politically Exposed Person (PEP) outside of the EEA or
· a person suspected of serious crime
It will ask for information about their assets, and then the authorities will investigate the origin of property. A UWO is often the first step in recovering the proceeds of crime.
Who can apply for a UWO?
The authorities that can apply to the High court for a UWO are:
· The Serious Fraud Office (SFO)
· The National Crime Agency (NCA) (main agency)
· His Majesty’s Revenue and Customs (HMRC)
· The Financial Conduct Authority (FCA)
How to respond to a UWO
If you have been served with a UWO, you have to explain how you obtained the assets. You’ll need to prove that the assets were obtained through legitimate means. That will usually involve gathering evidence such as your tax returns.
The information you provide in your response must be true and accurate. If you give false or misleading information, you could be found guilty of a criminal offence and end up with two years in prison and/or a fine.
What happens if I don’t respond?
If you don’t respond to a UWO, or you fail to give an adequate response, the authority will presume that the asset is recoverable. It will then begin the process of seizing the assets with a civil recovery order.
In the meantime, you’re likely to be served with a freezing order to prevent you from selling the assets.
The authority will then begin a criminal investigation against you to establish the ownership of the assets.
Can I challenge a UWO?
You can challenge a UWO on the following grounds:
· the officers were not open and transparent with the judge in their first application
· The assets are worth less than £50K.
· You are not a politically exposed person (but the authority thinks you are)
· The authority has not established a sufficient link to criminal activity
However, the most robust way to challenge a UWO is to prove that you bought the assets with legitimate funds. For example, you won big on the National Lottery, you won prize money for a competition, or you had a successful day at the races.
What to do if you’re served with a UWO
It’s important to act quickly if you’re served with a UWO. The consequences of ignoring it, or responding incorrectly are serious. You could be stopped from dealing with your assets, fined or even end up in prison.
You should instruct solicitors as soon as possible to guide you through the process.
Please contact the team at Harewood Law on 0333 3448377 or info@harewoodlaw.com. Harewood Law work on both privately funded and serious Legal Aid cases across Leeds, Bradford, Halifax, Wakefield, Huddersfield, Keighley across West Yorkshire and the UK. We can arrange a conference for you and can discuss matters further. Early engagement and a proactive approach to the case is always beneficial.