The UK’s Serious Fraud Office (SFO) has seized luxury jewellery and Rolex watches worth £500,000 linked to a fugitive British Pakistani accused of large-scale mortgage fraud. The assets were recovered as part of a long-running civil recovery investigation.
The SFO said it confiscated necklaces, gold, silver and diamond-encrusted Rolex watches from a safe deposit box linked to Nisar Afzal. Among the items was a gold ring engraved with the name “Nisar”.
The safe deposit box belonged to Shabana Kausar, Afzal’s former partner, who is judicially separated from him. The SFO suspects the jewellery represented proceeds of crime.
Background: Who is Nisar Afzal?
Nisar Afzal, a British Pakistani national, fled to Pakistan in the mid-2000s before he could be formally charged in the UK. The SFO confirmed that an arrest warrant remains active against him.
Afzal was implicated in a fraud against mortgage lenders. His brother, Saghir Afzal, was convicted in 2011 and sentenced to 13 years in prison for his role in the fraud.
The latest seizure follows earlier action by the SFO. Last year, the agency recovered £1.52 million from the sale of two properties in Birmingham purchased by Nisar Afzal.
Saghir Afzal was later handed an additional 10-year sentence after failing to pay a near £30 million confiscation order within the required six months.
Use of listed asset orders explained
In September 2020, the SFO used a listed asset order for the first time in this case. The order allowed authorities to secure forfeiture of £500,000 worth of jewellery and other assets seized from Ms Kausar’s safe deposit box.
Westminster Magistrates’ Court granted permission for the confiscation. The forfeiture order was secured with Ms Kausar’s consent.
A listed asset order, introduced under the Criminal Finances Act 2017, allows law enforcement to seize and forfeit items such as precious metals, stones, watches, artworks, vouchers and stamps suspected to be linked to criminal proceeds.
Liz Baker, Head of the Proceeds of Crime and International Assistance Division at the SFO, said the case showed the agency’s resolve.
“This case reinforces our determination to use every tool available to us to prevent those who would bribe, cheat and steal from resting easily on their illicit gains,” she said.
The SFO confirmed it is continuing a civil recovery investigation into what it described as substantial criminal proceeds linked to the Birmingham-born Afzal brothers.
The report also highlights another high-profile case involving a fugitive in Pakistan. Scottish Pakistani national Imran Hussain has been on the run for nearly 15 years.
He is wanted by HM Revenue & Customs over an alleged £300 million VAT fraud scheme. Hussain, also known as Immy or Mani, fled as raids and arrests were carried out in Glasgow and other cities.
Allegations of terror financing
According to a leaked intelligence report referenced in the case, some proceeds from large-scale VAT and benefit fraud — estimated at £8 billion — were allegedly used to fund terrorist-linked activities.
The report claims around 1% of the fraud gains, or £80 million, were allegedly directed towards projects associated with al-Qaeda operations, including madrassas. These allegations involve a network of fraudsters using legitimate businesses.
Mushtaq Hussain, the father of Imran Hussain, has said it has been several years since his son fled the UK. He added that no other family members are part of the investigation and that his son alone was responsible for his actions.
