SFO's First Unexplained Wealth Order: A New Era for Asset Recovery in the UK

The UK's Serious Fraud Office (SFO) has achieved a landmark victory, successfully securing £1.1 million from the sale of a property in the Lake District, in its first ever use of an Unexplained Wealth Order (UWO). This unprecedented success sets a powerful precedent, highlighting a new era for asset recovery and signalling a heightened level of commitment by authorities to pursue the proceeds of crime. For businesses and individuals, this case is a clear signal that a proactive approach to due diligence and fraud prevention is no longer optional.

Understanding the Unexplained Wealth Order (UWO)

Introduced in the Criminal Finances Act 2017, a UWO is a powerful investigative tool that shifts the burden of proof. It requires individuals to provide a legitimate explanation for how they acquired assets that appear disproportionate to their known income. In this case, the SFO was able to trace criminal funds from a multi-million-pound investment fraud, leading them to a property owned by the convicted fraudster's ex-wife. When she sold the property, the SFO successfully secured the proceeds.

This successful use of a UWO is significant because it provides a mechanism to:

• Target the assets of associates and family members who may have benefited from criminal activity.
• Overcome the challenges of traditional criminal investigations by placing the responsibility on the asset owner to prove their wealth is legitimate.

Asset Recovery: A Professional Response to the New Landscape

The SFO's success shows that authorities are equipped with new tools to tackle complex financial crime. However, the process of identifying and recovering assets remains a complex field that requires specialist expertise. At Conflict International, our services are designed to complement and support these efforts by providing the professional insight needed to protect and recover your assets.

We specialise in:

• Asset Tracing: Our experts use a combination of digital and traditional methods to meticulously trace funds and assets, no matter how complex the financial pathways or how many jurisdictions are involved. We follow the money from initial fraud to its final destination.
• Due Diligence: The most effective defence is a strong offence. We conduct in-depth investigations to vet partners and investments, identifying red flags that can prevent you from becoming a victim of fraud in the first place. This proactive approach saves you from the legal and financial burden of recovery.
• Fraud Investigations: When a fraud has occurred, our team works to unravel the full scope of the scheme, providing the detailed evidence needed to support legal action and assist in the recovery of funds. Our work helps you build a robust case for civil or criminal proceedings.

The SFO's first UWO success is a positive step forward in the fight against financial crime. It also reinforces the message that businesses and individuals must be vigilant and proactive. By partnering with Conflict International, you can leverage our professional expertise to navigate this new landscape and secure your financial future.