The Secretary for Monetary Affairs thinks that if the confiscation orders scheme is adopted, there must be sufficient safeguards against abuse of

of power

and misuse of information

to to launder

relating to the new offence of assisting a person the proceeds of drug trafficking. The banking and other

financial service industries must be consulted on the details involved when drafting the new legislation. The Secretary for Monetary Affairs also feels that any obligation imposed bamks and financial institutions to report must be confined to "drug trafficking" offences.

Public reaction

11

on

When the Discussion Document on Options for Changes in the Law and in the Administration of the Law to Counter the Triad Problem was published there was widespread support for the proposals regarding automatic indebtedness to the Crown. Support can also be expected for the alternative proposals regarding the imposition of confiscation orders. on convicted drug traffickers as described in paragraphs 22 to 31 of Annex A, amended to include the points made by the OMELCO Security Panel in paragraphs 7(a) to (g) above. If a decision is made to introduce legislation regarding confiscation orders, questions may be raised as to why the proposals regarding automatic indebtedness had been dropped. In general there should be support for measures to deprive convicted drug

traffickers of their ill-gotten gains.

Publicity

12

It is proposed that publicity should be given, in the form of a press release, to any scheme for the recovery of the proceeds of drug trafficking which Members

Members advise should be adopted. If the proposals regarding the imposition of the confiscation orders scheme are approved, it would be explained that this scheme constitutes a more just system than the automatic indebtedness scheme in that it will be for the Crown to establish that the offender has assets.

(The Director of Public Prosecutions, Mr J.K. FINDLAY, the Secretary for Security,

Security, Mr D.G. JEAFFRESON, the Commissioner for Narcotics, Mr G.N. MULLOY and the Assistant Secretary (Security), Mrs Agnes ALLCOCK, will attend before the Council for the discussion of this item.)

27 April 1987 (NCR 3/1/8 VIII)

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