DRUG TRAFFICKING (CONFISCATION OF BENEFITS) BILL

Order for Third Reading read.

The Minister for Home Affairs (Prof. S. Jayakumar): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Third time."

Sir, the Bill had its Second Reading in this House on 20th March 1992. At that time, I had explained at length the objectives of the Bill, the effect of its various provisions and, in particular, I explained the safeguards contained in the Bill. I said that we were especially concerned that the Bill should not undermine the confidence of depositors, investors and property owners over the confidentiality of records of their assets. Therefore, I do not propose to go over the same grounds again today. I will confine myself to mentioning the amendments to the Bill made in the Select Committee.

Sir, the Select Committee received only two representations. 0ne representation was from the Association of Banks in Singapore through the MAS and the other representation was from the Singapore National Front. I think it is a fair inference from this that the Bill is generally acceptable.

The Select Committee has made two amendments. First, on investigation powers. The Bill is quite a complicated and technical Bill. It is also not easy to uncover money laundering offences because the culprits use rather sophisticated techniques to avoid leaving a financial trail. Considerable expertise and skill is therefore required for these investigations, especially when the assets move quickly across borders and from one offender to another. Therefore, it is my view that we must utilise all available skilled and experienced investigators and resources, whether they reside in the CNB, the Police or other enforcement agencies. In particular, we would like to tap the experience of the Commercial Affairs Department (CAD) officers, especially since they have considerable experience in handling complex financial investigations involving financial institutions. CAD officers, at the moment, already have police investigation powers conferred on them in relation to offences under the Companies Act and the Securities Industry Act. However, to achieve our purpose, the amendment to clause 51 will give us the flexibility to appoint CAD officers, who are not police officers, to assist CNB in the effective implementation of the Act.

The second amendment, Sir, as a result of the ABS representation is a minor one. It allows banks to keep copies of their financial transaction documents instead of originals. With the advent of microfilm technology, this is a measure that will make storage of records more convenient for the banks.

If I may recapitulate, Sir, the aim of this Bill is to deny drug traffickers the enjoyment of the benefits of their crime by confiscating their assets which are derived from drug trafficking. As I have said before, the provisions of this Bill are based largely on the United Kingdom Drug Trafficking Offences Act but with modifications to suit our circumstances. Members will also recall that our Corruption (Confiscation of Benefits) Act, 1989, was also modelled on this United Kingdom precedent.

The Bill contains provisions which will enable the tracing, freezing and confiscation of assets obtained from drug trafficking activities. There will be sufficient investigative powers like production orders, restraint and charging orders given to the enforcement officers. But at the same time, there are adequate safeguards in the Bill to ensure the confidentiality of asset information, to ensure that there will be no fishing expeditions and that the Bill will only be directed against drug assets. Third party interests in assets will also be protected.

Finally, let me say that this Bill, as amended, provides us with an additional weapon to deter drug traffickers. Money laundering has also been made an offence to deter those who make it a point of not coming into physical contact with the drugs and benefits so derived will also be confiscated.

Sir, I beg to move.

Question proposed.

Dr Arthur Beng Kian Lam: Mr Speaker, Sir, the Ministry has put in much time and effort to study the experience of other countries before coming up with this Bill. This Bill will indeed give our enforcement agencies yet another means to deter and curb the activities of drug traffickers. Indeed, it is a major milestone in our anti-drug enforcement programme.

I have two questions for the Minister. First, with the CAD now also being tasked to handle cases of drug money laundering, will there still be a financial investigation unit in the CNB? What are the implications of CAD's involvement on CNB's resources?

I hope the CNB will have adequate manpower for this new function. Indeed, it is my hope that the involvement of CAD officials will be an interim measure whilst CNB officers gain expertise and exposure.

Secondly, it is important for such investigations to be conducted in such manner that not only will the culprits not enjoy their ill-gotten gains but also the confidentiality of the financial accounts of innocent parties is safeguarded. I would like to ask the Minister whether the officers of CNB and CAD have had adequate training and exposure compared to the experience of their overseas counterparts to enable them to be effective in their investigation work under the new Act.

Prof. Jayakumar: Sir, I thank Dr Arthur Beng. On his first question whether there will still be a financial investigation unit in the CNB, as I have mentioned, the CAD will be involved in handling cases of drug money laundering involving financial institutions. But the CNB will still have a role in investigating cases not involving money laundering, eg, they will have to be involved in tracing of assets of drug traffickers. And under the law, it is still necessary for the CNB to trace and freeze assets. Therefore, I still see there is a need for CNB to have a special unit set up within its organisation to conduct such investigations.

Indeed, there will be additional manpower deployed for this purpose and I can assure him that my Ministry will take up with the other Ministries involved the question of ensuring that there is enough manpower. Initially, of course, the unit, I expect, will be a small one. Depending on the workload envisaged, my Ministry will review the manpower needs as we go along.

As regards training, yes, this is an area where specialised training is necessary. Even before the Bill has received its final approval, CNB officers have undergone relevant training in financial investigations and other related matters, both in Singapore as well as in workshops, seminars and training courses held outside Singapore.

Question put, and agreed to.

Bill accordingly read a Third time and passed.

Mr Speaker: Order. I suspend the Sitting and will take the Chair again at 3.05 pm.

Sitting accordingly suspended at 2.43 pm until 3.05 pm. Sitting resumed at 3.05 pm