Coming into large amounts of money or substantial assets can be an exciting and in some cases even life-changing experience. However, there is a range of potential complications that you will need to be aware of. Aside from paying any relevant taxes, you may also be required to prove where you got those assets from.
One way that this demand can be carried out by the authorities is through an Unexplained Wealth Order. These orders are a relatively recent addition to the legal system in the UK, and as a result, a lot of people aren’t that familiar with the ways in which they function.
Here, we take a brief look at how unexplained wealth orders work. It’s important to note that this information is in no way an alternative to specialised legal advice. If you have recently received an unexplained wealth order, it is imperative that you seek assistance from a criminal defence solicitor who has expertise in this nuanced and relatively niche legal area.
Legal definition
Unexplained Wealth Orders (or UWOs) were introduced in 2018, in the Criminal Finances Act 2017, which amended the Proceeds of Crime Act 2002 (commonly known as POCA).
As the name suggests, an Unexplained Wealth Order means that the recipient must explain how they came into possession of some kind of asset. If the recipient is unable to explain to the court how they came into possession of the asset(s) in question, then the court will potentially be able to seize that asset under POCA.
Must the recipient be found guilty of a crime?
For assets to be seized as a result of an unexplained wealth order, the subject of the order does not have to have been found guilty of a criminal offence first. In fact, they don’t even need to have had a civil law judgement carried out against them – the inability to explain how the asset was gained in the context of a UWO is enough.
This makes it easy for some people to not take Unexplained Wealth Orders seriously, but this can be a dangerous approach to take. Just because you haven’t been investigated for (or been found guilty of) a crime doesn’t mean that these orders can’t be used to seize your assets!
Which agencies use UWOs?
Unexplained Wealth Orders are a tool that is used by a number of different government organisations to investigate some form of fraud or other criminal activity. These include the Serious Fraud Office (SFO) , the Crown Prosecution Service (CPS) , the Financial Conduct Authority (FCA) and HM Revenue and Customs (HMRC).
They can’t just be handed out at will, however. Before any of these authorities can use a UWO, they will need to apply to the High Court for permission to do so.
When can a UWO be used?
UWOs can only be issued against assets that are worth over £50,000. In addition to this minimum value, there will also need to be a reason to believe that the individual in question came into possession of their assets through illicit means.
In the context of a UWO being granted against someone involved in serious crime in the UK or another country, it does not mean that a court will need to find anyone guilty of a crime first. Rather, the court will need to be convinced to a civil standard that the individual in question is involved in serious criminal activity.
How to deal with an unexplained wealth order
The exact tactics that you and your legal team will use to fight against an unexplained wealth order will depend on the circumstances surrounding your case. Due to the frequent international nature of these kinds of cases, which can often involve businesses and deals that span multiple jurisdictions, it may be necessary to coordinate evidence from multiple different locations.
In some circumstances, it may be possible to contest the lawfulness of the UWO itself. Failing that, it will be necessary to put together a robust argument showing that the asset was acquired through legitimate means, and that the recipient of the order is in fact the legal owner of said asset.
The more time that you and your legal team have to work on your defence, the higher the chances you’ll be able to keep your assets.
Burden of proof
It’s important to note that because these orders operate through civil rather than criminal law, the burden of proof is on the defendant rather than on a prosecutor.
This means that unlike in a criminal case, where you merely need to poke holes in the argument presented against you and show that there is a ‘reasonable doubt’ that they are incorrect, you need to present an argument yourself proving that your version of events is correct.
Fighting civil law cases can be a lot more difficult because of this, and it means that you’ll potentially need to take a slightly different approach. You will need to choose a specific kind of solicitor who has experience dealing with these kinds of cases, and put aside the time and resources necessary to deal with the case together.
Impacts of an unexplained wealth order
If you have recently received an unexplained wealth order, you’ll likely primarily be concerned about the impacts that it will have on your life. The main impact will be that your assets can be seized if you’re unable to respond to the court in a satisfactory manner. This is obviously the main outcome that you will be trying to avoid.
In some cases, the order can come alongside an Interim Freezing Order (IFO). IFOs are typically used if the court believes that it is likely the asset will be moved or otherwise disposed of before the UWO is completed.
If the IFO does not allow the respondent to deal with their living or legal requirements, then it can be amended. If this is the case, it’s imperative that you speak with your solicitor to make sure that any changes are made as soon as possible.
Our leading criminal defence team are here to assist you in relation to your charges. For further information, call us on 0161 234 0020 (Manchester) /0203 053 8625 (London) / 07956 555979 (24 hour), or you can also contact our team at Ashcott Solicitors via our contact form.
