Criminal assets law needs tightening
The Law Commission wants to prevent criminals from disposing or hiding assets before trials so reparation can be made.
Criminals should be stopped from getting rid of or hiding assets before trials so reparation can be made, a new Law Commission report says.
The Criminal Proceeds (Recovery) Act 2009 should be amended, the Compensating Victims of Crime report says, so that prosecutors could get restraining orders before trials to ensure assets are available.
"Restraining orders will be particularly useful in cases of large-scale financial crime, including those involving multiple victims," Law Commission deputy president Warren Young says. "Apart from some powers in securities laws, there is currently no mechanism to ensure that the assets are preserved until criminal proceedings are complete."
The commission recommended restraining orders be available only where the victim has suffered loss or damage of at least $20,000 and the usual costs of restraining property of the type involved are less that the value of the property itself.
The limit was set at $20,000 so it was more than the costs of the court action and that amount was seen as a being a meaningful contribution for reparation.
"The number of cases that meet these criteria will be small," Dr Young says. "However, the proposed law will be valuable in some cases to ensure that assets are available to meet the offender's obligation to make reparation."
The commission also recommends that related amendments be made to the Victims' Rights Act 2002, so that victims are kept informed of any applications for restraining orders and related legal proceedings.
Alignment of regimes for enforcement of reparation orders are also supported. Presently, the High Court has more limited powers than District Courts.
The Ministry of Justice is reviewing victims' rights. A spokeswoman for Justice Minister Simon Power says he will be announcing changes in response to that in the first quarter of next year.
NBR staff
Wed, 22 Dec 2010
Wed, 22 Dec 2010
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Criminal assets law needs tightening
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