“Money Has Never Made A Man Happy, Nor Will It”: An Insight To Money Laundering Laws In Sri Lanka
Ashan Nanayakkara
Mario Puzo, The Godfather, once voiced that, “Behind every successful fortune there is a crime.” Be that is it may, yet, in present day context, one cannot freely spend their fortune (wealth) which may have accrued by illegal means, without evading the acute income-tax laws and the gawk eyes of law imposing authorities.
Luck of having oil discovered on a useless piece of a land, bag of pearls gifted by an old woman who is in the age of her 90s, blue-sapphire found from the backyard of someone’s house whilst he was peeing, lucky heir who was bequeathed amaze of wealth after the demise of persons in the kinds of John Lennon, Jimi Hendrix, Elvis, Ernest Hemingway are rarest things once in blue moon could occur. There is no wrong in fortune favours a man by such a stroke of luck. In opposition, if such a new found wealth is accumulated through felonious means noticed to none, such acts are to be hunt down by the Government. Thus, Money Laundering Laws have found to cater remedies to such mischiefs.
It is true that, having wealth, one could buy over the might, and further become mightier. But, question is how long? It was quoted that, “Superfluity comes sooner by white hairs, but competency lives longer” – Act 1 Scene 2 of Merchant of Venice. The money enlarged on forbidden activities is impermanent and lasts for short. Those who possessed it shall loose their virtues, as well as their Sleep!
Writer was driven to narrate this piece of article, to disclose how efficiently the laws of money laundering being adopted in Sri Lanka since which was come in to effect. It was the Prevention of Money Laundering Act no. 05 of 2006 and the Amendment No. 40 of 2011 provide the provisions for that specific area of law.
The money Laundering simplified in to laymen’s word, to wit, process of turning the black money in to white which were earned from illegal sources. In nowadays, incidents such as allegations leveled against Ex-CEO of Sri Lankan Airlines PLC – Kapila Chandrasena and his wife over an alleged bribe sum of USD 2 million solicited and received from a French Airbus Company in connection with 14 Airbuses purchased in 2013, accusations made against Ex-Central Bank Governor – Arjuna Mahendran, the head of Perpetual Treasuries (Pvt) Ltd., Arjun Aloysius and his accomplice Kasun Palisena over infamous Bond Scam were some examples where the need of this piece of legislature required the most.
There is a difference between, offence of Money Laundering vis-à-vis other offences defined under the Penal Code of Sri Lanka.
To provide the reader a glimpse of an idea how the legislature envisaged this offence, that is to say,
“3. (1) Any person, who —
(a) engages directly or indirectly in any transaction in relation to any property which is derived or realised, directly or indirectly, from any unlawful activity or from the proceeds of any unlawful activity;
(b) receives, possesses, conceals, disposes of, or brings into Sri Lanka, transfers out of Sri Lanka, or invests in Sri Lanka, any property which is derived or realised, directly or indirectly, from any unlawful activity or from the proceeds of any unlawful activity, knowing or having reason to believe that such property is derived or realised, directly or indirectly from any unlawful activity or from the proceeds of any unlawful activity, shall be guilty of the offence of money laundering and shall on conviction after trial before the High Court be liable to a fine not less than the value of the property in respect of which the offence is committed and not more than three times the value of the property in respect of which the offence is committed or to rigorous imprisonment for a period of not less than five years and not exceeding twenty years, or to both such fine and imprisonment. The assets of any person found guilty of the offence of money laundering under this section shall be liable to forfeiture in terms of Part II, of this Act. Be it an individual, a company or the Government, it is misappropriation of someone else’s money. Section 403 of the penal code…”
