Financial Crime World

Seychelles Financial Regulation Updates Aim to Enhance Transparency and Protection for Investors

The Financial Services Authority (FSA) of Seychelles has announced several updates aimed at enhancing transparency and protection for investors, further strengthening the country’s financial regulatory framework.

Legislative Changes

  • The FSA has introduced amendments to the following legislation:
    • Fiduciary Services Act
    • Capital Markets Authority Act
    • Insurance Act
    • International Trade Zone (ITZ) regulations
    • High Risk Countries (HPCS) framework These changes are designed to improve the overall regulatory landscape and provide a more robust environment for the growth of the financial sector.

Increased Transparency

  • Financial institutions will be required to disclose more information about their beneficial ownership structures.
  • The FSA has strengthened its enforcement powers to ensure that regulated entities comply with the new regulations.
  • Anti-Money Laundering/Combating the Financing of Terrorism (AML-CFT) measures will be improved, requiring financial institutions to disclose more information.

Regulatory Sandbox for Fintech Companies

  • A regulatory sandbox has been introduced for fintech companies, allowing them to test innovative products and services in a controlled environment.
  • This initiative aims to promote innovation and growth in the financial sector.

Appeals Board Established

  • An appeals board has been established to handle disciplinary actions against regulated entities.
  • This new mechanism will provide a transparent and efficient process for resolving disputes.

Positive Impact on the Financial Sector

  • The updates are expected to have a positive impact on the financial sector, providing greater confidence for investors and improving the overall reputation of Seychelles as a reputable financial hub.
  • The FSA is committed to ensuring that the country’s regulatory framework remains robust and effective in protecting consumers and promoting economic growth.

Joining Best Practices in Financial Regulation

  • Seychelles joins other jurisdictions in adopting best practices in financial regulation, further solidifying its position as a premier financial center in Africa and the Indian Ocean region.
  • The FSA is committed to maintaining a regulatory framework that is transparent, effective, and supportive of economic growth.