Pubdate: Fri, 19 Oct 2001
Source: Herald, The (UK)
Copyright: 2001 The Herald
Contact:  http://www.theherald.co.uk/
Details: http://www.mapinc.org/media/189
Author: Craig Watson, Deborah Summers
Bookmark: http://www.mapinc.org/af.htm (Asset Forfeiture)

CRIME BARONS FACE SEIZURE OF ASSETS

New measures for seizing the assets of "untouchable" crime barons in 
Scotland and the rest of the UK were outlined in a bill published yesterday.

Ministers in Scotland and England said the proposals in the proceeds of 
crime bill were designed to curtail the lavish lifestyles of the country's 
"Mr Bigs" and prevent future crime.

Measures in the bill include extending the right to seize the assets of 
drug dealers to those involved in other criminal activities and allowing 
the recovery of assets through the civil courts for those suspected, but 
not convicted, of a crime.

The latter power has been criticised by civil liberty groups as contrary to 
the central principle of "innocent until proven guilty". It would be 
possible because the burden of proof in civil courts - a balance of 
probabilities - is less stringent than that in a criminal case, which must 
be proved beyond reasonable doubt.

Other proposals in the bill included measures to tax income from crime. 
Money laundering loopholes would be closed and investigatory powers 
strengthened. The bill added that tougher disclosure requirements would be 
imposed on third parties, such as financial institutions. Customs officers 
would be given enhanced search powers.

Jim Wallace, the justice minister, said the bill covered the whole of the 
UK, with some minor adjustments in Scotland.

He said: "Make no mistake, this is the bill the crime barons and their 
associates have been dreading. Many major criminal figures have become 
untouchable by criminal prosecution."

He added that the new arrangements were intended to strengthen and 
harmonise the present weak system of "confused and convoluted" laws on 
criminal confiscation

In recent years, confiscation orders imposed by Scottish courts have 
amounted to less than UKP1m a year, but Mr Wallace said the profits from 
crime in Scotland probably amounted to "hundreds of millions".

The executive said it would not set specific targets for levels of asset 
confiscation. However, George Foulkes, Scotland Office minister, said the 
measures could lead to the confiscation of  UKP6m worth of assets a year in 
Scotland.

The Home Office said it hoped to increase income from UKP25m a year to 
UKP60m by 2004.

In England, Wales and Northern Ireland, the assets of convicted criminals 
would be seized by a new assets recovery agency, with the Crown Office 
responsible in Scotland. An eight-strong team is also expected to staff a 
civil recovery unit at the Crown Office.

Civil recovery would only be pursued for sums of UKP10,000 or more. Four or 
five such cases are expected in Scotland annually, with about 20 in the 
rest of the UK.

The executive and the Treasury are discussing a formula by which some of 
the assets recovered in Scotland could be spent by the Scottish Parliament, 
with the fight against drugs a prime candidate for receiving that cash.

Police have identified about 400 major crime bosses in the UK whose wealth 
totals UKP440m, about half of which is in the hands of just 39 individuals.

An estimated 2% of the UK's gross domestic product, totalling UKP18bn, 
comes from crime, approximately half of which is from the drugs underworld.

Ministers are confident the bill, which complements this week's 
anti-terrorism legislation, complies with the European Convention on Human 
Rights. In February, the privy council paved the way for the new bill by 
allowing assets to be seized from Robert McIntosh, a Greenock heroin dealer.

However, the civil rights group, Liberty, and the Scottish Human Rights 
Centre expressed concern that the bill threatened the innocent and 
undermined "core standards of criminal justice", in other words, the 
presumption of innocence.

The executive will lay a so-called "Sewel" motion before the Scottish 
Parliament next week asking it to allow Westminster to legislate on 
devolved matters. The bill will receive a second reading in the House of 
Commons on October 30.
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MAP posted-by: Lou King