CRIME SEIZURE LAW SOFT SAYS GOFF

WELLINGTON (NZPA) -- Justice Minister Phil Goff is pushing for law changes
that would allow the Government to seize assets it considered were gained
through criminal activity.

Mr Goff proposes toughening up the Proceeds of Crime Act, to put the onus
on people to prove they did not buy their property with money gained by crime.

Under the 1991 legislation, a person must be convicted of a crime before
assets can be seized.

A trip this month to examine laws in Ireland and Britain convinced Mr Goff
that the law would be a more effective crime-buster if it had more teeth.

"We need to have a civil forfeiture regime, as well as a conviction-based
proceeds of crime regime.

"If you can't get a conviction, you would employ civil forfeiture where you
don't have to meet the criminal standard of beyond reasonable doubt, simply
the civil standard of on the balance of probabilities these assets were
acquired from crime.

"That would bring in a lot more assets that were criminally acquired."

Mr Goff estimated the law change could result in seven times more money
gathered from criminals.

"What it means is that they can get at the drug-traffickers who might not
have a direct hands-on involvement in the crime, but get the proceeds of
that crime and the millions of dollars that they can acquire illegally in
that way."

He said his proposals, which would take the form of an amendment to the
present law, would set up a three-tier structure.

Conviction would remain the priority, followed by civil forfeiture.

"The third thing is, if you can't get civil forfeiture you at least tax the
proceeds that you suspect were criminally acquired."

In Ireland, more money was obtained from taxes than forfeiture.

"Even if you can't prove that it is criminal assets, if it hasn't been
subject to taxation you would take tax action against them," Mr Goff said.

"The end result is that you are acquiring quite significant assets that
there is every probability have come from criminal action."

Mr Goff hoped to put his proposals before the Cabinet mid-year, and to have
legislation introduced this year.

However, some in the legal community fear that the moves could divert
police from the need to get a conviction.

Superintendent Fred Gere, from Western Australia, warned last year that
overseas gangs could set up in New Zealand unless laws targeting organised
crime profits were tightened.

The only way to stop illegal gang activity was by hitting them where it
hurt - in the wallet, he said.

Imprisonment was ineffective as criminals could access "black money" once
released.

Political parties and police have been pushing for the changes proposed by
Mr Goff.

United Future last year said it was drafting legislation that would strip
gangs of illegally earned wealth. Justice spokesman Marc Alexander said the
Proceeds of Crime Act was a "toothless tiger".

National Party police spokesman Tony Ryall had proposed similar legislation.

Australia in 2002 passed a law giving courts the right to seize assets of
people believed to have profited from crime, including proceeds from
tell-it-all books, even if the suspects have not yet been convicted.

The onus is on criminal suspects to prove their assets and property were
lawfully derived.

[SIDEBAR]

Criminal Assets

* Between 1995 and 2003, police made 139 seizure orders to the value of
about $30 million under the Proceeds of Crime Act.

* Of those, 74 forfeiture orders worth about $13 million were made.