A new agency to combat serious and financial crime, the Organised and Financial Crime Agency New Zealand (OFCANZ), will be launched on 1 July this year, Justice Minister Annette King announced today.

Releasing the Government’s plan to combat organised crime, Ms King said that Cabinet had also confirmed a broad programme of action, including an organised crime strategy and legislative reforms.

Ms King said the new agency will be located within New Zealand Police.

“The functions and resources of the Serious Fraud Office (SFO) will be integrated into OFCANZ, whose mission is ‘to improve the safety and security of New Zealand by combating serious and organised crime and serious or complex fraud through an inter-agency partnership approach’.

“Amalgamating the SFO and Police skills and experience will bring a new capability to tackle corporate fraud and sophisticated organised crime groups. Legislation will ensure that OFCANZ has the powers it needs to successfully investigate and prosecute offenders,” she said.

“Current strong SFO powers, such as production orders and examination orders, will be carried over to the new agency, with safeguards to ensure they comply with the Bill of Rights legislation, which was passed after the SFO was established in 1990.”

“Under the SFO Act, however, the privilege against self-incrimination cannot be claimed during an investigation, even though information gained this way cannot generally be used in any subsequent prosecution. When considering this issue, agencies agreed that this privilege added little to the ability of the SFO, and therefore that it would add little to OFCANZ’s ability to successfully investigate and prosecute serious fraud.”

Ms King said OFCANZ will consist of specialist taskforces to investigate various aspects of organised crime. “These taskforces will be established by the Police Commissioner depending on organised crime priorities at the time. However, one of the taskforces will be dedicated to serious fraud.”

The organised crime strategy provides the framework for coordinated national action, and is the first in an on-going cycle of strategies to tackle this serious problem, she said.

“The initial strategy, which will extend to June 2009, focuses on developing a whole-of-government approach to combat organised crime, and it will be followed by a cycle of ongoing three-year strategies,” she said.

“The strategy comprises four strategic areas --- community, prevention, intelligence and enforcement --- and as well as providing a high-level focus for the work of OFCANZ and government agencies, it will provide a framework for practical actions to achieve a reduction in organised crime in New Zealand.

“One key strategic objective is to build community resilience and to empower communities. The strategy is broader than the work of OFCANZ, particularly in community areas where OFCANZ will have a limited role.”

Ms King said oversight of the strategy will be provided by an inter-agency Chief Executive group, chaired by the Secretary for Justice, with the Police Commissioner as deputy chair.

The package announced today also includes legislative reforms, she said.

“One of the reforms will provide wider identity protection to undercover officers giving evidence in organised crime related trials. This will ensure that these officers can continue to deliver their important function safely.”

Ms King said she would be able to make further announcements in about a week on a comprehensive package of reforms relating to the exercise of search and surveillance powers by law enforcement agencies.