ACT, No. 41 OF 2011

41of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
CONVENTION ON THE SUPPRESSION OF
TERRORIST FINANCING (AMENDMENT)
ACT, No. 41 OF 2011
[Certified on 06th October, 2011]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of October 07, 2011
PRINTEDATTHE DEPARTMENTOFGOVERNMENTPRINTING,SRILANKA
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Convention on the Suppression of Terrorist 1
Financing (Amendment) Act, No. 41 of 2011
[Certified on 06th October, 2011]
L.D.—O. 8/2010.
ANACT TO AMEND THE CONVENTION ON THE SUPPRESSION OF
TERRORIST FINANCING ACT, NO. 25 OF 2005
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:—
1. This Act may be cited as the Convention on the Short title.
Suppression of Terrorist Financing (Amendment) Act,
No. 41 of 2011.
2. The following new section is hereby inserted Insertion of new
section 2A in
immediately after section 2 of the Convention on the
Act, No. 25 of
Suppression of Terrorist Financing Act, No. 25 of 2005 2005.
(hereinafter referred to as the “principal enactment”) and
shall have effect as section 2A of that enactment:-
“Application 2A. (1) The provisions of this Act shall apply
of the Act. in relation to a person who being a citizen of
Sri Lanka or a person who not being a citizen
of Sri Lanka, commits an offence under this
Act,
(a) while present in Sri Lanka; or
(b) outside Sri Lanka and such offence is an
offence under the law for the time being
in force, in the country in which such
offence is committed.
(2) For the purpose of the implementation
of the provisions of this Act, the expression
“person” shall include a body of persons,
whether corporate or unincorporated within or
outside Sri Lanka.”.
2 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
Amendment of 3. Section 3 of the principal enactment is hereby
section 3 of the amended as follows:-
principal
enactment.
(1) by the repeal of subsection (1) thereof and the
substitution therefor of the following subsection:-
“(1) Any person who, by any means, directly
or indirectly, unlawfully and wilfully provides
or collects funds or property with the intention
that such funds or property should be used, or in
the knowledge that they are to be used or having
reason to believe that they are likely to be used,
in full or in part, in order to commit-
(a) an act which constitutes an offence within
the scope of, or within the definition of
any one of the Treaties specified in
Schedule I hereto;
(b) any other act, intended to cause death or
serious bodily injury, to civilians or to any
other person not taking an active part in
the hostilities, in a situation of armed
conflict or otherwise and the purpose of
such act, by its nature or context is to
intimidate a population, or to compel a
government or an international
organization, to do or to abstain from
doing any act; or
(c) any terrorist act,
shall be guilty of the offence of financing of a
terrorist act, a terrorist or terrorists, or a terrorist
organization:
Provided that, for an act to constitute the
offence set out above, it shall not be necessary
to show that the funds or property provided or
collected were actually used in the commission
of an offence.”;
Convention on the Suppression of Terrorist 3
Financing (Amendment) Act, No. 41 of 2011
(2) in subsection (2) by the substitution for the words
“the offence of financing of terrorists or terrorist
organization” of the words “the offence of financing
of a terrorist act, a terrorist or terrorists or a
terrorist organization”;
(3) by the insertion immediately after subsection (2)
thereof of the following new subsection :—
“(2A) Any person who unlawfully and
wilfully by any direct or indirect means provides
or conspires to provide, material support or
resources to any terrorist or terrorists or a terrorist
organization shall be guilty of an offence under
this Act:
Provided however that, providing assistance
on humanitarian grounds by a person or body of
persons, shall not amount to an offence within
the meaning of this Act.”.
4. Section 4 of the principal enactment is hereby Replacement of
repealed and the following section is substituted section 4 of the
principal
therefor :—
enactment.
“Freezing of 4. (1) A police officer not below the rank of
property &c.
an Assistant Superintendent of Police may,
where there are reasonable grounds to believe
that any person is involved in the commission
of any act which constitutes an offence under
section 3 of this Act and it is necessary for
preventing the commission of any further acts
in connection with such offence, issue an Order
(hereinafter referred to as a “Freezing Order”)
freezing all funds or property provided or
collected in contravention of the provisions of
section 3, any income or profit earned on such
funds or property or any instrumentalities used
in the commission of such offence.
4 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
(2) The Freezing Order obtained under
subsection (1) shall be issued on –
(a) the person who is believed to be
involved in the commission of any act
which constitutes an offence in terms
of section 3; and
(b) on any other person or institution who
or which may be required to give effect
to such Order.
(3) A Freezing Order issued under
subsection (1) shall, subject to the provisions
of section 4A, be in force for a period of seven
days of the making thereof.
(4) Any person who or institution which
uses such fund, property, income, profit or
instrumentality which is subject to a Freezing
Order, in contravention of such Freezing Order
issued on him or such institution, shall be
guilty of an offence and shall on conviction
after trial before the High Court be liable to a
fine not exceeding one hundred thousand
rupees or one and a half times the value of the
money in such funds, property, income, profit
or instrumentality which has been dealt with
in contravention of the Freezing Order,
whichever is higher or to imprisonment of
either description for a period not exceeding
one year or to both such fine and
imprisonment.”.
Insertion of new 5. The following new sections are hereby inserted
sections 4A, 4B, immediately after section 4 of the principal enactment and
4C, 4D, 4E, 4F, 4G,
shall have effect as sections 4A, 4B, 4C, 4D, 4E, 4F, 4G, 4H and
4H and 4I in the
principal 4I of that enactment :—
inactment.
“Confirmation 4A. (1) The police officer issuing the
of Freezing Freezing Order in terms of section 4 shall,
Order by
within the seven days during which such Order
Court.
shall be in force, make an exparte application
Convention on the Suppression of Terrorist 5
Financing (Amendment) Act, No. 41 of 2011
to the High Court seeking confirmation of such
Freezing Order and also if the circumstances
so necessitate, request an extension to the
original period of seven days.
(2) Where the High Court is satisfied that
there is sufficient reason for the making of such
Freezing Order, the Court may subject to any
Orders which may be made under section 4E,
confirm the Freezing Order and also grant the
application made for the extension thereof, for
such periods as it considers necessary:
Provided that the maximum period of any
extension so granted shall not exceed three
months at any given time and in any event
shall not in the aggregate exceed a period of
two years from the date of the issuing of the
Freezing Order by the police officer:
Provided further that where indictment is
filed for the commission of an offence under
section 3 of this Act in respect of the fund,
property, income, profit or instrumentality
which is subject to the Freezing Order, such
Freezing Order shall unless vacated by Court
for reasons to be recorded, remain in force until
the conclusion of the trial in respect of such
offence, or where an appeal is preferred against
a conviction for such offence, until the
determination of the appeal.
(3) Where the High Court confirms a
Freezing Order under subsection (2) it shall
cause a Notification of the Freezing Order to
be published in at least one newspaper
circulating in the Sinhala, Tamil and English
languages, in order to facilitate bona fide third
parties to make application to Court in support
of their claims to the fund, property, income,
profit or instrumentality which is subject to
the Freezing Order.
6 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
Transactions 4B. No transaction shall, except with the
in
contravention sanction of the Court as provided for in section
of the 4C be effected in relation to such funds,
Freezing
Order to be property, income, profit or instrumentalities
null and while the Freezing Order is in force and any
void.
transaction so effected shall be null and
void.
High Court 4C. Where any legitimate business or other
to sanction interests of any person affected by the Freezing
essential and
Order could be damaged by the prohibition
legitimate
transactions. imposed thereby, such person may make an
application to High Court stating such facts in
support thereof, and the Court may, on a
consideration of such application before it, if
it is of opinion that such an Order could
damage legitimate business or other interests
of such person and that essential transactions
relating to such funds, property, income, profit
or instrumentalities as may have been
prohibited by such Freezing Order may be
legitimately carried out, confirm the Order
made under section 4 and make further Order,
sanctioning the carrying on of such transactions
subject to the supervision and direction of,
either a person appointed in that behalf by
Court, or of a Receiver appointed in that behalf
by Court under section 4D.
Appointment 4D. Upon an application made in that behalf
of Receiver. by a police officer not below the rank of an
Assistant Superintendent of Police, the High
Court may appoint a Receiver, in accordance
with the provisions of the Civil Procedure Code
(Chapter 101), to take possession of and
otherwise deal with the fund, property, income,
profit or instrumentality which has been
subjected to the Freezing Order, in accordance
with such directions as may be given by Court
in that behalf.
Convention on the Suppression of Terrorist 7
Financing (Amendment) Act, No. 41 of 2011
Property 4E. (1) Any police officer not below the rank
tracking and
of an Assistant Superintendent of Police shall
monitoring.
take possession of, and otherwise deal with,
any fund, property, income, profit or
instrumentality which is subject to a Freezing
Order, and the Court may on application made
by the said police officer and for the purpose
of determining who owns, possesses or is in
control of such fund, property, income, profit
or instrumentality to which the Freezing Order
relates, order-
(a) that any document relevant to –
(i) identifying, locating or
quantifying such funds, property,
income , profit or instrumentalities;
(ii) establishing the ownership,
possession or control of such funds,
property, income , profit or
instrumentalities;
(iii) obtaining any other
information pertaining to such
funds, property, income , profit or
instrumentalities,
be delivered forthwith to such police
officer; and
(b) that a named institution furnish to the
Receiver all information obtained by the
institution about any business
transaction conducted by, or for, that
person with the institution during such
period before or after the date of such
order, as the Court may direct.
8 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
(2) Where it appears to the Court making an
order under subsection (1) that any person has
failed to or delayed in complying with or is
otherwise obstructing the execution of, an
order made under subsection (1), such Court
may make order authorizing the police officer
to enter and search any premises of that person,
and remove any document, material or other
thing therein for the purpose of executing such
order.
(3) Upon determining who owns, possesses
or is in control of any funds, property, income,
profit or instrumentalities to which the
Freezing Order relates, the police officer shall
report the same to the Court making the
Freezing Order, along with all documents
establishing and supporting such ownership,
possession or control, as the case may be.
Forfeiture of 4F. (1) Subject to the provisions of
property etc. subsection (4), where a person is convicted of
in relation to
which an an offence under section 3 of this Act, the Court
offence convicting such person shall, make order that
under this any funds or property provided or collected in
Act has been
committed. contravention of the provisions of section 3,
any income or profit earned on such funds or
property or any instrumentalities used in the
commission of such offence, be forfeited to the
State, free from all encumbrances.
(2) Where such funds, property, income,
profit or instrumentalities cannot be found or
traced the Court convicting such person shall
order to pay to the State the equivalent value
of such funds, property, income, profit or
instrumentalities.
Convention on the Suppression of Terrorist 9
Financing (Amendment) Act, No. 41 of 2011
(3) Where such person fails to pay such
equivalent value, the Court, shall, in
accordance with the provisions of the Code of
Criminal Procedure Act, No. 15 of 1979, order
him to pay a such value fine within such period
as may be specified by Court.
(4) In determining whether an Order of
Forfeiture should be made under subsection
(1), the Court shall be entitled to take into
consideration the fact whether such an Order is
likely to prejudice the rights of a bona fide
purchaser for value or any other person who
has acquired, for value, a bona fide interest in
such funds, property, any income or profit
earned on such funds or property or such
instrumentality.
(5) An order made under subsection (1) shall
take effect –
(a) where an appeal has been preferred to
the Court of Appeal or the Supreme
Court against the Order of Forfeiture,
upon the determination of such appeal
confirming or upholding the Order of
Forfeiture;
(b) where no appeal has been preferred to
the Court of Appeal against the Order of
Forfeiture within the period allowed
therefor, after the expiration of the period
within which an appeal may be preferred
to the Court of Appeal, against such
Order of Forfeiture.
(6) For the purposes of subsection (1), the
Court making the Order of Forfeiture may
presume that any funds or property belonging
to the person convicted of an offence under
10 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
section 3 of this Act is derived or realized,
directly or indirectly from the commission of
such offence, if the value of such funds or
property is not commensurate with the known
sources of income of such person, and the
holding of which cannot be explained on a
balance of probabilities, to the satisfaction of
the Court.
Restoring the 4G. (1) Any person, being a person to whom
rights of
the provisions of section 3 do not apply, and
bona fide
claimants. who owns, possesses or is in control of any
funds or property or any income or profit earned
on such funds or property, or any
instrumentalities, to which the Freezing Order
made under section 4 relates, may within thirty
days of the making of such Order apply to the
Court making the same, seeking the
intervention of Court to exclude from such
Order any fund, property, income, profit or
instrumentalities which such person owns,
possesses or is in control of.
(2) Where an application is made under
subsection (1), the Court shall upon being
satisfied on the information before Court that –
(a) such funds or property is not derived or
realized directly or indirectly from the
commission of such offence or such funds
or property is not an instrumentality used
in the commission of such offence;
(b) the applicant was not in any way
involved in the commission of an offence
under section 3 in relation to which the
Freezing Order was made;
Convention on the Suppression of Terrorist 11
Financing (Amendment) Act, No. 41 of 2011
(c) the applicant had acquired an interest in
such funds or property at any time prior
to the commission of such offence, and
the applicant was unaware of the fact that
the defendant had used or had intended
to use such funds or property in or in
connection with the commission of such
offence; or
(d) the applicant had acquired an interest in
such funds or property at the time of, or
after the commission or alleged
commission of the offence, and that such
interest was acquired in circumstances
which would not give rise to a reasonable
suspicion that such fund or property was
proceeds or instrumentalities of such
offence,
make order for the release of such fund,
property income, profit or instrumentality
which is the subject of the application before
it, from the Freezing Order made under section
4, and restore the rights of the applicant in
respect of the same.
Appointment 4H. Where any fund, property, income,
of a Receiver profit or instrumentality has been forfeited to
upon
the State under section 4F of this Act, the Court
Forfeiture.
making the Order of Forfeiture may, appoint a
Receiver in accordance with the provisions of
the Civil Procedure Code (Chapter 101), to be
in charge of the fund, property, income, profit
or instrumentality so forfeited.
Secrecy 4I. The provisions of sections 4 to 4H of
obligation this Act shall have effect notwithstanding any
overridden.
obligation as to secrecy or other restriction
imposed upon the disclosure of information
12 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
by any written law or otherwise, and
accordingly any disclosure of information by
any person in compliance with the provisions
of sections 4 to 4H of this Act shall be deemed
not to be a contravention of, any such
obligation or restriction.”.
Amendment of 6. Section 5 of the principal enactment is hereby
section 5 of the amended as follows:-
principal
enactment.
(1) by the repeal of subsection (1) thereof and the
substitution therefor of the following subsection:-
“(1) On the conviction of any person under
subsection (4) of section 3, the Court may order
that any funds or property provided or collected
in contravention of the provisions of section 3,
any income or profit earned on such funds or
property or any instrumentalities used in the
commission of such offence, be forfeited to the
State.”;
(2) in subsection (2) thereof by the substitution for
the words “Any funds forfeited to the State” of the
words “Any funds, property, income profit or
instrumentalities forfeited to the State”.;
(3) by the repeal of subsection (3) thereof and the
substitution therefor of the following subsection:-
“(3) Where the Court is satisfied on the
evidence adduced at a trial for an offence under
subsection (1) or subsection (2) of section 3, that
any funds, property, income, profit or
instrumentalities standing to the credit of any
account of any institution are the proceeds of
such offence, it may, by written order prohibit
the Head of such institution from permitting or
allowing the withdrawal of any funds from such
account, until the conclusion of the trial.”.
Convention on the Suppression of Terrorist 13
Financing (Amendment) Act, No. 41 of 2011
7. Section 6 of the principal enactment is hereby Amendment of
amended in subsection (2) of that section as follows:- section 6 of the
principal
enactment.
(1) by the repeal of paragraph (a) thereof, and the
substitution therefor of the following paragraph:-
“(a) any person who committed such act is
present in Sri Lanka;”;
(2) by the insertion immediately after paragraph (e)
thereof, of the following new paragraph:-
“(ee) the person in relation to whom the offence
is alleged to have been committed is a
national of a Convention State;”.
8. The following new section is hereby inserted Insertion of new
immediately after section 16 of the principal enactment and section 16A in
shall have effect as section 16A of that enactment:- the principal
enactment.
“Interpretation. 16A. In this Act unless the context otherwise
requires-
“finance business” includes any one of the
following business or activities:-
(a) banking, as defined in the Banking
Act, No. 30 of 1988, including the
acceptance of deposits or other
repayable deposits from members
of the public;
(b) finance business as defined in the
Finance Companies Act, No. 78 of
1988 or any Act enacted in place
thereof;
(c) lending, including consumer
credit, mortgage credit, factoring
(with or without recourse) and
financing of commercial
transactions;
14 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
(d) financial leasing other than
transactions relating to consumer
products;
(e) the transfer of money or value;
(f) money and currency changing
services;
(g) issuing and managing means of
payment (i.e. credit cards, travelers’
cheques, money orders and
bankers’ drafts and electronic
money);
(h) issuing financial guarantees and
commitments, including but not
limited to, consumer credit,
factoring with or without recourse
and financing of commercial
transactions including forfeiting;
(i) trading for its own account or for
the account of customers in money
market instruments (i.e. cheques,
bills of exchange, certificates of
deposit and derivatives), foreign
exchange, exchange, interest rate
and index instruments, commodity
futures trading and transferable
securities;
(j) participating in the issue of
securities and the provision of
financial services related to such
issue;
(k) banking business carried on by a
company, to whom a licence to
Convention on the Suppression of Terrorist 15
Financing (Amendment) Act, No. 41 of 2011
carry on banking business is issued
under the Banking Act, No. 30 of
1988;
(l) any finance business carried on by
any society registered under the
Co-operative Societies Law, No. 5
of 1972 or any Act enacted in place
thereof;
(m) any finance business carried on by
the Samurdhi Authority of Sri
Lanka, established by the
Samurdhi Authority of Sri Lanka
Act, No. 30 of 1995; and
(n) underwriting and placement of
insurance as well as insurance
intermidation by agents and
brokers;
“funds or property” means-
(a) any currency including also, but
not limited to, bank credits,
travellers cheques, bank cheques,
money orders, shares, securities,
bonds, drafts, letters of credit; or
(b) any asset, whether-
(i) corporeal or incorporeal,
movable or immovable,
tangible or intangible;
(ii) kept or situated within or
outside Sri Lanka,
and where title or legal or equitable
interest in such funds or property,
or any income or proceeds of such
16 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
funds or property, is evidenced by
any legal document or instrument
in any form whatsoever, including
any electronic or digital form;
“institution” means any person or body of
persons engaged in or carrying on finance
business;
“material support or resources” includes any
tangible, movable or immovable
property or service, including currency
or monetary instruments or financial
services, lodging, training, expert advice
or assistance, safe houses, false
documentation or identification,
communications equipment or facilities,
weapons, lethal substances, explosives,
personnel and transportation, but shall
not include medicines or religious
material;
“person” includes a body of persons; and
“terrorist act” includes, the use of threat of
action, which involves-
(a) the use of threat of action which is
designed to influence the
government, or to intimidate the
public or a section of the public;
(b) the use of threat of action which is
made for the purpose of advancing
a political, religious or ideological
cause,
and such action,
(i) involves serious violence against
a person;
Convention on the Suppression of Terrorist 17
Financing (Amendment) Act, No. 41 of 2011
(ii) involves serious damage to
property;
(iii) endangers the life of another
person, other than the person
committing the action;
(iv) creates a serious risk to health or
safety of the public or a section of
the public; or
(v) is designed seriously to interfere
with or seriously to disrupt an
electronic system.”.
9. In the event of any inconsistency between the Sinhala Sinhala text to
and Tamil texts of this Act, the Sinhala text shall prevail. prevail in case
of inconsistency.

18 Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
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