Banking Fraud Cases Split into Two: Money Laundering and Terrorism

The Supreme Court of Seychelles has recently divided a significant banking fraud case into two distinct parts, focusing on money laundering and terrorism-related offenses.

Initial Hearing and Arrests

On Friday, the Supreme Court heard the initial case involving the alleged disappearance of $50 million. Three suspects were arrested in connection with the crime: a couple and a senior officer in the Seychelles People’s Defence Forces.

Prevention of Terrorism Act 2004

Under the Prevention of Terrorism Act 2004, the three suspects will remain in police custody for 30 days while they face charges related to terrorism offenses. The trio has remained silent during police questioning.

Search and Seizure

A search at the couple’s residence uncovered a rifle with ammunition linked to the third suspect. As prevention of terrorism does not fall under the Anti-Corruption Commission’s mandate, the police have taken over this aspect of the investigation, with the Attorney General’s office handling the case.

Discovery of Firearms and Magazines

The authorities found 75 firearms and 124 magazines originating from countries such as Russia, Bulgaria, and South Africa at the couple’s home. Chief Justice Rony Govinden ruled that a prima facie case has been proven, and the suspects will be remanded to prevent any possibility of disposing or tampering with remaining firearms if released on bail.

Separate Developments

In another development, a former government official suspected of involvement in the missing $50 million was remanded for an additional 14 days. The suspect, a former director of Compagnie Seychelloise de Promotion Hôtelière (COSPROH), was one of the directors at the time the alleged incident occurred.

Concerns Over Interference with Investigation

The court believes that if the suspect is released while the Anti-Corruption Commission continues its investigation, there is a risk they may interfere with the investigation or abscond. The $50 million was granted to the Seychelles government by the United Arab Emirates in 2002 and was transferred to a bank account of the Seychelles Marketing Board (SMB), now the Seychelles Trading Company (STC), in a Baroda bank in England.

Outstanding Suspects

A female suspect, who was the director general at the Ministry of Finance at the time the $50 million disappeared, remains out on bail but is still considered a person of interest. Her release is conditional upon her surrendering her passport and other traveling documents to the court, refraining from interfering with witnesses, and reporting to the Beau Vallon police station weekly.

Next Court Appearance

All five suspects will return to court on December 17 for further proceedings in the case.