LONDON – British officials, under a new anti-corruption provision, havebegun a money laundering investigation into the assets held by an unnamedforeign politician holding assets in the United Kingdom worth nearly £22million.
The National Crime Agency (NCA) said it had secured two unexplained wealthorders (UWOs) to investigate assets believed to ultimately be owned by apolitically exposed person (PEP). The orders came into force in January,following growing concerns of money laundering.
“These are the first such orders granted and represent the first time thelegislation will be tested through the court. The orders relate to twoproperties, one in London and one in the south east of England,” the NCAsaid, without naming the politician or the country except that he is fromAsia.
In addition to the UWOs, interim freezing orders were granted, meaning thatthe assets cannot be sold, transferred or dissipated while subject to theorder.
Donald Toon, director for Economic Crime at the NCA, said: “Unexplainedwealth orders have the potential to significantly reduce the appeal of theUK as a destination for illicit income. They enable the UK to moreeffectively target the problem of money laundering through prime realestate in London and elsewhere.
“We are determined to use all of the powers available to us to combat theflow of illicit monies into, or through, the UK.”
Corrupt foreign politicians and criminals are estimated to launder nearly£90 billion every year through the United Kingdom. Property in London andother major cities is said to be the major destination of corrupt cash.
British media mention Russian oligarchs in this regard, but the measureapplies to individuals from all countries. Anti-corruption campaign groupTransparency International UK has identified £4.4 billion worth of propertyin the UK that may be the target of UWOs.
The group suspects that five properties been bought using corrupt wealth,including two allegedly by former Pakistan prime minister Nawaz Sharif inLondon.
Provided under the Criminal Finance Act, the UWO allows authorities tofreeze and recover property if individuals are unable to explain how theyacquired assets in excess of £50,000.
Rachel Davies Teka of anti-corruption Transparency International UK said:“The introduction of UWOs is a significant moment in the fight againstdirty money flowing into the UK. They will allow law enforcement to muchmore easily investigate assets that are highly likely to have been boughtusing corrupt money, often stolen from populations in some of the poorestparts of the world.