Unexplained wealth refers to properties (including cash, real estate, vehicles, investments, precious stones and metals, virtual assets, and other valuables) whose origin cannot be satisfactorily accounted for person having ownership, possession custody or control of the property, regardless of a direct link to criminal activity.
Unexplained wealth is identified by discrepancies between a person’s declared income and their lifestyle or accumulated wealth. For instance, if a person’s property far exceed their known and declared sources of income, it raises suspicion.
Definition under the FCC Act
“Unexplained Wealth” includes any property –
(a) under the ownership of a person to an extent which is disproportionate to his emoluments and other income;
(b) the ownership, possession, custody or control of which cannot be satisfactorily accounted for by the person who owns, possesses, has custody or control of, the property; or
(c) held by a person for another person to an extent which is disproportionate to the emoluments or other income of another person and which cannot be satisfactorily accounted for.
Indicators of Unexplained Wealth
- Sudden Wealth Accumulation
- An individual with a modest income suddenly acquires luxury properties, and high-end vehicles, without a clear, legitimate source of funds.
- A public official whose declared salary does not align with their lavish lifestyle and ownership of multiple high-value properties.
- An individual suspected of involvement in illegal activities (e.g., drug trafficking) who cannot explain large sums of money moving through their bank accounts.
- An individual who travels regularly, carrying huge sums of money, living a lavish lifestyle, partying most of the time and performs large financial transactions in cash.
- Storing large amounts of cash at a residential address.
- A company with no business activity and declaring high turnover acquiring luxurious properties.