TNAG-2439-FCO40-3544-Hong-Kong-crime-1992 — Page 3

CONFIDENTIAL

(b)

there was also concern that, in the absence of additional powers for the investigation of organised crime, it might be difficult to obtain evidence sufficient to convict those involved in organised crime, in particular those who control and co-ordinate organised crime syndicates; and

(c)

it was suggested that the money laundering and confiscation provisions should be more widely available against the proceeds of crime, and not limited to the proceeds of organised crime and drug trafficking.

XCCI(92)24

REVISED PROPOSALS

6

We believe there is some force in the comments summarised in paragraph 5, in particular the need for greater investigative powers to enable the Police to break through the wall of silence which tends to protect those who control and co-ordinate organised crime. Such powers are available now in specific instances only, for example under the Securities and Futures Commission Ordinance, the Companies Ordinance, the Banking Ordinance, and the Drug Trafficking (Recovery of Proceeds) Ordinance. Wide powers of investigation have also been provided in the United Kingdom in cases of serious fraud by the Criminal Justice Act 1987, and in cases of terrorist organizations by the Prevention of Terrorism (Temporary Provisions) Act 1989 and the Northern Ireland (Emergency Provisions) Act 1991. Australia has such powers in the National Crime Authority Act designed to combat organized crime. Our revised proposals are outlined below.

SPECIAL INVESTIGATIVE POWERS

7

We propose that the Police should be empowered, in certain circumstances and subject to administrative or executive control on the exercise of the powers, to require persons, including suspects, to disclose relevant information and documents. Failure to make such disclosure would be an offence. The powers would be available for the investigation of scheduled offences relating to organised crime. They would be very useful and important tools for the gathering of information and evidence on criminal organisations and activities, although information so obtained could not be used against the person disclosing the evidence, except in a prosecution for giving false or misleading information.