Introduction of legislation to facilitate civil asset recovery powers

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WRITTEN QUESTION TO THE MINISTER FOR HOME AFFAIRS BY DEPUTY J.B. FOX OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY, 28th FEBRURY 2006

Question

On page 26 of the States of Jersey Police Annual Performance Report 2005, under the heading Financial Crime, it states that although both Guernsey and the Isle of Man are now in the process of drafting legislation to facilitate civil asset recovery powers, the States of Jersey have yet to reach a decision on the issue. The introduction of such powers locally could yield significant assets in seizures of criminal assets and would pose a major deterrent to criminals.'

Would the Minister –

( a ) advise the Assembly why the States of Jersey have not yet been asked to consider this issue?

( b ) inform members whether seizures made under such powers could increase the income of the States and

be used to remove or seriously reduce the current backlog of financial crime cases and, if so, will she agree to take all necessary steps to expedite the preparation of such legislation in order to alleviate the financial pressures that are being experienced at this time?

Answer

1. The States wasaskedtodebate civil asset forfeiture on 25th Octoberlast year. ItwasincludedinP.201/2005, the Criminal Justice Policy, atparagraph11.44and in the subsequent action plan.Hadthe States gone ahead with the debate on the Policy, as I had requested, it is likely that I would havehad the States' backingto take this action forward.Theintroductionofpowers by 2008 for the civil confiscation of criminal proceedsisalso included inthedraft States Strategic Plan.
2. Under current Drug Trafficking legislation a Police or Customs officer mayseizeand detain anymoney which is imported into orexported from the Island if hehas reasonable groundsfor suspecting that it directly or indirectly represents any person'sproceeds of, orisintendedby any personforusein,drug trafficking.

L o cally the power has recently been used to good effect at the ports to detain large volumes of cash being

exported from the Island destined to purchase more drugs in the UK. The law enforcement authorities have successfully defended seizures in Court and achieved confiscation orders for over one hundred and fifty thousand pounds worth of drug money.

S u ch civil recovery' powers, however, are not available to Police or Customs Officers who discover large

volumes of cash where they are unable to show that the funds have either been imported or intended for export from the Island. It is acknowledged that similar legislation dealing with the proceeds of all crimes and the enabling of civil asset recovery powers is required.

T h e United Kingdom has enjoyed significant success utilising civil asset recovery powers under the Proceeds

of Crime Act over the last two years, taking the profit out of crime and placing confiscated assets back into front line resources charged with enforcing such legislation. Law enforcement agencies in the UK are currently securing approximately fifty million pounds of cash per year using such powers.

T h e extent of assets which may be recovered locally under the proposed new powers would of course depend

on the scale of any applications and the view of the courts in response to those applications made. It would be unrealistic to attempt at this time to estimate the potential revenue from cases which have not been brought under a law which does not yet exist.

H owever, from the information available it appears possible that the proposed new law would release

resources which could be recycled into law enforcement and that this could include strengthening the Island's ability to investigate further cases of suspicious transactions. The cash seizures in the UK currently fund the entire Asset Recovery Agency and the Regional Asset Recovery Agencies; and Police Forces also receive a proportion of the confiscated funds. The seizure of large volumes of cash from criminals who are unable to provide a credible and verifiable explanation for the money is now a major tool in combating crime.

O  f course members will be aware that the prime purpose of such a law would not be to provide revenue but to

openly demonstrate that this government is determined to ensure that the Island should not become a refuge for criminal assets. I hope that I can count on the support of members when these measures are brought forward.