UK gains new weapon in war on illicit wealth
In their private mansions dotted in the Surrey hills and luxurious apartments in upmarket London mews, dozens of oligarchs enjoy the trappings of British wealth.
Their children go to the most expensive schools, their spouses wear designer clothes and they drive the best cars. They invest in universities and other respectable institutions to bolster their reputations, which are fiercely guarded by PR companies on eyewatering retainers.
Some are Russians grown fat from the spoils of President Putin’s regime. Others are businessmen with links to Middle Eastern dictators or drug traffickers from Nigeria. In many cases their money comes from bribery and corruption.
Britain, and its property market in particular, has long been known as a safe haven for illgotten gains. Transparency International claims that it has identified $4.4 billion of property that it suspects was sourced from illicit wealth, and the National Crime Agency warned in 2015 that property purchases using laundered money were driving up house prices.
Britain has a poor record of recovering illicitly obtained property not only from outright criminals but also from politicians and business figures only suspected of corruption. Campaigners hope that this might change as powers are introduced allowing police to seize property much more easily.
Unexplained wealth orders (UWOs), which came into force this week, will require individuals suspected of serious crime or involvement in bribery or corruption to explain the source of property valued at more than pounds 50,000. For the first time the law also extends recovery powers to cover "politically exposed persons", although they have to be from non-EU countries.
The National Crime Agency (NCA) is understood to be considering two test cases with several others potentially to follow. Although UWOs can apply to all nations, Russians are expected to be a specific target.
If a High Court judge is satisfied that there are reasonable grounds to suspect that a target is a criminal, a UWOcan be issued. If the suspect refuses to explain the source of their wealth, the authorities can move to seize the property under the Proceeds of Crime Act. To complete this process they will have to prove that the property was obtained illegally - potentially a difficult task.
Even under the old regime some oligarchs had their properties confiscated.
Senior law enforcement officials described UWOs as a useful weapon in the fight against crime and corruption rather than a silver bullet.
One senior source said: "The UWOis an investigative tool, it is an order requiring someone to provide an explanation - it is not without its difficulties and it is not a panacea."