This article first appeared in The Edge Financial Daily on November 9, 2018

KUALA LUMPUR: Putrajaya is considering introducing a legislation similar to the UK’s unexplained wealth order (UWO) in Malaysia, said Finance Minister Lim Guan Eng.

This law compels a person to reveal their sources of unexplained wealth.

Those who fail to account for their wealth when compelled to do so by the court-issued order will have their assets seized by the authorities.

The UWO was incorporated into UK law in January as part of its Criminal Finances Act 2017.

The Malaysian Insight reported, quoting Guan Eng, that Malaysia’s attorney-general is now studying this legislation, which will allow the government to seize extraordinary and unexplained assets owned by prominent individuals, especially politicians.

“If they cannot account for how they came to own the properties, the authorities will seize them.

“This is what we are trying to do. As I have said, during this period, when we are trying to resolve our financial difficulties, we need some sort of revenue,” Guan Eng was quoted as saying during a question-and answer session at a special briefing on Budget 2019 in Penang on Wednesday night.

Among the questions he took was on the government’s plan to impose a 5% real property gains tax on Malaysians who sell properties held for six years and above.

Guan Eng said there was a misunderstanding that the tax would be based on the selling price of a property, and clarified that it would only be on the profit made from the sale.