TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 51

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PART V

MISCELLANEOUS

Assisting another to retain the benefit of drug trafficking

25. (1) Subject to subsection (3), a person who enters into or is otherwise concerned in an arrangement whereby

(a) the retention or control by or on behalf of another ("the relevant person") of the relevant person's proceeds of drug trafficking is facilitated (whether by concealment, removal from the jurisdiction, transfer to nominees or otherwise);

or

(b) the relevant person's proceeds of drug trafficking—

or

(i) are used to secure that funds are placed at the relevant person's disposal;

(ii) are used for the relevant person's benefit to acquire property by way of investment,

knowing or having reasonable grounds to believe that the relevant person is a person who carries on or has carried on drug trafficking or has benefited from drug trafficking, commits an offence.

(2) In this section, references to any person's proceeds of drug trafficking include a reference to any property which in whole or in part directly or indirectly represented in his hands his proceeds of drug trafficking.

(3) Where a person discloses to an authorized officer a suspicion or belief that any funds or investments are derived from or used in connection with drug trafficking or any matter on which such a suspicion or belief is based-

(a) if he does any act in contravention of subsection (1) and the disclosure relates to the arrangement concerned, he does not commit an offence under this section if the disclosure is made in accordance with this paragraph, that is—

(i) it is made before he does the act concerned, being an act done with the consent of the authorized officer; or

(ii) it is made after he does the act, but is made on his initiative and as soon as it is reasonable for him to make it;

(b) the disclosure shall not be treated as a breach of any restriction upon the disclosure of information imposed by contract or by rules of professional conduct; and

(c) he shall not be liable in damages for any loss arising out of—

(i) the disclosure;

(ii) any act done or omitted to be done in relation to the funds or investments in consequence of the disclosure.

(4) In proceedings against a person for an offence under this section, it is a defence to prove-

(a) that he did not know or suspect that the arrangement related to any person's

proceeds of drug trafficking; or

(b) that he did not know or suspect that by the arrangement the retention or control by or on behalf of the relevant person of any property was facilitated or, as the case may be, that by the arrangement any property was used as mentioned in subsection (1); or