Malta’s White Collar Crime Epidemic: Why Unexplained Wealth Orders Are Needed to Combat Illicit Gains
The Problem of Unexplained Wealth in Malta
The recent case of Lilu King, known as the ‘King of Paceville’, has once again brought attention to the issue of unexplained wealth in Malta. King faces multiple financial crime charges and his lavish lifestyle has been making headlines. However, he is not alone - cases of self-proclaimed “royalty” living beyond their means have become increasingly common.
The Solution: Unexplained Wealth Orders (UWOs)
Unexplained Wealth Orders could be the solution to tackling this problem. A UWO compels an individual to explain the source of their questionable wealth, should they live beyond their means and possess assets disproportionate to their lawful income. This approach would help clamp down on ill-gotten gains and improve Malta’s asset confiscation framework.
How UWOs Work
A UWO does not require proof of a link between the questionable wealth and a particular criminal offence. Instead, it is up to the individual to prove that their wealth has been lawfully acquired. If they fail to do so, a presumption arises that said wealth has been acquired illicitly. This “prove-it-or-lose-it” approach may seem heavy-handed, but it targets the asset rather than the person and seeks to cancel out the profit motive for criminal activity.
Benefits of UWOs
UWOs would help law enforcement authorities keep up with the increasing complexity of modern crime and make it more difficult for criminals to launder money or engage in corrupt activities. They would also:
- Help clamp down on ill-gotten gains
- Improve Malta’s asset confiscation framework
- Target the asset rather than the person, making it more difficult for criminals to hide their wealth
Concerns about UWOs
Some critics argue that UWOs interfere with fundamental constitutional principles such as the presumption of innocence and the right to property. However, judges in Ireland and the UK have argued that the interference with human rights is a proportionate response by the state to modern-day crime.
The Need for Action
Despite concerns, implementing UWOs would undoubtedly be a challenging process. However, their effectiveness lies in their invasive nature. The Government’s Proceeds of Crime Act did not introduce UWOs, leaving it toothless against organised criminal networks. It is time for Malta to consider implementing unexplained wealth law to combat white collar crime and restore a semblance of normality to our country.
Conclusion
The introduction of UWOs could be detrimental to business models of organised criminal networks and hit them where it hurts most - in the pocket. It is time for Malta to take action against white collar crime and implement unexplained wealth law to combat illicit gains.