PAYMENT DEVICES FRAUDS ACT

Arrangement of Sections

1. Short title.

PART I

2. Application of the Act.

3. Acts amounting to payment devices fraud.

4. Attempts to commit offences.

5. Abetment of an offence.

6. Conspiracy to commit an offence.

PART II

Investigation

7. Offences under this Act to be investigated under the provisions of the Code of Criminal Procedure Act.

8. Experts and their powers and functions.

9. Legitimate use of network not to be hampered.

10. Powers of police officer to arrest, search and seize.

11. Duty to assist investigation.

12. Confidentiality of information obtained in the course of an investigation.

13. Indictment for different offence to the one with which the offender is charged.

14. Offences by bodies of persons.

15. Court may award compensation.

16. Evidence.

17. Presumptions.

18. Presumption of fraud by lawful holder of payment device.

19. High Court to have jurisdiction.

20. Offences under this Act to be cognizable offences.

21. Payment of expenses incurred on action.

22. Amendment to the Extradition Law, No. 8 of 1977.

23. Interpretation in relation to the Extradition Law.

24. Duty of Minister to notify requesting State of measures taken against persons for whose extradition a request is made.

25. Assistance to countries.

26. Right of persons arrested under this Act.

27. Duty of Minister to inform other States having jurisdiction over an offence.

28. Provision regarding extradition arrangement.

29. Duty of Government to afford assistance to other States.

30. Regulations.

31. Sinhala text to prevail in case of inconsistency.

32. Interpretation.

30 of 2006.

AN ACT to prevent the possession and use of unauthorised or counterfeit payment devices; to create offences connected with the possession or use of unauthorised payment devices; to protect persons lawfully issuing and using such payment devices; to make provision for the investigation, prosecution and punishment of offenders; and to provide for matters connected therewith or incidental thereto.

[Date of Commencement: 12th September, 2006]

1. Short title.

This Act may be cited as the Payment Devices Frauds Act.

2. Application of the Act.

The provisions of this Act shall apply in respect of all payment devices lawfully issued by an issuer.

3. Acts amounting to payment devices fraud.

(1) Any person who—

(a) possesses or has in the control or custody of such person without lawful authority, equipment used for the making or altering of payment devices including an embossing, encoding or skimming device;

(b) without lawful authority, tampers with any payment device or card making or altering equipment or any equipment used for acceptance or processing of payment devices or implants foreign objects including chips, data or voice recording devices, to record transaction data;

(c) uses without lawful authority a phone listening device or other similar device, including any voice or data recording device, for the purpose of capturing authorisation data passing through the acquirer's point of sale networks or automated teller machine network;

(d) being an employees of an issuer or its processors or is a service provider, provides any cardholder information or full track data to unauthorised individuals, groups or syndicates without the payment device holder's authority or permission;

(e) possesses or has in his control or custody, any unauthorised or counterfeit payment device;

(f) makes a fraudulent application for a payment device or a fraudulent merchant application;

(g) uses, produces or trafficks in one or more unauthorised or counterfeit payment devices;

(h) uses an unauthorised payment device or a payment device without obtaining permission therefor from either its, issuer or holder;

(i) generates, valid payment device account numbers, using account generating software for the purpose of utilising such account numbers for committing an offence under this or any other written law;

(j) furnishes for the purpose of obtaining goods or services, information contained in any payment device by telephone, facsimile, email internet or other mode of telecommunication or by voice or through the postal service, without the authority or permission of the holder of the payment device and induces the person receiving the information to accept the information for the supply of goods or services;

(k) makes multiple imprints of a transaction record, sales invoice or similar document, thereby making it appear that the payment device holder has entered into transactions other than those which such payment device holder had lawfully contracted for;

(l) knowing that a payment device is unauthorised or counterfeit, accepts such unauthorised or counterfeit payment device as a mode of payment for goods or services;

(m) submits without being an affiliated merchant, an order to collect from the issuer of the payment device, such transaction record, sales invoice or similar document through an affiliated merchant who connives therewith, or under the false pretence of being an affiliated merchant, presents for collection such transaction record, sales invoice or similar document;

(n) alters or causes another person to alter, without the payment device holder's authority or permission, any amount or other information appearing on the sales invoice;

(o) accepts as a mode of payment, a payment device or information imprinted on the payment device, for the purpose of dishonestly gaining a financial advantage;

(p) writes, or causes to be written on sales invoices, approval numbers from the issuer of the payment device, which is proof of the fact of approval, where in fact no such approval was given, or where, if approval was actually given what is written is deliberately different therefrom;

(q) has in such person's possession, without authority from the payment device holder or the issuer, any material such as invoices, carbon paper or any other medium, on which the payment device is written, printed, embossed or otherwise indicated;

(r) obtains money or goods through the use of a payment device, with intent to defraud; or

(s) induces, entices, permits or in any manner allows another person, for consideration or otherwise, to commit or engage in any of the acts specified in the preceding paragraphs of this section,

shall be guilty of an offence under this Act.

(2) A person guilty of an offence under this Act shall, on conviction after trial before the High Court—

(i) in the case of an offence under paragraphs (a), (b). (c), (d), (e), (g), (h), (i), (j) or (r) be liable to a term of imprisonment not exceeding ten years or to a fine not exceeding rupees five hundred thousand or to both such imprisonment and fine;

(ii) in the case of an offence under paragraphs (k) or (q) be liable to a term of imprisonment not exceeding five years or to a fine not exceeding two hundred thousand rupees or to both such imprisonment and fine;

(iii) in the case of an offence under paragraphs (f), (l), (m), (n), (o) or (p) be liable to a term of imprisonment not exceeding three years or to a fine not exceeding one hundred thousand rupees or to a fine which may extend to five times the value of the money obtained by the commission of the act constituting the offence or the financial advantage gained, consequent to the commission of the act constituting the offence, whichever is higher, or to both such imprisonment and fine;

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