Proceeds of Crime Act 2025 · As enacted · Part VI · Forfeiture of Frozen Proceeds of Crime And Related Proceedings
123. Inquiry
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
An inquiry in terms of this Part of this Act shall be conducted by the examination of affidavit and documentary evidence:
Provided however, for reasons to be recorded, the Court may in exceptional circumstances permit the presentation of oral and documentary evidence, in which event the rules pertaining to examination of witnesses and presentation of documentary evidence as contained in the Evidence
Ordinance shall apply.
Following the filing of the afore-stated material, the court shall take up the matter for inquiry. The Court shall initially consider whether the Attorney-General has made out a prima facie case to satisfy court that the property in respect of which the application has been filed is proceeds of crime in respect of which a person has been convicted. For the purpose of arriving at such finding, the Court may take into consideration-
the evidence placed before court during the trial;
notwithstanding anything to the contrary in sections 25 and 26 of the Evidence Ordinance and section 110 of the Code of Criminal
Procedure Act, notes of investigations including the statements recorded during the course of the investigation into the committing of the unlawful activity including statements made by the convicted person;
the judgment pronounced by the trial court that convicted the accused for having committed the unlawful activity; and
any other evidence which the Court shall deem necessary considering the interest of justice.
If after inquiry, if the court is satisfied that the
Attorney-General has made out a prima facie case, the Court shall call upon the Respondents to show cause as to why the Attorney-General’s application shall not be allowed and hence as to why the property shall not be forfeited.
Where the court is not satisfied that the Attorney-General has made out a prima facie case, the Court shall dismiss the application without calling on the respondents to show cause, and make order vacating the judicial freezing order, if any, previously made in respect of the relevant property in terms of this Act. The Court shall also make a suitable order for the release the property to the party entitled to such property.
Where the respondents show cause, the Court shall conduct further inquiry into the matter.
If following inquiry, the Court is satisfied on a balance of probabilities that the property in respect of which the application for forfeiture has been filed is-
the proceeds of crime;
property of the corresponding value of the proceeds of crime; or
that no victim of unlawful activity or claimant exists who has the legal entitlement to take possession of such property, make order for the forfeiture of the property, the security deposited, or the proceeds of the disposal of the property pending trial or forfeiture proceedings in respect of which such application has been made.
If following inquiry, the Court is satisfied on a balance of probabilities that the Respondent to the application or the claimant has a lawful claim for the property in respect of which the proceedings has been instituted, the Court shall make order for the release of the property or the value thereof to such party.
An order made in terms of this Act for-
dismissal of the application;
forfeiture of the property; or
release of the property to the Respondent or claimant, shall be deemed to be a final order and any party aggrieved by such order shall be entitled to appeal against such order to the Court of Appeal within a period of fourteen days from the date of such order, following the procedure contained in the Code of Criminal Procedure Act.
The Court which pronounces the order for forfeiture or release of the property, shall record reasons for such order.
The Proceedings in terms of this part of this Act for a determination on the forfeiture of proceeds of crime may be conducted notwithstanding the relevant property having been disposed of pending trial and the value thereof recovered.
The proceedings in terms of this part of this Act may be conducted for the recovery of the value of financial benefits derived by the committing of the unlawful activity.
It shall be lawful for the Attorney-General to make an application to the trial Court in terms of this Part of this
Act for the forfeiture of proceeds of crime or the property of the corresponding value of such proceeds of crime, notwithstanding –
the unlawful activity having been committed prior to the coming into operation of this Act; or
the property in issue not having been restrained, seized, or frozen in terms of this Act.
Where a person has been convicted for having committed an unlawful activity which constitute an offence under and in terms of the Anti-Corruption Act, the entitlement conferred on the Attorney-General in this Part of this Act shall be exercised by the Director-General of Commission to Investigate Allegations of Bribery or Corruption on the direction of the Commission or by the Attorney-General on a request by the Commission to Investigate Allegations of
Bribery or Corruption or by any Attorney-at-Law specially authorized by the Commission to Investigate Allegations of Bribery or Corruption under section 65 of the Anti-Corruption Act.
If during proceedings under this Part of this Act, on evidence placed before Court and further evidence, if any, called for and examined by court, the court becomes satisfied that the property in respect of which forfeiture proceedings has been instituted comprises partly of proceeds of crime and partly of property which does not constitute proceeds of crime, the court shall obtain a valuation of such property and determine the percentage value of such property which constitutes proceeds of crime and make order for forfeiture only in respect of such value which amounts to proceeds of crime.
Where one or more parties present a claim in respect of such property and as provided in this Act on a balance of probability establish such claim, the court shall direct that the percentage value of such property corresponding to such established claim which does not relate to proceeds of crime become the entitlement of such claimant.
The court shall direct the disposal of such property in the manner provided by this Act and upon realization of the value thereof direct the Registrar of the court to make payment in the sum determined by the court to the claimant and direct the forfeiture of the remaining sum of money which corresponds to the percentage value of the proceeds of crime to be forfeited to the state.
Part VII
Civil Remedy For Victims Of Crime
Part VIII
Disposal Of Forfeited Proceeds Of Crime And The Utilization Of The Value Derived Thereof
Part IX
Victims Of Crime Reparation Trust Fund
Part X
International Cooperation
Part XI