Financial Crime World

Title: Seychelles Cracks Down on Corporate Fraud and Bribery: A Look at Relevant Laws, Authorities, and Penalties

The Seychelles, an archipelago nation in the Indian Ocean, is taking bold steps to combat corporate fraud and bribery in its business environment. In this report, we investigate the key regulatory provisions, the authorities involved, and the potential penalties for engaging in such activities.

Regulatory Provisions

Corporate fraud remains a serious concern for any business environment and is governed by various Acts in the Seychelles. Some of the key legislation includes:

  1. International Business Companies Act 2016
  2. Financial Services Authority Act 2013
  3. Companies Ordinance Act 1972
  4. Securities Act 2007
  5. Anti-Corruption Act 2016
  6. Penal Code
  7. Prevention of Terrorism Act 2004

Corporate Fraud Offenses

Under the Financial Services Authority Act 2013, specific offenses related to corporate fraud include:

  1. Money laundering
  2. Financing of terrorism
  3. Misuse of information
  4. Offenses involving dishonesty
  5. Defrauding creditors
  6. Acting fraudulently or in bad faith
  7. Breach of trust
  8. Providing false statements
  9. Conspiracy to defraud

Authorities

Three key authorities have the power to investigate and enforce in cases of corporate fraud within the Seychelles:

  1. Company Executive Office (CEO) or an officer of the Anti-Corruption Commission
  2. Police
  3. Financial Intelligence Unit (FIU)
  4. Financial Services Authority (FSA)
  5. Court of Seychelles

Prosecutions

Prosecutions for corporate fraud must be instituted by or with the consent of the Attorney General under the Anti-Corruption Act 2016. Non-compliance may result in the FSA revoking relevant licenses.

Powers

Several powers are available to aid investigations. Authorities such as the police and FIU have the power to search, compel disclosure, and arrest individuals. The FSA and Anti-Corruption Commission may request interviews and investigate further based on evidence obtained from courts.

Bribery and Corruption

The Seychelles addresses bribery and corruption through key legislation:

  1. Public Services Code of Ethics and Conduct 2008
  2. Anti-Corruption Act 2016
  3. Seychelles Transparency Initiative (established in 2017)

Bribery and corruption offenses include foreign and domestic public officials, private commercial bribery, and abetment.

Defenses and Liabilities

Few defenses are explicitly stated under Seychelles law for individuals accused of these offenses. However, the Anti-Corruption Act 2016 stipulates that any person who can convince the court they were not involved in the offense will not be held liable.

Associated Persons

The Anti-Corruption Act is silent on the liability of related parties, such as spouses and agents, for committing an offense. However, anyone who abets, conspires, or counsels another person to commit an offense is also considered guilty.

International Conventions

Seychelles has ratified the UN Convention against Corruption 2003, which reinforces the country’s commitment to combating these offenses both domestically and internationally.

Penalties

Penalties for engaging in corporate fraud and bribery can be severe, including:

  • Imprisonment for up to five years
  • A fine of up to SCR500,000 ($337,738 USD) under the Proceeds of Crime (Civil Confiscation) Act
  • Accounts may be frozen
  • Individuals may find themselves unable to undertake certain activities within the country due to financial penalties.