ACT, No. 6 OF 2006

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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
FINANCIAL TRANSACTIONS REPORTING
ACT, No. 6 OF 2006
[Certified on 06th March, 2006]
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 March 10, 2006
PRINTEDAT THE DEPARTMENTOFGOVERNMENT PRINTING, SRILANKA
TO BEPURCHASED AT THEGOVERNMENTPUBLICATIONSBUREAU, COLOMBO1
Price : Rs. 29.75 Postage : Rs.10.00

Financial Transactions Reporting 1
Act, No. 6 of 2006
[Certified on 06th March, 2006]
L.D.—O. 16/2005.
ANACTTO PROVIDEFORTHE COLLECTIONOFDATA RELATING TO SUSPICIOUS
FINANCIAL TRANSACTIONS TO FACILITATE THE PREVENTION, DETECTION,
INVESTIGATION AND PROSECUTION OF THE OFFENCES OF MONEY
LAUNDERING AND THE FINANCING OF TERRORISM RESPECTIVELY ; TO
REQUIRECERTAININSTITUTIONSTO UNDERTAKEDUEDILIGENCEMEASURES
TO COMBAT MONEY LAUNDERING AND THE FINANCING OF TERRORISM ;
TO IDENTIFY THE AUTHORITY WHICH WILL BE RESPONSIBLE FOR
MONITORING THE ACTIVITIES OF ALL INSTITUTIONS TO WHOM THIS ACT
APPLIES ; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH OR
INCIDENTAL THERETO
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Financial Transactions Short title.
Reporting Act, No. 6 of 2006.
PART I
DUTIES OF INSTITUTIONS
2. (1) No Institution shall open, operate or maintain an Identification
account, where the holder of such account cannot be essential to
conduct of
identified, including any anonymous account or any account
business of
identified by number only, or any account which to the Institution.
knowledge of the Institution is being operated in a fictitious
or false name.
(2) An Institution shall, subject to any rules issued by the
Financial Intelligence Unit under subsection (3), identify
each customer and verify their customer identification data
or information relating to a customer as is reasonably capable
of identifying a customer on the basis of any official
document or other reliable and independent source document
verifying the identity of the customer, in cases where the
Institution—
(a) enters into a continuing business relationship, or in
the absence of such a relationship, conducts any
transaction, with any customer ;
2—PL 000861—5,600 (2005/12)
2 Financial Transactions Reporting
Act, No. 6 of 2006
(b) detects the carrying out of an electronic funds transfer
by a customer, other than any prescribed
transactions;
(c) entertains a suspicion relating to the commission of
an unlawful activity ; or
(d) entertains doubts about the veracity or adequacy of
the customer identification and verification
documentation or information it had previously
obtained.
(3) The Financial Intelligence Unit may issue rules
prescribing—
(a) the official or identifying document or documents,
or the reliable and independent source documents,
data or information or other evidence that is required
for identification or verification of any particular
customer or class of customers ;
(b) the timing of the identification and verification
requirements under this section ; and
(c) the threshold for, or the circumstances in which, the
provisions of this section shall apply to transactions
carried on by the customers of an Institution.
(4) The terms and conditions imposed by rules issued under
subsection (3) may vary in respect of different categories of
Institutions, different categories of transactions or different
categories of customers.
(5) The provisions of subsection (2) shall not apply—
(a) if the transaction is part of an existing and regular
business relationship with a person who has already
produced satisfactory evidence of identify unless
the Institution has reason to suspect that the
transaction is suspicious or unusual ;
Financial Transactions Reporting 3
Act, No. 6 of 2006
(b) if the transaction is an occasional transaction not
exceeding a prescribed sum unless the Institution
has reason to suspect that the transaction is
suspicious or unusual ;
(c) if any person has been a customer of the Institution
prior to the enactment of this Act, subject to a phase-
in period which shall not exceed three years :
Provided that by the end of such period each
Institution shall apply the provisions of subsection
(2) hereof to such persons subject to such regulations
as may be prescribed in that behalf ; and
(d) in such other circumstances as may be prescribed
by regulations made in that behalf.
(6) For the purpose of subsection (5), “occasional
transactions” means any transaction, in relation to cash and
electronic fund transfer, that is conducted by any person other
than through an account in respect of which the person is the
customer.
3. If satisfactory evidence of identity is not submitted to Procedure if
an Institution as required in terms of the provisions of section identity is not
satisfactorily
2, the Institution shall not proceed any further with the established.
transaction unless directed to do so by the Financial
Intelligence Unit established in terms of this Act, and shall
report the attempted transaction to the Financial Intelligence
Unit as a suspicious transaction under section 7.
4. (1) Every Institution shall be required to maintain — Institutions to
maintain and
(a) records of transactions and of correspondence retain records.
relating to transactions and records of all reports
furnished to the Financial Intelligence Unit for a
period of six years from the date of the transaction,
correspondence or the furnishing of the report, as
the case may be ; and
4 Financial Transactions Reporting
Act, No. 6 of 2006
(b) records of identity obtained in terms of section 2 for
a period of six years from the date of closure of the
account or cessation of the business relationship, as
the case may be,
unless directions have been issued by the Financial
Intelligence Unit that such records or correspondence should
be retained for a longer period, in which case the records or
correspondence should be retained for such longer period.
(2) Records required to be maintained under subsection
(1) shall contain particulars sufficient to identify the—
(a) name, address and occupation (or where appropriate
business or principal activity) of each person —
(i) conducting the transaction ; and
(ii) where applicable, on whose behalf the
transaction is being conducted ;
(b) nature and date of the transaction ;
(c) type and amount of currency involved ;
(d) parties to the transaction ;
(e) the name and address of the employee who prepares
the record ; and
(f) such other information as may be specified in rules
issued by the Financial Intelligence Unit.
(3) Where any record is required to be maintained under
this Act—
(a) it shall be maintained in a manner and form that will
enable an Institution to comply immediately with
requests for information from the Financial
Intelligence Unit or a law enforcement agency ; and
Financial Transactions Reporting 5
Act, No. 6 of 2006
(b) a copy of it may be kept—
(i) in a machine-readable form if a paper copy
can be readily produced from it ; or
(ii) in an electronic form, if a paper copy can be
readily produced from it and an electronic
signature of the person who keeps the records
is retained for purposes of verification.
(4) The records maintained under subsection (1) shall be
made available upon request to the Financial Intelligence
Unit for purposes of ensuring compliance with this Act.
5. An Institution shall— Institutions to
conduct ongoing
(a) conduct ongoing due diligence on the business due diligence and
scrutiny of
relationship with its customer ;
customers.
(b) conduct ongoing scrutiny of any transaction
undertaken throughout the course of the business
relationship with a customer to ensure that any
transaction that is being conducted is consistent
with the Institution’s knowledge of the customer,
the customer’s business and risk profile, including,
where necessary, the source of funds,
in order to ensure that its obligations under section 2 are
satisfied and that the transactions conducted are consistent
with the information that the Institution has of its customer
and the profile of the customer’s business.
6. An Institution shall report to the Financial Institution to
Intelligence Unit— report financial
transactions.
(a) any transaction of an amount in cash exceeding such
sum as shall be prescribed by the Minister by Order
published in the Gazette, or its equivalent in any
foreign currency (unless the recipient and the sender
is a bank licensed by the Central Bank) ; and
6 Financial Transactions Reporting
Act, No. 6 of 2006
(b) any electronic funds transfer at the request of a
customer exceeding such sum as shall be prescribed
by regulation,
in such form, manner, and within such period as may be
prescribed by rules issued by the Financial Intelligence Unit.
Duty to disclose 7. (1) Where an Institution—
information
relating to (a) has reasonable grounds to suspect that any
property of transaction or attempted transaction may be related
terrorist groups or
to the commission of any unlawful activity or any
property used for
commission of other criminal offence ; or
offence under this
Act. (b) has information that it suspects may be relevant—
(i) to an act preparatory to an offence under the
provisions of the Convention on the
Suppression of Financing of Terrorism Act,
No. 25 of 2005 ;
(ii) to an investigation or prosecution of a person
or persons for an act constituting an unlawful
activity, or may otherwise be of assistance in
the enforcement of the Money Laundering
Act, No. 5 of 2006 and the Convention on the
Suppression of Terrorist Financing Act, No.
25 of 2005,
the Institution shall, as soon as practicable, after forming that
suspicion or receiving the information, but no later than two
working days therefrom, report the transaction or attempted
transaction or the information to the Financial Intelligence
Unit.
(2) A report under subsection (1) shall—
(a) be in writing and may be given by way of mail,
telephone to be followed up in writing within
twenty-four hours, fax or electronic mail or such
other manner as may be determined by the Financial
Intelligence Unit ;
Financial Transactions Reporting 7
Act, No. 6 of 2006
(b) be in such form and contain such details as may be
prescribed by the Financial Intelligence Unit ;
(c) contain a statement of the grounds on which the
Institution holds the suspicion ;
(d) be signed or otherwise authenticated by the
Institution.
(3) A person who has made a report or has given any
information to the Financial Intelligence Unit shall provide
to the Financial Intelligence Unit any further information
that it has about the transaction or attempted transaction or
the parties to the transaction if requested to do so by the
Financial Intelligence Unit.
8. Every Institution shall, in relation to any person Disclosure to
conducting transactions with such institution, forthwith Financial
disclose to the Financial Intelligence Unit— Intelligence Unit.
(a) the existence of any property in its possession or
control, which to its knowledge is, or which it
reasonably suspects is, property derived from the
commission of any terrorist activity in terms of any
law for the time being in force ;
(b) the existence of any property in his or her
possession or control, owned or controlled by or on
behalf of a specified entity or for which there are
reasonable grounds for suspicion that it is owned or
controlled by or on behalf of a specified entity ;
(c) any information regarding a transaction or proposed
transaction in respect of property derived from the
commission of any terrorist activity in terms of any
law for the time being in force ; or
(d) any information regarding a transaction or proposed
transaction and there are reasonable grounds for
suspicion that such transaction may involve
property derived from the commission of any
terrorist activity in terms of any law for the time
being in force.
8 Financial Transactions Reporting
Act, No. 6 of 2006
PART II
PROVISIONSAPPLICABLE TO INSTITUTIONS AND OTHER PERSONS
Duty not to 9. (1) A person shall not disclose to any other person—
divulge
information.
(a) that a report has been made or information provided
to the Financial Intelligence Unit in terms of any
provisions of this Act ;
(b) that any suspicion in relation to a transaction has
been formed as referred to in section 7 ; or
(c) any other information from which the person to
whom the information is disclosed could reasonably
be expected to infer that a suspicion has been formed
or that a report has been or may be made.
(2) The provisions of subsection (1) shall not apply to
disclosures made to—
(a) an officer or employee or agent of the person making
the report under this Act for any purpose connected
with the performance of that person’s duties ;
(b) a lawyer, attorney or legal advisor for the purpose of
obtaining legel advice or representation in relation
to any matter ; or
(c) the supervisory authority of the relevant Institution,
in so far as it is related to the discharge of the
functions of the supervisory authority.
(3) No person referred to in paragraph (b) of subsection (2)
to whom any disclosure of information has been made, shall
disclose that information other than to a person referred to
therein, in so far as it is necessary for—
(a) the performance of the first-mentioned person’s
duties ; or
Financial Transactions Reporting 9
Act, No. 6 of 2006
(b) obtaining legal advice or representation in relation
to the matter.
(4) No person referred to in paragraph (c) of subsection 2
to whom the disclosure of any information has been made
shall disclose that information except for the purpose referred
to in that subsection, or for the purpose of obtaining legal
advice or making representation in relation to the matter to
the Financial Intelligence Unit.
10. (1) A person shall not disclose any information that When disclosure
will identify or is likely to identify — of information is
permitted.
(a) the person who has handled a transaction in respect
of which a suspicious transaction report under this
Act has been made ;
(b) the person who has prepared such a suspicious
transaction report ;
(c) the person who has reported such a suspicious
transaction ; or
(d) the information contained in a suspicious
transaction report or information provided pursuant
to section 7,
other than for the purpose of—
(i) the investigation or prosecution of a person or
persons for an unlawful activity, or an offence under
the Prevention of Money Laundering Act, No. 5 of
2006 or the Convention on the Suppression of
Terrorist Financing Act, No. 25 of 2005,
respectively; or
(ii) the enforcement or implementation of the provisions
of the Prevention of Money Laundering Act, No. 5
of 2006 and the Convention on the Suppression of
Terrorist Financing Act, No. 25 of 2005.
10 Financial Transactions Reporting
Act, No. 6 of 2006
(2) Nothing in this section shall be deemed to prohibit the
disclosure of any information for the purposes of the
prosecution of any person for the violation of the provisions
of section 7.
Disclosure not to 11. Subject to the provisions of this Act and any other
be prevented. written law for the time being in force prohibiting such
disclosure, nothing contained in section 9 or 10 shall prevent
the disclosure of any information in connection with, or in
the course of, proceedings before a Court and no person shall
be required to disclose any information to which this section
applies in any judicial proceeding unless the judge or other
presiding officer is satisfied that the disclosure of the
information is necessary in the interests of justice.
Protection of 12. (1) No civil, criminal or disciplinary proceedings
persons reporting shall lie against —
suspicious
transactions.
(a) a such Institution, an auditor or supervisory authority
of an Institution ; or
(b) a director, partner, an officer, employee or agent
acting in the course of that person’s employment or
agency of an Institution, firm of Auditors or of a
supervisory authority,
in relation to any action by the Institution, the firm of auditors
or the supervisory authority or a director, partner, officer,
employee or agent of such Institution, firm or authority, carried
out in terms of this Act in good faith or in compliance with
regulations made under this Act or rules or directions given
by the Financial Intelligence Unit in terms of this Act.
(2) The provisions of subsection (1) shall not apply in
respect of any proceedings for an offence described in section
8 of this Act.
(3) If an Institution, firm of auditors or supervisory
authority or any director, partner, officer, employee or agent,
of any Institution, firm or authority or makes a report under
Financial Transactions Reporting 11
Act, No. 6 of 2006
the provisions of this Act, such person shall for the purposes
of a prosecution for the offence of money laundering, be
deemed not to have been in possession of that information at
any time.
13. (1) Nothing contained in sections 4, 5, 6, 7 or 8 of Privileged
this Act shall be construed as requiring a lawyer to disclose Communication.
any privileged communication only if —
(2) (a) it is a confidential communication, whether oral
or in writing, passing between —
(i) a lawyer or legal advisor in his or her
professional capacity and another barrister,
solicitor, lawyer, attorney or legal advisor in
such capacity ; or
(ii) a lawyer or legal advisor in his or her
professional capacity and his or her client,
whether made directly or indirectly through
an agent of either ; and
(b) it is made or brought into existence for the purpose
of obtaining or giving legal advice or assistance ;
and
(c) it is not made or brought into existence for the
purpose of committing or furthering the commission
of some illegal or unlawful act.
(3) Where the information consists wholly or partly of, or
relates wholly or partly to receipts, payments, income,
expenditure, or financial transactions of a person (whether a
lawyer his or her client, or any other person), it shall not be a
privileged communication if it is contained in, or comprises
the whole or part of any book, account, statement or other
record prepared or kept by the lawyer in connection with a
trust account of the lawyer.
12 Financial Transactions Reporting
Act, No. 6 of 2006
Appointment of 14. (1) Every Institution shall be required to—
Compliance
Officer.
(a) appoint a Compliance Officer who shall be
responsible for ensuring the Institution’s compliance
with the requirements of this Act ;
(b) establish and maintain procedures and systems to—
(i) implement the customer identification
requirements under section 2 ;
(ii) implement procedures for the record keeping
and retention requirements under section 4 ;
(iii) implement the process of monitoring required
under section 5 ;
(iv) implement the reporting requirements under
sections 6, 7, 8 and section 22 in relation to
auditors ;
(v) make its officers and employees aware of the
laws relating to money laundering and
financing of terrorism ; and
(vi) screen all persons before hiring them as
employees ;
(c) establish an audit function to test its procedures
and systems for the compliance with the provisions
of this Act ;
(d) train its officers, employees and agents to recognize
suspicious transaction.
(2) The provisions of subsection (1) shall not apply to
an individual who, in the course of carrying on his her
business, does not employ or act in association with any
other person.
Financial Transactions Reporting 13
Act, No. 6 of 2006
(3) An Institution shall ensure that its foreign branches
and subsidiaries adopt and observe measures consistent with
Parts I, II and III of this Act to the extent that local laws and
regulations permit and where the foreign branch or subsidiary
is unable to adopt and observe such measures, to report the
matter to the relvant supervisory authority or in the absence
of a supervisory authority to the Financial Intelligence
Unit.
PART III
POWERS AND FUNCTIONS OF THE FINANCIAL INTELLIGENCE UNIT
15. (1) The Financial Intelligence Unit— Functions of the
Financial
Intelligence Unit.
(a) shall receive reports made in terms of the provisions
of this Act and information provided to the Financial
Intelligence Unit by any agency of another country,
information provided to the Financial Intelligence
Unit by a law enforcement agency or a government
institution or agency, and other information
voluntarily provided to the Financial Intelligence
Unit about suspicions of an act constituting an
unlawful activity ;
(b) shall collect or require the supervisory authority of
a financial institution to collect any information
that the Financial Intelligence Unit considers
relevant to an act constituting an unlawful activity,
or an offence of money laundering or financing of
terrorism, or a terrorist activity whether or not
publicly available, including commercially
available databases, or information that is collected
or maintained, including information that is stored,
in databases maintained by the Government ;
(c) may request information from any Government
agency, law enforcement agency and supervisory
agency for the purposes of this Act ;
14 Financial Transactions Reporting
Act, No. 6 of 2006
(d) may analyze and assess all reports and
information ;
(e) shall carry out examinations of all Institutions as
set out in section 18 ;
(f) shall refer any matter or any information derived
from any report or information it receives to the
appropriate law enforcement agency if, on the basis
of its analysis and assessment, the Financial
Intelligence Unit has reasonable grounds to suspect
that the transaction would be relevant to the
investigation or prosecution under this Act or of an
act constituting an unlawful activity, and in
connection therewith, the Financial Intelligence
Unit may send a copy of such referral or information
to the relevant supervisory authority ;
(g) shall destroy a suspicious transaction report on the
expiry of six years from the date of receipt or
collection of the report, if there has been no further
activity or information relating to the report, or the
person named in the report, or six years from the
date of the last activity relating to the person or
report ;
(h) shall instruct or require the supervisory authority of
an Institution to take such steps as may be
appropriate in relation to any information or report
received by the Financial Intelligence Unit, to
enforce compliance with this Act or to facilitate any
investigation anticipated by the Financial
Intelligence Unit or a law enforcement agency ;
(i) shall compile statistics and records, and may
disseminate information within Sri Lanka or
elsewhere, and make recommendations arising out
of any information received ;
Financial Transactions Reporting 15
Act, No. 6 of 2006
(j) shall issue or have the supervisory authority of an
Institution issue, rules and guidelines to Institutions
in relation to customer identification, record
keeping, reporting obligations, the identification
of suspicious transactions and such other matters in
respect of which the Financial Intelligence Unit
has been vested with the power to issue rules or
guidelines by this Act ;
(k) shall periodically report to all Institutions and other
relevant agencies regarding the outcome from reports
or information given under the Act ;
(l) may obtain further information on parties or
transactions referred to in a report made to it under
this Act ;
(m) may conduct training programs for Institutions in
relation to customer identification, record keeping
and reporting obligations and the identification of
suspicious transactions ;
(n) may undertake due diligence checks and other
inquiries as may be necessary for performance of its
duties and functions under this Act ;
(o) may conduct research into trends and developments
in the area of money laundering and the financing
of terrorism and improved ways of detecting,
preventing and deterring money laundering and the
financing of terrorism ;
(p) may educate the public and create awareness on
matters relating to money laundering and the
financing of terrorism ;
(q) may disclose as set out in section 16 and 17,any
report, any information derived from such report or
any other information it receives, to an institution
16 Financial Transactions Reporting
Act, No. 6 of 2006
or agency of a foreign state or of an international
organization established by the governments of
foreign states that has powers and duties similar to
those of the Financial Intelligence Unit, if on the
basis of its analysis or assessment the Financial
Intelligence Unit has reasonable grounds to suspect
that the information would be relevant to the
investigation or prosection of any act constituting
an unlawful activity, a money laundering offence or
a offence of financing of terrorism ; and
(r) may enter into any agreement or arrangement with
any domestic government institution or agency
regarding the exchange of information.
(2) Where the Financial Intelligence Unit has reasonable
grounds to suspect that a transaction or attempted transaction
may —
(a) involve the proceeds which are attributable to any
unlawful activity ; or
(b) be connected to the commission of the money
laundering offence under the Money Launderng Act,
No. 5 of 2006 ; or
(c) be preparatory to the commission of an offence under
the Convention on the Suppression of Terrorist
Financing Act, No. 25 of 2005,
it may direct the Institution in writing or by telephone to be
confirmed in writing within twenty-four hours, not to proceed
with the carrying out of that transaction or attempted
transaction or any other transaction in respect of the funds
affected by that transaction or attempted transaction for a
period to be determined by the Financial Intelligence Unit,
which may not be more than seven days, in order to allow the
Financial Intelligence Unit —
(i) to make any necessary inquiries concerning the
transaction or attempted transaction ; and
Financial Transactions Reporting 17
Act, No. 6 of 2006
(ii) if the Financial Intelligence Unit deems it
appropriate, to consult or advise the relevant law
enforcement agency in the inquiries.
(3) The Financial Intelligence Unit may make an ex -parte
application to the High Court of the Western Province, holden
in Colombo, for an extension of the period of time stipulated
in subsection (2) setting out the grounds for such application.
16. The Financial Intelligence Unit may disclose any Disclosure to
report or information to an institution or agency of a foreign foreign institutions
and agencies.
state or of an international organization or body or other
institution or agency established by the Government of a
foreign State that has powers and duties similar to those of
the Financial Intelligence Unit on such terms and conditions
as are set out in the agreement or arrangement between
Financial Intelligence Unit and an institution, agency or
organization or authority regarding the exchange of such
information under section 17.
17. (1) The Financial Intelligence Unit may, with the Agreements and
approval of the Minister, enter into an agreement or arrangements by
the Financial
arrangement, in writing, with—
Intelligence Unit.
(a) an institution or agency of a foreign State or foreign
States or an international organization established
by the Governments of a foreign State that has
powers and duties similar to those of the Financial
Intelligence Unit ; and
(b) a foreign law enforcement agency or a foreign
supervisory authority,
regarding the exchange of information between the Financial
Intelligence Unit and the institution, authority or agency.
(2) The information exchanged under subsection (1) shall
be information that the Financial Intelligence Unit, the
Institution or agency has reasonable grounds to suspect would
18 Financial Transactions Reporting
Act, No. 6 of 2006
be relevant to the investigation or prosecution of an offence
constituting an unlawful activity or an offence that is
substantially similar to such an offence.
(3) Agreements or arrangements entered into under
subsection (1) shall include the following :—
(a) restrictions on the use of information to purposes
relevant to investigating or prosecuting any act
constituting an unlawful activity or an offence that
is substantially similar to such offence ;and
(b) the stipulation that the information be treated in a
confidential manner and not be further disclosed
without the express consent of the Financial
Intelligence Unit.
Power of Unit to 18. (1) Subject to the requirements of paragraph (e) of
examine books, subsection (1) of section 15, the Financial Intelligence Unit
records &c.,
or any person authorised by it in that behalf may examine the
records and inquire into the business and affairs of an
Institution for the purpose of ensuring compliance with the
Act or any directions, orders, rules or regulations issued under
the Act, and for that purpose may—
(a) at any reasonable time, enter any premises, in which
the Financial Intelligence Unit or authorised person
believes, on reasonable grounds, that there are
records relevant to ensuring compliance with the
provisions of Parts I, II and III of this Act ;
(b) use or cause to be used any computer system or data
processing system found in the premises, to examine
any data contained in or available to the system ;
(c) reproduce any record, or cause it to be reproduced
from the data, in the form of a printout or other
intelligible output and remove the printout or the
output for examination or copying ; and
Financial Transactions Reporting 19
Act, No. 6 of 2006
(d) use or cause to be used any copying equipment in
the premises to make copies of any record.
(2) The owner or person responsible for the premises
referred to in subsection (1) and every person found thereon
shall give the Financial Intelligence Unit or any authorized
person all reasonable assistance to enable them to carry out
their responsibilities and shall furnish them with any
information that they may reasonably require with respect to
the administration of Parts, I, II and III of this Act or the
regulations made under the Act.
(3) The Financial Intelligence Unit may transmit any
information from, or derived from, such examination to the
appropriate domestic or foreign law enforcement authorities
or supervisory authorities, if the Financial Intelligence Unit
has reasonable grounds to suspect that the information is
suspicious or is relevent to an investigation for non-
compliance with this Act, or amounts to an offence
constituting an unlawful activity.
19. (1) A person required to conform to the requirements Imposition of
prescribed by or under Parts I and II of this Act, who fails to so penalty to enforce
compliance.
conform, shall be liable to a penalty as may be prescribed
taking into consideration the nature and gravity of relevant
non-compliance : Provided however such penalty shall not
exceed a sum of rupees one million in any given case. Where
a person who has been subjected to a penalty on a previous
occasion, subsequently fails to conform to a requirement on
any further occasion such person shall be liable to the
payment of an additional penalty in a sum consisting of double
the amount imposed as a penalty on the first occasion and for
each non- compliance after such first occasion.
(2) The Financial Intelligence Unit shall be responsible
for the collection of a penalty imposed by this section and
the money so collected shall be credited to the Consolidated
Fund.
20 Financial Transactions Reporting
Act, No. 6 of 2006
(3) If a person who becomes liable to a penalty in terms of
subsection (1) fails to pay such penalty, the Unit may make
an ex- parte application to the High Court of the Western
Province holden in Colombo for an Order requiring the
payment of the penalty and upon such order being made
such amount shall be recoverable in the same manner as a
fine imposed by Court.
(4) The imposition of a penalty under this section shall
not preclude a supervisory authority or a regulatory or self
regulatory authority of an Institution from taking any
regulatory or disciplinary measures including, but not limited
to, the suspension of such Institution from the carrying on of
a business or profession or the cancellation of a licence or
authority granted for the carrying on of a business or
profession, as may be permitted in terms of any applicable
written law or rules for the regulation or supervision of such
Institution.
(5) Where a penalty is imposed under this section on a
body of persons, then-
(a) if that body of person is a body corporate, every
person who at the time of the imposition of the
requirements under subsection (1) was a Director,
General Manager, Secretary or other similar officer
of that body ; or
(b) if that body is not a body corporate, every person
who at the time of the imposition of such
requirements was the President, Manager, Secretary,
partner or other similar officer of that body,
shall be liable to pay such penalty, unless he proves that he
had no knowledge of the failure to comply with the
requirement or that he exercised all due diligence to ensure
compliance therewith.
(6) Without prejudice to the provisions of subsection (1),
the Financial Intelligence Unit may issue a directive to any
Financial Transactions Reporting 21
Act, No. 6 of 2006
Financial Institution that has without reasonable cause failed
to comply in whole or in part with any obligations in Parts I,
II or III of this Act requiring such Institution to implement a
action plan specified in such directive to ensure compliance
with its obligations under the said Parts.
(7) Where an Institution fails to comply with a directive
issued under subsection (6), the Financial Intelligence Unit
may, upon application to the High Court of the Western
Province, holden in Colombo and upon satisfying the Court
that an Institution has failed without reasonable excuse to
comply in whole or in part with the directive issued by it
under subsection (6), obtain an order against the Institution
and any or all of the officers or employees of that Institution
in such terms as the Court deems necessary to enforce
compliance with such obligation.
20. (1) The provisions of this section shall be applicable Non-disclosure of
in relation to any person who is, or who has been, a Director, information in
certain case.
officer, employee or agent of the Financial Intelligence Unit.
(2) Except for the purpose of the performance of his or her
duties or the exercise of his or her functions under this Act, or
when lawfully required to do so by any court, the person
referred to in subsection (1) shall not disclose any information
or matter which has been obtained by him or her in the
performance of his or her duties or the exercise of his or her
functions under this Act or which he or she has knowledge
except for one or more of the following purposes :—-
(a) for securing compliance with, or detecting evasion
of, any requirement contained in any provision of
this Act or any other written law relating thereto ;
(b) the implementation of the Prevention of Money
Laundering Act, No. 5 of 2006 and the Convention
on the Suppression of Terrorist Financing Act, No.
25 of 2005 ; or
(c) the purposes of section 50A of the Exchange
Control Act (Chapter 423).
22 Financial Transactions Reporting
Act, No. 6 of 2006
Protection from 21. Any employee of the Financial Intelligence Unit or
liability. any authorised officer, agent or person appointed by the
Financial Intelligence Unit for the performance of its statutory
functions shall not be liable for damages for any lawful act or
omission which has occurred in the discharge or purported
discharge of any of its statutory functions under this Act
unless it is shown that the act or omission was done in bad
faith.
PART IV
FUNCTIONS OF SUPERVISORYAUTHORITY OF AN INSTITUTION AND
AUDITORS
Functions of 22. (1) Where a supervisory authority or an auditor of an
supervisory Institution has reasonable grounds to suspect that information
authority or
that it has concerning any transaction or attempted transaction
auditor under this
Act. may, be —
(a) relevent to an investigation or prosecution of a
person or persons for any unlawful activity ;
(b) of assistance in the enforcement of the provisions
of the Prevention of Money Laundering Act, No. 5
of 2006 and the Convention on the Suppression of
Terrorist Financing Act, No. 25 of 2005 ;
(c) related to the commission of any offence constituting
an unlawful act ; or
(d) preparatory to the offence of the financing of
terrorism,
the supervisory authority or the auditor of the Institution
shall report the transaction or attempted transaction to the
Financial Intelligence Unit.
(2) The supervisory authority shall at the request of the
Financial Intelligence Unit carry out any examination into
any transaction or other matter relating to the Institution and
report on such examination to the Financial Intelligence
Unit.
Financial Transactions Reporting 23
Act, No. 6 of 2006
(3) The Financial Intelligence Unit shall consult the
supervisory authority in respect of the issue of guidelines,
directions or regulations to an Institution which is regulated
by such supervisory authority and shall furnish to the
supervisory authority copies of all guidelines, regulation or
directions issued to such Institution.
23. The relevant supervisory authority of an Institution Supervisory
shall— authority to ensure
compliance by all
Institutions.
(a) verify through regular examinations whether that
an Institution is complying with provisions of the
Act and shall report any non-compliance to the
Financial Intelligence Unit ;
(b) co-operate with law enforcement agencies and the
Financial Intelligence Unit in any investigation,
prosecution or proceedings relating to any offence
constituting an unlawful activity.
PART V
CURRENCY REPORTING AT THE BORDER
24. (1) Where a person — Currency
reporting at
(a) is about to leave Sri Lanka or has arrived in Sri border.
Lanka ; or
(b) is about to board or leave, or has boarded or left, any
ship or aircraft ,
an authorised officer may, with such assistance as is reasonable
and necessary, and with use of force as is necessary,
(i) examine any article which a person has with him or
her or in his or her luggage ; and
(ii) if the officer has reasonable grounds to suspect that
an offence under section 27 of this Act may have
been or is being committed, search the person ;
24 Financial Transactions Reporting
Act, No. 6 of 2006
for the purpose of determining whether the person has in his
or her possession, any cash or negotiable bearer instruments
in respect of which a report under subsection 5 is required.
(2) A person shall not be searched except by a person of
the same sex.
(3) An authorised officer, and any person assisting such
officer may stop, board and search any ship, aircraft or
conveyance for the purposes of exercising the powers
conferred by subsections (1) or (2) of this section.
(4) Where an authorised officer has reasonable grounds to
believe that cash or negotiable bearer instruments found in
the course of an examination or search, conducted under
subsections (1) or (2) above, may afford evidence as to the
commission of an unlawful activity, the officer may seize the
cash or negotiable bearer instruments, within twenty-four
hours of such seizure.
(5) An authorised officer who has seized cash and
negotiable bearer instrument under subsection (4) shall report
such seizure to the Unit.
Seizure or 25. An authorised officer may seize and, in accordance
detention of cash with the provisions of this part detain, any cash or negotiable
&c,.
bearer instruments which is being imported into, or exported
from Sri Lanka in any form or manner if he or she has
reasonable grounds for suspecting that it is —
(a) derived from the commission of any unlawful
activity ; or
(b) intended by any person for use in the commission
of an unlawful activity ;
(c) intended to be used for or in connection with an
offence connected with the financing of terrorism
in term of the Convention on the Suppresion of
Terrorist Financing Act, No. 25 of 2005.
Financial Transactions Reporting 25
Act, No. 6 of 2006
26. (1) Cash and negotiable bearer instruments seized Procedure on
under subsection (4) of section 24 or section 25 shall not be seizure of cash
detained for more than five working days after seizure, unless &c,.
the High Court for the Western Province holden in Colombo,
on application made to it, grants an Order of continued
detention for a period not exceeding three months from the
date of seizure, upon being satisfied that —
(a) there are reasonable grounds to suspect that it was
derived from the commission of any unlawful
activity or is intended by any person for use in the
commission of an offence or in connection with an
offence connected with the financing of terrorism
under the Convention on the Suppresion of Terrorist
Financing Act, No. 25 of 2005 ; and
(b) its continued detention is justified while its origin
or derivation is further investigated.
(2) The Court may subsequently Order, after hearing, with
notice to parties it determines are relevant, the continued
detention of the cash and negotiable bearer instruments if
satisfied of the matters mentioned in subsection (1) but the
total period of detention shall not exceed two years from the
date of the Order.
(3) Subject to subsection (4), cash and negotiable bearer
instruments detained under this section shall be released in
whole or in part to the person from whom it was seized or to
any person establishing a claim thereto-
(a) by Order of a Court that its continued detention is
no longer justified and upon application by or on
behalf of that person ;
(b) by an authorized officer, if satisfied that its
continued detention is no longer jusitified.
(4) No cash or negotiable bearer instruments detained
under this section shall be released where it is relevant to an
investigation, prosecution or proceeding under Prevention
of Money Laundering Act, No. 5 of 2006 or the Convention
on the Suppression of Terrorist Financing Act, No. 25 of 2005.
26 Financial Transactions Reporting
Act, No. 6 of 2006
(5) Where the cash or negotiable bearer instruments have
not been claimed by any person within one year of it being
seized or detained, an authorised officer may make an
application to the Court that such cash or negotiable
instrument or its equivalent in Sri Lanka rupees upon sale to
the Central Bank, as the case may be, be forfeited to the
Consolidated Fund.
PART VI
OFFENCES AND LIABILITIES
Offences. 27. Any person who leaves or arrives in Sri Lanka with
more than the prescribed sum in cash or negotiable bearer
instruments on his or her person or in his or her luggage
without first having reported the fact to the relevant authority
is guilty of an offence and shall be punishable on conviction
with a fine not exceeding one hundred thousand rupees or
imprisonment of either description for a term not exceeding
one year, or to both such fine and imprisonment.
Giving false 28. (1) A person who in making a report under sections
information an 6, 7, 8 or subsection (1) of section 22 makes any statement
offence.
that the person knows is false or misleading in a material
particular or omits from any statement any matter or thing
without which the person knows that the statement is false or
misleading in a material particular is guilty of an offence
punishable on conviction to a fine not exceeding one hundred
thousand rupees or imprisonment of either description for a
term not exceeding one year, or to both such fine and
imprisonment.
(2) If a person contravenes subsection (1) of section 9 or
subsection (1) of section 10 with intent to prejudice an
investigation of an offence constituting an unlawful activity
or an offence of money laundering or financing of terrorism
or for the purpose of obtaining directly or indirectly an
advantage or a pecuniary gain for himself or herself or any
other person, or for the purpose of causing any loss or
Financial Transactions Reporting 27
Act, No. 6 of 2006
disadvantage to any other person, the person is guilty of an
offence punishable on conviction to a fine not exceeding
five hundred thousand rupees or imprisonment of either
description for a term not exceeding two years, or to both
such fine and imprisonment.
(3) If a person wilfully obstructs or hinders or fails to co-
operate with the Financial Intelligence Unit or any authorized
person in the lawful exercise of the powers under subsection
(1) of section 18 or any person who does not comply with
subsection (2) of section 18 is guilty of an offence and shall
be punishable on conviction to a fine not exceeding five
hundred thousand rupees or imprisonment of either
description for a term not exceeding two years, or to both
such fine and imprisonment.
(4) If a person forges, conceals or does any other act to
affect the authenticity or integrity of any document or
material knowing or having reason to believe that such
document or material is relevent to an investigation into an
offence under the Prevention of Money Laundering Act,
No. 5 of 2006 or the Convention for the Suppression of
Financing of Terrorism Act, No. 25 of 2005 is guilty of an
offence punishable on conviction to a fine not exceeding
one hundred thousand rupees or imprisonnment of either
description for a term not exceeding one year, or to both
such fine and imprisonment.
(5) If any person destroys or otherwise disposes of any
document or material which such person knows or has reason
to believe is relevent to an investigation under the Prevention
of Money Laundering Act, No. 5 of 2006 or the Convention
for the Suppression of Financing of Terrorism Act, No. 25 of
2005, is guilty of an offence punishable on conviction to a
fine not exceeding one hundred thousand rupees or
imprisonment of either description for a term not exceeding
one year, or to both such fine and imprisonment.
(6) A person who opens, operates or authorizes the opening
or the operation of an account with an Institution in a fictitious
or false name is guilty of an offence and shall be punishable
on conviction to a fine not exceeding one hundred thousand
rupees or imprisonment of either description for a term not
exceeding one year, or to both such fine and imprisonment.
28 Financial Transactions Reporting
Act, No. 6 of 2006
PART VII
MISCELLANEOUS
Regulations. 29. (1) The Minister may make regulations under this
Act for any matter authorized or required to be made under
this Act, or for the purpose of carrying out or giving effect to
the principles and provisions of this Act.
(2) Without prejudice to the generality of the provisions
of subsection (1) regulations may be made in respect of all or
any of the following maters :—
(a) the identification of appropriate risk management
systems in keeping with the recommendations of
the Financial Action Task Force ;
(b) the manner in which ongoing monitoring of business
relationships is to be carried out by Institutions ;
and
(c) specifying for the purpose of the application of the
Financial Action Task Force recommendations
relating to risk management-
(i) the procedure to be followed and the
guidelines that will be applicable in the
categorization of customers for the purposes
of risk management ;
(ii) the manner in which senior management
approval is to be obtained prior to establishing
business relationships with customers
categorized as high risk customers ;
(3) Every regulation made by the Minister shall be
published in the Gazette and shall come into operation on
the date of such publication or on such later date as may be
specified in the regulation.
Financial Transactions Reporting 29
Act, No. 6 of 2006
(4) Every regulation made by the Minister shall as soon as
convenient after its publication in the Gazette be brought
before Parliament for its approval. Any regulation, which is
not so approved, shall be deemed to be resinded as from the
date of disapproval but without prejudice to anything
previously done thereunder.
(5) Notification of the date on which a regulation is deemed
to be rescinded shall be published in the Gazette.
30. (1) This Act shall apply only in relation to the Application of Act.
transactions of all Institutions to which the provisions of
this Act applies, which have taken place after the coming
into operation of this Act.
(2) All persons to whom this Act applies shall be required
to comply with the provisions of this Act, notwithstanding
anything to the contrary contained in any other written law
for the time being in force.
(3) The provisions of this Act shall prevail over any other
law for the time being in force in relation to the matters set
out herein.
31. An Institution shall comply with the requirements Institutions have
of this Act notwithstanding any obligation as to secrecy or duty to comply
with the provisions
other restriction on the disclosure of information imposed by
of this Act.
any written law or otherwise.
32. 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.
33. In this Act, unless the context otherwise requires — Interpretation.
“account” means any facility or arrangement by which an
Institution does any of the following :—
(a) accepts deposits of currency ;
30 Financial Transactions Reporting
Act, No. 6 of 2006
(b) allows withdrawals of currency ; or
(c) pays cheques or payment orders drawn on the
Institution, or collects cheques or payment
orders on behalf of a person other than the
Financial Institution,
and includes any facility or arrangement for a safety
deposit box of for any other form of safe deposit;
“authorised officer” means —
(a) a Police Officer above the rank of an Assistant
Superintendent of Police or ;
(b) a Customs Officer above the rank of
Superintendent of Customs ;
“cash” means any coin or paper money that is designated
as legal tender in the country of issue and includes
bearer bonds, travellers’ cheques, postal notes and
money orders ;
“currency” means the currency of Sri Lanka or that of a
foreign country that is designated as legal tender
and which is customarily used and accepted as a
medium of exchange in the country of issue ;
“customer” in relation to a transaction or an account
includes —
(a) the person in whose name a transaction or
account is arranged, opened or undertaken ;
(b) a signatory to a transaction or account ;
(c) any person to whom a transaction has been
assigned or transferred ;
(d) any person who is authorised to conduct a
transaction ; or
(e) such other person as may be prescribed.
Financial Transactions Reporting 31
Act, No. 6 of 2006
“designated non-finance business” includes—
(a) individual and collective portfolio
management ;
(b) investing, administering or managing funds
or money on behalf of other persons ;
(c) safekeeping and administration of cash or
liquid securities of behalf of other persons ;
(d) safe custody services ;
(e) underwriting and placement of insurance, as
well as insurance intermediation by agents
and brokers ;
(f) trustee administration or investment
management or a superannuation scheme ;
(g) casinos, gambling houses or conducting of a
lottery, including a person who carries on
such a business through the internet when
their customers engage in financial
transactions equal to or above the prescribed
threshold ;
(h) real estate agents, when they are involved in
transactions for their clients in relation to the
buying and selling of real estate ;
(i) dealers in precious metals and dealers in
precious and semi-precious stones, including
but not limited to, metals and stones covered
by the Gem and Jewellery Act, No. 50 of
1993 when they engage in cash transactions
with a customer, equal to or above the
prescribed threshold ;
32 Financial Transactions Reporting
Act, No. 6 of 2006
(j) lawyers, notaries, other independent legal
professionals and accountants when they
prepare for or carry out transactions for their
clients in relation to any of the following
activities :—
(i) buying and selling of real estate ;
(ii) managing of client money, securities or
other assets ;
(iii) management of bank, savings or
securities accounts ;
(iv) organization of contributions for the
creation, operation or management of
companies ; and
(v) creation, operation or management of
legal person or arrangements and the
buying and selling of business entities;
(k) a trust or company service provider not
otherwise convered by this definition, which
as a business provides and one or more of the
following services to third parties :—
(i) formation or management of legal
persons ;
(ii) acting as or arranging for another person
to act as, a director or secretary of a
company, a partner or a partnership or a
similar position in relation to other legal
persons ;
(iii) providing a registered office, business
address or accommodation,
correspondence or administrative
address for a company, a partnership or
for any other legal person or
arrangement ;
Financial Transactions Reporting 33
Act, No. 6 of 2006
(iv) acting as or arranging for another person
to act as, a trustee of an express trust ;
(v) acting as or arranging for another person
to act as, a nominee shareholder for
another person ;
(l) offshore units in accordance with the
definitions provided for the same in other
written laws ; and
(m) such other business as may be prescribed from
time to time by the Minister taking into
consideration the interests of the national
economy.
“document” means any record of information, and
includes—
(a) anything on which there is writing ;
(b) anything on which there are marks, figures,
symbols, or perforations having meaning for
persons qualified to interpret them ;
(c) anything from which sounds, images or
writings can be produced, with or without the
aid of anything else;
(d) a map, plan, drawing, photograph or similar
thing ; and
(e) any of the above kept or maintained in
electronic form.
“finance business” includes any one of the following
businesses or activities :—
(a) banking business as defined in the Banking
Act, No. 30 of 1988 ;
34 Financial Transactions Reporting
Act, No. 6 of 2006
(b) finance business as defined in the Finance
Companies Act, No. 78 of 1988 (irrespective
of whether the person is licensed or registered
under the Act) ;
(c) lending, including consumer credit, mortgage
credit, factoring (with or without recourse) and
financing of commercial transactions ;
(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, travellers’ 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, certificates of deposit and
derivatives), foreign exchange, exchange,
interest rate and index instruments,
commodity futures trading and transferable
securities ;
(j) participating in securities issues and the
provision of financial services related to such
issues ; and
(k) such other business as may be prescribed from
time to time by the Minister taking into
consideration the interests of the national
economy.
Financial Transactions Reporting 35
Act, No. 6 of 2006
“Financial Intelligence Unit” means the government
department, public corporation, statutory body,
institution, or authority, or any department or unit
of such department, corporation, body, institution
or authority designated by the Minister by Order
published in the Gazette, which shall be charged
with the administration of the provisions of this
Act ; the Minister shall in making the Order take
into consideration the capacity of the Government
department, public corporation, statutory body, or
authority to be designated in relation to its functions
and manpower and its overall ability to act
efficiently in the discharge of the functions under
this Act ;
“Institution” means any person or body of persons
engaged in or carrying out any finance business or
designated non-finance business within the meaning
of this Act;
“money transmission services” means a person (other than
a bank licensed by the Central Bank) carrying on
the business of—
(a) exchanging cash or the value of money ;
(b) collecting, holding, exchanging or remitting
funds or the value of money, or otherwise
negotiating transfers of funds or the value of
money, on behalf of other persons ;
(c) delivering funds ; or
(d) issuing, selling or redeeming traveller’s
cheques, money orders of similar instruments;
“negotiable bearer instrument” means a document
representing ownership of debts or obligations,
including bills of exchange, promissory notes or
certificates of deposit, whether made payable to the
bearer or not ;
36 Financial Transactions Reporting
Act, No. 6 of 2006
“Offshore Unit” means a unit or department of a licensed
commercial bank or a licensed specialized bank
carrying on banking business, subject to the
provisions of Part IV of the Banking Act, No. 30 of
1988, dealing with Offshore Banking ;
“person” means any natural of legal person including a
body of persons, whether it has legal personality or
not and includes a branch of such person or body of
persons incorporated or established outside
Sri Lanka ;
“prescribed” means prescribed by regulations made under
this Act ;
“money laundering offence” means an offence as defined
in section 4 of the Prevention of Money Laundering
Act, No. 5 of 2006 ;
“offence of financing of terrorism” means an act
constituting an offence in terms of the Convention
on the Suppression of Terrorist Financing Act,
No. 25 of 2005 ;
“property” means any currency, and includes any asset of
any kind, whether corporeal or incorporeal, movable
or immovable, tangible or intangible whether
situated in Sri Lanka or elsewhere, and legal
documents or, instruments in any form whatsoever
including electronic or digital form, evidencing title
to, or interest in, such assets, including but not
limited to bank credits, travellers' cheques, bank
cheques, money orders, shares, securities, bonds,
drafts, letters of credit and includes any legal or
equitable interest in any such property ;
“record” means any material on which data is recorded or
marked and which is capable of being read or
understood by a person, computer system or other
device ;
Financial Transactions Reporting 37
Act, No. 6 of 2006
“suspicious transaction report” means a report required to
be made under section 6 ;
“specified entity” means —
(a) an entity that has knowingly —
(i) committed ;
(ii) attempted to commit ;
(iii) participated in committing ; or
(iv) facilitated the commission of,
any act connected with an act constituting an
offence in terms of any written law for the time
being in force in Sri Lanka relating to terrorism ;
or
(b) an entity prescribed by the Minister of
Foreign Affairs in terms of regulations made
under the United Nations Act, No. 45 of 1968;
“terrorist act” means an act constituting an offence in terms
of any written law for the time being in force in Sri
Lanka relating to terrorism ;
“terrorist property” means :
(a) proceeds from the commission of a terrorist
act ;
(b) property which has been, is being, or is likely
to be used to commit a terrorist act ;
(c) property which has been, is being, or is likely
to be used by a terrorist group ;
(d) property owned or contrrolled by or on behalf
of a terrorist group ; or
38 Financial Transactions Reporting
Act, No. 6 of 2006
(e) property which has been collected for the
purpose of providing support to a terrorist
group for funding a terrorist act ;
“transaction” means any activity connected with finance
business or designated non-finance business ;
“transaction” in relation to property includes—
(a) a purchase, sale, loan, charge, mortgage, lien,
pledge, transfer, delivery, assignment,
subrogation, transmission, gift, donation,
creation of a trust, settlement, deposit
including the deposit of any article,
withdrawal, transfer berween assets, extension
of credit ;
(b) any agency or grant of power of attorney ;
(c) any other disposition or dealing of property
in whatever form, or whatsoever description
or nature, howsoever described, which results
in any right, title, interest or privilege, whether
present or future, or whether vested or
contingent, in the whole or any part of such
property being conferred on any person ; and
“unlawful activity” means any act which constitutes an
offence under :—
(a) the Poisons, Opium and Dangerous Drugs
Ordinance (Chapter 218) ;
(b) any law or regulation for the time being in
force relating to the prevention and
suppression of terrorism ;
(c) the Bribery Act (Chapter 26) ;
(d) the Firearms Ordinance (Chapter 182), the
Explosives Ordinance (Chapter 183) or the
Offensive Weapons Act, No. 18 of 1966.
Financial Transactions Reporting 39
Act, No. 6 of 2006
(e) The Exchange Control Act (Chapter 423) ;
(f) an offence under section 83 C of the Banking
Act, No. 30 of 1988 ;
(g) any law for the time being in force relating to
transnational organised crime ;
(h) any law for the time being in force relating to
cyber crime ;
(i) any law for the time being in force relating to
offences against children ;
(j) any law for the time being in force relating to
offences connected with the trafficking of
persons ; and
(k) an offence under any other law for the time
being in force which is punishable by death
or with imprisonment for a term of seven years
or more.

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