Syed Rahman of Rahman Ravelli outlines the case and the likely reasons for the National Crime Agency's course of action
An Emirati company agreed to forfeit £17.5 million following a money laundering investigation.
The UK's National Crime Agency (NCA) said that United Arab Emirates-based Glory Line Goods Wholesalers Co. LLC had received 200 million Chinese renminbi (£20.6million) from a client registered in Hong Kong, which was supposedly for a consignment of plastic. But the NCA suspected that the funds were the proceeds of trade-based money laundering.
The NCA obtained an account freezing order in November 2023 after concerns had been raised about the amount of funds going through Glory Line's account. A review had found that two auditors' reports that had been provided to an authorised payment institution were fraudulent.
Glory Line, which is owned by Indian national Sankar Velu, then provided documents, such as invoices and payment details, to justify transactions on the account. But there were inaccuracies in these. The company failed to provide a full copy of its bank statements or information about Velu's purchase of it.
Velu has denied any alleged criminality. The NCA said that no judicial finding of criminality has been made, nor has the company admitted to any wrongdoing.
The NCA has favoured forfeiture over prosecution in this case as it is an easier route for it to take. An account freezing order is an action "in rem'' (targeting specific property) as opposed to an action "in personam'' (against a person or entity) – meaning it is in relation to the assets and not Glory Line Goods.
To obtain the account freezing order, the NCA only had to prove there were reasonable grounds to suspect criminal activity. A successful criminal prosecution would have required it to prove that beyond reasonable doubt. This is a case that illustrates how account freezing orders have boosted law enforcement agencies' attempts to disrupt activities and seize funds efficiently and quickly without the need to secure a criminal conviction.
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