Page 5957 - Week 18 - Wednesday, 11 December 1991
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of the Proceeds of Crime and Money Laundering. And, of course, the Commonwealth has introduced the cash transactions legislation, which, on my advice, is proving extremely effective in identifying those cash payments that occur, at this stage, through the banks.
At this juncture, I would like to say how amazed I was, back in 1979, to find out, in the process of a series of conveyances, how many unregistered mortgages there were in this city. Of course, there is a cultural aspect of money dealings in this country which is expanding, and that is the non-reliance upon registered mortgages as collateral for "loans". In many cases, I believe, in the heyday of what one could describe as the grass castles of this city, there was an extensive unregistered mortgage loan system in this town within certain groups. That is my speculation, based on a couple of indicators that occurred to me. But those payments, when houses are sold, are made properly and they seem to be made very promptly. So, there is probably an underground policing mechanism too.
Of course, cash transactions legislation and other legislation will eventually deal with that issue, but it is still very traditional and is still a very difficult to detect cultural activity in this town. Some of it, of course, is in no way dishonest, because it relates to the methods of lending money. Everyone knows, of course, about the silver circle among the Vietnamese community in the ACT. There is a silver circle and people put in X amount of money periodically and some lucky person wins the draw, gets that money as a capital loan fund, and can then get into business and all the rest. It is a self-help mechanism, exterior to the ACT finance and banking system. I am not going to go further, because it may not assist the processes of either those cultural groups or law enforcement.
The Bill cannot tackle those issues yet, in a democracy. There is a point at which this legislature will decide not to cross the Rubicon, and I suggest that it is not time for that at this stage. I commend the Bill to the house. Various different approaches have been taken around the country; but, since we operate closely to Commonwealth norms, particularly in respect of the use - well, at this stage - of the Australian Federal Police, with their procedures, because we operate with a Director of Public Prosecutions founded on Federal practice and because we are so close to the seat of government and these issues, I think it was appropriate for the government advisers to suggest using a Bill basically replicating that of the Commonwealth. I commend it to the house, subject, of course, to the amendments foreshadowed by the Attorney.
MR STEFANIAK (5.50): I certainly will not take as long as Mr Collaery. The Bill is very timely in that, if it were not passed in this sitting, proceeds of crime legislation in the ACT would simply cease on 1 March 1992. Proceeds of crime legislation, I think, is essential legislation which has been enacted by the various Australian States and
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