Financial Crime World

Fighting Corporate Fraud in Seychelles: A Look at Regulatory Provisions and Enforcement Bodies

The picturesque islands of the Seychelles are renowned for their stunning beaches and crystal-clear waters. However, behind the scenes, the nation is grappling with the issue of financial crime, particularly corporate fraud. In this article, we explore the regulatory framework, specific offenses, and enforcement bodies that tackle such illicit activities in the Seychelles.

Regulatory Provisions and Authorities

Main Regulatory Provisions and Legislation

  1. Corporate fraud in Seychelles is addressed by several Acts and legislation, including:
    • International Business Companies Act 2016
    • Financial Services Authority Act 2013
    • Companies Ordinance Act 1972
    • Securities Act 2007
    • Anti-Corruption Act 2016
    • Penal Code
    • Prevention of Terrorism Act 2004

Offenses Relevant to Corporate Fraud

  1. Offenses related to corporate fraud can be found primarily in the Financial Services Authority Act 2013:
    • Money laundering
    • Financing of terrorism
    • Misuse of information
    • Offenses involving dishonesty
    • Defrauding creditors
    • Acting fraudulently or in bad faith
    • Breach of trust
    • Providing false statements
    • Conspiracy to defraud

Authorities with Powers of Prosecution, Investigation, and Enforcement

  1. The following authorities are responsible for exercising powers in cases of corporate or business fraud in Seychelles:
    • The Company Executive Office (CEO) or an officer of the Anti-Corruption Commission
    • Police
    • Financial Intelligence Unit (FIU)
    • Financial Services Authority (FSA)
    • Court of Seychelles

Prosecution Powers

Under the Anti-Corruption Act 2016, prosecution in cases of corporate fraud must be initiated by or with the consent of the Attorney General. The FSA also retains the authority to revoke licenses in non-compliance situations.

Consequences of Non-compliance with Regulations

  1. The differences between criminal and regulatory investigations lie chiefly in their objectives and outcomes:
    • Criminal investigations aim to punish individuals for committing criminal offenses.
    • Regulatory investigations focus on ensuring compliance with the law and imposing sanctions to deter future violations.

In a corporate fraud case, non-compliance may lead to:

  • Penalties
  • Fines
  • License revocations
  • Investigations
  • Potential criminal charges

Join us for Part 2 of this article, where we will discuss the processes involved in charging individuals for corporate fraud, alternative methods of disposal, sanctions, and safeguards in place to ensure fair investigations.