Under the Prevention of Money Laundering Act, No. 5 of 2006 (as amended) in Sri Lanka, the prosecution must establish the following elements to secure a conviction for money laundering:
- Engagement in a Money Laundering Offense
The accused must have:
• Converted or transferred property knowing or having reason to believe that such property is derived from an unlawful activity.
• Concealed or disguised the nature, source, location, disposition, movement, or ownership of property derived from an unlawful activity.
• Acquired, possessed, or used property knowing or having reason to believe that it is derived from an unlawful activity.
- Property Derived from Unlawful Activity
The property involved must be directly or indirectly derived from an offense that is punishable under any law in Sri Lanka or any foreign jurisdiction.
- Knowledge or Reason to Believe
The prosecution must prove that the accused:
• Knew the property was derived from unlawful activity.
• Had reason to believe that the property was derived from unlawful activity.
- Mental Element (Mens Rea)
The accused must have the intent to conceal, disguise, convert, transfer, acquire, possess, or use the proceeds of crime.
- Jurisdiction
The offense can be committed within Sri Lanka or outside Sri Lanka if it has an effect within Sri Lanka.
If these elements are proven beyond a reasonable doubt, the accused can be convicted under the Act, facing penalties including imprisonment, fines, and confiscation of assets.
