On 7th October 2020 the National Crime Agency (NCA) announced it had seized £10m worth of assets owned by a businessman with links to serious organised crime through an Unexplained Wealth Order (UWO).
National Crime Agency Investigation | Rosenblatt’s Financial Crime Team
The National Crime Agency said Mahmood Hussain, a 40-year-old businessman from Leeds, agreed to hand over 45 properties in London, Cheshire and Leeds along with other assets and nearly £600,000 in cash in a settlement. It is the first successful UWO made against an individual based solely on their alleged criminal links.
Under the terms of the UWO Hussain was compelled to provide evidence as to where his assets came from. The NCA obtained a freezing order stopping the sale of 17 properties. The settlement with Hussain was reached on 24th August 2020 and the court sealed the asset recovery order on 2nd October 2020.
Hussain’s links to criminal activity included paying a Confiscation Order for the brother of a convicted murderer and allowing a convicted armed robber to live in his properties, including one he has since surrendered to the NCA. In addition, Hussain’s accounts were managed by a convicted fraudster. The NCA said Hussain had used threats of violence and blackmail to buy his properties.
Graeme Biggar, NCA Director General of the National Economic Crime Centre, said: “This case is a milestone, demonstrating the power of Unexplained Wealth Orders, with significant implications for how we pursue illicit finance in the UK.
This ground breaking investigation has recovered millions of pounds worth of criminally obtained property. It is crucial for the economic health of local communities such as Leeds, and for the country as a whole, that we ensure property and other assets are held legitimately.
I am determined to bring together all the resources of the public and private sector to protect the UK economy from the corrosive impact of illicit finance.”
Hussain has been allowed to retain four mortgaged properties and cash not related to the investigation.
Following an article published by Frances Murray of Rosenblatt’s Financial Crime department on 22nd April UWOs have recently been in the spotlight.
It was announced on 8th April two members of Kazakhstan’s political elite won a High Court challenge against an UWO compelling the NCA to surrender property valued at more than £80m after the court ruled parts of their investigation was “inadequate”. The Order was initially secured due to suspicions that the properties in question were bought with the proceeds of crime. The NCA is appealing against the judgment.
Criminal Proceedings | Rosenblatt’s Financial Crime Team
The NCA was unable to obtain the necessary evidence to bring criminal charges of money laundering against Hussain. However, the possibility of future investigations has not been ruled out.
Rosenblatt can help
Rosenblatt has a wealth of experience in financial crime and is uniquely placed to support clients’ that are the subject of a National Crime Agency investigation and prosecution having being involved in high profile investigations into a multi-million-pound, cross jurisdiction money laundering operation and a high value, international drugs conspiracy.
https://www.rosenblatt-law.co.uk/services/financial-crime/#white-collar-crime
https://www.rosenblatt-law.co.uk/services/serious-and-general-crime/
