UN Convention Against Corruption

Sri Lanka established the National Action Plan for combating Bribery and Corruption 2019-2023. The “National Action Plan” includes four strategies for combating bribery and corruption in Sri Lanka. They are namely,

I Prevention Measures
II Value-based Education and Community Engagement
III Institutional Strengthening of CIABOC and other Law Enforcement Agencies
IV Law and Policy Reforms.

The Ministry of Sports is in the process of establishing a separate law to prevent corruption and match-fixing in sports. The proposed Bill titled “The Prevention of offences relating to Sports” has been gazetted and to be presented to the Parliament.

President Rajapaksa pledges to end corruption – 29^th July 2020

Whilst campaigning for the General Elections of August 2020, the President pledged to establish an efficient public service that would result in the ending of corruption. President Rajapaksa asserted that a public service dedicated for the people will be established by eliminating bribery, corruption, and irregularities.

A new Sports Act to be introduced – 24^th August 2020

The recently appointed Minister of Sports, Namal Rajapaksa has stated that a new Sports Act is to be drafted. He stated that “Provisions on anti-corruption and bribery will be heavily featured in the new Sports Act,”.

National Policy Framework of the Government – Policy 2 is combatting Corruption – 14^th December 2019

In the Policy Framework that has been published by the Ministry of Finance, the second Policy aims to build an efficient country free of corruption. It highlights Sectoral Policies, strategies and activities that should be implemented to achieve this goal.

Link to the Bill:-

http://documents.gov.lk/files/egz/2019/8/2137-85_E.pdf

Link to National Action Plan for Combating Bribery and Corruption :- https:

//www.ciaboc.gov.lk/mediacentre/resources/national-action-plan-2019-2023

http://www.colombopage.com/archive_20B/Jul29_1596037681CH.php

A new Sports Act will be introduced for Sri Lanka; Sports Minister

New Sports Act: Tackling bribery and corruption

http://www.treasury.gov.lk/documents/10181/790200/FinalDovVer02+English.pdf/3873cb76-8413-47dd-9691-bd80439d5a10

• The country participates in several regional and international fora as follows:

o Asian Development Bank (ADB) and the Organization for Economic Co-operation and Development (OECD) Anti – Corruption Initiative for Asia and the Pacific
o South Asian Association for Regional Cooperation (SAARC).
o The Commonwealth of Nations
o The International Criminal Police Organization (INTERPOL)
o Open Government Partnership
o Forum of Election Management Bodies of South Asia
o Asset Recovery Inter Agency Network-Asia Pacific.

Link to Financial Intelligence Unit http://fiusrilanka.gov.lk/international.html

• Sri Lanka does not currently have a structured prevention plan.

• CIABOC is in the process of creating a dedicated prevention unit – this is included into the draft National Action Plan that is being formulated by CIABOC.

• The following are some steps that has been taken:
o In 2015, CIABOC adopted an anti-corruption strategy, “Seven Steps to Zero Tolerance”- together with a three-year implementation action plan, this is based on two pillars, i.e., enforcement and prevention.
o CIABOC organizes ad hoc training and awareness-raising activities.

National Action Plan for combating Bribery and Corruption 2019-2023 provides measures to make amendments to the Bribery Act No. 11 of 1954 in order to establish Corruption Prevention Division at CIABOC & to broaden CIABOC’s mandate to include prevention activities.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

English  https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf

Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf

Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to the Country Review Report under Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to CIABOC website https://www.ciaboc.gov.lk/

Link to suggestions and proposals for the National Action Plan to Eradicate Corruption from Sri Lanka – https://www.ciaboc.gov.lk/contact/suggestions

CIABOC is established by Act No. 19 of 1994 and recognized as an independent commission to combat corruption through the 19th Amendment to the Constitution.
Appointment and removal of Director General is based on the discretion of the President, with consultation with the commissioners.
President’s decisions can be challenged under Article 126 of the Constitution.
Procedure for disciplinary control of Director General is unclear (though he is a public servant under the CIABOC Act No. 19 of 1994).
Investigators are recruited from Sri Lanka Police and CIABOC has no control over their administrative and disciplinary matters.
Steps taken for improvement:

A Cabinet Paper was submitted to the President on 15th September 2016 requesting Government approval to recruit and train 300 investigators for CIABOC.

Link to Constitution http://www.parliament.lk/files/pdf/constitution.pdf 

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf 

Link to Anti-Corruption Agency Strengthening Initiative – Assessment of the Commission to Investigate Allegations of Bribery or Corruption, Sri Lanka, 2016  http://www.tisrilanka.org/works/anti-corruption-agency-strengthening-initiative-assessment-of-the-commission-to-investigate-allegations-of-bribery-or-corruption-sri-lanka-2016/ 

Link to the Country Review Report under Second Review Cycle h.ttp://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• Have not informed.

• Provisions in the Establishment Code govern the following matters:
  • Conduct and disciplinary issues of public offices (chapters 47 and 48)
  • Conflicts of interest (chapters 29 and 30)
  • Bribery, misconduct, outside activities, secondary employment and gifts (chapter 47)
  • Must comply with the requirements of financial regulations, public administration and treasury circulars (chapter 47)

No training is provided for public officials on these requirements.

• Under section 3 of the Declaration of Assets and Liabilities Law No. 1 of 1975 all members of Parliament, judges, all public officers of government departments and local authorities, as well as the Chairman and staff of public corporations are required to declare their assets and liabilities within three months of their appointment to the public office and thereafter annually. A person can be prosecuted for the failure to make such a declaration. It is also a ground for disciplinary control under Chapter 29 of the Establishments Code.

Link to Establishment Code

http://www.pubad.gov.lk/web/index.php?option=com_content&view=article&id=38&Itemid=192&lang=en

Declaration of Assets and Liabilities Law https://www.ciaboc.gov.lk/images/pdf/acts/Declaration_of_Assets_and_Liabilities.pdf

• Provisions in the Establishment Code govern the following matters:
  • Conduct and disciplinary issues of public offices (chapters 47 and 48)
  • Conflicts of interest (chapters 29 and 30)
  • Bribery, misconduct, outside activities, secondary employment and gifts (chapter 47)
  • Must comply with the requirements of the financial regulations, public administration and treasury circulars (chapter 47)

No training is provided for public officials on these requirements.

Link to Establishment Code

http://www.pubad.gov.lk/web/index.php?option=com_content&view=article&id=38&Itemid=192&lang=en

Link to the Country Review Report under Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• The NPC formulates procurement procedures and guidelines and monitors their implementation (Chapter XIXB, Constitution).

• Responsibility of procurement actions is vested with secretaries of respective line ministries.

• All government procurement must be carried out in line with the 2006 Procurement Guidelines as well as the 2017 Guide to Project Management and Contract Management for Infrastructure Development Projects.

• Complaints can be lodged with the NPC, the Procurement Appeals Board or the Supreme Court.

• NPC provides trainings to procurement officials through Sri Lanka Institute of Development Administration and MILODA Academy of Financial Studies.

• Procurement Guidelines were gazetted on 9th May 2018 and approval from Parliament is pending.

National Action Plan for combating Bribery and Corruption 2019-2023 provides measures such as training the National Procurement Commission, Ministry of Finance, other governmental institutions and revising the guidelines and manuals that is yet to be implemented to strengthen systems and processes for integrity in public procurement and the management of public finances.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

• English https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf
• Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf
• Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Procurement Manual  http://www.treasury.gov.lk/documents/57687/174939/ProcurementManual2006_20060817_with_Sup8.pdf/5d0563ed-05b1-4629-9937-db8e160aac29

Link to 2006 Procurement Guidelines http://www.treasury.gov.lk/documents/57687/174939/ProcurementGuidelines2006_amded12June.pdf/4417f549-2a8d-45d1-b3a6-0560db79a87f

Link to 2018 gazetted Procurement Guidelines http://www.documents.gov.lk/files/egz/2018/5/2070-15_E.pdf

Link to the Country Review Report under Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• Chapter XVII of the Constitution deals with the management of public finances, including the adoption of the national budget.

• Parliament monitors budgetary expenditure, including allocation of financial resources for public programs and projects.

• Articles 10 – 15 of the Fiscal Management (Responsibility) Act (FMRA) regulates the reporting on revenue and expenditure by public bodies.

• Compliance by public bodies with accounting and auditing standards is measured per the Accounting and Auditing Standards Act No.15 of 1995 by the National Audit Office.

Link to Fiscal Management (Responsibility) Act https://www.srilankalaw.lk/YearWisePdf/2003/FISCAL_MANAGEMENT_(RESPONSIBILITY)_ACT,_No._3_OF_2003.pdf

Link to National Audit Act http://www.auditorgeneral.gov.lk/web/images/public_news_agdsl/2018_news/Natinal_Audit_Act/Nationa-Audot-Act_E.pdf

Link to Accounting and Auditing Standards Act  No.15 of 1995 http://www.slaasc.lk/pdf/01.pdf

Link to the Constitution http://www.parliament.lk/files/pdf/constitution.pdf

• Under Offences Against Public Property Act. No. 12 of 1982 section 5 (2) forgery or falsification of public accounts is a criminal offence.

• Rules relating to management of public finance, preservation of accounting books, financial statements and public records are governed by the Financial Regulations of 1992 and Treasury Circulars by the Ministry of Finance.

Link to Offences Against Public Property Act https://www.lawnet.gov.lk/1947/12/31/offences-against-public-property-2/

Link to Financial Regulations of 1992 http://dl.lib.mrt.ac.lk/bitstream/handle/123/97/chapter%204.pdf?sequence=9&isAllowed=y

Link to Ministry of Finance and Mass Media http://www.treasury.gov.lk/

• The Constitution guarantees the right of access to information (art. 14A). The Right to Information Act No. 12 was enacted in 2016 and contains detailed procedures for obtaining information (sections 24–30), grounds for denial of access (sections 5 and 35) and duties of public bodies to maintain records (section 7).

• Violations of fundamental rights by public officials and institutions can be reported to the Ombudsman under article 156 of the Constitution.

• The Human Rights Commission is set up under the Constitution and has a mandate to investigate and inquire into fundamental rights violations.

• Most of the state sector organizations have their own websites.

• As per the Constitution, the Auditor General is mandated to report to Parliament. As per the National Audit Act section 13, the Auditor General may publish the reports in the National Audit Office Website if he has or intends to provide any report, information, document, book, record or computer-generated transcript obtained in the course of the audit to the law enforcement authorities.

• Sri Lanka intends to set up e-government system to allow access to public services electronically.

• CIABOC is in the process of developing citizen charters for local government and public administration.

National Action Plan for combating Bribery and Corruption 2019-2023 provides measures such as revising and developing the Citizen’s charter to increase accessibility and convenience in the provision of public service to citizens, therein reducing loopholes for corruption.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

• English https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf
• Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf
• Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Right to Information Act https://www.rti.gov.lk/images/resources/RTI_Act_Sri_Lanka_E.pdf

Link to Human Rights Commissions Act http://www.hrcsl.lk/PFF/HRC%20Act.pdf

Link to the National Audit Act http://srilankalaw.lk/gazette/2018_pdf/19-2018_E.pdf

Link to the Constitution http://www.parliament.lk/files/pdf/constitution.pdf

Link to the Country Review Report under Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• The Constitution Chapter XV upholds the independence of the judiciary. According to article 111(C) interference with the judiciary is a punishable offence.

• Judges of the Supreme Court and the Court of Appeal are appointed by the President with the approval of the Constitutional Council. They can only be removed by an order of the President with the support of the majority of the Parliament for reasons of misbehavior or incapacity.

• Judges of the High Court are appointed by the President on the recommendation of the Judicial Service Commission (JSC) (art. 111 Constitution).

• The JSC is set up under the 19th Amendment to the Constitution and is responsible over the appointment, transfer, dismissal and disciplinary control of judicial officers in the lower courts and High Courts.

• Salaries and pensions of the judges from Supreme Court and Appeal Court cannot be reduced during their tenure.

• Judges do not have absolute immunity except for judicial immunity for judicial actions performed in good faith.

• There are no codes of conduct for judges.

• The JSC Rules and JSC circulars, the Establishment Code, the Supreme Court Rules and the Court of Appeal Rules are applicable in this regard.

• A code of conduct for judges is being developed.

• Trainings for judges are conducted by Judicial Service Commission through the Judges Institute.

Link to the Constitution http://www.parliament.lk/files/pdf/constitution.pdf

Link to Judicial Service Commission  http://www.jsc.gov.lk/

Link to Establishment Code http://www.pubad.gov.lk/web/images/stories/ecode/ecode(s).pdf

Link to the Country Review Report under Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• The following laws contain provisions relating to record keeping, preparation of financial statements, auditing and monitoring of the activities of the private sector, preventing corruption.

o The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995.
o The Companies Act No. 07 of 2007
o Securities and Exchange Commission Act No. 36 of 1987
o Monetary Law Act No. 58 of 1949
o Banking Act No. 30 of 1988
o Insurance Act No. 25 of 1962
o Finance Companies Act No. 78 of 1988
o Finance Leasing Act No. 56 of 20

• Codes of corporate governance have been adopted for licensed banks and finance companies.

• No special whistle-blowing mechanism exists for the private sector.

• The National Action Plan that is being developed is to contain provisions on improving accountability private sector organizations.

National Action Plan for combating Bribery and Corruption 2019-2023 recognizes private sector bribery and intends to provide measures to integrate prevention measures in the private sector such as reviewing current codes governing ethical conduct, regulatory audits to assess adherence to code and introducing a code for integrity and countering bribery.

Further, amendments to the Bribery Act No. 11 of 1954, are proposed to outlaw the private sector bribery.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

• English https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf
• Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf
• Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 http://www.slaasc.lk/pdf/01.pdf

Link to Companies Act No. 07 of 2007 http://www.drc.gov.lk/wp-content/uploads/2018/04/Act-7-of-2007-English.pdf

Link to Securities and Exchange Commission Act No. 36 of 1987 http://www.sec.gov.lk/wp-content/uploads/SEC-Act-Revised-Edition-2009.pdf

Link to Monetary Law Act No. 58 of 1949 https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/monetary_law_act.pdf

Link to Banking Act No. 30 of 1988 http://www.dfe.lk/web/images/downloads/acts/bankingAct.pdf

to Insurance Act No. 25 of 1962 http://www.commonlii.org/lk/legis/num_act/coia25o1962271 /

Link to Finance Companies Act No. 78 of 1988 https://www.imolin.org/doc/amlid/Sri_Lanka_finance_companies_act_no_78of1988.pdf

Link to Finance Leasing Act No. 56 of 2000 https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/fin_leasing_7th_rev.pdf

• As per the Companies Act No. 7 of 2007 “off-the book accounts” are illegal. True and accurate reporting and record keeping are required and violations will follow sanctions.

• According to the Companies Act, all companies formed thereunder are obliged to keep correct accounting records (section 148).

• Provisions relating to record keeping, preparation of financial statements, auditing and monitoring of the activities of the private sector are detailed in Accounting and Auditing Standards Act, Companies Act, Securities and Exchange Commission Act, Monetary Law Act, Banking Act, Insurance Act and Finance Companies Act.

Link to Companies Act No. 7 of 2007 http://www.drc.gov.lk/wp-content/uploads/2018/04/Act-7-of-2007-English.pdf

Link to Accounting and Auditing Standards Act http://www.slaasc.lk/pdf/01.pdf

Link to Securities and Exchange Commission Act http://www.sec.gov.lk/wp-content/uploads/SEC-Act-Revised-Edition-2009.pdf

Link to Monetary Law Act https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/monetary_law_act.pdf

Link to Banking Act http://www.dfe.lk/web/images/downloads/acts/bankingAct.pdf

Link to Insurance Act http://www.commonlii.org/lk/legis/num_act/coia25o1962271/

Link to Finance Companies Act https://www.imolin.org/doc/amlid/Sri_Lanka_finance_companies_act_no_78of1988.pdf

• Bribes are not tax deductible and it is prohibited under sections 10–19 of the Inland Revenue Act 2017.

Link to Inland Revenue Act  http://www.ird.gov.lk/en/publications/SitePages/acts.aspx

• Freedom of expression is recognized Constitutionally (article 14). And the Right to Information framework is in place.

• CIABOC has involved civil society in some of their projects. For example, the consultations with Transparency International Sri Lanka (TISL) and Law and Society Trust on proposed amendments to Asset Declarations and Liabilities Act. There are significant amendments that civil society was not consulted. For example, per the Country Review Report under the Second Review Cycle amendments to the Bribery Act No. 11 of 1954 and the CIABOC Act No. 19 of 1994 have been proposed. Civil society was not consulted for this.

• There were instances when the Country Review Reports of UNCAC noted that civil society was consulted, but their input was not incorporated.

• CIABOC has had consultations with the public on the development of the National Action Plan in 2018.

National Action Plan for combating Bribery and Corruption 2019-2023 provides measures to raise awareness among community leaders and civil society representatives as change agents. Further it proposes to review corruption-related laws in consultation with relevant stakeholders including CSOs.

But according to the section 34 (3) of the Bribery act, the commission of inquiry shall treat all information obtained by it with the strictest secrecy and shall not divulge such information to any person other than the Commission, the person in respect of whom the inquiry is held, or any attorney-at-law appearing for that person.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

English  https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf

Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf

Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Constitution http://www.parliament.lk/files/pdf/constitution.pdf

Link to CIABOC website https://www.ciaboc.gov.lk/

Link to suggestions and proposals for the National Action Plan to Eradicate Corruption from Sri Lanka – https://www.ciaboc.gov.lk/contact/suggestions

Link to TISL CSO Global Forum on Asset Recovery Report on Sri Lanka http://www.tisrilanka.org/wp-content/uploads/2017/12/Sri-Lanka-Asset-Recovery-CSO-Report-final.pdf

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• Anyone can report corruption incidents to CIABOC by person and through telephone, website, email and general post. The CIABOC Act No. 19 of 1994 provides immunity from civil and criminal liability to such persons (section 9).

• The Assistance to and Protection of Victims of Crime and Witnesses Act further provides for the protection of reporting persons against any form of harassment.

Link to Commission to Investigate Allegations of Bribery and Corruption https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Assistance to and Protection of Victims of Crime and Witnesses Act http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

• As per Financial Transactions Reporting Act No. 06 of 2006 customer identification is mandatory (Sec. 2).

• Financial Intelligence Unit is responsible for receiving Cash Transactions Reports (CTR), Electronic Fund Transfers (EFT) and Suspicious Transaction Reports (STR) from all reporting institutions and for analyzing the data collected to identify financial trails to support prosecution.

• Financial Intelligence Unit also issues rules to the financial and other reporting sectors on customer identification and record keeping.

• The Act does not recognize the concept of high value accounts but Regulation No. 1555/9 of 25th June, 2008, specifies that any financial institution under the Act needs to report to the Financial Intelligence Unit every electronic fund transfer made at the request of a customer, where the amount of such transfer exceeds Rupees One Million (Rs. 1,000,000) or its equivalent in any foreign currency.

• As per Section 5 of the Financial Transactions Reporting Act No. 06 of 2006, institutions are mandated to conduct ongoing due diligence and scrutiny of customers.

• Sections 59 and 60 of the Financial Institutions (CDD, Customer Due Diligence) Rules No. 01 of 2016 requires enhanced scrutiny of people who are deemed politically exposed persons, their family members and close associates. Rules 30 –31 provides for the identification and verification of the identity of beneficial owners of all accounts maintained in financial institutions under the Act.

• The rules also provide for money-laundering risk management and internal controls, know-your-customer (KYC), customer due diligence (CDD), enhanced scrutiny for persons and accounts, correspondent banking, wire transfers and record keeping.

• The Financial Intelligence Unit also created Guidelines on Identification of Beneficial Ownership for Financial Institutions No. 4 of 2018 and explains amongst others what beneficial ownership is, the importance of recognizing the beneficial owner, manner in which it can be hidden, identification and verification of beneficial ownership.

• The 2015 Mutual Evaluation Report (MER) of APG Group on Money Laundering identified certain issues in relation to non-financial businesses and professions, legal persons and in relation to beneficial owners. Sri Lanka notes that it is implementing the recommendations proposed in the said report.

National Action Plan for combating Bribery and Corruption 2019-2023 proposes amendments to the Bribery Act No. 11 of 1954, to recognize Money Laundering as an offence under Bribery Act.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

English  https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf

Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf

Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Link to Rules issued by the Financial Intelligence Unit http://www.fiusrilanka.gov.lk/rules_directions.html

Link to Regulation No. 1555/9 of 25^th June 2008 http://www.fiusrilanka.gov.lk/docs/Regulations/1555-9/1555_9(E).pdf

Link to the Guidelines on Identification of Beneficial Ownership for Financial Institutions No. 4 of 2018  http://fiusrilanka.gov.lk/docs/Guidelines/2018/Guideline-04-2018.pdf

Link to Financial Transactions Reporting Act No. 06 of 2006 http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

Link to the 2015 Mutual Evaluation Report (MER) of APG Group on Money Laundering http://www.fatf-gafi.org/media/fatf/documents/reports/mer-fsrb/APG-Mutual-Evaluation-Report-Sri-Lanka-2015.pdf

Link to Sri Lanka listing in the Financial Action Task Force and measures initiated by Sri Lanka to improve Global AML/CFT Standards  https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/press/pr/press_20180215_SL_Listing_in_Financial_Action_Task_Force_and_Measures_Initiated_by_SL_e.pdf

• Sections 14(a), 16(a), 17(a), 19(a), 20(a), 21 (a) and (b), 22(a) and (b), 88, 89, 90 of Bribery Act No. 11 of 1954 and are relevant and cover this article.

• Different types of public officials are recognized.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the Country Review Report of Sri Lanka  under the First Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• This is not yet implemented.

National Action Plan for combating Bribery and Corruption 2019-2023 proposes amendments to the Bribery Act No. 11 of 1954, to including bribery of foreign public officers or officers of international public organizations.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

English  https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf

Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf

Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

• Sections 386, 388, 389 and 392 of the Penal Code provides for dishonest misappropriation of property, criminal breach of trust and criminal breach of trust. These sections cover embezzlement, misappropriation or other diversion of both movable and immovable property.

• Section 5 (1) of the Offences Against Public Property Act penalizes criminal breach of trust.

• Section 70 of the Bribery Act No. 11 of 1954 covers corruption.

Link to the Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

Link to Offences against Public Property Act https://www.lawnet.gov.lk/1947/12/31/offences-against-public-property-2/

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• Sections 3 (offence of money laundering) and 35 (interpretation of “transaction”) of the Money Laundering Act No. 5 of 2006 is applicable.

Link to the Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to Financial Transaction Reporting Act http://fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_%28English%29.pdf

• Section 3 (2) of Money Laundering Act No. 5 of 2006 and sections 100 (abetment) and 113A (conspiracy) of the Penal Code cover this article.

Link to the Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

• Section 35 of the Prevention of Money Laundering Act No 5 of 2006 as amended by the Prevention of Money Laundering (Amendment) Act, No. 40 of 2011 (Section 19 (4)) (“unlawful activity”) covers a broad range of offences that come under the law.

• Section 35 (p) of the Prevention of Money Laundering Act No 5 of 2006 as amended by the Prevention of Money Laundering (Amendment) Act, No. 40 of 2011 covers offences committed within and outside Sri Lanka.

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• Copies not furnished yet.

• As per section 73 of the Bribery Act No. 11 of 1954 interfering with any witness or impeding a witness from giving evidence in a court or commission is an offence. This is limited to bribery cases.

• Section 8 of the Assistance and Protection of Victims of Crime and Witnesses Act No. 4 of 2015, covers the situations under the article.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Assistance and Protection of Victims of Crime and Witnesses Act  http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

• Sections 74 (Influencing, threatening or injuring member of commission of inquiry or officer) and 75 (Disobeying commission of inquiry) of the Bribery Act No. 11 of 1954 criminalize the above.

• Sections 183 (Obstructing public servant in discharge of his public functions), 184 (Obstructing public servant in discharge of his public functions),185 (Obstructing public servant in discharge of his public functions),186 (Obstructing public servant in discharge of his public functions) and 187 (Obstructing public servant in discharge of his public functions) of the Penal Code cover all offences under the article.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

• Under section 8 of the Penal Code, “persons” includes any company or association or body of persons, whether incorporated or not.

• Under Bribery Act No. 11 of 1954 whether a legal person can be prosecuted is unclear.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

• No information on the range of penalties imposed on legal persons.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

• Sections 100 (abetment) and 113A (conspiracy) of Penal Code cover this.

• Bribery Act No. 11 of 1954 section 25 criminalizes attempt and abetment.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

• Sec. 456 of Criminal Procedure Code No 15 of 1979 provides for the prescription time for offences as 20 years, except for murder or treason or where special circumstance apply.

Link to Criminal Procedure Code http://hrlibrary.umn.edu/research/srilanka/statutes/Code_of_Criminal_Procedure_Act.pdf

• All bribery offences under the Bribery Act No. 11 of 1954 has the maximum punishment at 7 years and with a fine not exceeding five thousand rupees or both.

• For the offence of corruption under section 70 a person can be imprisoned up to 10 years or subjected to a fine not exceeding one hundred thousand rupees.

• In some instances, additional penalties are prescribed (Bribery Act No. 11 of 1954 sections 26, 26 A, 28A) as forfeiture of property.

• As per the Establishment Code sections 27 and 28, disciplinary action can still be taken against public servants who have been convicted for corruption. Public Service Commission can take these actions nationally or at provincial level.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Country Review Report of Sri Lanka under the First Review Cycle 2012-2013 pages 76-79 for list of offences with punishments http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf .

Link to Establishment Code http://www.pubad.gov.lk/web/images/stories/ecode/ecode(s).pdf

• Constitution of Sri Lanka article 35 (1) of the Constitution provides for total immunity from criminal or civil prosecutions on the President. The 19th Amendment to the Constitution subjects this immunity to the fundamental rights of a person.

• Section 19 (1) of the Commission to Investigate Allegations of Bribery or Corruption Act No 19 of 1994 provides protection to its officers performing functions in good faith under the Act.

Link to Constitution http://www.parliament.lk/files/pdf/constitution.pdf

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

• According to the Bail Act No 30 of 1997 read with section 6(1), 30A (2) & (4) and 73(2) of the Bribery Act No. 11 of 1954 persons suspected of accepting bribes and impeding witnesses from giving evidence can be held in custody until the conclusion of the trial, and may be released on bail in exceptional circumstances. Specific laws deal with bail in respective Acts.

Link to Bank Act  http://moj.gov.jm/sites/default/files/laws/Bail%20Act_0.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• Section 58 of the Sri Lankan Prisons Ordinance No. 16 of 1877 allows for remission of sentences and rewards for good conduct.

• There are no measures on early release or parole depending on the level of offences.

Link to Prisons Ordinance http://hrlibrary.umn.edu/research/srilanka/statutes/Prisons_Ordinance.pdf

• Section 26A (additional fines to be imposed – the value of what has been acquired through bribery), 28A (1) forfeiture of property in relation to which an offence has been committed), 39 (assessment of value of gratification where commission of inquiry finds person guilty of bribery by having accepted a gratification) of the Bribery Act No. 11 of 1954 cover confiscation of property involved in offences or property with value equivalent to property involved in offences. These sections only cover confiscation related to bribery offences.

• Section 3 (1 (a, b), (1 A) and section 13 of the Prevention of Money Laundering Act No 5 of 2006 as amended by Act No 40 of 2011 also provides for confiscation of property or value equivalent to it. These sections cover confiscation under “unlawful activity” which includes the offence of corruption.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• Section 28A (1) of the Bribery Act No. 11 of 1954 (Forfeiture of property in relation to which an offence has been committed) and Section 13 of the Prevention of Money Laundering Act No 5 of 2006 as amended by Act No 40 of 2011 provide for the confiscation of instrumentalities of crime.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• The general provisions relating to identification and seizure of assets are contained in Chapter VI (of Process to Compel the Production of Documents and Other Movable Property) of the Code of Criminal Procedure No. 15 of 1979.

• Section 7 of the Prevention of Money Laundering Act No 5 of 2006 as amended by Act No 40 of 2011 provides for the freezing and seizure of proceeds of money laundering derived from unlawful activities.

• Commission to Investigate Allegations of Bribery or Corruption Act No 19 of 1994 section 7 allows the Commission to seize articles which are evidence of committing offences under the Bribery Act No. 11 of 1954 and the Declaration of Assets and Liabilities Law No. 1 of 1975.

• Financial Transaction Reporting Act, No 6. 2006 section 15 (2) the FIU can affect administrative freezing of funds which are suspected of being proceeds of unlawful activity, money laundering or terrorist financing.

• A Proceeds of Crime Law is being drafted.

Link to Code of Criminal Procedure http://hrlibrary.umn.edu/research/srilanka/statutes/Code_of_Criminal_Procedure_Act.pdf

Link to Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Financial Transaction Reporting Act http://fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_%28English%29.pdf

Declaration of Assets and Liabilities Law https://www.ciaboc.gov.lk/images/pdf/acts/Declaration_of_Assets_and_Liabilities.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• Sections 11 and 15 of the Prevention of Money Laundering Act No 5 of 2006 as amended by the Act No 40 of 2011 deals with the appointment of receivers to be in charge of property frozen or forfeited.

• No centralized authority to manage frozen, seized or confiscated property.

• A Proceeds of Crime Law is being drafted.

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• Section 13 Prevention of Money Laundering Act No. 5 of 2006 amended by Act No 40 of 2011 prescribes that when the person does not pay the equivalent value of the assets involved in the offence he may be ordered to pay a fine.

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• As per section 28A (1) of the Bribery Act No. 11 of 1954 where a court convicts a person of an offence under bribery, the court may in lieu of imposing a penalty or fine under section 26 or section 26A, make order that any movable or immovable property found to have been acquired by bribery or by the proceeds of bribery be forfeited to the State

• Section 13 of Prevention of Money Laundering Act No. 5 of 2006 amended by Act No 40 of 2011 prescribes that when the person does not pay the equivalent value of the assets involved in the offence he may be ordered to pay a fine.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• As per section 5 (1) (d) of Commission to Investigate Allegations of Bribery or Corruption Act No 19 of 1994, it has the power to direct by notice in writing the manager of any bank to produce, any book, document or cheque of the bank containing entries relating to the account of any person against whom an allegation of bribery or corruption has been made.

• As per section 16 of the Prevention of Money Laundering Act No. 5 of 2006, provisions covering freezing and forfeiture of assets overrides secrecy obligations imposed upon a person under any law.

• Section 27 of the Prevention of Money Laundering Act No.5 of 2006 as amended by Act No 40 of 2011 provides for giving assistance to Commonwealth and Non-Commonwealth Countries in relation to extradition and mutual assistance.

• Section 18 of the Financial Transactions Reporting Act, No. 6 of 2006 gives the Financial Intelligence Unit the authority to examine books and 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.

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• Section 13 (2) of the Prevention of Money Laundering Act No. 5 of 2006 amended by Act No 40 of 2011 notes that in issuing orders of forfeiture, the Court is 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 property.

• Same provision exists in section 28A (1) proviso of the Bribery Act No. 11 of 1954.

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• Sec.23 of Commission to Investigate Allegations of Bribery or Corruption Act No 19 of 1994 provides for protection measures for the punishment of such acts as retaliation and intimidation against witnesses.

• Assistance to and Protection of Victims of Crime and Witnesses Act No. 4 of 2015 recognizes retaliation and intimidation of witnesses and experts under Part III of the Act. The Act covers offences in any law.

National Action Plan for combating Bribery and Corruption 2019-2023 propose amendments to the Bribery Act No. 11 of 1954, for the Protection of whistle-blowers, witnesses and victims.

Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023

English  https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf

Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf

Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf

Link to Commission to Investigate Allegations of Bribery and Corruption https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Assistance to and Protection of Victims of Crime and Witnesses Act http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

Link to the Budget 2018:

http://www.treasury.gov.lk/documents/10181/490927/V_01_Approved_E.pdf/378d791a-3c68-48d8-8648-7cde311d3b99

• The definition of “witness” includes victims under the Assistance to and Protection of Victims of Crime and Witnesses Act No. 4 of 2015.

• Section 187 of the Penal Code penalizes persons who threaten to cause injury in order to induce them to refrain from applying for protection from a public servant.

Link to Assistance to and Protection of Victims of Crime and Witnesses Act http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

Link to the Budget 2018:

http://www.treasury.gov.lk/documents/10181/490927/V_01_Approved_E.pdf/378d791a-3c68-48d8-8648-7cde311d3b99

• Section 25 (2) of the Assistance to and Protection of Victims of Crime and Witnesses Act No. 4 of 2015 notes that protection that can be prescribed by Courts and Commissions for victims and witnesses must not cause any prejudice to the rights and entitlements of the person suspected or accused of the offence.

• Section 260 of the Code of Criminal Procedure Act No 15 of 1979 provides that every person accused before any criminal court may of right be defended by an attorney at law, and every aggrieved party shall have the right to be represented in court by an attorney at law.

Link to Assistance to and Protection of Victims of Crime and Witnesses Act http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

Link to Code of Criminal Procedure Act http://hrlibrary.umn.edu/research/srilanka/statutes/Code_of_Criminal_Procedure_Act.pdf

• No specific statutory provision.

• There is a common law principle where a contract based on fraud or corruption could be rescinded by court in acting under inherent powers.

Link to Country Review Report under the First Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• The Civil Procedure Code No. 2 of 1889, provides for the remedies for others’ unjust enrichment.

• Under section 28 (5) the Assistance to and Protection of Victims of Crime and Witnesses Act, it is noted that receiving compensation under this Act will not be a bar to seek damages under civil remedies.

Link to Assistance to and Protection of Victims of Crime and Witnesses Act http://srilankalaw.lk/YearWisePdf/2015/ASSISTANCE_TO_AND_PROTECTION_OF_VICTIMS_OF_CRIME_AND_WITNESSES_ACT,_No._4_OF_2015.pdf

Link to the Civil Procedure Code https://www.lawnet.gov.lk/wp-content/uploads/2016/11/CIVIL-PROCEDURE-CODE.pdf

Link to the Country Review Report under the First Cycle  http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• The Commission to Investigate Allegations of Bribery or Corruption is the specialized agency responsible for the investigation and prosecution of corruption offences and accumulated wealth (Part II, section 70 and section 23 of the Bribery Act No. 11 of 1954 ), and offences under the Declaration of Assets and Liabilities Law.

• The Commission is recognized under the Constitution and the members’ appointment, discharge and powers are dealt with under the CIABOC Act No. 19 of 1994. Section 19 of the Act provides for immunity from civil and criminal actions done in good faith by the Commissioners and the Director General.

• For the formulation of the National Action Plan Against Corruption one of the areas that CIABOC is seeking public comments is on Strengthening of Commission to Investigate Allegations of Bribery or Corruption, enhancing institutional structure and human resource.

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the Constitution http://www.parliament.lk/files/pdf/constitution.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

Link to the National Action Plan Against Corruption https://www.ciaboc.gov.lk/contact/suggestions

• As per section 81(1) of the Bribery Act No. 11 of 1954 Attorney General can grant pardon to those who provide information on relevant cases.

• Similar pardon to other offences is not clear.

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• As per section 4 of the CIABOC Act No 19 of 1994, CIABOC can receive a communication outlying an allegation of an offence under the Bribery Act No. 11 of 1954 or the Declaration of Assets and Liabilities Law by any person.

• Section 5 (e) and (f) (specifically) and Section 5(a), (b) and (c) (generally) of the Commission to Investigate Allegations of Bribery and Corruption Act No 19 of 1994 detail the investigative powers of CIABOC that allows them to request information.

• Chapter XLVIII Clause 27 of the Establishments Code notes that if the Public Service Disciplinary Department observes prima facie evidence of bribery or corruption they must report this to CIABOC.

• The Country Review Report under First Review Cycle refers to a circular that the Police Department follows that mandates them to report any evidence of corruption received whilst investigating criminal cases to CIABOC.

• Whilst upon request the authorities shall provide relevant information, it is not clear whether other public agencies can take the initiative to provide evidence of corruption to the Commission

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Declaration of Assets and Liabilities Law https://www.ciaboc.gov.lk/images/pdf/acts/Declaration_of_Assets_and_Liabilities.pdf

Link to Establishment Code http://www.pubad.gov.lk/web/images/stories/ecode/ecode(s).pdf

Link to the Country Review Report of Sri Lanka  for the First Review Cycle 2012-2013 http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• As per section 4 of the CIABOC Act No 19 of 1994, CIABOC can receive a communication outlying an allegation of an offence under the Bribery Act No. 11 of 1954 or the Declaration of Assets and Liabilities Law by any person.

• CIABOC can obtain from a manager of any bank any book, document or cheque of the bank containing entries relating to the account of any person, against whom an allegation has been made under the Bribery Act No. 11 of 1954 or the Declaration of Assets and Liabilities Law , as per section 5 (1) (d) of the Act.

• As per section 5 of the Prevention of Money Laundering Act, No. 5 of 2006 as amended by the Act No. 40 of 2011 financial institutions and other persons are required to report to the Financial Intelligence Unit (FIU) on suspicious financial transaction.

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• As per section 5(1) (d) of the Commission to Investigate Allegations of Bribery or Corruption Act No 19 of 1994, CIABOC can obtain from a manager of any bank any book, document or cheque of the bank containing entries relating to the account of any person, against whom an allegation has been made under the Bribery Act No. 11 of 1954 or the Assets and Liabilities Law.

• As per section 16 of the Prevention of Money Laundering Act No 5 of 2006, provisions covering freezing and forfeiture of assets overrides secrecy obligations imposed upon a person per any law.

• Section 18 of the Financial Transactions Reporting Act No. 6 of 2006 provides Financial Intelligence Unit the authority to examine 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. Institutions are bound to comply with the provisions of this Act in spite of secrecy provisions in any other law (section 31).

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_(English).pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

Link to Financial Transactions Reporting Act No. 06 of 2006 http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

• As per section 89A of the Bribery Act No. 11 of 1954 if a public servant solicited and accepted the bribe outside Sri Lanka, such person will be deemed to have committed such offence within Sri Lanka.

• As per section 9 of the Judicature Act No 2 of 1978 read with Section 11 of the Code of Criminal Procedure Act No 15 of 1979 Sri Lanka has jurisdiction over offences that occur within its territory, territorial waters and airspace.

Link to Judicature Act http://citizenslanka.org/wp-content/uploads/2016/02/Judicature-Act-No-02-of-1978-E.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Code of Criminal Procedure Act http://hrlibrary.umn.edu/research/srilanka/statutes/Code_of_Criminal_Procedure_Act.pdf

Sections 15 (1)(q) and 17(3) of the Financial Transactions Reporting Act No. 06 of 2006 provides for information sharing via Financial Intelligence Unit channels.

Link to Financial Transactions Reporting Act  http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

• Sri Lanka does not prohibit the extradition of Sri Lanka’s own citizens.

Link to the Country Review Report of Sri Lanka for the First Review Cycle 2012-2013 http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• This is a statement of fact recognizing sovereignty.

Link to Commission to Investigate Allegations of Bribery or Corruption Act https://www.ciaboc.gov.lk/images/Publications/Commission_Act_english.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• As per section 6 (1) and 7 (4) (c) of the Extradition Law No. 8 of 1977 as amended by Act No 48 of 1999 dual criminality is a requirement. Therefore, extradition can be granted if the offence is recognized under the law of the requesting country and if such offence is recognized under the extradition treaty as an offence.

• According to Sri Lanka’s treaties (e.g. US and Hong Kong), extraditable offences are those punishable according to the laws of both countries by imprisonment for more than one year or a more severe penalty. Where extradition is to happen to a Commonwealth without a treaty in place, the offence must be an offence described in a list in the Extradition Law and be punishable by at least one year (e.g. bribery, theft, criminal breach of trust, dishonest misappropriation of property, any offence in respect of property involving fraud, and money laundering).

• There are no legal provisions to cover unlisted offences that amount to crimes in both requesting and requested countries or are subject to certain term of imprisonment.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act  https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• As per section 7(4)(c) of the Extradition Law No. 8 of 1977 as amended by Act No. 48 of 1999, it is noted that political offence restrictions would not be applicable to offences under international crime control conventions to which both countries are parties to.

• Often extraditable offences under Sri Lanka’s treaties are those punishable according to the laws of both States by imprisonment for more than one year.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act  https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• Extradition is conditional on the existence of a treaty except in relation to Commonwealth countries.

• Sri Lanka does not consider the Convention as a legal basis for extradition.

• Sri Lanka has not made the requisite notification to the United Nations.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act  https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

Link to the Country Review Report of Sri Lanka for the First Review Cycle 2012-2013 http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Extradition is conditional on the existence of a treaty, except for Commonwealth Countries.

• In such Commonwealth countries the offence must also be described in a list in the Extradition Law and be punishable by at least one year (e.g. bribery, theft, criminal breach of trust, dishonest misappropriation of property).

• As per section 5 of the Extradition (Amendment) Act No. 48 of 1999 the list also includes offences within the scope of an international convention relating to the suppression of international crime to which both parties are parties, thereby obliging them to grant extradition for such offences.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• Section 7 of the Extradition Law contains the general restrictions applicable in this regard.

• In the Country Review Report under the First Review Cycle, Sri Lanka cites the treaties between Hong Kong, China and USA as covering the above requirements.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act  https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

Link to the Country Review Report of Sri Lanka for the First Review Cycle 2012-2013 http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Extradition Law does not recognize nationality as a ground for refusing extradition.

• As per section 9 (f) of the Judicature Act No. 2 of 1978 the High Court will have jurisdiction to hear, try and determine any offence wherever committed by any person, who is a citizen of Sri Lanka, in any place outside the territory of Sri Lanka or on board or in relation to any ship or aircraft.

• Under the treaty with Hong Kong, extradition can be refused based on nationality. The obligation to promptly submit the case for prosecution where extradition of a national is refused is not addressed.

Link to the Judicature Act http://citizenslanka.org/wp-content/uploads/2016/02/Judicature-Act-No-02-of-1978-E.pdf

• Section 7 of the Extradition Law No. 8 of 1977 contains the general restrictions applicable in this regard.

• Conditional surrender of national is not a requirement to extradite.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• Sections 11, 12, and 18 of the Extradition Law No. 8 of 1977 provides for judicial guarantees of fair treatment at all stages of proceedings.

• Constitutional guarantees are provided under Article 13 (Freedom from arbitrary arrest, detention and punishment, and prohibition of retroactive penal legislation) and can be enforced through Supreme Court.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• As per section 7 (1) ( c ) of the Extradition Law No. 8 of 1977 a person shall not be extradited if extradited, be prejudiced at his trial or punished, detained or restricted in his personal liberty by reason of his race, religion, nationality, or political opinions.
• Article 12(1) of the Constitution guarantees equality.

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• There is no statutory provision that imposes an obligation to consult, giving opportunity to present its opinion or provide relevant information before refusing extradition.

• Under the treaty with Hong Kong provision is made to call additional information (Sri Lanka-Hong Kong, China Extradition Treaty article 11 cited in the Country Review Report under the First Review Cycle).

Link to Extradition Law https://www.lawnet.gov.lk/1946/12/31/extradition-law-2/

Link to Extradition Amendment Act https://www.lawnet.gov.lk/1946/12/31/extradition-amendment-2/

• Sri Lanka entered into extradition treaties with Hong Kong (China), India, Italy and the United States of America.

Link to Country Review Report under First Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• A Convention or agreement is usually required to provide mutual legal assistance. However where there is no such agreement, the Minister of Justice is enabled to decide to provide such assistance in the best interest of nations on the basis of reciprocity.

• Sri Lanka has bilateral Mutual Legal Assistance Treaties with Hong Kong (China), Pakistan, Thailand and India.

• As per Section 6(1) of the Mutual Assistance in Criminal Matters Act No. 25 of 2004, dual criminality can be waived if the offence is of a serious nature.

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

Link to Country Review Report under First Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Under section 8 of the Penal Code, “persons” includes any company or association or body of persons, whether incorporated or not.

• Under Bribery Act No. 11 of 1954 whether a legal person can be prosecuted is unclear.

• No information on the range of penalties imposed on legal persons.

• In the Country Review Report under the First Cycle, it was noted that no distinctions would be made between natural and legal persons (this is not yet tested).

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Penal Code http://hrlibrary.umn.edu/research/srilanka/statutes/Penal_Code.pdf

Link to Country Review Report under the First Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• As per section 15(1) (q) of the Financial Transactions Reporting Act No. 6 of 2006 notes that information sharing is possible in relation to an “unlawful activity”, which encompasses bribery and corruption offences with an institution 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.

• Section 17(3) of the Financial Transactions Reporting Act No. 6 of 2006 restrictions in dealing with information obtained under section 15 (1).

• No legal basis exists for other administrative authorities than the FIU to spontaneously share information.

• As per Country Review Report under the First Review Cycle, there are informal information sharing mechanisms on the basis of reciprocity (with INTERPOL and other investigative agencies).

• As per Country Review Report under the First Review Cycle, steps are being taken to implement this.

Link to Financial Transactions Reporting  Act http://fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_%28English%29.pdf

Link to Country Review Report under First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Bank secrecy is not a ground for refusing assistance under the Mutual Assistance to Criminal Matters Act or Mutual Legal Assistance treaties.

Link to Mutual Assistance to Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• As per sections 6(1) and 6(2) of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 as amended by Act No. 24 of 2018 gives discretion to the Central Authority or the competent authority having consulted the Central Authority to afford mutual legal assistance in instances where the element of dual criminality is absent.

• For certain mutual legal assistance like tracing criminal proceeds under sections 17 and 18 the offence must also be punishable by death or one year’s imprisonment, as per the definition of “serious offence” under Section 24 of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 as amended by Act No. 24 of 2018.

• No information was available as to whether Sri Lanka would render non-coercive assistance where the offence is not of a serious nature.

Link to Mutual Assistance to Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Section 12 (1) (b) of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 notes that the requesting country is required to take certain undertakings including cost of travel. Section 12 (2) and (3) of the Act discusses the custody related matters.

• Certain provisions relating to such matters are detailed in the Mutual Legal Treaties between Sri Lanka and other countries.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to Country Review Report under First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Section 14 of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 (Immunity from prosecution of persons brought to Sri Lanka) provides for this.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

• Section 4 of the Mutual Assistance in Criminal Matters Act No. 25 of 2002, establishes the Central Authority under the Act (The Secretary to the Ministry of the Minister in charge of the subject of Justice).

• Sri Lanka does not require that requests to the Central Authority be made through diplomatic channels and would, in urgent circumstances, accept a request made through INTERPOL.

• Sri Lanka has not made the requisite notification of its central authority to the United Nations.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Requests must be made in English. Sri Lanka accepts a request made orally in urgent circumstances and where agreed if it was confirmed in writing without a delay.

• This has not yet been communicated to the Secretary-General of the United Nations.

Link to Country Review Report under First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Schedules to the Mutual Assistance in Criminal Matters Act No. 25 of 2002 as amended contains these requirements.

• Adequate guidance on these to requesting countries is required.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Section 6(1)(e) of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 specifies the instances where a request can be refused.

• Section 8 of the Act notes the manner in which process or document are served in Sri Lanka.

• Mutual Legal Assistance Treaties provide for the execution of requests thereunder separately.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

• Mutual Legal Assistance Treaties (e.g. Hong Kong, China, Pakistan and Thailand) with other countries provide for limitations on use but these are limited to the contracting countries.

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

This is provided for under Section 2 (1) (c) of the the Mutual Assistance to Criminal Matters Amendment Act

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• The Mutual Legal Assistance in Criminal Matters Act No. 25 of 2002 as amended contains provision on timely execution of requests (section 4 A).

• Certain Mutual Legal Assistance Treaties (e.g. Thailand, Pakistan) provide for the prompt execution of requests.

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

Link to Mutual Assistance in Criminal Matters Act https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Mutual Legal Assistance in Criminal Matters Act No. 25 of 2002 does not contain a specific provision which casts a duty on the Central Authority to consult with the requesting State before postponing the execution of requests.

• Certain Mutual Legal Assistance Agreements covers these (Hong Kong, China).

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

Link to Mutual Assistance in Criminal Matters Act https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

• Section 14 of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 deals with immunity from prosecution of persons brought to Sri Lanka.

• Certain Mutual Legal Assistance Treaties (e.g. Hong Kong, China) covers safe conduct in their treaties.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Section12 (4)(d)(ii) of the Mutual Legal Assistance in Criminal Matters Act No. 25 of 2002 deals with the requesting party’s undertaking to bear the cost of travel of a witness who travels to give evidence or assistance to an investigation.

• Certain Mutual Legal Assistance Treaties also address this matter (e.g. Hong Kong, China, Pakistan).

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• As per section 3 of the Mutual Legal Assistance in Criminal Matters Act No. 25 of 2002 facilitating the provision of documents and other records are recognized as an objective of the Act. The procedure in securing such documents are dealt under section 10 (3) (b) of the Act.

• Certain Mutual Legal Assistance Treaties (e.g. Hong Kong, Thailand) also address this issue.

Link to Mutual Assistance in Criminal Matters https://www.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• FIU is authorized to enter into agreements on mutual legal assistance that provide for the exchange of information.

• FIU is a member of the EGMONT Group of Financial Intelligence Units Police cooperates through INTERPOL.

Link to Financial Intelligence Unit http://fiusrilanka.gov.lk/international.html

Link to Egmont Group https://egmontgroup.org/en/membership/list

Link to the Country Review Report under the First Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• There are no specific legal provisions on special investigative techniques

Link to the Country Review Report under the First Cycle  http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2016_04_11_Sri_Lanka_Final_Country_Report.pdf

• Section 17 of the Mutual Assistance to Criminal Matters Act No. 25 of 2002 amended by the Amendment Act No. 24 of 2018, specifies that the Central Authority (Ministry of Justice) has the discretion to require the relevant law enforcement authority to assist to identify, locate a person or assist in assessing the value of the property that is proceeds of crime.

• As per the Amendment, this law applies to every country that is a party to an international or a regional Convention or other agreement which is in the interest of mutual assistance in criminal matters, to which Sri Lanka has become a party, whether before or after the date of commencement of this Act. It also applies to a country which has entered into an agreement with Sri Lanka for mutual assistance in criminal matters. Where a country has not entered into any agreement with Sri Lanka, the Minister can determine to extend and obtain assistance based on reciprocity if it is in the best interest.

• In providing mutual legal assistance, dual criminality is a requirement under section 6 of the Mutual Assistance to Criminal Matters Act No. 25 of 2002 amended by the Amendment Act No. 24 of 2018.

• No single law on asset recovery. A law is being drafted on the recovery of proceeds of crime.

• No completed asset recovery cases to date.

Link to Mutual Assistance to Criminal Matters https://sherloc.unodc.org/res/cld/document/lka/2002/mutual_assistance_in_criminal_matters_1_act_no__25_of_2002_html/Sri_Lanka_Mutual_Assistance_Criminal_Matters_Act_n._25_2002.pdf

Link to Mutual Assistance to Criminal Matters Amendment Act http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• As per Financial Transactions Reporting Act No. 06 of 2006 customer identification is mandatory (Sec. 2).

• Financial Intelligence Unit is responsible for receiving Cash Transactions Reports (CTR), Electronic Fund Transfers (EFT) and Suspicious Transaction Reports (STR) from all reporting institutions and for analyzing data collected to identify financial trails to support prosecution.

• FIU also issues rules to the financial and other reporting sectors on customer identification and record keeping.

• The Act does not recognize the concept of high value accounts but Regulation No. 1555/9 of 25th June, 2008, specifies that any financial institution under the Act needs to report to FIU every electronic fund transfer made at the request of a customer, where the amount of such transfer exceeds Rupees One Million (Rs. 1,000,000) or its equivalent in any foreign currency.

• As per section 5 of the Financial Transactions Reporting Act No. 06 of 2006, institutions are mandated to conduct ongoing due diligence and scrutiny of customers.

• Sections 59 and 60 of the Financial Institutions (CDD, Customer Due Diligence) Rules No. 01 of 2016 requires enhanced scrutiny of people who are deemed politically exposed persons, their family members and close associates. Rules 30 –31 provides for the identification and verification of the identity of beneficial owners of all accounts maintained in financial institutions under the Act.

• The rules also provide for money-laundering risk management and internal controls, know-your-customer (KYC), customer due diligence (CDD), enhanced scrutiny for persons and accounts, correspondent banking, wire transfers and record keeping.

• FIU also created Guidelines on Identification of Beneficial Ownership for Financial Institutions No. 4 of 2018 that explains amongst others what beneficial ownership is, the importance of recognizing the beneficial owner, manner in which such ownership can be hidden, and identification and verification of beneficial ownership.

Link to Link to Rules issued by the Financial Intelligence Unit http://www.fiusrilanka.gov.lk/rules_directions.html

Link to Regulation No. 1555/9 http://www.fiusrilanka.gov.lk/docs/Regulations/1555-9/1555_9(E).pdf

Link to the Guidelines on Identification of Beneficial Ownership for Financial Institutions No. 4 of 2018  http://fiusrilanka.gov.lk/docs/Guidelines/2018/Guideline-04-2018.pdf

Link to Financial Transactions Reporting Act  http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

• Financial Intelligence Unit is responsible for strengthening the money laundering and countering financing of terrorism regime in Sri Lanka. FIU supervises suspicious transactions.

• It has created rules relating to enhanced scrutiny of certain types of persons and accounts commensurate with their risk profile.

Link to Financial Transactions Reporting Act http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

Link to Link to Rules issued by the Financial Intelligence Unit http://www.fiusrilanka.gov.lk/rules_directions.html

• No mechanism to notify financial institutions of the identity of particular persons to whose accounts enhanced scrutiny should be applied.

Link to the Country Review Report under the Second Review http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• As per Part V of the Rules for Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 – Extraordinary Gazette No 1951/13, January 27 of 2016, institutions are expected to keep records for 6 years minimum from completion of a transaction or the date on which the business relationship was fulfilled.

• Financial Institutions are mandated to retain the above records for a longer period where transactions, customers or accounts are involved in litigation or required to be produced in a court of law or before any other appropriate authority (rule 93).

• No PEP database is created.

Link to Rules for Financial Institutions (Customer Due Diligence) Rules No 1951/13 http://fiusrilanka.gov.lk/docs/Rules/2016/1951_13/1951_13_E.pdf

• As per section 2 (1) of the Banking Act No. 30 of 1988 banks with no physical presence are prohibited. A license issued by the Monetary Board with the approval of the Minister is required.

• As per Rule 67 under the Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016, no bank can enter into or continue banking relationship with a shell bank. The Rules also mandates the financial institutions to follow special precautionary measures to make a distinction between formal money transmission services and other alternative money or value transfer systems (Rule 88).

• As per Rule 64 under the Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016, financial institutions must take necessary measures to ensure that the risk of money laundering and terrorist financing through the accounts of the respondent banks are managed.

• Banks are mandated to apply enhanced Customer Due Diligence measures when entering into or continuing banking relationship with banks or Financial Institutions which are located in high risk countries (Rule 66).

Link to Banking Act http://www.dfe.lk/web/images/downloads/acts/bankingAct.pdf

Link to Rules for Financial Institutions (Customer Due Diligence) Rules No 1951/13 http://fiusrilanka.gov.lk/docs/Rules/2016/1951_13/1951_13_E.pdf

• A specific legal provision is not there.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• A specific legal provision is not there.

• A specific legal provision is not there.

• Section 19 of the Mutual Legal Assistance in Criminal Matters Act No. 25 of 2002 empowers the Ministry of Justice, as the Central Authority to give effect to confiscation orders issued by courts in ‘specified countries.’

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• Section 13(1) of the Prevention of Money Laundering Act No. 5 of 2006, as amended by Act No. 40 of 2011 empowers courts to make an Order confiscating any movable or immovable property of a person derived or realized, directly or indirectly from any unlawful activity (includes proceeds of crimes derived from foreign predicate offences where the property is located in Sri Lanka).

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_%28English%29.pdf

Link to the Prevention of Money Laundering (Amendment) Act http://fiusrilanka.gov.lk/docs/ACTs/MLAmendment/Act40E.pdf

• As per section 15 of the Mutual Legal Assistance in Criminal Matters Act, the Ministry of Justice, as the Central Authority can give effect to confiscation orders issued by courts in ‘specified countries.

• Section 17 of the Act enables the Central Authority to provide assistance to ‘specified countries’ in tracing proceeds of crime.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• As per section 15 of the Mutual Legal Assistance in Criminal Matters Act, the Ministry of Justice, as the Central Authority can give effect to confiscation orders issued by courts in ‘specified countries.

• Section 17 of the Act enables the Central Authority to provide assistance to ‘specified countries’ in tracing proceeds of crime.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• As per section 19 of the Mutual Assistance in Criminal Matters Act No. 25 of 2002 Sri Lanka is empowered to act on requests for confiscation by requesting States. These will only be actioned if the requesting State has obtained a foreign forfeiture order issued by their court.

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Section 15 and 17 of Mutual Assistance in Criminal Matters Act No. 25 of 2002 address these requirements, namely by specifying the manner in which request by a specified country for search and seizure are processed and the measures to identify, trace and seize proceeds on the basis of a foreign requests.

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Sections 5 and 6 of the Mutual Assistance in Criminal Matters Act contains the requirements with which the requests need to comply and grounds for refusal.

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• Sections 5 and 6 of the Mutual Assistance in Criminal Matters Act of 2002 as amended in 2018 contains the requirements with which the requests need to comply and grounds for refusal. If compliance would be contrary to the Constitution or public policy of Sri Lanka it is a ground for refusal.

Link to the  Mutual Assistance in Criminal Matters Act http://www.documents.gov.lk/files/act/2002/10/25-2002_E.pdf

Link to the  Mutual Assistance in Criminal Matters (Amendment) Act, No. 24 OF 2018 http://www.documents.gov.lk/files/act/2018/8/24-2018_E.pdf

• These have been given at the Second Review Cycle per the Second Country Review Country Report.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• It was noted in the Country Review Report under the Second Review Cycle that authorities would consult with requesting countries before refusing mutual legal assistance or lifting provisional measures.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

• Under Section 28A of the Bribery Act No. 11 of 1954 and section 13 (2) of the Prevention of Money Laundering Act No. 5 of 2006 in ordering the forfeiture of property in relation to which offence of bribery or money laundering has been committed courts are mandated to consider rights of bona fide third parties.

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_%28English%29.pdf

Link to the Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

• Under section 22 of the Prevention of Money Laundering Act No. 5 of 2006 the Central Authority, the Ministry of Justice has the discretion in consultation with the Minister of Finance to order that the whole or any part of any property forfeited given or remitted to the requesting State.

• There is no obligation to return and dispose of assets as per UNCAC

• There is no provision for returning property in other cases not related to money laundering cases.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to the Prevention of Money Laundering Act http://fiusrilanka.gov.lk/docs/ACTs/PMLA/Money_Laundering_Act_2006-5_%28English%29.pdf

Link to the Bribery Act https://www.ciaboc.gov.lk/images/Publications/Bribery_Act_english.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• The law does not establish an obligation to return and dispose of assets in accordance UNCAC in cases of embezzlement of public funds or of laundering of embezzled public funds.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• The law does not establish an obligation to return and dispose of assets in accordance with UNCAC.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Task force on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• The law does not establish an obligation to return and dispose of assets in accordance with UNCAC.

• A law on proceeds of crime is being developed.

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Task force on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017

• The Financial Transactions Reporting Act, No. 6 of 2006 established the Financial Intelligence Unit as the main supervisory authority for suspicious financial transactions.

• The main objective of establishing the Unit was “to combat money laundering, terrorist financing and other related crimes in Sri Lanka in line with international recommendations and standards.”

• The powers and functions of the Unit is detailed under Part III of the Financial Transactions Reporting Act No. 6 of 2006. Section 17 empowers the Financial Intelligence Unit to enter into agreements with foreign stakeholders (e.g. foreign law enforcement bodies, international organizations)

• Sri Lanka is a member of the Egmont Group.

• Bribery offences are covered as predicate offences for prevention of money laundering and are also covered as “unlawful activity” under the Financial Transactions Reporting Act No. 6 of 2006.

• A law on proceeds of crime is being developed.

Link to http://www.fiusrilanka.gov.lk/fiu_objectives.html

Link to Egmont Group https://egmontgroup.org/en/membership/list

Link to Financial Transactions Reporting Act  http://www.fiusrilanka.gov.lk/docs/ACTs/FTRA/Financial_Transactions_Reporting_Act_2006-6_(English).pdf

Link to Memorandum of Understandings of Financial Intelligence Unit http://fiusrilanka.gov.lk/mous.html

Link to Country Review Report under the Second Review Cycle http://www.unodc.org/documents/treaties/UNCAC/CountryVisitFinalReports/2018_09_03_Sri_Lanka_Final_Country_Report.pdf

Link to Statement made by Presidential Taskforce on Asset Recovery on 9th November 2017 https://www.ciaboc.gov.lk/media-centre/international-relations/377-statement-made-by-mr-j-c-weliamuna-pc-chairman-presidential-taskforce-on-asset-recovery-on-9th-november-2017