Guernsey's Advisory and Finance Committee is so concerned at the use of the proceeds of suspected crimes, it is asking for the law to be amended as a matter of urgency.

Committee Vice President, Deputy John Langlois, said: "The loop-hole in the law can cause real problems keeping track of the money."

Channel Islands police have similar powers to those already being used by the Assets Recovery Agency in the UK.

The Agency, which became operational in February 2003, investigates cases which can lead to post-conviction confiscation orders.

It also has powers of civil recovery under which it can sue in the High Court for the recovery of the proceeds of unlawful conduct.