Hajiyeva, whose husband is serving a prison sentence for fraud and embezzlement while serving as chairman of the state-controlled International Bank of Azerbaijan, was the first person to be made the subject of a UWO. Introduced in 2018, they allow the NCA to seize assets if they think the person is a politically exposed person (liable to bribery or corruption) and they are unable to explain the source of their wealth.
Ruling in Hajiyeva v NCA [2020] EWCA Civ 108, however, the court
dismissed her challenge and refused permission to appeal.
At an earlier stage of the case, the High Court heard how Hajiyeva’s
excesses included spending more than £10m in Harrods over a 10-year period.
Ed Smyth, senior associate at Kingsley Napley, said: ‘This decision
provides a real boost to the NCA and other agencies in their fight against
suspected illicit assets, and will likely whet their appetite for more UWOs.
‘Since their introduction in 2018, UWOs have not been widely used and this
appeal was a test case for whether they could withstand a concerted challenge.
We can undoubtedly now expect to see more UWO applications in the coming months
and years against HNW individuals with connections to funds of questionable
origin.’
David Rundle, counsel in WilmerHale’s UK practice, said: ‘The dismissal of the appeal is hardly surprising. The decision may clarify the scope of “politically exposed” persons and bolster the NCA’s confidence in using these powers effectively.’
