The agency will investigate dirty money from protection rackets

If it can convince a court that someone is enjoying a lifestyle which they cannot possibly have earned legally, a judge can order their possessions to be confiscated and sold.

The agency will investigate dirty money - from prostitution to protection rackets.

In Northern Ireland, the bureau - headed by former Assistant Chief Constable Alan McQuillan - faces a special challenge confronting paramilitarism.

The agency came into being earlier this year as part of the government's offensive against paramilitary groups who make money out of fuel and cigarette smuggling, counterfeiting, robbery and drug dealing.

My understanding is that the Assets Recovery Agency - in discussions with the police, Customs and other agencies - will agree its first batch of cases in the coming days Brian Rowan BBC Northern Ireland

Mr McQuillan left the police to take up his new post and will work under Jane Earl, the recently appointed head of the UK-wide agency.

It is modelled on the Republic of Ireland's Criminal Assets Bureau, which was set up in 1996 after the murder of journalist Veronica Guerin.

The new agency will be given a target of seizing �60m by 2004/5.

It will work with the Inland Revenue, Customs and Excise and the Serious Fraud Office, hunting down those profiting from organised crime.

Staffing levels

It will seize assets and impose taxes - and new laws mean it is up to those it targets to prove their money is legitimate.

Campaigners for civil liberties have said those powers are dangerous - destroying the presumption of innocence.

The Assets Recovery Agency intends to crack down on these people and others who believe that they can continue to flaunt the law Alan McQuillan Former ACC

However, the agency said the innocent had nothing to fear and the new laws would at last force Northern Ireland's paramilitaries and gangsters to pay for their crimes.

The agency will initially have 70 full-time staff, 15 of which will be based in the Belfast office.

It is set to expand by more than a quarter over the next month, with growth in staffing levels set to continue for at least two years.

Alan McQuillan said the body was a new and significant tool in the fight against crime.

"The reduction of crime is our primary aim and by working closely with other law enforcement partners, we aim to remove the assets which criminals have accumulated through unlawful means," he said.

"In Northern Ireland the very people who once claimed to be the defenders of our communities are now destroying our communities, as they live off the misfortune of others.

"The Assets Recovery Agency intends to crack down on these people and others who believe that they can continue to flaunt the law."

The agency begins its work two days after Northern Ireland's largest paramilitary group announced a year-long ceasefire.

The Ulster Defence Association is steeped in drugs crime and extorting money from businesses.

Some of those in its leadership ranks are the most heavily involved.

'First batch'

BBC Northern Ireland security editor Brian Rowan said: "There is a feeling that one of the reasons why the UDA is trying to recreate itself and show itself in a better light is that it fears the new Assets Recovery Agency is about to come after its money.

"The agency comes into play today and it has the authority to investigate anyone suspected of having criminal assets of more than �10,000.

"There are UDA men who have bangles, necklaces and ear-rings worth more than �10,000 and who fear that their golden world might be about to change.

"My understanding is that the Assets Recovery Agency - in discussions with the police, Customs and other agencies - will agree its first batch of cases in the coming days.

"Some of these loyalists are expected to be the targets of this agency."