Technical Staff
January 26, 2023
An Unexplained Wealth Order (UWO) is a legal tool used in the United Kingdom to investigate and recover assets suspected of criminal proceeds. UWOs require an individual or a business to explain the source of assets disproportionate to their known lawful income. The assets may be seized if the individual or company fails to explain satisfactorily. UWOs were implemented in 2018 as part of the United Kingdom’s efforts to combat money laundering and other financial crimes.
UWO Deterrence and Impacts
Individuals and businesses affected by Unexplained Wealth Orders (UWOs) face serious consequences. Even if no criminal charges have been filed, they can be used to investigate and recover assets suspected to be the proceeds of crime. This enables authorities to target individuals and organizations who may be involved in money laundering and other financial crimes but have escaped detection through traditional law enforcement methods.
UWOs also have a deterrent effect because they make it more difficult for individuals and businesses to conceal or launder criminal proceeds. Furthermore, they can contribute to the financial system’s integrity by making it more difficult for criminals to exploit it.
British Columbia, Canada
Premier David Eby of British Columbia, Canada, intends to introduce legislation in the spring to create “unexplained wealth orders.” They are legal instruments that make it easier for the province to seize residential properties or other valuables suspected of being purchased with the proceeds of crime. They are abbreviated as UWOs.1
When corruption is almost the norm in a country and money laundering is rampant, the UWO legal tool would likely help. However, its effectiveness and success would vary among countries.
Sources
1 Read more on “Opinion: B.C.’s crackdown on unexplained wealth is a necessary experiment to repel dirty money,”https://www.trendradars.com/article-1125328-opinion-b-c-s-crackdown-on-unexplained-wealth-is-a-necessary-experiment-to-repel-dirty-money-2 Accessed on January 26, 2023
2. Photo by Karolina Grabowska: https://www.pexels.com/photo/image-of-old-building-on-american-banknote-4386157/
