Bill to combat terrorist activities

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The Government will introduce the United Nations (Anti-Terrorism Measures) Bill to provide for the necessary legal authority to fully comply with the mandatory requirements of the United Nations Security Council Resolution (UNSCR) 1373 and certain recommendations of the Financial Action Task Force on Money Laundering (FATF), a Government spokesman said today (April 10).

"The Bill will provide a modern definition of "terrorist act". It will empower the Chief Executive to specify by notice in the Gazette terrorists, terrorist associates or terrorist property; and for the Secretary for Security to direct holders of terrorist funds not to make those funds available to any person.

"In addition, it will prohibit the provision of or collecting funds for terrorists and terrorist associates; the making of funds or financial services available for the benefit of terrorists or terrorist associates; the supply of weapons to terrorists or terrorist associates and the recruitment of persons to serve with bodies which have been specified by the Chief Executive.

"The Bill will also enable forfeiture of property which represents the proceeds arising from a terrorist act, or is intended to be or was used to finance or otherwise assist in the commission of a terrorist act; and require persons to report if they know or have reasonable grounds to suspect that property is terrorist property," the spokesman said.

The definition of "terrorist act" in the Bill will provide the statutory basis for the Chief Executive to specify terrorists, terrorist associates or terrorist property in the Gazette and for the Secretary for Security to direct that terrorist property be frozen.

"Whilst these administrative procedures are essential to ensure that the enforcement agencies can act expeditiously against terrorist activities, we have also provided strong and effective safeguards to protect the innocent," he explained.

The specification of terrorists, terrorist associates or terrorist property will lapse after three years. Persons affected by these specifications and directions by the Secretary for Security to freeze terrorist property may apply to the Court of First Instance to have the specifications or directions revoked. In that eventuality the Chief Executive or the Secretary for Security will have to justify the original specifications or directions.

"In order to maintain transparency and facilitate compliance with provisions of the Bill, lists of terrorists, terrorist associates or terrorist property which have been specified in the Gazette will be made available to the public," the spokesman continued.

The definition of "terrorist act" is based on the definition of terrorism under the United Kingdom Terrorism (United Nations Measures) Order 2001. It follows the international trend by requiring that to constitute a "terrorist act" there must be the use or threat of action to influence a government or intimidate the public, and that the use or threat be for the purpose of advancing a political, religious or ideological cause.

In addition to these two criteria, the action must also meet at least one of the following criteria:

(a) involve serious violence against a person;

(b) involve serious damage to property;

(d) create a serious risk to the health or safety of the public or a section of the public;

(e) be designed seriously to interfere with or seriously to disrupt an electronic system; or

(f) be designed seriously to interfere with or seriously to disrupt an essential service, facility or system, whether public or private.

In order to prevent and deter hoaxes, which are likely to cause panic and confusion in densely-populated Hong Kong, the Bill will make it an offence to take actions which will cause others to wrongly believe that a terrorist act has been, is being or will be carried out.

The spokesman said Hong Kong's existing laws and administrative arrangements could already effectively deal with most activities typically associated with terrorists, such as kidnapping, murder, unlawful use of explosives causing injury to life and damage to property, etc.

The UNSCR 1373 and the FATF Special Recommendations however deal principally with the financing of terrorism and new legislative measures will be required in this regard.

"We intend to adopt a two-stage approach to implement the relevant requirements. In stage one, the mandatory elements of UNSCR 1373 and Recommendations II, III and IV of the FATF Special Recommendations will be implemented.

"In stage two, the Security Bureau will conduct further research into legislative amendments or proposals to implement the other non-mandatory elements of the resolution, to apply in the Hong Kong Special Administrative Region (HKSAR) other international conventions against terrorism, e.g., the International Convention for the Suppression of Terrorist Bombings and the International Convention for the Suppression of the Financing of Terrorism, and to give full effect to the FATF's Special Recommendations," the spokesman said.

The UNSCR 1373, which was passed by the United Nations Security Council on September 28, 2001, aims at combating international terrorism on various fronts, including measures against terrorist financing.

It requires, amongst other things, the prevention and suppression of terrorist financing, and criminalizing direct, indirect and wilful provision or collection of funds for terrorist acts and freezing of terrorist assets.

By virtue of Chapter VII of the Charter of the United Nations, UNSCR 1373 is binding on all Member States. In accordance with Articles 13(1) and 48(8) of the Basic Law, the Central People's Government gave instructions to the HKSAR in October 2001 to implement the resolution.

Hong Kong has been an active member of the FATF, a pre-eminent international body specialising in recommending standards and best practices in countering money laundering. Following the September 11, 2001 attacks in the United States, the FATF expanded its mission to cover terrorist financing and made eight wide-ranging Special Recommendations to tackle the issue. Such Recommendations overlap to a certain extent with UNSCR 1373. FATF members are expected to implement the Special Recommendations by mid-2002.

The Legislative Council's respective Panels on Security and on Administration of Justice and Legal Services were informed of the need to introduce legislative measures on anti-terrorism in order to implement the essential elements of UNSCR 1373 in a joint panel meeting on November 30 last year when Members of the Panel on Financial Affairs were also invited to attend.

In early February this year, the Legislative Council Panel on Security was briefed on the scope of the Bill and the issues to be covered in the proposed legislation. Major provisions of the Bill were explained during the meeting.

The Bill will be published in the Gazette on April 12 and introduced into the Legislative Council on April 17.

End/Wednesday, April 10, 2002

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