HKLII Hong Kong Regulations

[Index] [Table] [Search] [Notes] [Noteup] [Previous] [Next] [Download (Current & Past)] [Download (Current only)] [繁體中文] [Help]

DRUG TRAFFICKING (RECOVERY OF PROCEEDS) (DESIGNATED COUNTRIES AND TERRITORIES) ORDER - SCHEDULE 3

DRUG TRAFFICKING (RECOVERY OF PROCEEDS) ORDINANCE AS MODIFIED

(Past version on 01/01/2003).
(Past version on 26/09/1997).
(Past version on 01/07/1997).
(Past version on 30/06/1997).

Remarks 
This Schedule was originally Schedule 3 but was renumbered as Schedule 2 - see 26 of 2002 s. 4 & Sch. 3 (ss. 2 & 3(a)).



[paragraph 3(2)]
(26 of 2002 s. 4)
1.	............................

2.	Interpretation

(1)	In this Ordinance, unless the context otherwise requires-
"authorized officer" (獲授權人) means-
(a)	any police officer;
(b)	any member of the Customs and Excise Service established by 
section 3 of the Customs and Excise Service Ordinance (Cap 342); and
(c)	any other person authorized in writing by the Secretary for 
Justice for the purposes of this Ordinance;  (L.N. 362 of 1997)
"corresponding law" (相應的法律) has the same meaning as in section 2(1) of the 
Dangerous Drugs Ordinance (Cap 134);
"dangerous drug" (毒品) has the same meaning as in section 2(1) of the 
Dangerous Drugs Ordinance (Cap 134);
"dealing" (處理), in relation to property referred to in the definition of 
"drug trafficking" or section 10(1), includes-
(a)	receiving or acquiring the property;
(b)	concealing or disguising the property (whether by concealing or 
disguising its nature, source, location, disposition, movement or 
ownership or any rights with respect to it or otherwise);
(c)	disposing of or converting the property;
(d)	bringing into or removing from Hong Kong the property;
(e)	using the property to borrow money, or as security (whether by 
way of charge, mortgage or pledge or otherwise);  (89 of 1995 s. 33)
"drug trafficking" (販毒) means doing or being concerned in, whether in Hong 
Kong or elsewhere, any act constituting-
(a)	an offence specified in Schedule 1; or
(b)	an offence punishable under a corresponding law, 
and includes dealing, whether in Hong Kong or elsewhere, with any property 
which in whole or in part directly or indirectly represents any person's 
proceeds of drug trafficking;  (89 of 1995 s. 33)
"interest" (權益) in relation to property, includes right;
"property" (財產) includes both movable and immovable property within the 
meaning of section 3 of the Interpretation and General Clauses Ordinance 
(Cap 1);
"Registrar" (司法常務官) means the Registrar of the High Court.  (89 of 1995 s. 
33; 25 of 1998 s. 2)
(2)	The expressions listed in the left hand column below are 
respectively defined or (as the case may be) fall to be construed in 
accordance with the provisions of this Ordinance listed in the right hand 
column in relation to those expressions.

Expression	Relevant provision
Charging order (扺押令) ............................................	Section 11(2)
Defendant (被告) .......................................................	Section 3(3)
External confiscation order (外地沒收令) ...................	Section 3(1)
Gift caught by this Ordinance (受本條例囿制的饋贈)	Section 7(9)
Making a gift (作出饋贈) ...........................................	Section 7(10)
Realisable property (可變現財產) ..............................	Section 7(1)
Restraint order (限制令) ............................................	Section 10(1)
Value of gift, payment or reward (饋贈、付款或酬賞
的價值) ....................................................................	
	Section 7
Value of property (財產的價值) ................................	Section 7(4)
(89 of 1995 s. 33)

(3) This Ordinance applies to property whether it is situated in Hong Kong 
or elsewhere.
(4) ......................
(5) References in this Ordinance to property received in connection with 
drug trafficking include a reference to property received both in that 
connection and in some other connection, and whether received before or 
after the commencement of the Drug Trafficking (Recovery of Proceeds) 
(Designated Countries and Territories) Order (Cap 405 sub. leg. A) and 
whether received in connection with drug trafficking carried on by the 
recipient or some other person.
(6) Subsections (7) to (13) shall have effect for the interpretation of 
this Ordinance.
(7) Property is held by any person if he holds any interest in it.
(8) References to property held by a person include a reference to 
property vested in his trustee in bankruptcy or in a liquidator.
(9) References to an interest held by a person beneficially in property 
include, where the property is vested in his trustee in bankruptcy or in a 
liquidator, a reference to an interest which would be held by him 
beneficially if the property were not so vested.
(10) Property is transferred by one person to another if the first person 
transfers or grants to the other any interest in the property.
(11) Proceedings are instituted in a designated country when-
(a) under the law of the designated country concerned one of the steps 
specified in relation to that country in column 2 of Schedule 1A has been 
taken there in respect of alleged drug trafficking by the defendant; or
(b) an application has been made to a court in a designated country for an 
external confiscation order, 
and where the application of this subsection would result in there being 
more than one time for the institution of proceedings, they shall be taken 
to have been instituted at the earliest of those times.
(12) Proceedings are concluded-
(a) when, disregarding any power of a court to grant leave to appeal out 
of time, there is no further possibility of an external confiscation order 
being made in the proceedings;
(b) on the satisfaction of an external confiscation order made in the 
proceedings (whether by the recovery of all property liable to be 
recovered, or the payment of any amount due, or otherwise).
(13) An order is subject to appeal until (disregarding any power of a 
court to grant leave to appeal out of time) there is not further 
possibility of an appeal on which the order could be varied or set aside.

3. External confiscation orders

(1) An order made by a court in a designated country for the purpose of-
(a) recovering (including forfeiting and confiscating)-
(i) payments or other rewards received in connection with drug trafficking 
or their value;
(ii) property derived or realised, directly or indirectly, from payments 
or other rewards received in connection with drug trafficking or the value 
of such property; or
(iii) property used or intended to be used in connection with drug 
trafficking or the value of such property; or
(b) depriving a person of a pecuniary advantage obtained in connection 
with drug trafficking,
and whether the proceedings which gave rise to the order are criminal or 
civil in nature, and whether those proceedings are in the form of 
proceedings against a person or property, is referred to in this Ordinance 
as an "external confiscation order" (外地沒收令).  (87 of 1997 s. 36)
(2) In subsection (1) the reference to an order includes any order, 
decree, direction or judgment, or any part thereof, however described.
(3) A person (however described in the proceedings in the designated 
country) against whom, or in relation to whose property, an external 
confiscation order has been, or may be, made is referred to in this 
Ordinance as "the defendant" (被告).  (L.N. 247 of 1993)

4-6. ........................

6A. Interest on amounts to be recovered
under external confiscation orders

(1) Where a fixed amount is payable under an external confiscation order, 
that amount shall be treated as a judgment debt for the purposes of 
section 49 of the High Court Ordinance (Cap 4) and, for those purposes, 
the date on which the external confiscation order was registered under 
section 29 of the Drug Trafficking (Recovery of Proceeds) Ordinance (Cap 
405) shall be treated as the date of the judgment debt.  (25 of 1998 s. 2)
(2) Where by virtue of subsection (1) any interest accrues on the amount 
payable under an external confiscation order, the defendant shall be 
liable to pay that interest and the amount of the interest shall for the 
purposes of enforcement be treated as part of the amount payable under the 
external confiscation order.
(89 of 1995 s. 33)

7. Definition of principal terms used

(1) In this Ordinance, "realisable property" (可變現財產) means, subject to 
subsection (2)-
(a) in relation to an external confiscation order -
(i) made in respect of specified property, the property which is specified 
in the order;
(ii) which may be made as the result of proceedings which have been, or 
are to be, instituted in a designated country, the property which may be 
specified in the order; and  (L.N. 247 of 1993)
(b) in any other case-
(i) any property held by the defendant;  (89 of 1995 s. 33)
(ii) any property held by a person to whom the defendant has directly or 
indirectly made a gift caught by this Ordinance; and  (89 of 1995 s. 33)
(iii) any property that is subject to the effective control of the 
defendant.  (89 of 1995 s. 33)
(2) Property is not realisable property if-
(a) an order under section 102 or 103 of the Criminal Procedure Ordinance 
(Cap 221); or
(b) an order under section 38F or 56 of the Dangerous Drugs Ordinance (Cap 
134),
is in force in respect of the property.
(3) .........................
(4) Subject to the following subsections, for the purposes of this 
Ordinance the value of property (other than cash) in relation to any 
person holding the property-
(a) where any other person holds an interest in the property, is-
(i) the market value of the first mentioned person's beneficial interest 
in the property, less
(ii) the amount required to discharge any incumbrance (other than a 
charging order) on that interest; and
(b) in any other case, is its market value.
(5) Subject to subsection (10), references in this Ordinance to the value 
at any time (referred to in subsection (6) as "the material time" (關鍵時間)) 
of a gift caught by this Ordinance or of any payment or reward are 
references to-
(a) the value of the gift, payment or reward to the recipient when he 
received it adjusted to take account of subsequent changes in the value of 
money; or
(b) where subsection (6) applies, the value there mentioned,
whichever is the greater.

(6) Subject to subsection (10), if at the material time the recipient 
holds-
(a) the property which he received (not being cash); or
(b) property which, in whole or in part, directly or indirectly represents 
in his hands the property which he received,
the value referred to in subsection (5)(b) is the value to him at the 
material time of the property mentioned in paragraph (a) or, as the case 
may be, of the property mentioned in paragraph (b) so far as it so 
represents the property which he received, but disregarding in either case 
any charging order.
(7)-(8) ........................
(9) A gift (including a gift made before the commencement of the Drug 
Trafficking (Recovery of Proceeds) (Designated Countries and Territories) 
Order (Cap 405 sub. leg. A)) is caught by this Ordinance if-
(a) it was made by the defendant at any time since the beginning of the 
period of 6 years ending when the proceedings were instituted against him; 
or
(b) it was made by the defendant at any time and was a gift of property-
(i) received by the defendant in connection with drug trafficking carried 
on by him or another; or
(ii) which in whole or in part directly or indirectly represented in the 
defendant's hands property received by him in that connection.
(10) For the purposes of this Ordinance-
(a) the circumstances in which the defendant is to be treated as making a 
gift include those where he transfers property to another person directly 
or indirectly for a consideration the value of which is significantly less 
than the value of the consideration provided by the defendant; and
(b) in those circumstances, the preceding provisions of this section shall 
apply as if the defendant had made a gift of such share in the property as 
bears to the whole property the same proportion as the difference between 
the values referred to in paragraph (a) bears to the value of the 
consideration provided by the defendant.
(11) For the purposes of subsection (1)-
(a) property, or an interest in property, may be subject to the effective 
control of the defendant whether or not the defendant has-
(i) a legal or equitable estate or interest in the property; or
(ii) a right, power or privilege in connection with the property;
(b) without limiting the generality of any other provision of this 
Ordinance, in determining-
(i) whether or not property, or an interest in property, is subject to the 
effective control of the defendant; or
(ii) whether or not there are reasonable grounds to believe that property, 
or an interest in property, is subject to the effective control of the 
defendant, 
regard may be had to-
(A) shareholdings in, debentures over or directorships of a company that 
has an interest (whether direct or indirect) in the property;
(B) a trust that has a relationship to the property; and
(C) family, domestic and business relationships between persons having an 
interest in the property, or in companies of the kind referred to in 
subparagraph (A) or trusts of the kind referred to in subparagraph (B), 
and other persons.  (89 of 1995 section 33)
(12) Where a person obtains a pecuniary advantage referred to in section 
3(1)(b), he is to be treated for the purposes of this Ordinance as if he 
had obtained in connection with the drug trafficking to which the 
advantage relates a sum of money equal to the value of the advantage, and 
the other provisions of this Ordinance shall be construed accordingly.  
(87 of 1997 s. 36)

8. ................

9. Cases in which restraint orders and charging
orders may be made

(1) The powers conferred on the Court of First Instance by sections 10(1) 
and 11(1) are exercisable where-
(a) proceedings have been instituted in a designated country;
(b) the proceedings have not been concluded; and
(c) either an external confiscation order has been made in the proceedings 
or it appears to the Court of First Instance that there are reasonable 
grounds for believing that an external confiscation order may be made in 
them.
(2) Those powers are also exercisable where the Court of First Instance is 
satisfied that proceedings are to be instituted in a designated country or 
territory and it appears to the court that an external confiscation order 
may be made in them.
(3) ...............................
(4) Where the Court of First Instance has made an order under section 
10(1) or 11(1) by virtue of subsection (2), it shall discharge the order 
if the proposed proceedings are not instituted within such time as the 
Court of First Instance considers reasonable.
(25 of 1998 s. 2)

10. Restraint orders

(1) The Court of First Instance may by order (in this Ordinance referred 
to as a "restraint order" (限制令)) prohibit any person from dealing with any 
realisable property, subject to such conditions and exceptions as may be 
specified in the order.  (25 of 1998 s. 2)
(2) A restraint order may apply to any realisable property, including 
property transferred to a person after the making of the order.  (L.N. 247 
of 1993)
(3) This section shall not have effect in relation to any property for the 
time being subject to a charge under section 11. 
(4) A restraint order-
(a) may be made only on an application by or on behalf of the government 
of a designated country or, in a case where an external confiscation order 
has been registered under section 29 of the Drug Trafficking (Recovery of 
Proceeds) Ordinance (Cap 405), by a receiver appointed under section 12 or 
the Secretary for Justice;  (L.N. 247 of 1993; L.N. 362 of 1997)
(b) may be made on an ex parte application to a judge in chambers; and
(c) may, notwithstanding anything in Order 11 of the Rules of the High 
Court (Cap 4 sub. leg. A), provide for service on, or the provision of 
notice to, persons affected by the order in such manner as the Court of 
First Instance may direct.  (25 of 1998 s. 2)
(5) A restraint order-
(a) may be discharged or varied in relation to any property; and
(b) shall be discharged when the proceedings in relation to which the 
order was made are concluded.
(6) An application for the discharge or variation of a restraint order may 
be made by any person affected by it.
(7) Where the Court of First Instance has made a restraint order, the 
Court of First Instance may at any time appoint a receiver-
(a) to take possession of any realisable property; and
(b) in accordance with the directions of the Court of First Instance, to 
manage or otherwise deal with any property in respect of which he is 
appointed,
subject to such exceptions and conditions as may be specified by the Court 
of First Instance; and may require any person having possession of 
property in respect of which a receiver is appointed under this section to 
give possession of it to the receiver.  (25 of 1998 s. 2)
(8) (Repealed 89 of 1995 s. 33)
(9) Where the Court of First Instance has made a restraint order, an 
authorized officer may, for the purpose of preventing any realisable 
property being removed from Hong Kong, seize the property.  (25 of 1998 s. 
2)
(10) Property seized under subsection (9) shall be dealt with in 
accordance with the directions of the Court of First Instance.  (L.N. 650 
of 1994; 5 of 1998 s. 2)
(11) Where any property specified in a restraint order is immovable 
property the order shall, for the purposes of the Land Registration 
Ordinance (Cap 128)-
(a) be deemed to be an instrument affecting land; and
(b) be registrable as such in the Land Registry under that Ordinance in 
such manner as the Land Registrar thinks fit.  (8 of 1993 s. 30)
(12) An authorized officer may, by notice in writing served on a person 
who holds any realisable property the subject of a restraint order, 
require the person to deliver to the authorized officer, to the extent 
that it is practicable to do so, documents, or copies of documents, or any 
other information (in whatever form), in his possession or control which 
may assist the authorized officer to determine the value of the property.  
(26 of 2002 s. 4)
(13) A person who receives a notice under subsection (12) shall, as soon 
as is practicable after receipt of the notice, comply with the notice to 
the extent that it is practicable to do so taking into account the nature 
of the realisable property the subject of the restraint order concerned.  
(26 of 2002 s. 4)
(14) A disclosure made in order to comply with a requirement under 
subsection (12)-
(a) shall not be treated as a breach of any restriction upon the 
disclosure of information imposed by contract or by any enactment, rule of 
conduct or other provision;
(b) shall not render the person who made it liable in damages for any loss 
arising out of-
(i) the disclosure;
(ii) any act done or omitted to be done in relation to the property 
concerned in consequence of the disclosure.  (26 of 2002 s. 4)
(15) Any person who contravenes subsection (13) commits an offence and is 
liable on conviction to a fine at level 5 and to imprisonment for 1 year.  
(26 of 2002 s. 4)
(16) A person who knowingly deals in any realisable property in 
contravention of a restraint order commits an offence.  (26 of 2002 s. 4)
(17) A person who commits an offence under subsection (16) is liable-
(a) on conviction upon indictment to a fine of $500000 or to the value of 
the realisable property the subject of the restraint order concerned which 
has been dealt with in contravention of that order, whichever is the 
greater, and to imprisonment for 5 years; or
(b) on summary conviction to a fine of $250000 and to imprisonment for 2 
years.  (26 of 2002 s. 4)

11. Charging orders in respect of land, securities, etc.

(1) The Court of First Instance may make a charging order on realisable 
property for securing the payment to the Government-  (25 of 1998 s. 2)
(a) where a fixed amount is payable under an external confiscation order, 

of an amount not exceeding the amount so payable; and
(b) in any other case, of an amount equal to the value from time to time 
of the property charged.
(2) For the purposes of this Ordinance, a charging order is an order made 
under this section imposing on any such realisable property as may be 
specified in the order a charge for securing the payment of money to the 
Government.
(3) A charging order-
(a) may be made only on an application by or on behalf of the government 
of a designated country or, in a case where an external confiscation order 
has been registered under section 29 of the Drug Trafficking (Recovery of 
Proceeds) Ordinance (Cap 405), by a receiver appointed under section 12 or 
the Secretary for Justice;  (L.N. 247 of 1993; L.N. 362 of 1997)
(b) may be made on an ex parte application to a judge in chambers;
(c) may, notwithstanding anything in Order 11 of the Rules of the High 
Court (Cap 4 sub. leg. A), provide for service on, or the provision of 
notice to, persons affected by the order in such manner as the Court of 
First Instance may direct; and
(d) may be made subject to such conditions as the Court of First Instance 
thinks fit and, without prejudice to the generality of this paragraph, 
such conditions as it thinks fit as to the time when the charge is to 
become effective.  (25 of 1998 s. 2)
(4) Subject to subsection (6), a charge may be imposed by a charging order 
only on-
(a) any interest in realisable property, being an interest held 
beneficially by the defendant or by a person to whom the defendant has 
directly or indirectly made a gift caught by this Ordinance-
(i) in any asset of a kind specified in Schedule 2; or
(ii) under any trust; or
(b) any interest in realisable property held by a person as trustee of a 
trust if the interest is in such an asset or is an interest under another 
trust and a charge may by virtue of paragraph (a) be imposed by a charging 
order on the whole beneficial interest under the first mentioned trust.
(5) In any case where a charge is imposed by a charging order on any 
interest in an asset of a kind specified in Schedule 2, the Court of First 
Instance may provide for the charge to extend to any interest, divided or 
other distribution payable and any bonus issue in respect of the asset.  
(25 of 1998 s. 2)
(6) The Court of First Instance may make an order discharging or varying 
the charging order and shall make an order discharging the charging order 
if the proceedings in the designated country or territory are concluded or 
the amount payment of which is secured by the charge is paid into the 
Court of First Instance.  (25 of 1998 s. 2)
(7) An application for the discharge or variation of a charging order may 
be made by any person affected by it.
(8) Subject to the provisions of this Ordinance, a charge imposed by a 
charging order shall have the like effect and shall be enforceable in the 
same manner as an equitable charge created by the person holding the 
beneficial interest or, as the case may be, the trustee, by writing under 
his hand.
(9) An authorized officer may, by notice in writing served on a person who 
holds any realisable property the subject of a charging order, require the 
person to deliver to the authorized officer, to the extent that it is 
practicable to do so, documents, or copies of documents, or any other 
information (in whatever form), in his possession or control which may 
assist the authorized officer to determine the value of the property.  (26 
of 2002 s. 4)
(10) A person who receives a notice under subsection (9) shall, as soon as 
is practicable after receipt of the notice, comply with the notice to the 
extent that it is practicable to do so taking into account the nature of 
the realisable property the subject of the charging order concerned.  (26 
of 2002 s. 4)
(11) A disclosure made in order to comply with a requirement under 
subsection (9)-
(a) shall not be treated as a breach of any restriction upon the 
disclosure of information imposed by contract or by any enactment, rule of 
conduct or other provision;
(b) shall not render the person who made it liable in damages for any loss 
arising out of-
(i) the disclosure;
(ii) any act done or omitted to be done in relation to the property 
concerned in consequence of the disclosure.  (26 of 2002 s. 4)
(12) Any person who contravenes subsection (10) commits an offence and is 
liable on conviction to a fine at level 5 and to imprisonment for 1 year.  
(26 of 2002 s. 4)
(13) A person who knowingly deals in any realisable property in 
contravention of a charging order commits an offence.  (26 of 2002 s. 4)
(14) A person who commits an offence under subsection (13) is liable-
(a) on conviction upon indictment to a fine of $500000 or to the value of 
the realisable property the subject of the charging order concerned which 
has been dealt with in contravention of that order, whichever is the 
greater, and to imprisonment for 5 years; or
(b) on summary conviction to a fine of $250000 and to imprisonment for 2 
years.  (26 of 2002 s. 4) 

11A. Applications for restraint and charging orders

(1) Order 115 of the Rules of the High Court (Cap 4 sub. leg. A) shall 
apply to applications made under this Ordinance subject to the 
modifications set out in subsections (1A) to (7).  (89 of 1995 s. 33; 25 
of 1998 s. 2)
(1A) Rule 2A shall be omitted.  (89 of 1995 s. 33)
(2) For rule 3(2) there shall be substituted-
"(2) An application under section 10(4) or 11(3) shall be supported by an 
affidavit which shall-
(a) state, where applicable, the grounds for believing that an external 
confiscation order may be made in the proceedings instituted or to be 
instituted in the designated country concerned;
(b) to the best of the deponent's ability, give particulars of the 
realisable property in respect of which the order is sought and specify 
the person or persons holding such property;
(c) in a case to which section 9(2) applies, indicate when it is intended 
that proceedings should be instituted in the designated country 
concerned.".
(3) (Repealed 89 of 1995 s. 33)
(4) For the rule 5(3) there shall be substituted-
"(3) Upon the Court being notified that proceedings have been concluded 
any restraint or charging order shall be discharged.".
(5) In rule 7(3) for everything after "such property" there shall be 
substituted a full stop.
(6) In rule 8(3) before the words "confiscation order" there shall be 
added "external".
(7) Rules 9 to 23 shall be omitted.
(L.N. 247 of 1993)

12. Realisation of property

(1) Where an external confiscation order has been registered in the Court 
of First Instance under section 29 of the Drug Trafficking (Recovery of 
Proceeds) Ordinance (Cap 405), the Court of First Instance may, on an 
application by the Secretary for Justice, exercise the powers conferred by 
subsections (2) to (6).  (L.N. 247 of 1993; L.N. 362 of 1997)
(2) The Court of First Instance may appoint a receiver in respect of 
realisable property.
(3) The Court of First Instance may empower a receiver appointed under 
subsection (2), under section 10 or in pursuance of a charging order-
(a) to enforce any charge imposed under section 11 on realisable property 
or on any interest, dividend or other distribution payable and any bonus 
issue in respect of such property; and
(b) in relation to any realisable property other than property for the 
time being subject to a charge under section 11, to take possession of the 
property subject to such conditions or exceptions as may be specified by 
the Court of First Instance.
(4) The Court of First Instance may order any person having possession of 
realisable property to give possession of it to any such receiver.
(5) The Court of First Instance may empower any such receiver to realise 
any realisable property in such manner as the Court of First Instance may 
direct.
(6) The Court of First Instance may order any person holding an interest 
in realisable property to make such payment to the receiver in respect of 
any beneficial interest held by the defendant or, as the case may be, the 
recipient of a gift caught by this Ordinance as the Court of First 
Instance may direct and the Court of First Instance may, on the payment 
being made, by order transfer, grant or extinguish any interest in the 
property.
(7) Subsections (4) to (6) do not apply to property for the time being 
subject to a charge under section 11.
(8) The Court of First Instance shall not in respect of any property 
exercise the powers conferred by subsection (3)(a), (5) or (6) unless a 
reasonable opportunity has been given for persons holding any interest in 
the property to make representations to the Court of First Instance.
(25 of 1998 s. 2)

13. Application of proceeds of realisation and other sums

(1) Subject to subsection (2), the following sums in the hands of a 
receiver appointed under section 10 or 12 or in pursuance of a charging 
order, that is-
(a) the proceeds of the enforcement of any charge imposed under section 11;
(b) the proceeds of the realisation, other than by enforcement of such a 
charge, of any property under section 10 or 2; and
(c) any other sums, being property held by the defendant,
shall first be applied in payment of such expenses incurred by a person 
acting as an insolvency officer as are payable under section 18(2) and 
then shall, after such payments (if any) as the Court of First Instance 
may direct have been made out of those sums be paid to the Registrar and 
applied for the purposes specified in subsections (4) to (6) and in the 
order so specified.  (25 of 1998 s. 2)
(2) Where a fixed amount is payable under the external confiscation order 
and, after that amount has been fully paid, any such sums remain in the 
hands of such a receiver, the receiver shall distribute those sums-

(a) among such of those who held property which has been realised under 
this Ordinance; and
(b) in such proportions,
as the Court of First Instance may direct after giving a reasonable 
opportunity for such persons to make representations to the Court of First 
Instance.  (25 of 1998 s. 2)
(3) ..............................
(4) Any sums paid to the Registrar under subsection (1) or otherwise in 
satisfaction of an external confiscation order shall be first applied to 
pay any expenses incurred by a person acting as an insolvency officer and 
payable under section 18(2) but not already paid under subsection (1).
(5) If the sum was paid to the Registrar by a receiver appointed under 
section 10 or 12 or in pursuance of a charging order the Registrar shall 
next pay the receiver's remuneration and expenses.
(6) After making-
(a) any payment required by subsection (4); and
(b) in a case to which subsection (5) applies, any payment required by 
that subsection,
the Registrar shall reimburse any amount paid under section 19(2).
(7) Subject to subsections (8) and (9)-
(a) any balance in the hands of the Registrar after he has made all 
payments required by the foregoing subsections shall be deposited in an 
interest-bearing account;
(b) upon the expiration of 5 years beginning with the day on which such 
balance was so deposited, the Registrar shall arrange for such balance, 
together with any interest earned thereon, to be paid into the general 
revenue.  (89 of 1995 s. 33)
(8) On an application made by or on behalf of the government of a 
designated country before the expiration of the period referred to in 
subsection (7)(b) in respect of any balance referred to in that 
subsection, the Secretary for Justice may direct the Registrar to pay to 
that government such proportion of that balance as is specified in the 
direction and the Registrar shall, as soon as is reasonably practicable 
after the receipt of that direction-  (L.N. 362 of 1997)
(a) comply with the direction; and
(b) pay any remainder of that balance, together with any interest earned 
on that balance, into the general revenue.  (89 of 1995 s. 33)
(9) The Registrar shall not comply with subsection (7)(b) in respect of 
any balance referred to in that subsection (including any interest earned 
thereon) until any application referred to in subsection (8) made in 
respect of that balance has been determined, whether by a direction under 
subsection (8) or otherwise.  (89 of 1995 s. 33)

14. Exercise of powers by Court of First Instance or receiver

(1) The following subsections apply to the powers conferred on the Court 
of First Instance by sections 10 to 13, or on a receiver appointed under 
section 10 or 12 or in pursuance of a charging order.  (25 of 1998 s. 2)
(2) Subject to subsections (3), (4), (5) and (6), the powers shall be 
exercised with a view to recovering property which is liable to be 
recovered under an external confiscation order registered in the Court of 
First Instance under section 29 of the Drug Trafficking (Recovery of 
Proceeds) Ordinance (Cap 405) or, as the case may be, with a view to 
making available for recovery property which may become liable to be 
recovered under any external confiscation order which may be made.  (L.N. 
247 of 1993; 25 of 1998 s. 2)
(3) In the case of realisable property held by a person to whom the 
defendant has directly or indirectly made a gift caught by this Ordinance, 
the powers shall be exercised with a view to realising no more than the 
value for the time being of the gift.
(4) In the case of realisable property other than realisable property 
referred to in section 7(1)(a), the powers shall be exercised with a view 
to allowing any person other than the defendant or the recipient of any 
such gift to retain or recover the value of any property held by him.
(5) An order may be made or other action taken in respect of a debt owed 
by the Government.
(6) In exercising those powers, no account shall be taken of any 
obligations of the defendant or of the recipient of any such gift which 
conflict with the obligation to satisfy the external confiscation order.

15. ........................

16. Bankruptcy of defendant, etc.

(1) Where a person who holds realisable property is adjudged bankrupt-
(a) property for the time being subject to a restraint order made before 
the order adjudging him bankrupt; and
(b) any proceeds of property realised by virtue of section 10(7) or 12(5) 
or (6) for the time being in the hands of a receiver appointed under 
section 10 or 12,
are excluded from the property of the bankrupt for the purposes of the 
Bankruptcy Ordinance (Cap 6).
(2) Where a person has been adjudged bankrupt, the powers conferred on the 
Court of First Instance by sections 10 to 13 shall not be exercised in 
relation to-  (25 of 1998 s. 2)
(a) property for the time being comprised in the property of the bankrupt 
for the purposes of the Bankruptcy Ordinance (Cap 6); and
(b) property which is to be applied for the benefit of creditors of the 
bankrupt by virtue of a condition imposed under section 30A(9) of the 
Bankruptcy Ordinance (Cap 6).  (87 of 1997 s. 36)
(3) Nothing in the Bankruptcy Ordinance (Cap 6) shall be taken as 
restricting, or enabling the restriction of, the exercise of the powers 
conferred on the Court of First Instance by sections 10 to 13.  (25 of 
1998 s. 2)
(4) Subsection (2) does not affect the enforcement of a charging order-
(a) made before the order adjudging the person bankrupt; or
(b) on property which was subject to a restraint order when the order 
adjudging him bankrupt was made.
(5) Where, in the case of a debtor, an interim trustee stands appointed 
under section 13 of the Bankruptcy Ordinance (Cap 6) and any property of 
the debtor is subject to a restraint order, the powers conferred on the 
interim trustee by virtue of that Ordinance do not apply to property for 
the time being subject to the restraint order.  (18 of 2005 s. 48)
(6) Where a person is adjudged bankrupt and has directly or indirectly 
made a gift caught by this Ordinance-
(a) a court shall not make an order under-
(i) section 49 or 50 of the Bankruptcy Ordinance (Cap 6); or  (87 of 1997 
s. 36)
(ii) section 60 of the Conveyancing and Property Ordinance (Cap 219), 
in respect of the making of the gift at any time when property of the 
person to whom the gift was made is subject to a restraint order or 
charging order; and
(b) any order made under any of those sections after the discharge of the 
restraint order or charging order shall take into account any realisation 
under this Ordinance of property held by the person to whom the gift was 
made.

17. Winding up of company holding realisable property

(1) Where realisable property is held by a company and an order for the 
winding up of the company has been made or a resolution has been passed by 
the company for the voluntary winding up, the functions of the liquidator 
(or any provisional liquidator) shall not be exercisable in relation to-
(a) property for the time being subject to a restraint order made before 
the relevant time; and
(b) any proceeds of property realised by virtue of section 10(7) or 12(5) 
or (6) for the time being in the hands of a receiver appointed under 
section 10 or 12.
(2) Where, in the case of a company, such an order has been made or such a 
resolution has been passed, the powers conferred on the Court of First 
Instance by sections 10 to 13 shall not be exercised in relation to any 
realisable property held by the company in relation to which the functions 
of the liquidator are exercisable-
(a) so as to inhibit him from exercising those functions for the purpose 
of distributing any property held by the company to the company's 
creditors; or
(b) so as to prevent the payment out of any property of expenses 
(including the remuneration of the liquidator or any provisional 
liquidator) properly incurred in the winding up in respect of the property.
(3)	Nothing in the Companies Ordinance (Cap 32) shall be taken as 
restricting, or enabling the restriction of, the exercise of the powers 
conferred on the Court of First Instance by sections 10 to 13. 
(3A)	Subsection (3) shall apply to any proceedings relating to an 
appeal, further appeal or review against any exercise of the powers 
referred to in that subsection as if the court hearing the appeal, further 
appeal or review, as the case may be, were the Court of First Instance. 
(89 of 1995 s. 33)
(4)	Subsection (2) does not affect the enforcement of a charging 
order made before the relevant time or on property which was subject to a 
restraint order at the relevant time.
(5)	In this section-
"company" (公司) means any company which may be wound up under the Companies 
Ordinance (Cap 32); and
"the relevant time" (有關時間) means-
(a)	where no order for the winding up of the company has been made, 
the time of the passing of the resolution for voluntary winding up;
(b)	where such an order has been made and, before the presentation 
of the petition for the winding up of the company by the Court of First 
Instance, such a resolution had been passed by the company, the time of 
the passing of the resolution; and
(c)	in any other case where such an order has been made, the time 
of the making of the order.
(25 of 1998 s. 2)

18.	Insolvency officers dealing with property
	subject to restraint order

(1)	Without prejudice to the generality of any provision contained 
in the Bankruptcy Ordinance (Cap 6), the Companies Ordinance (Cap 32) or 
any other Ordinance, where-
(a)	any insolvency officer seizes or disposes of any property in 
relation to which his functions are not exercisable because it is for the 
time being subject to a restraint order; and

(b)	at the time of the seizure or disposal he believes, and has 
reasonable grounds for believing, that he is entitled (whether in 
pursuance of an order of a court or otherwise) to seize or dispose of that 
property, 
he shall not be liable to any person in respect of any loss or damage 
resulting from the seizure or disposal except in so far as the loss or 
damage is caused by his negligence; and the insolvency officer shall have 
a lien on the property, or the proceeds of its sale, for such of his 
expenses as were incurred in connection with the liquidation, bankruptcy 
or other proceedings in relation to which the seizure or disposal 
purported to take place and for so much of his remuneration as may 
reasonably be assigned for his acting in connection with those 
proceedings. 
(2)	Any insolvency officer who incurs expenses-
(a)	in respect of such property as is mentioned in subsection 
(1)(a) and in so doing does not know and has no reasonable grounds to 
believe that the property is for the time being subject to a restraint 
order; or
(b)	other than in respect of such property as is so mentioned, 
being expenses which, but for the effect of a restraint order, might have 
been met by taking possession of and realising the property, 
shall be entitled (whether or not he has seized or disposed of that 
property so as to have a lien under that subsection) to payment of those 
expenses under section 13(1) or (3).
(3)	In this section "insolvency officer" (債務處理人) means-
(a)	the Official Receiver; or
(b)	any person acting as-
(i)	a trustee (including provisional trustee), interim trustee or 
special manager appointed under the Bankruptcy Ordinance (Cap 6); or  (18 
of 2005 s. 48)
(ii)	a liquidator, provisional liquidator or special manager 
appointed under the Companies Ordinance (Cap 32).

19.	Receivers: supplementary provisions

(1)	Where a receiver appointed under section 10 or 12 or in 
pursuance of a charging order takes any action-
(a)	in relation to property which is not realisable property, being 
action which he would be entitled to take if it were such property;
(b)	believing, and having reasonable grounds for believing, that he 
is entitled to take that action in relation to that property,
he shall not be liable to any person in respect of any loss or damage 
resulting from his action except in so far as the loss or damage is caused 
by his negligence.
(2)	Any amount due in respect of the remuneration and expenses of a 
receiver so appointed shall, if no sum is available to be applied in 
payment of it under section 13(5), be paid by the person on whose 
application the receiver was appointed.  (L.N. 247 of 1993)

20-28.	................................

29.	(Repealed L.N. 247 of 1993)

30.	Evidence of corresponding law

Section 43 of the Dangerous Drugs Ordinance (Cap 134) shall apply in 
relation to proceedings under this Ordinance as it applies in relation to 
proceedings for an offence under that Ordinance.

31.	Amendment of Schedules

The Chief Executive in Council may, by order, amend Schedule 1, 1A or 2.
(89 of 1995 s. 33; 15 of 1999 s. 3)


SCHEDULE 1	[section 2]

DRUG TRAFFICKING OFFENCES

Item	Offence	Description*
1.
2.
3.

4.

5.


6.

7.


7A.

8.
9.

10.

11.

12.
	section 4(1), Dangerous Drugs Ordinance (Cap 134)
	section 4A, Dangerous Drugs Ordinance (Cap 134)
	section 5(1), Dangerous Drugs Ordinance (Cap 134)
	
	section 6(1), Dangerous Drugs Ordinance (Cap 134)
	
	section 9(1), (2) and (3), Dangerous Drugs Ordinance (Cap 134)
	
	section 35, Dangerous Drugs Ordinance (Cap 134)
	
	section 37, Dangerous Drugs Ordinance (Cap 134)
	
	
	section 40(1)(c), Dangerous Drugs Ordinance (Cap 134)
	................................
	conspiracy to commit any of the offences specified in items 1 to 7
	inciting another to commit any of the offences specified in items 1 to 7
	attempting to commit any of the offences specified in items 1 to 7
	aiding, abetting, counselling or procuring the commission of any of the 
offences specified in items 1 to 7	trafficking in a dangerous drug
		trafficking in purported dangerous drug
		supplying or procuring a dangerous drug to or for unauthorized persons
		manufacturing a dangerous drug
		
		cultivating, supplying, procuring, dealing in, importing, exporting, or 
possessing cannabis plant or opium poppy
		keeping or managing a divan for the taking of dangerous drugs
		permitting premises to be used for unlawful trafficking, manufacturing or 
storage of dangerous drugs
		aiding, etc. offence under a corresponding law
		
		-
		-
		
		-
		
		-
		
		-
		
		

* Note: The short description of offences in this Schedule is for ease of 
reference only.
(89 of 1995 s. 33)


SCHEDULE 1A	[section 2(11)]

INSTITUTION OF PROCEEDINGS

Designated country	Point at which proceedings are instituted
Australia




Canada

England and Wales



Gibraltar


Guernsey

Isle of Man 








	(a) where an information has been laid before a justice of the peace;
	(b) when a person is charged with the offence after having been taken into 
custody without a warrant; or
	(c) when a bill of indictment is preferred.
	
	When an information has been laid or an indictment is preferred.
	
	(a) when an information has been laid before a justice of the peace;
	(b) when a person is charged with an offence; or
	(c) when a bill of indictment is preferred.
	
	When a person is charged with an offence, whether by the laying of an 
information or otherwise.  (L.N. 446 of 1991)
	
	When a person is charged with an offence.
	
	(a) where a justice of the peace issues a summons under section 13 of the 
Petty Sessions and Summary Jurisdiction Act 1927, when the complaint in 
relation to the offence is made to him;
	(b) where a justice of the peace issues a warrant for the arrest of any 
person under that section, when the complaint in relation to the offence 
is made to him;
	(c) where a person is charged with the offence after being taken into 
custody without a warrant, when he is taken into custody; or
	(d) where an information is preferred by the Secretary for Justice in a 
case where there have been no committal when the information is lodged in 
the General Registry in accordance with section 4(1) of the Criminal Code 
Amendment Act 1917.  (L.N. 362 of 1997)

Jersey	
	(a) when the Bailiff issues a warrant in respect of an offence for the 
arrest of a person who is out of the island;
	(b) when a person is arrested and charged with an offence;
	(c) when a summons in respect of an offence is served on a person at the 
instance of the Secretary for Justice; or  (L.N. 362 of 1997)
	(d) when a summons in respect of the offence is served on a person in 
accordance with the provisions of Article 8 of the Police Court 
(Miscellaneous Provisions) (Jersey) Law 1949.

Kingdom of Thailand	
	When a complaint or a denunciation is lodged with the inquiry official or 
other competent official, whether or not the suspect has been identified.  
(L.N. 282 of 1996)

Malaysia	
	(a) when an action that may lead to the making of an order for the purpose 
of confiscating the proceeds or instrumentalities of drug trafficking is 
commenced in a court; or
	(b) when a person is charged with an offence after having been taken into 
custody without a warrant.  (L.N. 12 of 1993)

Northern Ireland	
	(a) when a summons or warrant is issued under Article 20 of the 
Magistrates' Courts (Northern Ireland) Order 1981;
	(b) when a person is charged with an offence after being taken into 
custody without a warrant; or
	(c) when an indictment is presented under section 2(2)(c), (e) or (f) of 
the Grand Jury (Abolition) Act (Northern Ireland) 1969.

Scotland	
	(a) when a petition warrant is granted; or
	(b) when a person has been charged with an offence after having been 
arrested without a warrant.

United States of America	
	When an indictment, information or complaint has been filed against a 
person in respect of an offence.


SCHEDULE 2	[section 11]

ASSETS ON WHICH A CHARGING ORDER MAY BE IMPOSED

1. Land in Hong Kong.

2. Securities of any of the following kinds-
(a) Government stock;
(b) stock of any body incorporated in Hong Kong;
(c) stock of any body incorporated outside Hong Kong or of any state or 
territory outside Hong Kong, being stock registered in a register kept at 
any place within Hong Kong;
(d) units of any unit trust in respect of which a register of the unit 
holders is kept at any place within Hong Kong.

3. In this Schedule-
(a) the terms "Government stock" (政府證券) and "land" (土地) have the same 
meaning as in section 2 of the High Court Ordinance (Cap 4);  (25 of 1998 
s. 2)
(b) the terms "stock" (股份) and "unit trust" (單位信託基金) have the same meaning 
as in section 20A of that Ordinance.
(Enacted 1991)



[Index] [Table] [Search] [Notes] [Noteup] [Previous] [Next] [Download (Current & Past)] [Download (Current only)] [繁體中文] [Help]