Proceeds of Crime Act 2025 · As enacted · Part III · Judicial Freezing of Proceeds of Crime
75. Issue of a judicial freezing order by the High Court
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
If an Investigation Officer is of the view that, it shall be necessary to have the seized property to be frozen, he shall within seven working days from the seizing of such property, with the approval of the Designated Officer, having given notice in the form of Schedule V to this Act to any person-
from whom the property was seized;
on whom the restraining order was served;
whose identity has been revealed to him as a person affected by the seizing or restraining of the property; and
whom he believes would have been directly affected by the restraining order or the seizing order if previously issued, make an application, either by himself or with the assistance of any other police officer or the Attorney-General or an
Attorney-at-Law appointed by the Attorney-General, to the High Court within the judicial zone in which the seized property or part thereof is situated or if the location of the property cannot be located to the High Court of the judicial zone of Colombo, seeking an order for judicial freezing of such property which is believed by him to be proceeds of crime or corresponding value of such proceeds of crime:
Provided however, if the seizure or restraining of the property was by an Investigation Officer of Commission to
Investigate Allegations of Bribery or Corruption, the afore-stated application to the High Court shall be made by an officer of such Commission, an officer appointed by the
Attorney-General on a request by the Commission, or by an
Attorney-at-Law appointed by the Commission.
Upon the making of such application by an
Investigation Officer, the High Court shall consider -
the material presented to court by the
Investigation Officer;
such other relevant material the court may in the interest of justice permit;
any party who has interest or claim in the property seized or restrained;
any such further material the court may in the interest of justice call for and examine; and
representations made on behalf of parties before court, and make an order for the judicial freezing of the property, if the court is satisfied that –
the Investigation Officer has served notice of his intention to make an application to the
High Court for the judicial freezing of the property to the parties hereinbefore listed;
there exist reasonable grounds to believe that the property is proceeds of crime, or is property the value of which corresponds to the proceeds of crime, where the proceeds of crime is not available; and
the making of such an order is in the interests of justice.
Such judicial freezing order shall be issued by the
High Court in the form specified in Schedule VI to this Act.
If at the time the application for a judicial freezing order is made, the property in issue was not subject to a seizure, the High Court shall on the motion of the Attorney-General, pending an order being made in respect of the application for judicial freezing of the property, make suitable orders for the temporary protection, preservation and management of the property.
The High Court shall, having due regard to the nature of the property seized and the likelihood of persons being unaware of the making of the judicial freezing order engaging or attempting to engage in any transaction relating to the frozen property, direct the Investigation Officer to publish the judicial freezing order or any part thereof in the manner specified in the order of court. The Court may also direct any public officer to take steps as may be specified in a further order with regard to the frozen property.
If an Investigation Officer is of the view that a period of time exceeding seven working days is necessary to carry out further investigations for the purpose of making an application for an order from the High Court to freeze the seized property, he shall with the approval of the Designated
Officer, within seven working days from the seizure of the property make an application setting out the reasons for such application to the High Court seeking an extension of time which shall not extend beyond another seven working days from the expiry of the seven working days from the seizure to make an application to freeze the seized property.
If an application is made by an Investigation Officer under subsection (6), the restraining of the property and the seizure shall remain in force till the High Court makes an order thereon.
When making an order for the judicial freezing of property, the Court shall where necessary make orders in terms of this Act for the protection, preservation, and management of the frozen property.
If following the restraining or seizure of a property, the High Court on an application by an Investigation Officer, does not make an order judicially freezing the seized or restrained property, the seizure of the property and the restraining order made in respect of the seized property shall stand vacated. Where necessary the High Court shall make order to return the property to the person from whom it was seized or to any other person to whom it appears to court that such property shall be returned.
If following an application to the High Court for the judicial freezing of a property and the High Court decides to release such property and the property has been so released, an
Investigation Officer upon conduct of further investigations forms the opinion based on reasonable grounds that the released property is proceeds of crime, he may within one year of such order for the release of the property, and with the approval of the Designated Officer make one further application to the High Court having served notice to the party to whom the property was previously released by the
High Court and to any other party who may be affected by a judicial freezing order, seeking the judicial freezing of the previously released property.
An order for the judicial freezing of such property in terms of the provisions of subsection (10) shall be made only if the High Court is satisfied that the notice to the affected party has been duly served and there exists reasonable grounds to believe that such property in question is proceeds of crime.
Upon an application by an Investigation Officer to the High Court for the judicial freezing of a property that is believed to be proceeds of crime, and the High Court is satisfied that there exist reasonable grounds to believe that the property is proceeds of crime and therefore it shall be frozen, the court may on an application by a party from whose possession, control or dominion the property had been seized or restrained, shall conduct an inquiry.
The High Court may after necessary inquiry, in the interest of the public and for the effective protection, preservation and management of such property, in addition to making an order for judicial freezing of such property, make a further order at the same time or any time thereafter for the temporary release of such property or part thereof to the party who made the afore-stated application:
Provided however such temporary release shall be subject to such party submitting to court reasonable security in the form and nature as specified by court and subject to conditions that may be imposed by court including conditions restraining specified transactions.
Such order for temporary release of property shall be made only if the High Court is satisfied that the temporary release of the property shall not defeat the objectives of this
Act, and the court is satisfied that the property shall remain available without diminishing of its value due to wilful conduct of any party, to be subject to forfeiture proceeding under this Act.
An order of the High Court for judicial freezing of any suspected proceeds of crime shall be forthwith served on the parties who had previously possessed, controlled or held dominion over such property and is likely to be directly affected by such judicial freezing order. It shall also be published in the manner directed by the High Court.
A judicial freezing order shall initially be valid for a period not exceeding six months.
A judicial freezing order may be extended by the
High Court for periods of six months at a time not exceeding a period of twenty-four months on an application by the
Attorney-General or the Director-General of the Commission to Investigate Allegations of Bribery or Corruption as the case may be, for reasons to be recorded by the High Court.
If following the judicial freezing of a property by the High Court, and if proceedings are instituted in the High
Court or the Magistrate’s Court as the case may be for the committing of the unlawful activity which is alleged to have yielded the frozen property, the judicial freezing order made by the High Court shall remain in force for a period not exceeding three months following the delivery of judgement.
Where the accused is convicted under the proceedings referred to in subsection (17) and an appeal is filed in respect of such conviction, the judicial freezing order shall remain in force till the completion of the appeal, judgment being delivered and a period of three months lapsing following the judgment being delivered:
Provided however, if the accused is acquitted by such
High Court or the Magistrate’s Court and an appeal against such acquittal is filed, the judicial freezing order shall remain in force till the completion of the appeal and three months lapsing following the judgment being delivered.
Following the making of a judicial freezing order, any person directly affected by the making of such judicial freezing order, may make an application to the High Court, seeking a variation of the judicial freezing order and the
Court may grant such variation provided that the Court is satisfied that the variation sought does not relate to proceeds of crime:
Provided however, the Court shall not permit carrying out of transactions that may even be legitimate, if such transaction relates to proceeds of crime.
Upon issuing a judicial freezing order, the High Court shall make necessary orders for the protection, preservation, and management of the frozen proceeds of crime applicable for the operational period of the judicial freezing order and such extended period during which forfeiture proceedings shall be conducted. Such order for the judicial freezing, protection, preservation and management of the property shall be made as provided in Part IV of this Act.
Following a judicial freezing of suspected proceeds of crime by the High Court, the court may, pending the conduct of forfeiture proceedings or the making of a forfeiture order, on application by a party entitled to such property, if the court is satisfied that the claimant is –
acting in good faith and is entitled to such property if found to be proceeds of crime; and
willing to submit security to the value of such property in the manner directed by court, after obtaining a valuation of the property, and subject to any further conditions and the submission of a bond, temporarily release such property or part thereof to the claimant. Such security shall be deposited as directed by the High Court with the court itself or with the Authority.
The property temporarily released on a bond as provided in the subsection (21) of this section, shall be used by the party to whom such property was released, only for the purposes directed by court, and shall be returned to Court or to the Authority whenever recalled by the High Court.
Such party to whom such property was released shall be required in terms of this Act to furnish such temporarily released property to the High Court to be subject to forfeiture proceedings as provided in this Act or upon the order of forfeiture for disposal in the manner specified by the forfeiture proceedings. Upon submission of the property back to Court, the claimant shall be entitled to claim the security submitted:
Provided however, if at the time the property is returned to the High Court, its value has been depreciated, the Court shall be entitled to forfeit the relevant value of the security and return to the claimant only the remaining value, if any.
When a property is temporarily released to a claimant, he shall be responsible for its effective protection, preservation and management and shall not intentionally engage in any activity which results to the destruction or the depreciation of the value of such property.
Nothing in this Act shall prevent the judicial freezing of property in terms of any law which authorizes the judicial freezing of property:
Provided however, if a property is frozen in terms of such other law, such property shall following its judicial freezing be dealt with in terms of that same law.
Part IV
Protection, Preservation and Management of Proceeds of Crime
Part V
Proceeds of Crime Management authority
Part VI
Forfeiture of Frozen Proceeds of Crime And Related Proceedings
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