The new Northern Ireland branch of the Assets Recovery Agency to target organised crime, is to be headed by the PSNI's acting deputy chief constable Alan McQuillan.

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.

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

The agency begins work early in the new year.

Alan McQuillan will leave the PSNI to take up his new post

Stormont Security Minister Jane Kennedy said she was pleased that the Northern Ireland branch would be headed by a person with such a distinguished record as a police officer.

"I am confident that he will use his wide experience to ensure that the agency is very quickly making a real difference in Northern Ireland," she said.

The agency was established following the passing of the Proceeds of Crime Act earlier this year.

Modelled on the Republic of Ireland's Criminal Assets Bureau (CAB), the new agency will be given a target of seizing �60m by 2004/5.

Mr McQuillan leaves the police after 26 years' service.

He was an unsuccessful applicant for the post of chief constable earlier this year when Hugh Orde was appointed to the top policing post in the province.

In March this year, a special adviser with experience in combating Mafia activities was appointed to help tackle Northern Ireland's growing organised crime problem.

American Professor Ronald Goldstock was asked to join the task force by the then Northern Ireland Secretary John Reid.

Professor Goldstock advises the Northern Ireland Office on securing cross-community support for action in tackling the problem.