In today’s hyper-connected world, criminal and regulatory investigations often transcend borders. Whether it is financial crime, tax evasion, or complex fraud schemes, no jurisdiction operates in isolation. For High Net-Worth Individuals (“HNWIs”), this creates critical legal exposure: what happens in one country can and increasingly does follow them across borders. This is where Mutual Legal Assistance comes into play. But what exactly is Mutual Legal Assistance (“MLA”)? How does it function, and why should HNWIs be paying close attention?
What is Mutual Legal Assistance?
MLA is the formal process by which countries cooperate in the investigation and prosecution of criminal offences. It is typically governed by a Mutual Legal Assistance Treaty (“MLAT”) or similar bilateral or multilateral agreements, which provide a legal framework for governments to request and share information, freeze assets, issue subpoenas, and in some cases extradite suspects.
MLA can be used to:
● Obtain evidence located abroad (bank records, emails, witness testimonies)
● Serve legal documents across jurisdictions
● Execute search and seizure orders
● Enforce foreign judgements
● Freeze or confiscate assets held overseas
Unlike mechanisms, such as Interpol Red Notices, police communication or intelligence sharing, MLA is grounded in legal treaties and is subject to judicial oversight in both the requesting and the requested state. This ensures that any request for assistance typically goes through an official government channel and is scrutinised by a court or another competent judicial body. As a result, MLA requests are usually completed with the requisite procedural integrity and they comply with the fundamental protections, such as human rights of the individual concerned.
Why Does MLA Exist?
MLA exists to combat cross-border crime — particularly crimes like money laundering, tax evasion and offshore fraud, bribery and corruption (especially under acts like the UK Bribery Act and US FCPA), terrorist financing and organised crime and trafficking.
It is also increasingly used in white-collar investigations involving politically exposed persons (PEPs) and members of the global financial elite.
Governments recognise that individuals often exploit discrepancies between national legal systems to shield assets or obscure financial transactions. MLA therefore aims to close those gaps through cross-border cooperation, but it also brings complexity and strategic risks, especially for HNWIs with assets or business interests in multiple jurisdictions.
How Mutual Legal Assistance Affects HNWIs
HNWIs often operate across multiple jurisdictions through trusts, holding companies, international banking structures, and real estate portfolios. While this global presence can provide strategic advantages, it also exposes HNMIs to significant legal and regulatory risks, particularly when MLA mechanisms are triggered. These risks include:
● Freezing of overseas assets: at the request of another country’s court.
● Disclosure obligations: personal or corporate records may be disclosed without direct notice, especially if obtained from third parties, such as banks or advisors.
● Reputational implications: even when not guilty, being the subject of an MLA request can lead to media coverage and scrutiny.
● Delays and legal expense: challenging MLA requests or compliance with them can be lengthy and costly.
● Extraterritorial enforcement: tax liabilities, sanctions, and judgments can be enforced in the UK based on decisions abroad.
Best Practices for HNWIs
To effectively manage the legal risks associated with cross-border exposure, HNWIs and their advisers must take a proactive and strategic approach.
Key best practices include:
● Conduct regular audits of international structures and asset locations.
● Understand MLATs between countries in which they hold assets or operate.
● Establish governance protocols for compliance, especially for family offices.
● Ensure legal privilege is clearly maintained in communications and strategies.
● Act quickly upon receiving notification (or even suspicion) of an MLA request.
Conclusion
MLA is no longer a niche or occasional tool used only in rare cases — it is now a central feature of international law enforcement. For HNWIs, this means privacy is increasingly penetrable, and asset protection requires far more than the traditional wealth planning and international structuring.
Legal strategies must now anticipate cooperation between governments and position clients to respond ethically, swiftly, and strategically. At Linkilaw Solicitors, we specialise in advising internationally mobile clients on these exact risks and helping them stay ahead of evolving enforcement practices.
