Watchdog: Unexplained Wealth Orders can deter graft, recover stolen assets

New Straits Times

a day ago

KUALA LUMPUR: The introduction of an Unexplained Wealth Order (UWO) could be a powerful tool to deter corruption and recover illicit assets, says Transparency International Malaysia (TI-M) president Raymon Ram.
He said a UWO would strengthen Malaysia's anti-corruption framework by targeting wealth disproportionate to an individual's known income, even without a prior conviction.
"It empowers authorities to demand explanations for wealth that far exceeds legitimate earnings," he said.
Raymon said similar frameworks in the UK and Australia have proven effective in holding high-level individuals accountable, adding that success in Malaysia would depend on impartial enforcement.
In the UK where it was introduced in 2018, a UWO is a court order issued to compel the target to reveal the sources of their unexplained wealth.
If they do not provide an adequate explanation, or provide unsatisfactory evidence, the asset will be considered "recoverable property" for the purposes of a civil recovery order under the British Proceeds of Crime Act 2002 (Poca).
A UWO can be sought without any civil or criminal proceedings having begun.
There is no need for the subject of a UWO to have been convicted of an offence or to have had a civil law judgement against them.
"If applied fairly, UWOs would send a clear message that unexplained wealth won't go unchecked."
On legal implementation, Raymon said either amending existing laws or introducing a new statute is viable, though he favours a dedicated law.
"While the Malaysian Anti-Corruption Commission Act and Anti-Money Laundering Act (Amla) include asset-tracing tools, they only apply during investigations into specific offences.
A standalone UWO law would allow earlier scrutiny and recovery."
With RM277 billion lost to fraud and illicit outflows from 2018 to 2023, Raymon said enforcement tools have proven inadequate.
He, however, acknowledged challenges, especially around constitutional safeguards like the presumption of innocence and property rights.
"Since UWOs shift the burden of proof, they must be carefully framed to survive legal scrutiny.
"Positioning them as civil mechanisms, as in the UK, could mitigate constitutional issues."
He also stressed the need for institutional capacity-building.
"Agencies like the MACC and police need stronger forensic tools and protection from political interference. Judicial oversight is crucial to prevent political misuse."
Raymon believes properly implemented UWOs could greatly enhance elite accountability.
"Ordinary Malaysians are rigorously vetted over income for scholarships or loans, while the wealthy often avoid such checks.
"A UWO regime would help level that playing field by making it routine to question and claw back wealth that can't be lawfully accounted for, regardless of one's status or connections.
He added that the possibility of having to justify wealth at any time could deter corruption.
"Knowing that unexplained millions could prompt immediate legal action may make those who are corrupt think twice."
Meanwhile, the Coalition for Clean and Fair Elections (Bersih) chairman Muhammad Faisal Abdul Aziz agreed that Malaysia should have a mechanism to combat corruption among the elites.
"Having UWO would be one of the ways that Malaysia can consider since it is perceived as straight forward and more practical to recover the stolen wealth without undergoing court processes which will take decades.
"It will bring about all parties to always be cautious about the resources of their wealth."
He said in order to implement UWO; "We can consider having an independent body to regulate that matter so that the UWO will not be misused for political weapons against others who are not in line with the government."
Yesterday, former Klang member of Parliament Charles Santiago said in a series of posts on X that Malaysia needs an UWO to hold all elites accountable.
This follows Prime Minister Datuk Seri Anwar Ibrahim's recent call for the sons of former prime minister Tun Dr Mahathir Mohamad to return their wealth if they cannot prove its sources.
"This is not about rivalry, but fairness. We need a system where no one is beyond accountability, no matter how powerful.