Anti-Corruption Act 2023 · As enacted · Part I · Part i
53. Restraining orders
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The Commission may–
prohibit, by written order (hereinafter referred to as the ‘’freezing order”), any person in respect of whom an inquiry or investigation is being conducted under section 42, the spouse, other family member of such person or any other person holding any property in trust for such first-mentioned person, or any bank or any non banking financial institution or designated non finance business in possession, custody or control of any of his movable property or a company of which he is a director or a firm in which he is a partner, from parting with, dealing with or otherwise disposing of such property or any part thereof, from transferring the ownership of, or any interest in, any movable or immovable property specified in such order, until such time such order is revoked by the Commission and to cause a copy of the freezing order to be served on any such authority as the
Commission may think fit, including–
the Registrar of Lands where the immovable property is situated in the case of an immovable property;
the Commissioner of Motor Traffic appointed under section 204 of the
Motor Traffic Act (Chapter 203) in the case of a motor vehicle; and
the Registrar-General of Companies appointed under section 471 of the
Companies Act, No. 07 of 2007 and the
Secretary of such company in the case of shares, stocks or debentures of any company;
require, by written order, any authority on whom a copy of the freezing order made under paragraph (a) has been served, to cause such copy to be registered or filed in any register or record maintained by such authority;
require by written order the Controller of
Immigration and Emigration appointed under section 4 of the Immigrants and Emigrants
Act (Chapter 351) to impound the passport and other travel documents or to take all such steps as may be necessary to prevent the departure from Sri Lanka of any person in respect of whom an information or a compliant or a communication has been received under section 42 for such period not exceeding three months, as may be specified in such written order; and
require by written order, any police officer as shall be specified in that order, whether by name or by office, to take all such steps as may be necessary to prevent the departure from Sri Lanka of any person in respect of whom any information or compliant has been received under section 42 for such period not exceeding three months, as may be specified in such order.
The Commission shall, within seven days during which such freezing order shall be in force, make an application to the High Court seeking confirmation of such freezing order and also if the circumstances so necessitate, request an extension of the original period of seven days.
Where the High Court is satisfied that there are sufficient reasons for the making of such freezing order, the
High Court may confirm the freezing order and also where an application is made for the extension thereof, grant the extension for such periods as it considers necessary, subject however –
to any other orders which may be made by the High
Court; and
to the requirement that the maximum period of any extension so granted shall not exceed one year from the date of the obtaining of the freezing order by the
Commission:
Provided that, where an indictment is filed for an offence under this Act, the freezing order shall unless vacated by the High Court for reasons to be recorded, remain in force until the conclusion of the trial in respect of such offence, or where an appeal is preferred against a conviction for such offence, until the determination of the appeal.
Where the High Court confirms a freezing order under subsection (3), it shall cause a notice of such order to be published in at least one newspaper circulating in the Sinhala,
Tamil and English languages, in order to facilitate bona fide third parties to make application to the High Court in support of their claims to the account, property or investment which is subject to the order of freezing.
Where any movable property is seized under this Act, the seizure shall be effected by removing the movable property from the possession, custody or control of the person from whom it is seized and placing it under the custody of such person or authority and at such place as may be determined by the Commission:
Provided however, where it appears to the satisfaction of the Commission that it is not practicable, or is not desirable, to effect removal of any property under this subsection, the Commission may leave it at the premises in which it is seized under the custody of an authorized officer of the
Commission.
Notwithstanding the provisions of subsection (5), when any movable property, including any movable property referred to in subsection (10), has been seized under this Act, an authorized officer of the Commission other than the officer who effected the seizure, may-
temporarily return the movable property to the owner thereof, or to the person from whose possession, custody or control it was seized, or to such person as may be entitled thereto, subject to such terms and conditions as may be imposed, and subject in any case to sufficient security being furnished to ensure that the movable property shall be surrendered on the demand being made by the officer who authorized the release and that such terms and conditions, if any, shall be complied with; or
return the movable property to the owner thereof, or to the person from whose possession, custody or control it was seized, or to such person as may be entitled thereto, with liberty for the person to whom the movable property is so returned to dispose of the property, such return being subject to security being furnished in an amount not less than an amount which represents the open market value of such property on the date on which it is so returned.
Where any person to whom movable property is temporarily returned fails to surrender such property on demand or comply with any term or condition imposed under that paragraph,-
the security furnished in respect of such property shall be forfeited; and
that person shall commit an offence punishable with imprisonment for a term not exceeding seven years or a fine not exceeding one million rupees.
Where an order of forfeiture of security is made by the court in respect of property temporarily returned as specified in subsection (7), such forfeiture shall be effected by forfeiting the security furnished by the person to whom the property was returned.
When any movable property seized under this Act consists of money, shares, securities, stocks, debentures or any choose-in-action in the possession or under the custody or control of any person other than the person against whom the prosecution is intended to be taken, the seizure shall be effected by an authorized officer of the Commission serving an order on such other person–
prohibiting him from using, transferring, or dealing with such property; or
requiring him to surrender the property to the
Commission in the manner and within the time specified in the order.
Where any movable property seized or freezed is liable to speedy decay or deterioration, or cannot be maintained without difficulty, or is not practicable to be maintained, and cannot be dealt with under subsection (6), upon an application made in that regard by the Director-General or any officer authorized by the Commission, the High Court may make order to sell or cause to be sold the property and to hold the proceeds of the sale in the manner as may be determined by such Court:
Provided that the High Court may order to deduct any cost or expense of the maintenance and sale of property from the proceeds of any proceedings under this Act.
A transaction shall not be effected in relation to any account, property or investment where a freezing order is in force and any transaction which is so effected shall be null and void.
Before making a freezing order under this section, the High Court may on an application made in that behalf, if the High Court is of the opinion that such an order may damage the legitimate business or any other interest of any person affected by such freezing order, make order permitting any essential transaction relating to such account, property or investment to be carried out subject to such supervision and under the direction of an officer authorized by the
Commission as may be directed by such court.
Part II
Declaration of Assets and Liabilities
Part III
Part IV
General
Part V