Cross-border insolvencies are becoming increasingly more common, as many UK companies operate through multi-jurisdictional structures, hold assets overseas or use complex ownership arrangements to shield value.

The modern reality of cross-border insolvency

UK insolvency practitioners increasingly encounter companies with operations, bank accounts or real estate overseas. Nominee directors, offshore trusts and layered corporate structures can obscure asset ownership, creating significant hurdles for recovery.

Despite these challenges, many assets are often still traceable. The key lies in intelligence-led investigations, early intervention and collaboration with investigators who are familiar with both domestic and foreign insolvency frameworks.

Why asset tracing across borders is complex

Cross-border insolvencies present challenges distinct from domestic cases:

• Legal fragmentation: Each jurisdiction has its own insolvency laws, reporting requirements and enforcement procedures. Recognition of UK insolvency proceedings abroad is governed by frameworks outlined in the Cross-Border Insolvency Regulations 2006, but not all countries are participants.
• Opaque ownership: Offshore companies, trusts and nominee arrangements often hide ultimate beneficial owners.
• Limited transparency: Bank secrecy, incomplete or no public registries and local privacy laws can slow or block investigations.
• Cultural and practical barriers: Language, local business customs and informal networks can create additional complexity.

Legal and practical challenges

Enforcement and recognition: Obtaining UK orders is only the first step. Securing recognition abroad, whether to enforce judgments, freeze assets or access company records, can involve multiple legal systems and complicated procedures.

Time-sensitive risks: Assets can move quickly once insolvency proceedings begin. Property may be sold, accounts emptied or shares transferred to related entities. Rapid intelligence and decisive action are crucial to prevent dissipation.

Navigating local laws and customs: Investigators and legal teams must understand local rules and business culture. Some jurisdictions rely heavily on personal relationships to access information, while others require formal legal processes that can take months.

Emerging jurisdictions for asset tracing

Certain regions have become increasingly relevant in cross-border insolvency recovery:

Offshore financial centres: Cayman Islands, British Virgin Islands, Jersey

These jurisdictions are commonly used to hold assets through offshore companies or trusts, providing strong privacy that can obscure ownership.

EU member states: Germany, France, Netherlands

UK companies often hold commercial property, bank accounts or subsidiaries in these countries. Local laws and registries require jurisdiction-specific expertise to trace and enforce asset recovery effectively.

Middle East: Dubai

Dubai is a hub for commercial property, corporate investments and banking linked to UK businesses. Its mixed legal system and unique business practices mean local partners are essential for tracing and securing assets.

Asia-Pacific hubs: Singapore, Hong Kong

These centres have sophisticated corporate and banking structures that can hide assets from foreign investigators. By combining local intelligence, legal knowledge and global investigative experience, these assets can still be located and recovered.

Working with a global investigative partner

Recovering assets internationally is rarely a solo endeavour. Partnering with a firm experienced in cross-border investigations brings strategic advantages:

• Local expertise through global networks: On-the-ground partners in multiple jurisdictions provide access to corporate records, local intelligence and regulatory insight.
• Integrated investigative methods: Combining open-source intelligence (OSINT), desktop research and human-source intelligence (HUMINT) enquires creates a comprehensive picture of asset ownership and location.
• Mitigating jurisdictional challenges: Experienced teams navigate local laws, privacy regulations and cultural nuances to preserve assets and support legal actions.

By leveraging these capabilities, insolvency practitioners, lenders and litigators can reduce the risk of asset dissipation and uncover value that might otherwise remain hidden.

Best practices for cross-border asset recovery

• Integrated investigations: Combine forensic analysis, open-source intelligence and local intelligence to map asset ownership.
• Legal coordination: Work alongside legal teams to secure freezing orders, recognition of UK insolvency proceedings abroad and evidence gathering.
• Early engagement: Rapid intelligence-gathering reduces the risk of asset dissipation and improves recovery outcomes.
• Discretion and professionalism: Confidentiality helps prevent flight of assets and protects client interests.

Cross-border insolvency does not mean assets are lost. While challenges such as fragmented laws, opaque structures and jurisdictional hurdles exist, coordinated investigative and legal strategies can successfully locate and preserve value. For insolvency practitioners, lenders and lawyers, understanding international asset tracing is now an indispensable part of modern practice.

Asset tracing services from ESA Risk

When it comes to supporting insolvency practitioners with complex investigations, ESA Risk provides expert asset tracing services designed to deliver clarity, confidence and actionable intelligence. Our experienced investigators produce concise, evidence-led findings that help you assess recovery prospects, inform strategy and determine the most effective next steps.

With access to specialist intelligence sources and a trusted global network, ESA Risk is well placed to support domestic and cross-border insolvency matters, even where assets or individuals are deliberately concealed.

To instruct us on an investigation or to find out more about our services, contact our Client Services team, at advice@esarisk.com on +44 (0)343 515 8686, or via our contact form.