TNAG-1709-FCO40-2384-Hong-Kong-narcotics-offences-and-drug-trafficking-1988 — Page 9

provision should be made by the court to prevent

restraining orders to be made disposal of property held by a third party on behalf of suspected person.

A similar provision exists in Prevention of Bribery Ordinance.

29

for

the

the the

Application would be made to the court for compensation for any substantial loss suffered as a result of a notice issued by the Commissioner of Police or the Commissioner of Customs & Excise, a restraining or charging order, or of the realisation of property, where the defendant was not convicted or his conviction was quashed on appeal and where there had been serious default on the part of a person concerned in the investigation or prosecution. The amount of compensation would be determined by the court.

Offence of handling proceeds of drug trafficking

30

A new offence would be created of assisting a person to launder the proceeds of drug trafficking. In order to encourage banks and other financial institutions

institutions to volunteer information, the provision would exempt banks and others from any liability for breach of contract if

if they passed on the suspicion that any funds or investments might be connected with drug trafficking.

External confiscation order

31

Under the United Kingdom Act 1986, the

the registration and enforcement of the confiscation order may be extended to other countries by Order in Council on a reciprocal basis. In a reciprocating country, a confiscation order made by a court which is for

for the purpose of recovering the proceeds of drug trafficking by any person may then be enforced in the United Kingdom after the order has been registered in the High It is proposed that similar arrangements should be

Court.

made for Hong Kong.

Investigatory teams

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An

examination has been made of the costs and feasibility of establishing investigatory teams to track the assets locally and overseas of drug traffickers So that the necessary information with regard to available property may be presented to the court in proceedings leading to the imposition of an

confiscate prescribed drug offence.

order

to

the proceeds of a

CONFIDENTIAL