TNAG-1995-FCO40-2842-Drug-trafficking-in-Hong-Kong-1989 — Page 171

For decision

on 12 May 1987

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ANNEX B TO XCC (89) 12

XCC (87)69 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

Dangerous Drugs Ordinance (Chapter 134)

RECOVERY OF THE PROCEEEDS OF DRUG TRAFFICKING

The Problem

Drug trafficking is organised to earn huge profits and there

there is reason to believe that

that drug traffickers do not ordinarily restrict their criminal activities to drugs. It is likely that profits from this illegal trade are being used to finance other illegal activities such as gambling, prostitution and other crimes. Money from these activities completes the cycle by helping to finance the drug trade further. So long as these profits go untouched, convicted accomplices and confiscated drug consignments can always be quickly replaced. There is therefore a need to attack the assets of drug traffickers. There is mounting international pressure on countries which have not yet legislated for the recovery of the proceeds of drug trafficking to do so as soon as possible.

2

As Hong Kong does not have legislation specifically designed to recover proceeds of drug trafficking it is necessary to submit to Members proposals on the basis of which appropriate legislation may be drafted.

Recommendation and advice sought

3

It is recommended that the proceeds of drug trafficking be recovered by adopting one of the following two schemes :

(a) a system whereby automatic indebtedness would be imposed on a convicted drug trafficer in a sum of HK$40,000 for each month of the prison sentence or

(b)

a system of confiscation orders based on the United Kingdom's Drug Trafficking Offences Act 1986.