NCA investigation secures Unexplained Wealth Orders on £80m London homes

Three Unexplained Wealth Orders (UWOs) have been secured on £80 million worth of London homes held by offshore companies which have been frozen by the High Court.

This is second-ever use of anti-corruption orders to stop foreigners laundering cash in the UK in which the National Crime Agency (NCA) investigators are looking into the funds used to purchase the properties.

Interim Freezing Orders held on the homes means that they cannot be sold or given a new owner until the investigation is over.

If the suspect – known as a “politically exposed person” (PEP) – cannot explain the source of the wealth, the NCA can ask the High Court to order the homes’ seizure.

The rules for British PEPs were extended under 4MLD where agents are required to apply Enhanced Due Diligence on them. PEPs are individuals that are entrusted with prominent public functions (senior political figures or their immediate family and close associates), held in the UK or abroad.

There is no central database for checking PEPs however, information is available in the public domain (internet searches, websites etc).

UWOs are an anti-financial crime power targeted at foreign government officials and their families from outside the European Economic Area (EEA) who are believed to have laundered stolen money through British property.

The measure aims to target people who have committed huge frauds and embezzlements abroad where there is little or no chance of obtaining the evidence to convict them in a British court.

The first ever UWO was used against two London properties believed to belong to jailed banker, JahangirHajiyeva and his wife Zamira Hajiyev who lives in a £12 million London home and owns a Berkshire golf course.

Andy Lewis, Head of Asset Denial at the NCA, said:

“This is the second time the NCA has successfully secured UWOs since the new legislation was enacted. They are a powerful tool in being able to investigate illicit finance flowing into the UK and discourage it happening in the first place.

“The individuals behind these offshore companies now have to explain how the three properties were obtained.

“The NCA will not shy away from complex and detailed investigations against high profile individuals and professional enablers.”

Graeme Biggar, Director General of the National Economic Crime Centre said:

“The purchase of prime property in London is a tactic used to launder money and we will use all the powers available to us to target those who try to do this.

“A priority for the NECC is to ensure we explore every opportunity to deny assets linked to illicit finance. Our aim is to prevent misuse of the UK’s financial structures which undermines the integrity of the UK’s economy and institutions.”

Propertymark resources

Ignorance is no defence; you’re expected to know the law and there can be huge fines or even a prison sentence if you fail to comply.

NAEA Propertymark’s Anti-Money Laundering Regulations page is a one-stop-shop for agents which provides valuable information and shows what roadshows, events, guides and much more are available.

NAEA Propertymark’s AML – How to comply guide, available to members, will help people get to grips with their responsibilities. To take a look at the guide and other resources, members can login to the members area.

 

Kindly shared by NAEA Propertymark