PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKACONVENTION 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

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

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[Certified on 06th October, 2011]
L.D.—O. 8/2010.
AN ACT 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
Suppression of Terrorist Financing (Amendment) Act,
No. 41 of 2011.

Short title.

2. The following new section is hereby inserted
immediately after section 2 of the Convention on the
Suppression of Terrorist Financing Act, No. 25 of 2005
(hereinafter referred to as the “principal enactment”) andshall have effect as section 2A of that enactment:-

Insertion of new
section 2A in
Act, No. 25 of2005.

“Applicationof the Act.

2A. (1) The provisions of this Act shall apply
in relation to a person who being a citizen of
Sri Lanka or a person who not being a citizenof Sri Lanka, commits an offence under thisAct,(a) while present in Sri Lanka; or(b) outside Sri Lanka and such offence is anoffence under the law for the time being
in force, in the country in which suchoffence is committed.
(2) For the purpose of the implementationof the provisions of this Act, the expression“person” shall include a body of persons,whether corporate or unincorporated within or
outside Sri Lanka.”.

2
Amendment ofsection 3 of theprincipal
enactment.

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

3. Section 3 of the principal enactment is hereby
amended as follows:(1) by the repeal of subsection (1) thereof and thesubstitution 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 orserious 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 ofsuch act, by its nature or context is to
intimidate a population, or to compel agovernment or an internationalorganization, to do or to abstain fromdoing any act; or(c) any terrorist act,shall be guilty of the offence of financing of aterrorist act, a terrorist or terrorists, or a terrorist
organization:
Provided that, for an act to constitute theoffence set out above, it shall not be necessary
to show that the funds or property provided orcollected were actually used in the commissionof an offence.”;Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 20113(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 aterrorist organization”;(3) by the insertion immediately after subsection (2)thereof of the following new subsection :—“(2 A ) Any person who unlawfully andwilfully by any direct or indirect means provides
or conspires to provide, material support orresources to any terrorist or terrorists or a terrorist
organization shall be guilty of an offence under
this Act:
Provided however that, providing assistanceon 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
repealed and the following section is substituted
therefor :—“Freezing ofproperty &c.

4. (1) A police officer not below the rank ofan Assistant Superintendent of Police may,where there are reasonable grounds to believethat any person is involved in the commissionof any act which constitutes an offence under
section 3 of this Act and it is necessary forpreventing 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 orcollected in contravention of the provisions ofsection 3, any income or profit earned on suchfunds or property or any instrumentalities usedin the commission of such offence.

Replacement ofsection 4 of theprincipal
enactment.

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Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
(2) The Freezing Order obtained undersubsection (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 termsof section 3; and(b) on any other person or institution who
or which may be required to give effectto such Order.
(3) A Freezing Order issued undersubsection (1) shall, subject to the provisionsof section 4A, be in force for a period of sevendays of the making thereof.
(4) Any person who or institution whichuses such fund, property, income, profit or
instrumentality which is subject to a Freezing
Order, in contravention of such Freezing Orderissued on him or such institution, shall be
guilty of an offence and shall on conviction
after trial before the High Court be liable to afine not exceeding one hundred thousand
rupees or one and a half times the value of themoney in such funds, property, income, profit
or instrumentality which has been dealt within contravention of the Freezing Order,
whichever is higher or to imprisonment ofeither description for a period not exceeding
one year or to both such fine andimprisonment.”.

Insertion of new
sections 4A, 4B,
4 C , 4 D , 4 E , 4 F , 4 G,
4H and 4I in theprincipal
inactment.

5. The following new sections are hereby inserted
immediately after section 4 of the principal enactment andshall have effect as sections 4A, 4B, 4C, 4D, 4E, 4F, 4G, 4H and
4I of that enactment :—“Confirmationof Freezing
Order byCourt.

4 A . (1) The police officer issuing theFreezing Order in terms of section 4 shall,
within the seven days during which such Ordershall be in force, make an exparte application

Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 20115

to the High Court seeking confirmation of such
Freezing Order and also if the circumstances
so necessitate, request an extension to theoriginal 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 theapplication made for the extension thereof, forsuch periods as it considers necessary:
Provided that the maximum period of any
extension so granted shall not exceed threemonths 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 theFreezing Order by the police officer:
Provided further that where indictment isfiled 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 suchoffence, or where an appeal is preferred against
a conviction for such offence, until thedetermination of the appeal.
(3) Where the High Court confirms a
Freezing Order under subsection (2) it shallcause a Notification of the Freezing Order tobe 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 supportof their claims to the fund, property, income,profit or instrumentality which is subject to
the Freezing Order.

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

Transactions
incontraventionof theFreezing
Order to benull andvoid.

4B. No transaction shall, except with the
sanction of the Court as provided for in section
4 C be effected in relation to such funds,
property, income, profit or instrumentalities
while the Freezing Order is in force and any
transaction so effected shall be null andvoid.

High Court
to sanction
essential andlegitimatetransactions.

4C. Where any legitimate business or otherinterests of any person affected by the Freezing
Order could be damaged by the prohibition
imposed thereby, such person may make anapplication to High Court stating such facts insupport thereof, and the Court may, on aconsideration of such application before it, if
it is of opinion that such an Order could
damage legitimate business or other interestsof such person and that essential transactions
relating to such funds, property, income, profit
or instrumentalities as may have beenprohibited by such Freezing Order may belegitimately 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 byCourt, or of a Receiver appointed in that behalf
by Court under section 4D.

Appointmentof Receiver.

4D. Upon an application made in that behalf
by a police officer not below the rank of an
Assistant Superintendent of Police, the High
Court may appoint a Receiver, in accordancewith the provisions of the Civil Procedure Code(Chapter 101), to take possession of andotherwise deal with the fund, property, income,profit or instrumentality which has been
subjected to the Freezing Order, in accordancewith such directions as may be given by Courtin that behalf.

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

7

4E. (1) Any police officer not below the rankof an Assistant Superintendent of Police shalltake 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 madeby the said police officer and for the purposeof determining who owns, possesses or is incontrol of such fund, property, income, profit
or instrumentality to which the Freezing Order
relates, order(a) that any document relevant to –(i) identifying,locatingor
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 suchfunds, 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 theinstitution about any business
transaction conducted by, or for, that
person with the institution during such
period before or after the date of suchorder, as the Court may direct.

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Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
(2) Where it appears to the Court making anorder under subsection (1) that any person has
failed to or delayed in complying with or isotherwise obstructing the execution of, anorder 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 otherthing therein for the purpose of executing suchorder.
(3) Upon determining who owns, possesses
or is in control of any funds, property, income,profit or instrumentalities to which theFreezing Order relates, the police officer shallreport the same to the Court making theFreezing Order, along with all documents
establishing and supporting such ownership,possession or control, as the case may be.

Forfeiture ofproperty etc.
in relation towhich anoffenceunder thisAct has beencommitted.

4 F . (1) Subject to the provisions ofsubsection (4), where a person is convicted of
an offence under section 3 of this Act, the Court
convicting such person shall, make order thatany funds or property provided or collected incontravention of the provisions of section 3,
any income or profit earned on such funds orproperty or any instrumentalities used in thecommission of such offence, be forfeited to theState, free from all encumbrances.
(2) Where such funds, property, income,profit or instrumentalities cannot be found or
traced the Court convicting such person shallorder to pay to the State the equivalent valueof such funds, property, income, profit or
instrumentalities.

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

9(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 islikely to prejudice the rights of a bona fidepurchaser for value or any other person who
has acquired, for value, a bona fide interest insuch funds, property, any income or profit
earned on such funds or property or such
instrumentality.
(5) An order made under subsection (1) shalltake 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 preferredto the Court of Appeal, against such
Order of Forfeiture.
(6) For the purposes of subsection (1), theCourt 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 2011section 3 of this Act is derived or realized,
directly or indirectly from the commission ofsuch offence, if the value of such funds orproperty is not commensurate with the known
sources of income of such person, and theholding of which cannot be explained on abalance of probabilities, to the satisfaction of
the Court.

Restoring therights ofbona fideclaimants.

4G. (1) Any person, being a person to whom
the provisions of section 3 do not apply, and
who owns, possesses or is in control of any
funds or property or any income or profit earnedon such funds or property, or any
instrumentalities, to which the Freezing Order
made under section 4 relates, may within thirtydays of the making of such Order apply to the
Court making the same, seeking theintervention 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 undersubsection (1), the Court shall upon being
satisfied on the information before Court that (a) such funds or property is not derived orrealized directly or indirectly from thecommission of such offence or such funds
or property is not an instrumentality usedin 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 theFreezing Order was made;Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 201111(c) the applicant had acquired an interest insuch funds or property at any time prior
to the commission of such offence, andthe applicant was unaware of the fact thatthe defendant had used or had intended
to use such funds or property in or inconnection with the commission of suchoffence; or(d) the applicant had acquired an interest insuch funds or property at the time of, orafter the commission or allegedcommission of the offence, and that suchinterest was acquired in circumstances
which would not give rise to a reasonablesuspicion that such fund or property wasproceeds or instrumentalities of suchoffence,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 inrespect of the same.
Appointmentof a Receiverupon
Forfeiture.

4H. Where any fund, property, income,profit or instrumentality has been forfeited to
the State under section 4F of this Act, the Court
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.

Secrecyobligation
overridden.

4I. The provisions of sections 4 to 4H ofthis Act shall have effect notwithstanding any
obligation as to secrecy or other restriction
imposed upon the disclosure of information

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Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011by any written law or otherwise, andaccordingly any disclosure of information by
any person in compliance with the provisionsof sections 4 to 4H of this Act shall be deemed
not to be a contravention of, any suchobligation or restriction.”.

Amendment ofsection 5 of theprincipal
enactment.

6. Section 5 of the principal enactment is hereby
amended as follows:(1) by the repeal of subsection (1) thereof and thesubstitution therefor of the following subsection:“(1) On the conviction of any person undersubsection (4) of section 3, the Court may orderthat any funds or property provided or collectedin contravention of the provisions of section 3,
any income or profit earned on such funds orproperty or any instrumentalities used in thecommission of such offence, be forfeited to theState.”;(2) in subsection (2) thereof by the substitution for
the words “Any funds forfeited to the State” of thewords “Any funds, property, income profit or
instrumentalities forfeited to the State”.;(3) by the repeal of subsection (3) thereof and thesubstitution therefor of the following subsection:“(3) Where the Court is satisfied on theevidence adduced at a trial for an offence undersubsection (1) or subsection (2) of section 3, thatany funds, property, income, profit or
instrumentalities standing to the credit of any
account of any institution are the proceeds ofsuch offence, it may, by written order prohibit
the Head of such institution from permitting or
allowing the withdrawal of any funds from suchaccount, until the conclusion of the trial.”.

Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 201113

7. Section 6 of the principal enactment is hereby
amended in subsection (2) of that section as follows:(1) by the repeal of paragraph (a) thereof, and thesubstitution therefor of the following paragraph:-

Amendment ofsection 6 of theprincipal
enactment.

“(a) any person who committed such act ispresent 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 anational of a Convention State;”.
8. The following new section is hereby inserted
immediately after section 16 of the principal enactment andshall have effect as section 16A of that enactment:“Interpretation.

16A. In this Act unless the context otherwise
requires“finance business” includes any one of thefollowing business or activities:(a) banking, as defined in the Banking
Act, No. 30 of 1988, including theacceptance of deposits or otherrepayable deposits from membersof the public;(b) finance business as defined in the
Finance Companies Act, No. 78 of1988 or any Act enacted in place
thereof;(c) lending, including consumer
credit, mortgage credit, factoring(with or without recourse) andfinancing ofcommercial
transactions;

Insertion of new
section 16A in
the principal
enactment.

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Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011(d) financial leasing other thantransactions 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 andbankers’ drafts and electronicmoney);(h) issuing financial guarantees andcommitments, including but notlimited to, consumer credit,
factoring with or without recourseand financing of commercial
transactions including forfeiting;(i) trading for its own account or forthe account of customers in money
market instruments (i.e. cheques,
bills of exchange, certificates ofdeposit and derivatives), foreignexchange, exchange, interest rateand index instruments, commodity
futures trading and transferable
securities;(j) participating in the issue of
securities and the provision offinancial services related to such
issue;(k) banking business carried on by acompany, to whom a licence toConvention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 201115

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 insuranceintermidation by agents andbrokers;“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 equitableinterest in such funds or property,
or any income or proceeds of such

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Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 2011
funds or property, is evidenced byany 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 financebusiness;“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 shallnot include medicines or religious
material;“person” includes a body of persons; and“terrorist act” includes, the use of threat ofaction, which involves(a) the use of threat of action which isdesigned to influence thegovernment, or to intimidate thepublic or a section of the public;(b) the use of threat of action which ismade for the purpose of advancing
a political, religious or ideologicalcause,and such action,(i) involves serious violence against
a person;Convention on the Suppression of Terrorist
Financing (Amendment) Act, No. 41 of 201117(ii) involves serious damage toproperty;(iii) endangers the life of anotherperson, other than the person
committing the action;(iv) creates a serious risk to health orsafety of the public or a section of
the public; or(v) is designed seriously to interferewith or seriously to disrupt anelectronic system.”.
9. In the event of any inconsistency between the Sinhala
and Tamil texts of this Act, the Sinhala text shall prevail.

Sinhala text toprevail in caseof inconsistency.

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

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