Lawyers Sound Alarm Over Reach Of UK's Criminal Finances Act

Josh O'Neill

3 May 2017

Lawyers have warned that the UK's Criminal Finances Act, described by one as a “highly intrusive power”, could see certain people unjustly caught in prosecutors' cross-hairs if investigations are not properly policed.

Last week, the Criminal Finances Act 2017 received Royal Assent and is therefore on course to take effect later this year. According to the UK government's website, this will give law enforcement agencies and partners further capabilities and powers to recover the proceeds of crime; tackle money laundering, tax evasion and corruption; and combat terrorism financing.

Among the most notable provisions of the Act is the ability to create Unexplained Wealth Orders, which can require those suspected of crime or corruption to explain the sources of their wealth.

Although many may consider this a logical step as the UK looks to shake its reputation as a safe haven for dirty cash, one lawyer has warned that the wide-reaching legislation could target the wrong type of people.

“This is a highly intrusive power,” said Ross Dixon, a partner at law firm Hickman & Rose. “It can be applied against a vast range of targets, since politically exposed persons are an important new measure for a government which has promised to crack down on dirty money and terrorist financing.

“Whether the authorities have the resources to police it properly is another matter.”