XN000022-1989-07-12 — Page 3

WEDNESDAY, JULY 12, 1989

OBJECTIVES OF ANTI-DRUGS BILL'S PROVISIONS EXPLAINED

THE DRUG TRAFFICKING (RECOVERY OF PROCEEDS) BILL 1989 IS NOT DIRECTED SOLELY AT THE BANKING INSTITUTIONS AND THERE IS NO NEED FOR BANK EMPLOYEES TO FEAR THAT THEY WILL BE PUT INTO A DIFFICULT POSITION BY THE PROPOSED LEGISLATION, THE SECRETARY FOR SECURITY, THE HON GEOFFREY BARNES, TOLD THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

WINDING UP THE SECOND READING DEBATE ON THE BILL, MR BARNES SAID DURING THE DRAFTING AND CONSULTATION STAGES THERE HAD BEEN PARTICULAR CONCERN ABOUT THE ANTI-MONEY LAUNDERING PROVISIONS, NAMELY, CLAUSE 25.

A NUMBER OF AMENDMENTS HAD BEEN MADE TO THE BILL FOLLOWING AN IN-DEPTH SCRUTINY BY AN OMELCO AD HOC GROUP, HE NOTED.

ONE OF THE AMENDMENTS REPLACED THE WORDS "KNOWING OR SUSPECTING" WITH "KNOWING OR HAVING REASONABLE GROUNDS TO BELIEVE" IN SUBCLAUSE (1) OF CLAUSE 25.

POINTING OUT THE TWO MAIN OBJECTIVES OF CLAUSE 25, MR BARNES SAID: "IN CREATING AN OFFENCE WITH SUBSTANTIAL PENALTIES, IT 18 INTENDED TO DENY DRUG TRAFFICKERS THE BANKING AND PROFESSIONAL SERVICES THROUGH WHICH THEIR PROFITS ARE CHANNELLED INTO LEGITIMATE INVESTMENTS.

"IN PROVIDING THE DEFENCE OF REPORTING, IT IS INTENDED THAT THE REPORTING OF SUSPICIONS SHOULD BE ENCOURAGED. THIS WILL ASSIST IN THE INVESTIGATION OF DRUG TRAFFICKING OFFENCES."

MR

BARNES SAID THE ADMINISTRATION ACCEPTED THE NEED TO REDUCE THE LEVEL OF UNCERTAINTY AS TO WHAT WAS REQUIRED TO BE REPORTED, AND THEREFORE CONSIDERED THE PROPOSED AMENDMENT TO BE AN ACCEPTABLE COMPROMISE.

OTHER POINTS ON CLAUSE 25 THAT WERE RAISED ADVOCATED THAT SPECIFIC DEFENCES SHOULD BE PROVIDED FOR BANK EMPLOYEES, COMPLIANCE OFFICERS AND THE BANKS THEMSELVES.

THE

"THE ADMINISTRATION HAS BEEN MADE AWARE OF AND APPRECIATES CONCERN FELT BY FINANCIAL INSTITUTIONS OVER THE LIABILITY OF THEIR EMPLOYEES," MR BARNES NOTED.

"HOWEVER, IT IS NOT TRUE THAT THE BILL PROVIDES NO DEFENCE FOR A PERSON PROSECUTED UNDER CLAUSE 25. SUBCLAUSE (4) PROVIDES THE DEFENCE THAT HE DID NOT KNOW OR SUSPECT THAT THE ARRANGEMENT, AS DEFINED IN SUBCLAUSE (1), INTO WHICH HE ENTERED, RELATED TO THE PROCEEDS OF DRUG TRAFFICKING.

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"IT ALSO PROVIDES THE DEFENCE THAT HE INTENDED TO REPORT MATTER TO AN AUTHORISED OFFICER BUT HAD A REASONABLE EXCUSE FOR NOT DOING SO," HE SAID.

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