The Government outlined its plans to give police additional powers to seize criminal assets as it aims to target gangs.
Justice Minister Kiritapu Allan announced changes to the law to include associates of organised criminal groups, saying the changes "intended to strip gang members of the benefits of their criminal activity".
"If someone is associated with an organised criminal group and its suspected they couldn’t have funded their assets legitimately, then they can now be required to prove to the court how they came to possess them – or face having them seized," Allan said.
The Government has announced changes to the law so police can seize things like bikes and cars if gang associates can't prove they purchased them legally. (Source: 1News)
"Organised criminals structure their affairs to avoid their illicit assets being restrained and forfeited."
People will have to prove they have legally purchased assets. (Source: 1News)
Allan said this is often done by putting property into associates' names.
Police Minister Chris Hipkins said "criminal proceeds investigations tells us that use of intermediaries, third parties, relatives or friends are a feature of many cases now investigated".
The assets would need to be worth more than $30,000.
Government would also introduce a court order that could see criminals based overseas face losing the assets, unless they can prove within two months they legally obtained the property.
Other changes include the body that manages the assets seized will be able to hold it longer than 28 days while court considers restraining order applications. KiwiSaver funds will also come under civil forfeiture orders, so that criminals will not be able to hide illegal funds.
When asked why Government was only acting on associates now, Allan said it was a technical area of law that had required "a significant amount of engagement and one that we know will go to really addressing the way criminal gangs have structured their affairs".
She called the KiwiSaver issue a loophole that needed closing.
Allan said there was a sufficient number of cases where property had been gained illegally, however no action could be taken to take the funds away.
Prime Minister Jacinda Ardern said targeting associates was a difficult area of law.
"But we are venturing into this space… this is the next frontier."
National's Paul Goldsmith said the change would help "but it needs to be part of a clear, consistent, and forceful response to gangs".
"Unfortunately, today's belated announcement, which was initially promised for 2021, gets nowhere close to this," Goldsmith said.
"We should not just wait to tax the profits of crime but also disrupt criminal organisations to prevent crime from happening in the first place."
ACT's justice spokesperson Nicole McKee said that "after months of build-up, promising to crack down on gangs, the Government has made an announcement without providing a bill".
"It’s a perfect example of Labour putting spin before substance, announcing announcements, and being MIA on the details."
The Government announced in July it would bring in new rules to "reduce the harm caused by gangs and make communities safer".
The search proposals in July would enable police to respond to emerging gang conflict and remove weapons and the seizure proposals included cash over $10,000 found in suspicious circumstances.
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