Jim Wallace: Seeking Holyrood's agreement

Scotland's Justice Minister Jim Wallace said that the proposals had the full support of the Scottish Executive, which will recommend that the Scottish Parliament approves the introduction of the legislation across the UK.

He said it was important to have similar provisions north and south of the border to avoid creating safe havens for criminals.

"Some of the areas covered by the proposed legislation are reserved - for example confiscating the proceeds of drug trafficking, money laundering the proceeds of drug trafficking and taxation - while others are devolved," he explained.

"It therefore seems sensible to legislate on a UK-wide basis and we will be seeking the agreement of the Scottish Parliament to do this."

Tougher powers

Talks are also taking place on how some of the assets recovered in Scotland could be spent by Holyrood.

The new law will give police tougher powers of investigation and enforcement.

And a new Crown Office unit will be able to apply to confiscate assets through the civil courts - even though a criminal conviction has not been not secured.

In the Queen's Speech earlier this year, the government pledged that it would take action to tackle money laundering and make it easier to recover the proceeds of crime and drugs.

Criminals involved in drugs will be targeted

Under the proposals unveiled on Thursday, this action will be strengthened by ending the distinctions between terrorism, drugs and other crime, and by tougher disclosure requirements for financial institutions.

Scotland's justice minister estimated that the proceeds of crime north of the border ran into hundreds of millions of pounds each year.

"Many major criminal figures have become untouchable by criminal prosecution," said Mr Wallace.

"They organise or finance the criminal activity of others and profit from the results, but often remain remote from the commission of particular crimes, making it impossible for the law enforcement agencies to build a case against them."