The Gibraltar Parliament passed an amendment on 22 October to the Proceeds of Crime Act, establishing the framework for the use in its territory of Unexplained Wealth Orders (UWO).
International law firm Hassans said in a briefing note that the amendment introduces in Gibraltar a new and additional UWO capability for law enforcement authorities in Gibraltar which is based on the UK’s own UWO framework.
Unexplained Wealth Orders are court-issued orders compelling individuals or entities to provide a clear and detailed account of how they obtained specific assets. These assets must be worth more than £50,000. If a satisfactory explanation is not given, the property may be presumed to be recoverable under civil forfeiture laws.
These orders are designed to allow authorities to request explanations from individuals or entities about how they acquired assets valued above a certain threshold when legitimate income sources appear insufficient to justify the person/entity’s wealth.
Hassans further said that as was pointed out by Nigel Feetham MP, KC, Gibraltar’s Minister for Justice, the passing into law of these provisions marks a significant step in Gibraltar’s work to maintain alignment and compliance with international standards to continue to ensure transparency in the financial system and the deterrence of illicit activity.
In Gibraltar, applications for UWOs can be made by various enforcement authorities, including, the Royal Gibraltar Police, HM Customs, the Attorney General, and other designated persons as authorised by the Minister of Justice.
This broad scope ensures that various agencies involved in enforcing financial regulations can leverage UWOs to enhance transparency and accountability.
The briefing note highlighted that the introduction of UWOs strengthens Gibraltar’s anti-money laundering (AML) framework.
By enabling enforcement authorities to target assets suspected to be linked to criminal activity or corruption, the amendment aims to deter illicit financial activity and reinforces the integrity of the jurisdiction’s financial system. In the words of the Minister, “This remains especially important in the context of Gibraltar’s next Moneyval/FATF evaluation.”
