New code of practice published for unexplained wealth orders and interim freezing orders

The Minister for Justice, Trade and Industry, Nigel Feetham, has published a new Code of Practice on Unexplained Wealth Orders (UWOs) and Interim Freezing Orders (IFOs) under the Proceeds of Crime Act 2015 (POCA).

The Code provides guidance to enforcement authorities, the courts and legal practitioners on the use of these investigative tools.

This follows the Government of Gibraltar’s recent review of key justice legislation.

Unexplained Wealth Orders allow authorities to require individuals or entities to explain the origin of wealth used to acquire specific assets where it appears disproportionate to their known lawful income or where the assets may have been obtained through unlawful conduct. The courts retain the ultimate decision on the legitimacy of such acquisitions, ensuring compliance with constitutional protections against deprivation of property.

The new Code, which takes effect on Friday, outlines the statutory criteria for UWO applications, procedural requirements, and the responsibilities of enforcement authorities. It also details how UWOs can support civil recovery proceedings, strengthen investigations, and disrupt criminal activity.

The Code reflects Gibraltar’s alignment with legal standards observed in England and Wales while addressing the local enforcement environment. It also provides guidance on the use of interim freezing orders, which prevent assets from being dissipated during the UWO process.

By clarifying legal tests and addressing issues such as legal privilege, privacy rights and procedural fairness, the Code aims to ensure consistency in UWO and IFO applications and improve confidence in the regime. It will be accessible online via the Gibraltar laws website and available at the offices of the Royal Gibraltar Police, HM Customs, the Government Law Offices, and the Office of Criminal Prosecutions and Litigation.

Mr Feetham said: “The publication of this Code marks another step in Gibraltar’s commitment to strengthening our tools for tackling financial crime. It will assist enforcement authorities and legal practitioners alike in understanding and applying the legal requirements around Unexplained Wealth Orders under POCA.”

“These powers must be used responsibly and lawfully, and the Code provides a practical and principled foundation for doing so.”