Financial Regulation Enforcement Agencies in Seychelles Take Centre Stage to Ensure Sector Integrity
In a bid to protect the public, investors, and clients from financial malpractices, the Financial Services Authority (FSA) has been mandated to regulate and monitor non-bank financial services businesses operating in or from Seychelles.
Primary Objective of the FSA
Established under the Financial Services Authority Act 2013, the FSA’s primary objective is to ensure the integrity, effectiveness, and development of the sector while preventing or detecting financial crimes such as:
- Money laundering
- Terrorism financing
- Misconduct
- Fraud
Compliance and Enforcement Actions
To achieve this goal, the FSA has been empowered to take various compliance and enforcement actions against licensees, including:
- Conducting inspections
- Appointing examiners for investigations
- Issuing directives
- Suspending licenses
- Revoking licenses
- Initiating legal action
Regulation of Financial Services
The authority is also equipped with the necessary tools to regulate fiduciary services, capital markets, collective investment schemes, international trade zones, insurance, gambling, and hire purchase and credit sale businesses.
Prevention of Unauthorised Financial Services Business
The FSA has taken steps to prevent unauthorised financial services business in Seychelles by requiring individuals or entities to be properly licensed or registered before operating. Any person found conducting illegal activities can face severe penalties under relevant financial services legislation.
Enforcement Actions
In cases where the FSA suspects unauthorised financial services business, it may:
- Request information or documents from the suspected individual or entity
- Appoint an examiner for investigation
- Issue public statements
- Apply for a protection order
Public Statements
The authority has been issuing public statements regarding enforcement actions taken against licensees or former licensees, as well as individuals found to be carrying on unauthorised financial services business. These statements provide reasons for the enforcement action and are designed to:
- Protect the public
- Enhance the reputation of Seychelles as a financial services center
- Reduce crime
Revocation or Suspension of Licenses
In extreme cases where a licensee is found to have contravened relevant laws or regulations, the FSA may revoke or suspend their license. A licence can be revoked or suspended if it appears that the licensee has:
- Provided false information
- Refused to cooperate with inspections
- Is carrying on business in a manner detrimental to the public interest
Surrender of Licenses
Additionally, licensees are allowed to surrender their licenses by providing prior notice to the Authority, which must be accompanied by true and full disclosure of reasons for surrendering the license.