Financial Crime World

Seychelles Launches National Anti-Money Laundering and Countering Terrorism Financing Strategy

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Seychelles has taken a significant step forward in its efforts to combat the growing threat of terrorism financing and money laundering by launching its first-ever National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Strategy. The strategy was unveiled by Minister for Finance, Trade, Investment and Economic Planning Maurice Loustau-Lalanne during a high-level gathering in the capital city.

Background

The launch comes at a critical time as Seychelles faces increasing threats from money laundering, terrorist financing, and other financial crimes that pose significant risks to its financial system. The United Nations estimates that global criminal proceeds laundered annually stands between 2% and 5% of global GDP, equivalent to $1.6 trillion to $4 trillion.

Why Seychelles is at Risk

Seychelles’ geographic isolation offers no protection against the risks posed by money laundering and terrorist financing. The impact of such crimes can be severe, including:

  • Increased costs for businesses dealing with international partners
  • Correspondent banking challenges for banks
  • Reputational damage to the country

Measures Implemented

To address these threats, Seychelles has implemented a range of measures, including:

  • Enactment of more effective laws aimed at enhancing its AML/CFT framework
  • Introduction of a sectoral supervisory approach by the Central Bank of Seychelles and the Financial Services Authority
  • Establishment of an up-to-date register of beneficial owners and a centralized database maintained by the Financial Intelligence Unit (FIU)

Key Components

  • The new AML/CFT Act, 2020 introduces a sectoral supervisory approach with the Central Bank of Seychelles and the Financial Services Authority overseeing institutions under their regulatory purview.
  • The establishment of an up-to-date register of beneficial owners aims to promote transparency and deter the misuse of legal entities.

Ongoing Challenge

While significant progress has been made, Minister Loustau-Lalanne emphasized that preventing money laundering and terrorist financing is an ongoing challenge that requires strong commitment and collaboration from relevant authorities and the private sector. He urged all stakeholders to work together to detect, deter, and prosecute such offenses.

Call to Action

  • All stakeholders must remain vigilant and committed to detecting and combating money laundering and terrorist financing.
  • Strong commitment and collaboration are essential in this ongoing effort.

Conclusion

The launch of the National AML/CFT Strategy marks a crucial step forward in Seychelles’ efforts to protect its financial system. As the country continues to evolve and innovate in its approach to detecting and combating money laundering and terrorist financing, it is essential that all stakeholders remain committed to this important endeavor.