Foreign Exchange Act 2017 · As enacted
10. Investigations of foreign exchange transactions and foreign assets
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 Central Bank may, at any time, cause an investigation to be made, of foreign exchange transactions or foreign assets of any authorized dealer or a restricted dealer or any other person, class or classes of persons as the case may be, by an officer of the Department of Foreign Exchange authorized in writing by the Central Bank (hereinafter referred to as an “authorized person”) in that behalf.
It shall be the duty of every authorized dealer or a restricted dealer or any other person, class or classes of persons –
to permit an authorized person entry into any premises for the purposes of such investigation;
to produce any books or other documents as may be required for the investigation by such authorized person;
to permit such authorized person to retain for such time as may be necessary such books and other documents or to take copies or extracts;
to appear before the authorized person when required to do so by such authorized person;
to furnish such statement or information in relation to the investigation within such time and in such manner as the said authorized person may require;
or
not to furnish information under this section, which to the knowledge of such dealer is false.
Where an authorized person retains any book or document under subsection (2) the authorized person shall furnish to the person from whose custody or control such book or document was taken for detention, a copy of such book or document certified by such authorized person if a request for a copy is made by the person from whose custody or control such book or document was taken or the authorized person may without retaining original books or documents require the person to furnish true copies of such books or documents.
An authorized dealer or a restricted dealer or other person required to appear before the authorized person may be examined orally and any statement made by such dealer or person shall be reduced to writing and shall be signed by the dealer or person making the same.
For purposes of an investigation under subsection (1), the Central Bank or the authorized person may if the circumstances warrant, obtain the assistance of a police officer to prevent a breach of the peace, in the exercise of that right.
Where the Central Bank apprehends any resistance in the course of an investigation under subsection (1), the
Central Bank may, on application made to a Magistrate’s
Court by a person authorized in that behalf by the Monetary
Board, within whose jurisdiction such investigation is made, obtain an Order directing the authorized dealer or the restricted dealer or other person as the case may be whose foreign exchange transaction or foreign assets is or are being, or is or are to be, investigated, to appear before the authorized person or to produce such books or documents in the custody or control of such dealer or person as the
Central Bank or the authorized person making the investigation may reasonably require for such investigation.
An application made under subsection (6) by a person authorized in that behalf by the Monetary Board shall contain—
the name and address of the authorized dealer or a restricted dealer or other person as the case may be whose foreign exchange transaction is being or is to be investigated;
the address of the premises in which the investigation is to be made;
the name of the authorized person making the investigation; and
a prayer for an Order -
for the appearance of such dealer or person before the authorized person;
for the production of the books and documents to the Central Bank or the authorized person;
to refrain from obstructing the authorized person making an investigation under this section.
Court may, after considering an application made under subsections (6) and (7) make an Order prayed for under paragraph (d) of subsection (7) and such dealer or person shall comply with the Order forthwith.
Any dealer or person who fails to comply with an
Order of the court under paragraph (a) commits an offence and shall, on conviction be liable to a fine not exceeding rupees five hundred thousand.
Where the offence under paragraph (b) is a continuing offence, such dealer or person shall be liable to an additional fine of rupees hundred thousand for each day during which such offence continued.