LEADER of Opposition Business in the Senate, Anthony Johnson, has urged state bodies who will be responsible for enforcing regulations under the Proceeds of Crime (Money Laundering) Act, to ensure that innocent persons are not caught in the dragnet.

Johnson, who was speaking during a motion to seek the Senate’s approval for both sets of regulations last Friday, said it was to be ensured that persons with inadequate evidence of property ownership were not wrongfully incriminated.

“There are persons who own property with the flimsiest of evidence that they own the property, because of our system of inheritance and the lack of duly-registered titles, and so those persons might very well find themselves caught up in these kinds of provisions,” he said. “We would therefore ask that the persons who are entrusted to carry out these regulations under the relevant statutes take into account the extremely delicate and important functions which they are being called upon to do,” Johnson said.

Furthermore, he said it was “important that (the legislation was) not used in a manner to carry out any side agenda”.

“That is where the rule of law has always had a difficulty – laws are passed with the very greatest of intentions (but) I am told the devil is always in the details; in some little use of a dash instead of a semi-colon that someone attempts to seize (property),” Johnson said.

He added: “Be quite certain that there is something wrong and you don’t get people caught up because of some side agenda and we have to be sure that the persons who will be enmeshed in this type of legislation are involved in laundering money in a manner that is involving a network of crime.”

According to the Senator, it was important that the legislation was not misused as to prevent future generations from questioning the integrity of the system.

“The regulations in and of themselves are a challenge to the concept of the right of a citizen to hold or own property in his own name for his own use. The challenge is only being tolerated by the wider society because of the even greater challenge to the capacity of the state to maintain law and order in a country in which narcotic trading has become one of the largest and most profitable businesses,” Johnson said.

Colleague Senator Arthur Williams noting that the Act and the accompanying regulations would “place onerous duties on financial institutions”, suggested that the institutions be given sufficient lead time before the appointed day for the statute to be in force to ensure systems are in place.

Referring to the propensity of criminals to find ways to breach provisions, Williams suggested that mechanisms be put in to keep the systems to be established in the financial institutions under constant review, enabling the authorities to be “a step ahead of persons who want to breach the provisions at all times”.

Leader of Government Business and Attorney General Senator AJ Nicholson, who brought the resolutions, said the approach taken with the Act and the regulations were deliberate, as due care is being taken to ensure that when the Act comes into effect on the appointed day, the administrative and regulatory framework for effective administration will be fully in place.

“We are leaving no stones unturned,” Nicholson stated.

The Act, which will authorise the state to deprive criminals of all properties and accumulated wealth which cannot be explained by legitimate activities, was passed in the House of Representatives in January with 55 amendments; passed by the Senate in February; and signed by the governor general in March. It is to be brought into force on a day to be appointed.

The legislation, when gazetted, will repeal the Money Laundering Act and comes as part of government’s efforts to fight organised crime and to ensure that persons engaged in criminal activities do not profit from their illegal activities.