Taking the profit out of crime ‐ Sri Lankan style
| Date | 01 October 2003 |
| Published date | 01 October 2003 |
| Pages | 370-377 |
| DOI | https://doi.org/10.1108/13590790310808916 |
| Author | Saleem Marsoof |
| Subject Matter | Accounting & finance |
Journal of Financial Crime Ð Vol. 10 No. 4
Taking the Pro®t Out of Crime Ð Sri Lankan Style
Saleem Marsoof
INTRODUCTION
`Pro®table crime', that is crimes that are committed
primarily with a pro®t motive, generally elude
de®nition. These crimes vary so much in their
modus operandi and seriousness that it is not possible
to deal with all of them in the same way. No
doubt, the phrase would embrace a multitude of
oences of a serious nature, which fall within the
umbrella of `®nancial crime' or `economic crime'.
1
Certain organised crimes like drug tracking,
smuggling of counterfeit goods, tracking of
persons and cyber crime, are increasingly carried
out on an international scale and are committed
purely with a view of pro®t.
2
From a third-world perspective, indigenous spolia-
tion is the most damaging form of economic crime.
Indigenous spoliation has been de®ned as `an illegal
act of depredation which is committed for private
ends by constitutionally responsible rulers, public
ocials or private individuals'.
3
This will include
embezzlement, fraudulent enrichment, graft, plun-
dering and corruption, committed for personal gain
in breach of con®dence. These activities concern all
mankind, since they have the undesirable eect of
impoverishing nations, some of which are at the
brink of starvation.
Terrorism is another kind of criminal activity
which is of great concern to the international com-
munity. Long before world attention was drawn to
the grim realities of terrorism by the tragic events
that unfolded on 11th September, 2001, Sri Lanka
had to cope with large-scale terrorist attacks such as
the suicide bombing of its Central Bank in the
heart of Colombo in 1996, which left thousands
dead or seriously wounded, and Sri Lanka's
economy in a shambles.
4
Such grave crimes are com-
mitted mainly for political reasons,
5
but some at least
of those who participate in such activities do so with
purely pecuniary motives.
It is acknowledged that although the motive for
crime may not always be pro®t making, taking the
pro®t out of crime, by preventing the wrongdoer
from enjoying the proceeds of his crime, is an impor-
tant means through which a major proportion of
criminal activity can be deterred.
6
The objective of
this paper is to examine provisions of law in force
in Sri Lanka relating to (i) criminal and (ii) civil
enforcement, and to assess the adequacy of these
provisions for achieving the end of discouraging or
deterring criminal activity.
CRIMINAL ENFORCEMENT
The Sri Lankan Code of Criminal Procedure
provides that a peace ocer who arrests a suspected
criminal may detain until the discharge or acquittal of
such suspect `such articles which there is reason to
believe were the instruments or the fruits or other
evidence of the crime'.
7
The Code further provides
that the seizure should be immediately reported to a
magistrate who shall `make such order as he thinks
®t respecting the delivery of such property to the
person entitled to the possession thereof'.
8
If no
person comes forward to establish his claim to such
property and if the person in whose possession such
property was found is unable to show that it was
legally acquired by him, the Code provides that
`such property shall be at the disposal of the State
and may be sold under the orders of the Magistrate'.
9
If the person entitled to the possession of such
property is unknown or absent and the property is
subject to speedy and natural decay or the magistrate
to whom its seizure is reported is of the opinion that
its sale would be for the bene®t of the owner, the
magistrate may at any time direct it to be sold and
hold the net proceeds of such sale until it is claimed
by the person entitled to the same.
10
When an inquiry or trial in any criminal court is
concluded, the Code of Criminal Procedure provides
that the court may make `such order as it thinks ®t'
11
for the disposal of any property
12
produced before it
`regarding which any oence appears to have been
committed or which has been used for the commis-
sion of any oence',
13
For the purposes of this
section, the term `property' is deemed to include
`not only such property as has been originally in the
possession or under the control of any party but
also any property into or for which the same may
have been converted or exchanged and any thing
acquired by such conversion or exchange whether
immediate or otherwise'.
14
By way of illustration,
an order of disposal can be made not only with
Page 370
Journal of Financial Crime
Vol.10,No. 4, 2003,pp.370 ±377
#HenryStewart Publications
ISSN 1359-0790
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