Seychelles: Compliance Officer Role and Responsibilities Take Center Stage
Strengthening AML/CFT Regime
In an effort to enhance its fight against money laundering and terrorist financing, the Republic of Seychelles has introduced new regulations governing the appointment and responsibilities of compliance officers in reporting entities.
Requirements for Compliance Officers
According to Section 34(2) of the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, all reporting entities are required to appoint a compliance officer with specific qualifications and skills. The role of the compliance officer is crucial in ensuring that reporting entities comply with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
Skills and Qualifications
For reporting entities under the regulatory ambit of:
- Central Bank: No specific requirements are mentioned.
- Financial Intelligence Unit (FIU): Compliance officers must have liaison functionality, awareness relative to integrity and professional ethics, and aptitude to participate in anti-money laundering and countering the financing of terrorism training provided by or on behalf of the FIU.
- Financial Services Authority (FSA): Compliance officers must have at least two years’ experience in anti-money laundering or compliance-related functions. They must also possess:
- Knowledge of relevant legal requirements and controls
- Familiarity with industry practices and professional standards
- Awareness relative to integrity and professional ethics
- Liaison functionality
- A bachelor’s degree or a professional certification in Compliance or anti-money laundering from an internationally accredited institution.
Responsibilities of Compliance Officers
The compliance officer is responsible for:
- Ensuring that reporting entities maintain accurate records
- Conducting customer due diligence
- Monitoring transactions
- Reporting suspicious transactions to the relevant authorities
- Possessing strong communication skills, ability to work with stakeholders, and capacity to analyze complex information
Importance of Qualified Compliance Officers
As Seychelles continues to strengthen its AML/CFT regime, the appointment of qualified compliance officers is critical in ensuring that reporting entities adhere to international standards and best practices. With the new regulations in place, it is expected that the country will significantly reduce the risk of money laundering and terrorist financing activities.
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