Author: Syedur Rahman 14 April 2022
With the Economic Crime (Transparency and Enforcement) Act 2022 having been passed, Syed Rahman wrote about the most important aspects of it.
In an article, which was published by Law360, Syed outlines how the Act seeks to make London less attractive to those looking for a safe haven for the proceeds of their wrongdoing.
Syed explains how the register for beneficial owners of overseas entities will function. He details the comprehensive, retrospective nature of the register and the responsibilities it imposes on those to whom it applies.
The article also goes into details about the changes the Act makes to the unexplained wealth order (UWO) regime. With the changes giving the authorities more time to investigate relevant material and protecting them from having to pay unlimited costs if a UWO application is unsuccessful, Syed says that there may now be more of an incentive to use UWO’s. Creating a new category of person that can be targeted with a UWO and the widening of the grounds for seeking one may also encourage their use by the authorities.
Syed also highlights the Act’s removal of the need to show that a corporate or individual knew or had reasonable cause to suspect that their conduct breached a sanction, in order for them to be penalised by OFSI (the Office of Financial Sanctions Implementation). This, he believes, could lead to more civil enforcement action against companies and individuals.
Syed concludes that while the Act may prove effective, many of its measures could have been introduced much earlier.
Syed's article can be read on Law360. (Subscription required)
Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, international arbitration, civil recovery, cryptocurrency and high-stakes commercial disputes.