Financial Crime World

Seychelles Financial Intelligence Unit Issues Guidelines on Suspicious Transaction Reporting

Introduction

The Seychelles Financial Intelligence Unit (FIU) has issued guidelines on suspicious transaction reporting to ensure compliance with the Anti-Money Laundering and Combating the Financing of Terrorism Act. The guidelines aim to enhance transparency and cooperation in combating money laundering and terrorist financing, while promoting a secure and stable financial system.

Requirements for Reporting Entities

Providing Additional Information

Reporting Entities (REs) that have filed Suspicious Transaction Reports (STRs) with the FIU are expected to provide additional information if requested by the FIU or a law enforcement agency. This request for information will be done through the goAML platform, where the FIU will send Outgoing Requests Domestic (ORD) reports to REs.

  • The additional information can be provided in either a Response Information File (RIF) report containing non-transactional details or an Additional Information File (AIF) report containing transactional information such as bank statements.
  • The response must be submitted through the goAML platform.

Consequences of Non-Compliance

  • Failure to submit an STR when having reasonable suspicion of money laundering activity or criminal property can result in imprisonment for up to three years or a fine not exceeding SCR 400,000.
  • REs that fail to provide additional information as requested may have their STR rejected by the FIU.

Confidentiality and Tipping-Off

  • The guidelines emphasize the importance of maintaining confidentiality and avoiding “tipping off” customers about suspicions.
  • This includes refraining from advising clients or subjects of investigations about the intention to file an STR or the existence of one.
  • All staff members of REs must be aware of their personal obligations under the tipping-off clause and know what to say and do to avoid alerting customers to concerns.

Protection for Reporting Entities

  • The guidelines provide protection for persons reporting STRs under section 54(3) of the AML/CFT Act, which states that no criminal or disciplinary proceedings shall be taken against REs or their employees who act in good faith under the provisions of the Act.
  • This protection aims to encourage reporting entities to report suspicious transactions without fear of reprisal.

Record Keeping

  • REs are required to maintain records of all STRs made for a minimum period of seven years from the date of the transaction.
  • Certain entities, including banks, Bureau de Change, insurance companies, and securities exchange infrastructures, must maintain digital records for 30 years from the date on which the business relationship ceases.

Annexure: Indicators of Suspicious Transactions and Activities

The FIU has provided an annexure listing indicators of suspicious transactions and activities, including terrorist financing and proliferation of weapons of mass destruction. The annexure aims to provide guidance to REs on what constitutes a suspicious transaction or activity.

Conclusion

The guidelines issued by the Seychelles Financial Intelligence Unit aim to enhance transparency and cooperation in combating money laundering and terrorist financing, while promoting a secure and stable financial system. Reporting Entities must ensure compliance with the guidelines to avoid consequences of non-compliance.