Property developers to pay millions to National Crime Agency

Money to buy property

An investigation by the National Crime Agency has resulted in the recovery of £4.3 million from two property developer brothers with a 30 year career in the business.

The proceeds of money laundering were used to fund a property portfolio and properties with a total value of £2.05 million were included in the settlement, including a three storey townhouse in Paddington, London and two properties in Yorkshire worth in total £300,000.

The agreement to pay has resulted from the NCA taking the case to the High Court under a civil investigation. However, the civil recovery order, often used by the NCA when there is insufficient evidence for a criminal case, does not amount to an admission of guilt by the two brothers.

The NCA alleged that thousands of pounds had been laundered for criminals worldwide by the brothers, Parvez Akhtar and Zaheer Akhtar Nazir, who both live in the Stanningley area of Pudsey, West Yorkshire.

Parvez Akhtar (or “Boney”, as he is nicknamed locally) was also alleged to taken part in serious crimes, including international VAT fraud, money laundering and fraud, since the 1990s. Evidence suggested that he also had links with serious organised and prolific criminals, both in the UK and abroad.

Akhtar was found to be well-known in the Bradford area and had even appeared in YouTube videos “showing off” his expensive cars and other wares, including sporting memorabilia.

The NCA said that recovery of the criminal proceeds had sent a “clear message” that no-one was above the law, which was “particularly significant for the Bradford community”.

Head of Civil Recovery, Andy Lewis, said: “This action demonstrates to the criminal fraternity that we will use every available tool to disrupt and help prevent money laundering by criminals and their associates.”

The NCA says the property market is often exploited by criminals, particularly in London. The proceeds of crime are often generated in other countries, and large financial centres, in particular, are attractive destinations for the proceeds of crime. When criminal money flows through the UK it could result in criminal and regulatory penalties being imposed by authorities in the UK, EU and US which could lead to financial institutions withdrawing from the UK or even, potentially, collapsing.

The NCA says that: “Most high-end money laundering schemes, and several cash-based ones, are facilitated by the abuse of legitimate processes and services. Accounting and legal professionals, and estate agents, can be criminally exploited – this is sometimes complicit, sometimes negligent, and sometimes unwitting – and this small minority of people can pose a very significant threat. They can act as intermediaries and use their skills, knowledge and abilities to draft documentation, disseminate funds, and allow highly complex structures to be created that move and store large amounts of criminal money and conceal ownership effectively”.

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