New Jersey Section 2C:66-6 – Disposition of funds

New Jersey Law Allows Courts to Order Disposition of Frozen Terrorist Funds

New Jersey has a law, Section 2C:66-6, that allows courts to order financial institutions to dispose of funds or assets that have been frozen due to suspected ties to terrorism. This law is part of New Jersey’s efforts to prevent and disrupt terrorist financing within the state.

How Funds Can Be Frozen Initially

For a court to order disposition of funds under 2C:66-6, the funds have to be frozen first. This freezing happens under Section 2C:66-3 of New Jersey law.

Section 2C:66-3 allows the state Attorney General to apply for a court order to freeze suspected terrorist funds upon showing:

• Reasonable suspicion that the account holder has or will use the funds to facilitate or commit a violation of anti-terrorism laws
• Freezing the funds is necessary to prevent the violation or act from occurring

If the court agrees there is reasonable suspicion, it can issue an order freezing the funds or assets for up to 10 business days, preventing withdrawals or transfers.

Court-Ordered Disposition of Frozen Funds

Once funds are frozen under Section 2C:66-3, the next step under Section 2C:66-6 allows the court to order the financial institution to transfer them to the court itself.

Some key points about disposition under 2C:66-6:

• The court may order transfer of all or part of the frozen funds
• The financial institution must comply with the court’s order
• The court essentially takes control and possession of the funds

This prevents the account holder from accessing funds that may be used for terrorism while an investigation continues. It also ensures law enforcement control over the funds for potential forfeiture down the road.

Account Holder Rights and Forfeiture Processes

While the freezing and disposition process under 2C:66 may seem harsh, New Jersey law does contain protections for account holders rights.

Within 30 days after funds are initially frozen, the Attorney General must notify the account holder and give them a chance to appear in court to challenge the freezing. And after disposition, there are legal processes that must be followed for the state to ultimately forfeit the funds.

An account holder has legal recourse to argue the funds were improperly frozen or should not be subject to forfeiture. There is an avenue to contest the state’s actions.

But if the state meets its burden in showing the funds are tied to terrorism, forfeiture may result, preventing future illegal use. This gives law enforcement a way to quickly secure potential terrorist assets.

Balancing Individual Rights with Public Safety

Like many anti-terrorism laws enacted after 9/11, New Jersey’s asset freezing and disposition statutes try to strike a balance between individual property rights and public welfare. Freezing assets is a powerful tool, but there are checks and balances built into the process.

While aimed at terrorism, the application of these laws could spill over into other areas, which raises some concerns among civil liberties groups. There is also the potential for abuse, which makes judicial oversight and constitutional safeguards all the more important.

Overall these laws give law enforcement, and society in general, a way to quickly respond to the financial aspects of terrorism. But they must be judiciously applied, and account holder rights must be respected. It is a complex issue with compelling arguments on both sides.

I hope this overview has helped explain New Jersey’s laws allowing courts to order disposition of frozen terrorist funds. Striking the right balance between security and liberty is a difficult but crucial challenge as we continue facing threats from terrorism. This will likely remain an evolving area of law for years to come.