Assets valued at $7.4 million have been seized in the first two months of a new law designed to make it easier for Police to crack down on illegal gang profits.

The Criminal Proceeds (Recovery) Act 2009 was passed in April last year and came into effect in December.

Since then, six restraining orders have been issued. All relate to drug offences. Four relate to civil forfeiture proceedings and two to criminal forfeiture as instruments of crime. The $7.4 million of assets are being held by the Official Assignee.

Police are also proceeding with further seizures that are expected to significantly increase the total value of confiscated gang assets held by the Crown.

Police Minister Judith Collins said the law had shown its potential in the two months since it was enacted.

"Under the previous law, a conviction was necessary before the Crown could seize criminals' ill-gotten gains," Ms Collins said.

"It's now sufficient to prove on the balance of probabilities that a person has unlawfully benefited from significant criminal offending.

"This sends a very strong signal that this Government is serious about taking away the profits of crime and putting gangs out of business."

Mr Power, who was responsible for the legislation, said: "We passed this law because the threat posed by organised crime to law abiding people is real and unacceptable.

"That threat can best be managed by removing the funding necessary for such groups to operate, and already it's proving its worth.

"It's an important tool in the fight against drugs, and particularly methamphetamine, given the large amounts of money being made by those who manufacture and supply this drug."

Restraining orders

- Restraining orders are issued over property proved on the balance of probabilities to be criminal proceeds (assets or profit obtained from serious crime or property of equivalent value) or instruments of crime (property used in the commission of serious crime).

- Restrained property is held by the Official Assignee to preserve and protect it against damage, disposal etc, pending the outcome of investigations and proceedings.

- Restraining orders last for up to 12 months. They lapse when the forfeiture order is made or declined, or at the end of 12 months (whichever is the earliest).

- The Restrained Property is transferred to the Crown when the court makes an order to do so. If the case fails the restrained property would be returned.