CONFIDENTIAL

For discussion

on 11 November 1986

XCC (86) 179

Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

Dangerous Drugs Ordinance (Chapter 134)

RECOVERY OF THE PROCEEDS OF DRUG TRAFFICKING

Annex A

31...

INTRODUCTION

Members'

The purpose of this memorandum is

memorandum is to seek advice on whether, in principle, the proceeds of drug trafficking should be recovered by imposing automatic indebtedness on a convicted drug trafficker or by adopting a system of confiscation orders based on the recently enacted United Kingdom legislation.

BACKGROUND

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On 22 April 1986, the Council considered

considered memorandum XCC (86)75 which presented possible legislative

legislative options

options for depriving convicted drug traffickers of the proceeds of their crimes. The proposals in that memorandum regarding automatic indebtedness had been incorporated in the consultative document on options for countering the triad problem and were based on the principle that on conviction a drug trafficker should become automatically indebted to the Crown. The Council advised and the Governor ordered:

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(a) that the proposals in paragraphs 15 to 26 (of memorandum XCC(86)75)` should be resubmitted following the conclusion of public discussion of the

the consultative document on options for countering the triad problem; and

(b)

that the further submission should also contain proposals based on the legislative proposals now before (since enacted by) the United Kingdom Parliament, an examination of the costs and feasibility of establishing investigatory teams to track the assets overseas of drug traffickers equipped with similar powers to the Independent Commission Against Corruption and an examination of the feasibility of seeking from the courts awards of the costs of such investigations.

The proposals with regard to indebtedness to the Crown in memorandum XCC (86)76 are resubmitted in paragraphs 6 to 17 below. The Parliament of the United Kingdom has

CONFIDENTIAL

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