XN000022-1987-05-21 — Page 2

THURSDAY, MAY 21, 1987

+ATTACK ON ASSETS OF DRUG TRAFFICKERS PROPOSED

*****

IN A MAJOR ATTEMPT TO STRIKE AT THE FINANCIAL ROOTS OF THE ILLICIT DRUG TRADE. THE GOVERNMENT PROPOSES TO INTRODUCE STRICTER MEASURES WHICH WILL ENABLE THE COURT TO MAKE CONFISCATION ORDERS TO RECOVER THE PROCEEDS OF DRUG TRAFFICKING,

THIS MOVE IS TARGETTED AT THOSE CONVICTED OF SERIOUS DRUG OFFENCES SUCH AS TRAFFICKING AND MANUFACTURE AND CONSPIRING TO COMMIT THESE OFFENCES,

THE COMMISSIONER FOR NARCOTICS, MR GARETH MULLOY, SAID TODAY (THURSDAY) THAT THE CONFISCATION ORDERS SCHEME WOULD ENABLE THE COURT TO ASSUME THAT ALL PROPERTY CURRENTLY HELD BY THE OFFENDER OR TRANSFERRED TO HIM WITHIN THE PREVIOUS SIX YEARS WAS RECEIVED AS A PAYMENT OR REWARD IN CONNECTION WITH DRUG TRAFFICKING.

THE COURT WILL ASSESS THE VALUE OF HIS PROPERTY AND ORDER HIM TO PAY THAT AMOUNT.

FAILING PAYMENT, MR MULLOY SAID, IT WAS PROPOSED THAT THE COURT WOULD HAVE THE POWER TO IMPOSE A FURTHER TERM OF IMPRISONMENT ON A SLIDING SCALE UP TO TEN YEARS ACCORDING TO THE AMOUNT IN DEFAULT.

THIS WILL BE IN ADDITION TO ANY TERM OF IMPRISONMENT IMPOSED FOR THE DRUG TRAFFICKING OFFENCES.

HOWEVER, HE EXPLAINED THAT THE AMOUNT OF THE CONFISCATION ORDER MIGHT BE REDUCED IF THE COURT IS SATISFIED THAT THE OFFENDER'S AVAILABLE PROPERTY WAS INSUFFICIENT TO PAY THE AMOUNT OF THE ORDER.

THIS PROVISION IS CONSIDERED NECESSARY SINCE THE VALUE OF PROPERTY MAY FLUCTUATE SIGNIFICANTLY BETWEEN THE TIME OF THE CONFISCATION AND ITS ACTUAL REAL ISATION,

+AS THE SCHEME WILL INVOLVE INVESTIGATION INTO THE OFFENDERS' ASSETS, THERE WILL HAVE TO BE CONSULTATION WITH BANKS AND FINANC I AL

INSTITUTIONS ON DETAILED DRAFTING OF THE LEGISLATION,+ MR MULLOY SA ID.

HE EMPHASISED THAT HONG KONG'S DECISION TO HAVE LEGISLATION SPECIALLY DESIGNED TO RECOVER PROCEEDS OF DRUG TRAFFICKING IS IN LINE WITH SIMILAR DECISIONS TAKEN BY A NUMBER OF OTHER COUNTRIES.

+THE ACTION COMMITTEE AGAINST NARCOTICS SUPPORTS THE PRINCIPLE OF ATTACK ING TRAFFICKERS' ASSETS, HE SAID.

/URUG TRAFFICKING