British Columbia, Canada is using a new law to demand house owners explain where they got the money to buy it

British Columbia, Canada is using a new law to demand house owners explain where they got the money to buy it, per Bloomberg.

British Columbia is pursuing a court order to compel property owners to clarify the source of $1 million used to acquire a Salt Spring Island house in 2017.

Solicitor General Mike Farnworth announced the filing of the application in B.C. Supreme Court, marking the province's first unexplained wealth order under new measures introduced to combat money laundering.

Unexplained wealth orders, obtained through the courts, impose a reverse onus on individuals to explain the origin of funds used for asset purchases if suspicions of criminal activity or corruption arise. The information gathered can then be utilized in civil forfeiture cases aimed at seizing assets or money.

The specific case involves allegations that funds from a $200-million international stock fraud were laundered through a Salt Spring home. The province has a related civil forfeiture suit naming the property owners, Alicia Davenport (also known as Alicia Lee) and Geordie Lee, alleging money laundering through another Salt Spring residence. The owners deny all wrongdoing in both cases.