Financial Crime World

Title: Seychelles’ Financial Services Authority (FSA): Tools, Powers, and Consequences for Non-Compliance

The Financial Services Authority (FSA) of Seychelles, established under the Financial Services Authority Act 2013, is responsible for supervising and regulating non-bank financial services activities within the island nation. In doing so, the FSA:

  1. Protects the public
  2. Enhances Seychelles’ reputation as a financial hub
  3. Reduces criminal activities linked to financial services

FSA’s Mandate and Objectives

The FSA’s mission includes:

  • Safeguarding the public, investors, clients, and potential clients
  • Preventing and detecting financial crime

Tools and Powers to Enforce Compliance

The FSA wields the following powers to maintain industry compliance:

  1. Compliance Inspections: Evaluating a licensee’s adherence to regulatory requirements on-site.
  2. Appointing Examiners: Assigning experts for further investigation when needed.
  3. Directives or Directions: Providing guidance regarding regulatory matters.
  4. Fit and Proper Status: Suspending or revoking for individuals found non-compliant.
  5. Public Statements: Publishing announcements to inform the public.
  6. License Revocation or Suspension: Penalty for significant violations.
  7. Protection Orders and Administrators: Intervening when needed to ensure order.
  8. Removal of Key Personnel: Dismissing employees or officers found non-compliant.
  9. Administrative Penalties: Imposing fines for violations.
  10. Requests for Information: Requesting documents or data from licensees.
  11. Legal Actions: Pursuing court cases against licensees for offenses.

FSA’s Regulatory Scope

The FSA oversees numerous financial services sectors, including:

  • Fiduciary Services
  • Capital Markets
  • Collective Investment Schemes
  • International Trade Zone
  • Insurance
  • Gambling
  • Hire Purchase and Credit Sale businesses

Each sector operates under relevant financial services legislation and is subject to the FSA’s compliance and enforcement tools.

Consequences for Unauthorized Financial Services Business

Individuals attempting to conduct unauthorized financial services business in Seychelles risk the following consequences:

  1. Request for information or documents.
  2. Examiner investigation.
  3. Public statements.
  4. Protection orders.

FSA’s Public Statements

The FSA may issue public statements regarding:

  • Infringements
  • Warnings to falsely named licensees
  • Matters vital for protecting the public, enhancing Seychelles’ reputation, and suppressing financial crimes

Licensee Non-Compliance Consequences

A licensee’s non-compliance can result in serious consequences, including:

  • License Revocation or Suspension: For contravening the FSA Act, financial services legislation, or Authority guidelines, breaching Anti-Money Laundering Act or other Seychelles laws, activities detrimental to public interest or clients, creditors, or refusal to cooperate during inspections, or providing false, inaccurate, or misleading information to the Authority.
  • Voluntary License Surrender: A licensee has the option to voluntarily surrender its license with due notice, allowing the FSA to assess the situation and handle the consequences accordingly.