header-logo header-logo

10 February 2020
Issue: 7874 / Categories: Legal News , Criminal
printer mail-detail

Use of unexplained wealth orders will rise

Lawyers predict increased use of unexplained wealth orders (UWOs) following the Court of Appeal’s rejection of Zamira Hajiyeva’s case

Hajiyeva, whose husband is serving a prison sentence for fraud and embezzlement while serving as chairman of the state-controlled International Bank of Azerbaijan, was the first person to be made the subject of a UWO. Introduced in 2018, they allow the NCA to seize assets if they think the person is a politically exposed person (liable to bribery or corruption) and they are unable to explain the source of their wealth.

The UWO was brought against Hajiyeva’s £11.5m Knightsbridge home. She claimed her husband’s trial was ‘grossly unfair’ and sought to have the UWO discharged.

Ruling in Hajiyeva v NCA [2020] EWCA Civ 108, however, the court dismissed her challenge and refused permission to appeal.

At an earlier stage of the case, the High Court heard how Hajiyeva’s excesses included spending more than £10m in Harrods over a 10-year period.

Ed Smyth, senior associate at Kingsley Napley, said: ‘This decision provides a real boost to the NCA and other agencies in their fight against suspected illicit assets, and will likely whet their appetite for more UWOs.

‘Since their introduction in 2018, UWOs have not been widely used and this appeal was a test case for whether they could withstand a concerted challenge. We can undoubtedly now expect to see more UWO applications in the coming months and years against HNW individuals with connections to funds of questionable origin.’

David Rundle, counsel in WilmerHale’s UK practice, said: ‘The dismissal of the appeal is hardly surprising. The decision may clarify the scope of “politically exposed” persons and bolster the NCA’s confidence in using these powers effectively.’

Issue: 7874 / Categories: Legal News , Criminal
printer mail-details

MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
From gender-critical speech to notice periods and incapability dismissals, employment law continues to turn on fine distinctions. In his latest employment law brief for NLJ, Ian Smith of Norwich Law School reviews a cluster of recent decisions, led by Bailey v Stonewall, where the Court of Appeal clarified the limits of third-party liability under the Equality Act
Non-molestation orders are meant to be the frontline defence against domestic abuse, yet their enforcement often falls short. Writing in NLJ this week, Jeni Kavanagh, Jessica Mortimer and Oliver Kavanagh analyse why the criminalisation of breach has failed to deliver consistent protection
Assisted dying remains one of the most fraught fault lines in English law, where compassion and criminal liability sit uncomfortably close. Writing in NLJ this week, Julie Gowland and Barny Croft of Birketts examine how acts motivated by care—booking travel, completing paperwork, or offering emotional support—can still fall within the wide reach of the Suicide Act 1961
back-to-top-scroll