As enacted

Contents

31. Replacement of section 35 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 35 of the principal enactment is hereby repealed and the following section is substituted therefor: -

35. In this Act, unless the context otherwise requires-

“beneficial ownership”

means the ownership or control of an entity or trust or other legal arrangement by a natural person-

(a)

who is a beneficial owner as defined in section 130j of the

Companies Act, No. 07 of 2007;

“Interpretation.

(b)

who holds an equivalent position to those referred to in subsection (1) of section 19a of the Trusts Ordinance

(Chapter 87) in the case of a trust as defined in that

Ordinance or any other legal arrangement similar to an express trust;

(c)

who, in the case where paragraphs (a) and (b) do not apply, ultimately owns or controls, directly or indirectly, an entity or trust or other legal arrangement; or

(d)

on whose behalf a transaction in relation to an entity or trust or other legal arrangement is being conducted;

“computer data” means any representation of facts, information or concepts in a form suitable for processing in a computer system including a program suitable to cause a computer system to perform a function;

“computer system” shall have the same meaning assigned to it in the

Computer Crime Act, No. 24 of 2007;

“country” or “foreign State” shall have the same meaning assigned to it in the Mutual Assistance in Criminal

Matters Act, No.25 of 2002;

“criminal property”

means property derived or realised, directly or indirectly from any unlawful activity or from the proceeds of any unlawful activity, or any conversion of such property, and includes-

(a)

income, profits, property or other benefits derived or realised from money laundering or any unlawful activity, or from the proceeds of such money laundering or unlawful activity;

(b)

the instrumentalities used in, or intended for use in money laundering or unlawful activities;

(c)

the property laundered;

(d)

the property that is used in, or intended or allocated for use in the financing of terrorism or terrorist acts, or property of any organization designated as a terrorist organization under any written law; and

(e)

the proceeds of the financing of terrorism, terrorist acts, or property of any organization designated as a terrorist organization under any written law;

“designated non-finance businesses or professions” shall have the same meaning assigned to it in the

Financial Transactions Reporting

Act, No. 6 of 2006;

“disposal of property” includes sharing or returning of such property;

“finance business” shall have the same meaning assigned to it in the

Financial Transactions Reporting

Act, No. 6 of 2006;

“Financial

Intelligence

Unit”

means the

Financial

Intelligence

Unit established in terms of the Financial

Transactions Reporting Act, No. 6 of 2006;

“financing of terrorism”

means an offence as defined in section 3 of the

Convention on the Suppression of

Terrorist Financing Act, No. 25 of 2005;

“forfeiture” means permanent deprivation of any criminal property or property of corresponding value of the criminal property by an order of a court by which the ownership of such property is transferred to the State free from all encumbrances;

“Institution” shall have the same meaning assigned to it in the Financial

Transactions Reporting Act, No. 6 of 2006;

“Minister” means the Minister assigned the subject of, and functions relating to, this Act under Article 44 or 45 of the

Constitution;

“person” means any natural or legal person and includes a body of persons, whether incorporated or unincorporated in or outside Sri

Lanka, and a legal arrangement, whether it has legal personality or not, and a branch of such person or body of persons incorporated or established in or outside Sri Lanka;

“Proceeds of

Crime

Management

Authority”

means the

Proceeds of Crime Management Authority established in terms of the provisions of the Proceeds of Crime Act, No. 5

of 2025;

“property” means assets of every kind, whether corporeal or incorporeal, moveable or immoveable, tangible or intangible, or virtual, and includes legal documents or instruments evidencing title to, or interest in such assets;

“Special Manager” means a Special

Manager appointed by the High

Court in terms of the provisions of the Proceeds of Crime Act, No. 5 of 2025;

“specified country”

and

“specified organization” shall have the same meaning assigned to it in the Mutual

Assistance in Criminal Matters Act,

No. 25 of 2002;

“terrorist act” shall have the same meaning assigned to it in the Convention on the

Suppression of Terrorist Financing

Act, No. 25 of 2005;

“transaction in relation to property”

includes-

(a)

a purchase, sale, loan, charge, mortgage, lien, pledge, transfer, delivery, assignment, subrogation, transmission, gift, donation, creation of a trust, settlement, deposit including the deposit of any article, withdrawal, transfer between assets, and extension of credit;

(b)

any agency or grant of power of attorney; and

(c)

any other disposition or dealing of property in whatever form, or whatsoever description or nature, howsoever described, which results in any right, title, interest or privilege, whether present or future, or whether vested or contingent, in the whole or any part of such property being conferred on any person;

“unlawful activity” means an act which constitutes an offence under-

(a)

the

Poisons,

Opium and

Dangerous Drugs Ordinance

(Chapter 218)

or the

Conventions Against Illicit

Traffic in Narcotic Drugs and

Psychotropic Substances Act,

No. 1 of 2008;

(b)

any written law or regulation for the time being in force relating to the prevention and suppression of terrorism;

(c)

the Anti-Corruption Act, No. 9

of 2023;

(d)

the

Firearms

Ordinance

(Chapter 182), the Explosives

Ordinance

(Chapter 183)

or the Offensive Weapons

Act, No. 18 of 1966;

(e)

the Foreign Exchange Act, No.

12 of 2017 and any regulation, rule or order made thereunder;

(f)

section 83c of the Banking

Act, No. 30 of 1988;

(g)

any written law for the time being in force relating to transnational organized crime;

(h)

any written law for the time being in force relating to cybercrime, blockchain technology, virtual assets or virtual asset service providers;

(i)

any written law for the time being in force relating to offences against children;

(j)

any written law for the time being in force relating to offences connected with the trafficking or smuggling of persons;

(k)

the

Customs

Ordinance

(Chapter 235)

and any regulation, rule or order made thereunder;

(l)

the Excise Ordinance (Chapter

52) and any regulation, rule or order made thereunder;

(m)

the Payment Devices Frauds

Act, No. 30 of 2006 and any regulation, rule or order made thereunder;

(n)

the National Environmental

Act, No. 47 of 1980 and any regulation, rule or order made thereunder and any written law for the time being in force relating to environment, marine environment and natural resources;

(o)

the

Convention on the

Suppression of

Terrorist

Financing Act, No. 25 of 2005

and any regulation, rule or order made thereunder;

(p)

Part V of the Securities and

Exchange Commission of Sri

Lanka Act, No. 19 of 2021;

(q)

the Piracy Act, No. 9 of 2001

and any regulation, rule or order made thereunder;

(r)

the

Intellectual

Property

Act, No. 36 of 2003 and any regulation, rule or order made thereunder;

(s)

sections 367, 373, 386, 389,

390, 400, 401, 402 and 403 of the Penal Code (Chapter 19);

(t)

section 189 of the Inland

Revenue Act, No. 24 of 2017;

(u)

any written law for the time being in force relating to levy, collection and recovery of indirect taxes;

(v)

any written law for the time being in force relating to acts of forgery;

(w)

any written law for the time being in force relating to counterfeiting of currency;

(x)

any written law for the time being in force relating to counterfeiting and piracy of products;

(y)

any written law for the time being in force relating to illicit trafficking or smuggling of stolen or other goods;

(z)

subsection (4) of section 2 of the Finance Business Act, No.

42 of 2011;

(za)

Antiquities

Ordinance

(Chapter 188)

and any regulation, rule or order made thereunder; or

(zb)

any other written law for the time being in force, which is punishable by death or with imprisonment for a term of five years or more, and includes an act committed within any jurisdiction outside

Sri Lanka, which would either constitute an offence corresponding to the offence of money laundering in that jurisdiction or which would, if committed in Sri Lanka, would amount to an offence under the provisions of any law specified in paragraph (a) to paragraph (zb);

“virtual asset”

means a digital representation of value that can be digitally traded or transferred, and can be used for payment or investment purposes, but does not include any digital representation of fiat currencies, securities and other financial assets; and

“virtual assets service provider” means any person who provides, administers, manages or conducts one or more of the following activities or operations for, or on behalf of, another person: -

(a)

exchange between virtual assets and fiat currencies;

(b)

exchange between one or more forms of virtual assets;

(c)

transfer of virtual assets;

(d)

safekeeping or administration of virtual assets or instruments enabling control over virtual assets; and

(e)

participation in, and provision of financial services related to an issuer’s offer or sale of a virtual asset.”.

Read on from s 32