HONG KONG LEGISLATIVE COUNCIL
12 July 1989 香港立法局————————一九八九年七月十二日
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appropriate means to tackle this hitherto unsolvable problem because we only have to see the way the cocaine barons of South America override even governments in their pursuit of the fast buck.
Sir, with these words, I support the motion.
SECRETARY FOR SECURITY: Sir, I am most grateful to Members for their support of this Bill. I am also indebted to Miss TAM and her ad hoc group for their in-depth scrutiny of the Bill during the past four months which has resulted in a number of amendments which will be moved during the Committee stage. I should also like to record my appreciation of the work of the Law Draftsman and those government officers who have been associated with this complex piece of legislation.
I should now like to address some of the points which have been raised today.
During the drafting and consultation stages there has been particular concern about the anti-money laundering provisions namely, clause 25. Miss TAM has mentioned the amendment, which has been agreed, which will replace the words "knowing or suspecting" with "knowing or having reasonable grounds to believe" in subclause (1). Clause 25 has two main objectives. First, in creating an offence with substantial penalties, it is intended to deny drug traffickers the banking and professional services through which their profits are channelled into legitimate investments. Secondly, 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. The Administration accepts the need to reduce the level of uncertainty as to what is required to be reported, and therefore considers the proposed amendment to be an acceptable compromise.
Mr. LI has raised three points on clause 25 which he thinks are unsatisfactory. His first point is that specific defences should be provided for bank employees, compliance officers and the banks themselves.
The Administration has been made aware of and appreciates the concern felt by financial institutions over the liability of their employees. 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. It also provides the defence that he intended to
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