Financial Crime World

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Seychelles Financial Regulator Emphasizes Importance of Designated Compliance Officer

The Seychelles Financial Services Authority (FSA) has issued guidelines requiring all reporting entities to appoint a Compliance Reporting Officer (CRO) as part of its efforts to strengthen anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Requirements for the CRO

  • The CRO must be a senior official who is qualified, experienced, and has the necessary independence and authority to train and supervise all other officers, employees, and agents within the organization.
  • The officer must reside in Seychelles and have an alternate appointed to assume their responsibilities in their absence.
  • When multiple entities operate under a single group, a single CRO at the group level may be designated.

Key Responsibilities of the CRO

  • Establishing and maintaining a manual of compliance procedures
  • Setting up an audit function to test AML/CFT procedures
  • Taking overall responsibility for all suspicious transaction reports (STRs)
  • Ensuring that all officers, employees, and agents are screened before recruitment and trained to recognize suspicious transactions and trends

Importance of Regular Reviews

The guidelines also emphasize the importance of regular reviews by CROs and reporting entities to ensure compliance with internal procedures and updates in light of any amendments to AML/CFT legislation.

Customer Due Diligence (CDD)

  • Identifying customers
  • Verifying their identity
  • Obtaining information about the nature of the business relationship and the customer’s business

The FSA has highlighted the importance of CDD as a key component of AML/CFT measures, and emphasizes that CROs must take reasonable measures to ascertain the purpose of one-off transactions and identify complex or unusual transactions or patterns of transactions. The authority also emphasizes the importance of ongoing monitoring to ensure that reporting entities continue to comply with AML/CFT regulations after a business relationship has been established.

Expected Outcomes

These developments are expected to enhance Seychelles’ reputation as a stable and secure financial hub, and demonstrate the country’s commitment to combating money laundering and terrorist financing.