Unrealised potential? Unexplained wealth orders, money laundering, and the UK real estate market

Since their introduction in 2018, the implementation of unexplained wealth orders (UWOs) has been problematic and ineffective, with few cases and a low success rate. These limitations are particularly relevant in the UK real estate market, where criminals infiltrate the sector with millions of pounds of illicit funds every year. UWOs are a beneficial tool for fighting money laundering in the UK real estate market because they permit national authorities to gather information when real estate transactions involve politically exposed persons and organised crime groups. However, the benefits of UWOs are limited by a series of implementation challenges that impede the realisation of their full potential. This chapter discusses the drawbacks of the current UWOs regime in the UK by focusing on its implementation in the real estate market. The author provides a critical overview of the problems emerging from the use of UWOs in the UK property sector and what lessons we can learn for the future. Ultimately, it is posited that the UWOs regime is a step in the right direction to fight financial crimes, including money laundering, but further attention needs to be given to practical factors that might pose a threat to its success.