In this article an eminent white collar crime and investigations partner at the British law firm of BLM, formerly Berrymans Lace Mawer, answers our questions about the first case in which an unexplained wealth order was served on a HNW individual.

There could be situations arising whereby an individual who is served which such an order, and his/her lawyers, make certain assumptions as to what an investigator wants as part of its investigation.

Q: Cannot this law be used by unscrupulous officials to 'shake down' any high-net-worth individuals they dislike?

A: The use of Unexplained Wealth Orders is restricted to investigative bodies (i.e. the police/SFO) so whether it is used will very much depend on the evidence/intelligence that is secured. To that end, it can’t be used by unscrupulous officials to satisfy their own means. No, it is targeted at politically-exposed persons (PEPs) or people whom the police think are concerned in criminal activity.

Q: Do you think it likely that in future the main use for these UWOs will be for tax recovery purposes?

A: Possibly, but Her Majesty's Revenue and Customs has been quite slow on the uptake, as has the Serious Fraud Office. To date, it has been the National Crime Agency that has taken the lead with Unexplained Wealth Orders. Mrs Hajiyeva’s unsuccessful challenge may open the door for other law enforcement agencies to pursue the right cases.

Q: Why aren't we treating every PEP from every third-world oil country not only with suspicion, but with refusals to do business? Jahangir Hajiyeva's salary was £54K per annum (according to some reports) but his wife brought so much money to the UK that she was later able to blow £16 million at Harrods and nobody suspected anything?

A: Any case has to be judged on its own merits. Just because an individual is a PEP from a third world oil rich country doesn’t necessarily mean that he/she has committed any wrongdoing. It may raise the possibility of the spotlight being placed on that PEP, but that doesn’t equate with wrongdoing.

* Iskander Fernandez can be reached on +44 20 7865 3431 or at iskander.fernandez@blmlaw.com