The two unexplained wealth orders (UWOs) mean the National Crime Agency (NCA) can investigate assets totalling £22m ($30m, €25m).
These are the first such orders to be granted and will be the first time the legislation is tested in court, having only come into force on 31 January 2018.
The UWOs relate to a property in London and one in the south-east of England.
In addition, interim freezing orders (IFOs) were granted meaning that the assets cannot be sold, transferred or dissipated while the IFO is in place.
Donald Toon, director for economic crime at the NCA, said: “Unexplained wealth orders have the potential to significantly reduce the appeal of the UK as a destination for illicit income. They enable the UK to more effectively target the problem of money laundering through prime real estate in London and elsewhere.
“We are determined to use all of the powers available to us to combat the flow of illicit monies into, or through, the UK.”
Offshore property ownership
The UWOs were issued despite the government originally predicting that the orders would not be used during the first year in which they were available, according to law firm Clifford Chance.
However, they follow analysis of the UK Land Registry data on overseas property ownership by the BBC, which found that, as of January 2018, around 97,000 properties were held by companies based offshore.
Unsurprisingly, London and the south-east ranked first and second, respectively, in terms of the value of the properties owned by overseas companies.
The whiff of money laundering has long lingered around the London property market. The ability for houses and commercial properties to be held anonymously means that it offers a prime opportunity to cleanse illicit funds.
The result has been the rocketing of prices but seemingly undiminished demand.
UWO criteria
Following its introduction in January, any individual who receives a UWO must explain how they obtained the asset in question. HM Revenue & Customs and the other relevant enforcement bodies can apply for such as order at the High Court.
In order to obtain one, the body must prove that there is a reasonable cause to believe the individual holds assets worth more than £50,000, and there are grounds to suspect their known income would not explain the ownership of the property.
To grant the order, the judge must also be satisfied that there are reasonable grounds to suspect the individual in question, or a person they are connected to, has been involved in a serious crime, including tax evasion.
