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Proceeds of Crime Bill 2002

 

 

 

 

 

Proceeds of Crime Act 2002

 

No. 85, 2002

 

 

 

 

 

An Act to provide for confiscation of the proceeds of crime, and for other purposes

   

   

   



Contents

Chapter 1—Introduction                                                                                         2

Part 1-1—Preliminary                                                                                                            2

1............ Short title............................................................................................ 2

2............ Commencement.................................................................................. 2

3............ Identifying defined terms.................................................................... 3

4............ Application of the Criminal Code ...................................................... 3

Part 1-2—Objects                                                                                                                     5

5............ Principal objects................................................................................. 5

Part 1-3—Outline of this Act                                                                                             6

6............ General................................................................................................ 6

7............ The confiscation scheme (Chapter 2)................................................. 6

8............ Information gathering (Chapter 3)...................................................... 6

9............ Administration (Chapter 4)................................................................ 7

10.......... Miscellaneous (Chapter 5)................................................................. 7

11.......... Interpreting this Act (Chapter 6)....................................................... 7

Part 1-4—Application                                                                                                             8

12.......... Act to bind Crown.............................................................................. 8

13.......... Act to apply both within and outside Australia................................ 8

14.......... Application......................................................................................... 8

15.......... Concurrent operation of State/Territory laws.................................... 8

Chapter 2—The confiscation scheme                                                        9

Part 2-1—Restraining orders                                                                                            9

16.......... Simplified outline of this Part............................................................. 9

Division 1—Making restraining orders                                                               9

17.......... Restraining orders—people convicted of or charged with indictable offences        9

18.......... Restraining orders—people suspected of committing serious offences  11

19.......... Restraining orders—people suspected of committing indictable offences etc.        13

20.......... Restraining orders—people suspected of deriving literary proceeds from indictable offences etc.        15

21.......... Refusal to make an order for failure to give undertaking.................. 17

22.......... Restraining orders must only relate to one suspect.......................... 18

23.......... Conditions on restraining orders....................................................... 18

24.......... Allowance for expenses.................................................................... 18

24A ....... Excluding property from or revoking restraining orders in certain cases when expenses are not allowed                19

Division 2—How restraining orders are obtained                                       21

25.......... DPP may apply for a restraining order............................................ 21

26.......... Notice of application........................................................................ 21

27.......... DPP may choose under which section it applies for a restraining order 22

28.......... Prejudice to investigations................................................................ 22

Division 3—Excluding property from restraining orders                         23

29.......... Court may exclude property from a restraining order...................... 23

30.......... Application to exclude property from a restraining order after notice of the application for the order  25

31.......... Application to exclude property from a restraining order after notice of the order                25

32.......... Application not to be heard unless DPP has had reasonable opportunity to conduct an examination   26

Division 4—Giving effect to restraining orders                                            27

33.......... Notice of a restraining order............................................................. 27

34.......... Registering restraining orders............................................................ 27

35.......... Notifying registration authorities of exclusions from or variations to restraining orders        28

36.......... Court may set aside a disposition contravening a restraining order. 28

37.......... Contravening restraining orders........................................................ 29

Division 5—Further orders                                                                                      30

38.......... Court may order Official Trustee to take custody and control of property           30

39.......... Ancillary orders................................................................................ 30

40.......... Contravening ancillary orders relating to foreign property.............. 32

Division 6—Duration of restraining orders                                                     33

41.......... When a restraining order is in force.................................................. 33

42.......... Application to revoke a restraining order......................................... 33

43.......... Notice of revocation of a restraining order....................................... 33

44.......... Giving security etc. to revoke etc. a restraining order...................... 34

45.......... Cessation of restraining orders......................................................... 35

Part 2-2—Forfeiture orders                                                                                              38

46.......... Simplified outline of this Part........................................................... 38

Division 1—Making forfeiture orders                                                                38

47.......... Forfeiture orders—conduct constituting serious offences................ 38

48.......... Forfeiture orders—convictions for indictable offences.................... 39

49.......... Forfeiture orders—conduct constituting indictable offences etc...... 40

50.......... Existence of other confiscation orders.............................................. 41

51.......... Acquittals do not affect forfeiture orders under section 47 or 49.... 41

52.......... Making of forfeiture order if person has absconded......................... 41

53.......... Jurisdictional issues concerning forfeiture orders............................. 42

Division 2—Other relevant matters when a court is considering whether to make forfeiture orders 43

54.......... Presumption in certain cases that property is an instrument of an offence            43

55.......... Forfeiture orders can extend to other interests in property............. 43

56.......... Forfeiture orders must specify the value of forfeited property....... 44

57.......... A person may buy back forfeited property..................................... 44

58.......... The court may also make supporting directions.............................. 45

Division 3—How forfeiture orders are obtained                                           46

59.......... DPP may apply for a forfeiture order.............................................. 46

60.......... Additional application for a forfeiture order.................................... 46

61.......... Notice of application........................................................................ 47

62.......... Amending an application.................................................................. 47

63.......... Court may dispense with notice requirements if person has absconded 48

64.......... Procedure on application.................................................................. 48

65.......... Applications to courts before which persons are convicted............ 49

Division 4—Effect of forfeiture orders                                                               50

66.......... What property is forfeited and when—general rule......................... 50

67.......... First exception—registrable property.............................................. 50

68.......... Second exception—if a joint owner dies before the order was made 50

69.......... When can the Commonwealth begin dealing with forfeited property? 51

70.......... How must the Commonwealth deal with forfeited property?......... 52

71.......... Dealings with forfeited property...................................................... 53

Division 5—Reducing the effect of forfeiture orders                                 54

Subdivision A—Relieving hardship                                                                        54

72.......... Relieving certain dependants from hardship..................................... 54

Subdivision B—Excluding property from a forfeiture order                              54

73.......... Making exclusion orders................................................................... 54

74.......... Applying for exclusion orders.......................................................... 56

75.......... Giving notice of matters relevant to an application.......................... 57

76.......... When an application can be heard.................................................... 57

Subdivision C—Compensating for the proportion of property that did not involve proceeds of an offence      57

77.......... Making compensation orders........................................................... 57

78.......... Applying for compensation orders.................................................. 58

79.......... Giving notice of matters relevant to an application.......................... 59

Division 6—The effect on forfeiture orders of acquittals and quashing of convictions 60

80.......... Forfeiture order made under section 47 or 49 unaffected by acquittal or quashing of conviction           60

81.......... Discharge of forfeiture order made under section 48 on quashing of conviction     60

82.......... Notice of application for confirmation of forfeiture order............... 60

83.......... Procedure on application for confirmation of forfeiture order......... 61

84.......... Court may confirm forfeiture order.................................................. 61

85.......... Effect of court’s decision on confirmation of forfeiture order.......... 62

86.......... Official Trustee must not deal with forfeited property before the court decides on confirmation of forfeiture order.......................................................................................................... 63

Division 7—Miscellaneous                                                                                       64

87.......... Giving notice if a forfeiture order is discharged on appeal or by quashing of a conviction     64

88.......... Returning property etc. following the discharge of a forfeiture order 64

89.......... Person with interest in forfeited property may buy back the interest 65

90.......... Buying out other interests in forfeited property.............................. 66

Part 2-3—Forfeiture on conviction of a serious offence                                  68

91.......... Simplified outline of this Part........................................................... 68

Division 1—Forfeiture on conviction of a serious offence                       68

92.......... Forfeiting restrained property without a forfeiture order if a person has been convicted of a serious offence       68

93.......... Making an extension order extending the period before property is forfeited         69

94.......... Excluding property from forfeiture under this Part.......................... 70

95.......... Court may declare that property has been forfeited under this Part 71

Division 2—Effect of forfeiture on conviction of a serious offence     72

96.......... When is property forfeited—general rule......................................... 72

97.......... First exception—registrable property.............................................. 72

98.......... Second exception—if a joint owner dies........................................... 72

99.......... When can the Commonwealth begin dealing with forfeited property? 73

100........ How must forfeited property be dealt with?................................... 74

101........ Minister may give supporting directions......................................... 75

Division 3—Recovery of forfeited property                                                    76

102........ Court may make orders relating to transfer of forfeited property etc. 76

103........ Court may make orders relating to buying back forfeited property. 77

104........ Applying for orders under sections 102 and 103............................. 77

105........ Person with interest in forfeited property may buy back the interest 78

106........ Buying out other interests in forfeited property.............................. 79

Division 4—The effect on forfeiture of convictions being quashed    80

107........ The effect on forfeiture of convictions being quashed...................... 80

108........ Notice of application for confirmation of forfeiture......................... 80

109........ Procedure on application for confirmation of forfeiture................... 81

110........ Court may confirm forfeiture........................................................... 81

111........ Effect of court’s decision on confirmation of forfeiture................... 82

112........ Official Trustee must not deal with forfeited property before the court decides on confirmation of forfeiture     82

113........ Giving notice if forfeiture ceases to have effect on quashing of a conviction          83

114........ Returning property etc. following forfeiture ceasing to have effect. 83

Part 2-4—Pecuniary penalty orders                                                                            85

115........ Simplified outline of this Part........................................................... 85

Division 1—Making pecuniary penalty orders                                              85

116........ Making pecuniary penalty orders.................................................... 85

117........ Pecuniary penalty orders made in relation to serious offence convictions              86

118........ Making of pecuniary penalty order if person has absconded.......... 87

119........ Ancillary orders................................................................................ 87

120........ Acquittals do not affect pecuniary penalty orders........................... 87

Division 2—Penalty amounts                                                                                   88

Subdivision A—General                                                                                            88

121........ Determining penalty amounts.......................................................... 88

Subdivision B—The value of benefits derived from the commission of an offence               89

122........ Evidence the court is to consider...................................................... 89

123........ Value of benefits derived—non-serious offences............................. 90

124........ Value of benefits derived—serious offences..................................... 91

125........ Value of benefits may be as at time of assessment........................... 92

126........ Matters that do not reduce the value of benefits.............................. 92

127........ Benefits already the subject of pecuniary penalty........................... 93

128........ Property under a person’s effective control..................................... 93

129........ Effect of property vesting in an insolvency trustee......................... 93

Subdivision C—Reducing penalty amounts                                                           94

130........ Reducing penalty amounts to take account of forfeiture and proposed forfeiture  94

131........ Reducing penalty amounts to take account of tax paid.................... 94

132........ Reducing penalty amounts to take account of fines etc................... 94

Subdivision D—Varying pecuniary penalty orders to increase penalty amounts                95

133........ Varying pecuniary penalty orders to increase penalty amounts...... 95

Division 3—How pecuniary penalty orders are obtained                         96

134........ DPP may apply for a pecuniary penalty order................................ 96

135........ Additional application for a pecuniary penalty order...................... 96

136........ Notice of application........................................................................ 97

137........ Amendment of application............................................................... 97

138........ Procedure on application.................................................................. 98

139........ Applications to courts before which persons are convicted............ 98

Division 4—Enforcement of pecuniary penalty orders                            100

140........ Enforcement of pecuniary penalty orders...................................... 100

141........ Property subject to a person’s effective control............................ 100

142........ Charge on property subject to restraining order............................. 101

143........ Charges may be registered.............................................................. 102

144........ Penalty amounts exceeding the court’s jurisdiction........................ 103

Division 5—The effect on pecuniary penalty orders of convictions being quashed         104

145........ Pecuniary penalty order unaffected if not made in relation to a conviction            104

146........ Discharge of pecuniary penalty order if made in relation to a conviction               104

147........ Notice of application for confirmation of pecuniary penalty order 105

148........ Procedure on application for confirmation of pecuniary penalty order  105

149........ Court may confirm pecuniary penalty order.................................. 105

150........ Effect of court’s decision on confirmation of pecuniary penalty order.. 106

Part 2-5—Literary proceeds orders                                                                          107

151........ Simplified outline of this Part......................................................... 107

Division 1—Making literary proceeds orders                                             107

152........ Making literary proceeds orders..................................................... 107

153........ Meaning of literary proceeds .......................................................... 108

154........ Matters taken into account in deciding whether to make literary proceeds orders 109

155........ Additional literary proceeds orders................................................ 109

156........ Ancillary orders.............................................................................. 109

157........ Acquittals do not affect literary proceeds orders........................... 109

Division 2—Literary proceeds amounts                                                          110

158........ Determining literary proceeds amounts.......................................... 110

159........ Deductions from literary proceeds amounts.................................. 110

160........ Reducing literary proceeds amounts to take account of tax paid... 111

161........ Varying literary proceeds orders to increase literary proceeds amounts 111

Division 3—How literary proceeds orders are obtained                        113

162........ DPP may apply for a literary proceeds order................................ 113

163........ Notice of application...................................................................... 113

164........ Amendment of application............................................................. 113

165........ Procedure on application................................................................ 114

166........ Applications to courts before which persons are convicted.......... 114

Division 4—Enforcement of literary proceeds orders                             115

167........ Enforcement of literary proceeds orders........................................ 115

168........ Property subject to a person’s effective control............................ 115

169........ Charge on property subject to restraining order............................. 116

170........ Charges may be registered.............................................................. 117

171........ Literary proceeds amounts exceeding the court’s jurisdiction........ 118

Division 5—The effect on literary proceeds orders of convictions being quashed          119

172........ Literary proceeds order unaffected if not made in relation to a conviction             119

173........ Discharge of literary proceeds order if made in relation to a conviction  119

174........ Notice of application for confirmation of literary proceeds order. 119

175........ Procedure on application for confirmation of literary proceeds order 120

176........ Court may confirm literary proceeds order.................................... 120

177........ Effect of court’s decision on confirmation of literary proceeds order 120

Division 6—Literary proceeds orders covering future literary proceeds             121

178........ Literary proceeds orders can cover future literary proceeds.......... 121

179........ Enforcement of literary proceeds orders in relation to future literary proceeds      121

Chapter 3—Information gathering                                                           122

Part 3-1—Examinations                                                                                                    122

Division 1—Examination orders                                                                          122

180........ Examination orders relating to restraining orders............................ 122

181........ Examination orders relating to applications for confirmation of forfeiture              122

182........ Applications for examination orders.............................................. 123

Division 2—Examination notices                                                                        124

183........ Examination notices........................................................................ 124

184........ Additional examination notices....................................................... 124

185........ Form and content of examination notices....................................... 124

Division 3—Conducting examinations                                                             126

186........ Time and place of examination....................................................... 126

187........ Requirements made of person examined......................................... 126

188........ Examination to take place in private............................................... 127

189........ Role of the examinee’s lawyer........................................................ 128

190........ Examination by video link or telephone......................................... 128

191........ Record of examination.................................................................... 129

192........ Questions of law............................................................................. 130

193........ Approved examiner may restrict publication of certain material... 130

194........ Protection of approved examiner etc.............................................. 131

Division 4—Offences                                                                                                 132

195........ Failing to attend an examination..................................................... 132

196........ Offences relating to appearance at an examination......................... 132

197........ Privileged information..................................................................... 133

198........ Admissibility of answers and documents....................................... 134

199........ Unauthorised presence at an examination....................................... 134

200........ Breaching conditions on which records of statements are provided 134

201........ Breaching directions preventing or restricting publication............. 134

Part 3-2—Production orders                                                                                          136

202........ Making production orders.............................................................. 136

203........ Contents of production orders....................................................... 138

204........ Powers under production orders.................................................... 138

205........ Retaining produced documents....................................................... 139

206 ........ Privilege against self-incrimination etc. does not apply ................. 139

207........ Varying production orders.............................................................. 140

208........ Jurisdiction of magistrates.............................................................. 140

209........ Making false statements in applications........................................ 140

210........ Disclosing existence or nature of production orders....................... 141

211........ Failing to comply with a production order..................................... 142

212........ Destroying etc. a document subject to a production order............. 142

Part 3-3—Notices to financial institutions                                                             143

213........ Giving notices to financial institutions........................................... 143

214........ Contents of notices to financial institutions................................... 144

215........ Protection from suits etc. for those complying with notices......... 144

216........ Making false statements in notices................................................. 145

217........ Disclosing existence or nature of notice.......................................... 145

218........ Failing to comply with a notice...................................................... 145

Part 3-4—Monitoring orders                                                                                         147

219........ Making monitoring orders.............................................................. 147

220........ Contents of monitoring orders........................................................ 147

221........ Protection from suits etc. for those complying with orders........... 148

222........ Making false statements in applications........................................ 149

223........ Disclosing existence or operation of monitoring order................... 149

224........ Failing to comply with monitoring order........................................ 151

Part 3-5—Search and seizure                                                                                        152

Division 1—Search warrants                                                                                  152

Subdivision A—Issuing search warrants                                                            152

225........ Issuing a search warrant.................................................................. 152

226........ Additional contents of the information.......................................... 152

227........ Contents of warrants...................................................................... 152

228........ The things that are authorised by a search warrant........................ 154

Subdivision B—Applying for search warrants by telephone or other electronic means    155

229........ Applying for search warrants by telephone or other electronic means 155

230........ Issuing warrants by telephone etc.................................................. 155

231........ Unsigned telephone warrants in court proceedings........................ 156

232........ Offence for stating incorrect names in telephone warrants............ 157

233........ Offence for unauthorised form of warrant...................................... 157

234........ Offence for execution etc. of unauthorised form of warrant........... 157

235........ Offence for giving unexecuted form of warrant.............................. 158

Subdivision C—Executing search warrants                                                        158

236........ Warrants that must be executed only during particular hours........ 158

237........ Restrictions on personal searches................................................... 158

238........ Availability of assistance and use of force in executing a warrant.. 159

239........ Announcement before entry........................................................... 159

240........ Details of warrant to be given to occupier etc................................ 160

241........ Occupier entitled to be present during search................................ 160

242........ Specific powers available to officers executing the warrant........... 161

243........ Use of equipment to examine or process things............................. 161

244........ Moving things to another place for examination or processing...... 162

245........ Use of electronic equipment at premises........................................ 162

246........ Person with knowledge of a computer or a computer system to assist access etc. 164

247........ Securing electronic equipment........................................................ 164

248........ Compensation for damage to electronic equipment........................ 165

249........ Copies of seized things to be provided.......................................... 166

250........ Providing documents after execution of a search warrant............... 167

Division 2—Stopping and searching conveyances                                     168

251........ Searches without warrant in emergency situations......................... 168

252........ How an authorised officer exercises a power under section 251.... 168

Division 3—Dealing with things seized                                                            170

Subdivision A—General requirements                                                                170

253........ Receipts for things seized under warrant....................................... 170

254........ Responsibility for things seized..................................................... 170

255........ Effect of obtaining forfeiture orders............................................... 170

Subdivision B—Things seized as evidence                                                          171

256........ Returning seized things................................................................... 171

257........ Authorised officer may apply for a thing to be retained for a further period          172

258........ Magistrate may order that the thing be retained............................. 172

Subdivision C—Things seized on other grounds                                               173

259........ Return of seized property to third parties..................................... 173

260........ Return of seized property if applications are not made for restraining orders or forfeiture orders        173

261........ Effect of obtaining restraining orders.............................................. 174

262........ Effect of refusing applications for restraining orders or forfeiture orders               175

Division 4—General                                                                                                   176

263........ Application of Part......................................................................... 176

264........ Law relating to legal professional privilege not affected................. 176

265........ Jurisdiction of magistrates.............................................................. 176

266........ Offence for making false statements in applications...................... 176

Chapter 4—Administration                                                                               178

Part 4-1—Powers and duties of the Official Trustee                                       178

Division 1—Preliminary                                                                                           178

267........ Property to which the Official Trustee’s powers and duties under this Part apply               178

Division 2—Obtaining information about controlled property            179

268........ Access to books.............................................................................. 179

269........ Suspect to assist Official Trustee................................................... 180

270........ Power to obtain information and evidence..................................... 181

271........ Privilege against self-incrimination................................................. 181

272........ Offences relating to exercise of powers under section 268 or 269. 182

273........ Failure to provide information........................................................ 182

274........ Failure of person to attend............................................................. 183

275........ Refusal to be sworn or give evidence etc........................................ 183

Division 3—Dealings relating to controlled property                              184

276........ Preserving controlled property....................................................... 184

277........ Rights attaching to shares............................................................... 184

278........ Destroying or disposing of property............................................. 184

279........ Notice of proposed destruction or disposal................................... 185

280........ Procedure if person objects to proposed destruction or disposal.. 185

281........ Proceeds from sale of property...................................................... 186

Division 4—Discharging pecuniary penalty orders and literary proceeds orders             187

282........ Direction by a court to the Official Trustee................................... 187

283........ Court may include further directions etc........................................ 188

284........ Official Trustee to carry out directions.......................................... 188

285........ Official Trustee not to carry out directions during appeal periods 189

286........ Discharge of pecuniary penalty orders and literary proceeds orders by credits to the Confiscated Assets Account........................................................................................................ 190

Division 5—Miscellaneous                                                                                     192

287........ Money not to be paid into the Common Investment Fund........... 192

288........ Official Trustee’s costs etc............................................................. 192

289........ Income generated from controlled property................................... 192

290........ Official Trustee is not personally liable......................................... 193

291........ Indemnification of Official Trustee................................................ 194

Part 4-2—Legal assistance                                                                                             195

292........ Payments to legal aid commissions for representing suspects and other persons   195

293........ Payments made out of the Confiscated Assets Account............... 195

294........ Disclosure of information to legal aid commissions....................... 196

Part 4-3—Confiscated Assets Account                                                                    198

295........ Establishment of Account.............................................................. 198

296........ Credits to the Account................................................................... 198

297........ Payments out of the Account......................................................... 200

298........ Programs for expenditure on law enforcement, drug treatment etc. 201

299........ Determinations by Official Trustee about suspended and distributable funds       202

Part 4-4—Charges over restrained property for payment of certain amounts         204

Division 1 Charges to secure certain amounts payable to legal aid commissions         204

300........ Legal aid commissions’ charges...................................................... 204

301........ When the charge ceases to have effect............................................ 204

302........ Priority of charge............................................................................ 204

Division 2 Charges to secure certain amounts payable to the Commonwealth              206

302A..... Charges to secure amounts payable under subsection 293(3) ........ 206

302B..... When the charge ceases to have effect............................................ 206

302C..... Priority of charge............................................................................ 206

Part 4-5—Enforcement of interstate orders in certain Territories          208

Division 1—Interstate restraining orders                                                      208

303........ Registration of interstate restraining orders.................................... 208

304........ Effect of registration....................................................................... 208

305........ Duration of registration.................................................................. 209

306........ Cancellation of registration............................................................. 209

307........ Charge on property subject to registered interstate restraining order 209

308........ Powers of Official Trustee in relation to interstate restraining orders 211

Division 2—Interstate forfeiture orders                                                         213

309........ Registration of interstate forfeiture orders..................................... 213

310........ Effect of registration....................................................................... 213

311........ Duration of registration.................................................................. 214

312........ Cancellation of registration............................................................. 214

Division 3—Miscellaneous                                                                                     215

313........ Interim registration of faxed copies................................................ 215

Chapter 5—Miscellaneous                                                                                216

314........ State and Territory courts to have jurisdiction............................... 216

315........ Proceedings are civil, not criminal................................................... 216

316........ Consent orders................................................................................ 216

317........ Onus and standard of proof............................................................ 217

318........ Proof of certain matters.................................................................. 217

319........ Stay of proceedings........................................................................ 217

320........ Effect of the confiscation scheme on sentencing............................ 218

321........ Deferral of sentencing pending determination of confiscation order 218

322........ Appeals.......................................................................................... 218

323........ Costs............................................................................................... 220

324........ Powers conferred on judicial officers in their personal capacity.... 220

325........ Effect of a person’s death............................................................... 221

326........ Operation of other laws not affected.............................................. 221

327........ Review of operation of Act............................................................ 222

328........ Regulations..................................................................................... 222

Chapter 6—Interpreting this Act                                                                223

Part 6-1—Meaning of some important concepts                                                223

Division 1—Proceeds and instrument of an offence                                 223

329........ Meaning of proceeds and instrument .............................................. 223

330........ When property becomes, remains and ceases to be proceeds or an instrument      223

Division 2—Convicted and related concepts                                                226

331........ Meaning of convicted of an offence................................................ 226

332........ Meaning of quashing a conviction of an offence............................ 227

333........ Meaning of conviction day .............................................................. 227

334........ Meaning of abscond ....................................................................... 228

Division 3—Other concepts                                                                                   230

335........ Proceeds jurisdiction....................................................................... 230

336........ Meaning of derived ......................................................................... 232

337........ Meaning of effective control ............................................................ 232

Part 6-2—Dictionary                                                                                                          234

338........ Dictionary....................................................................................... 234

 



 

Proceeds of Crime Act 2002

No. 85, 2002

 

 

 

An Act to provide for confiscation of the proceeds of crime, and for other purposes

[ Assented to 11 October 2002 ]

The Parliament of Australia enacts:

Chapter 1 Introduction