SP Terence Leung, DSIP Rohit Bhagat and DSIP Nigel Williams discuss the ground-breaking cases

Twelve years of intensive, global investigations involving officers from the Financial Investigations Division of the Narcotics Bureau (FI NB), counterparts in the Australian Federal Police (AFP) and the United States Drug Enforcement Administration (DEA) successfully concluded recently.

Following complex, protracted investigations into two separate global drug trafficking syndicates, the hard work and co-operation established between representatives of each agency involved finally bore fruit with the confiscation of drug trafficking assets totalling over HK$83 million from Hong Kong financial institutions.

In line with the 1988 United Nations Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the Mutual Legal Assistance in Criminal Matters Ordinance, our Government policy on asset sharing requires consideration of each joint investigation with an overseas agency on a case-by-case basis, examining the respective roles played within each area of jurisdiction. This latest example of asset-sharing, resulting in the handing over of a significant proportion of these confiscated assets to representatives from Australia and the US acknowledges this.

Superintendent FI NB Terence Leung Lap-fun stated: "Asset-sharing is more than just a symbolic gesture. It sends a clear message, to both the public and global drug-trafficking syndicates alike, that Hong Kong Police are well prepared to tackle like-minded organisations regardless of their origins, and that the money laundering aspects of this on-going fight are critically important in regard to the obliteration of such organisations."

The first such case concerned the illegal proceeds of a leading figure in a highly organised Colombian narcotics trafficking syndicate.

Before his death in 1989, this particular individual had accumulated vast amounts of illegal proceeds which were distributed to bank accounts around the world under the names, or control, of many of his relatives, with much of the money arriving in Hong Kong via "off-shore companies". Assistance was sought from FI NB and, as a result, his Hong Kong-based assets (money and property) were traced and restrained in July 1991.

In January 1998, following lengthy court proceedings in the US, the authorities there officially requested Hong Kong Police assistance in the confiscation of this individual's Hong Kong-based assets. Over HK$69 million (US$8.84 million) was finally sequestered. This is the second highest amount ever seized in Hong Kong since the enactment of the Drug Trafficking (Recovery of Proceeds) Ordinance in 1989.

The present case officer, Detective Senior Inspector Nigel Williams stated: "This was a global investigation involving many jurisdictions. The success of the case was the result of a great deal of hard work from a number of officers over several years. It's obviously very pleasing for everybody to have assisted in the break-up of such a large high-profile international syndicate."

The second case regarding shared assets concerned the 1992 arrest of an Australian man. FI NB was able to successfully implement the legal restraint of a Vanuatu-based account of one of his off-shore companies on behalf of the Australian Government.

The individual in question was finally sentenced in Australia in April 1994 to 14 years' imprisonment. In May 1999, the Australian Government officially requested assistance regarding the confiscation of his Hong Kong-based assets. In January 2000 a total of HK$14,040,000 (US$1.8 million) was finally paid to HKSAR Government.

The present case officer DSIP Rohit Bhagat stated: "This case was interesting in that the syndicate had incorporated a company in one offshore jurisdiction, channeled the trafficking proceeds through the company's bank account in another, controlling everything from Hong Kong.

"Initially the bank refused to accept that any Hong Kong legal proceedings to restrain the money would be valid. It was difficult, but in the end, proving to both the bank and the courts that the money found was in fact the proceeds of Australian drug trafficking and could be confiscated under Hong Kong law, as the effective control of the account was here, proved most satisfying. This case demonstrated that Hong Kong's money laundering laws are effective against the use of offshore accounts for illegal purposes."

SP FI NB Leung emphasised: "It is clear that meaningful cooperation with overseas law enforcement agencies is essential in the global fight against drug trafficking. A number of excellent partnerships have developed over the years resulting in several successful cases similar to those highlighted here.

"With the drugs business transcending international borders, it is impossible for one jurisdiction to operate alone. It has been the enthusiasm and professionalism of our overseas counterparts, coupled with our own vigorous efforts, that have produced the successful results in the cases quoted. FI NB will, nevertheless, continue to strengthen our existing relationships with international law enforcement bodies and also attempt to establish new contacts whenever needed."





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