Financial Crime World

Seychelles Makes Progress in Compliance with International Financial Standards

The Seychelles Revenue Commission (SRC) has made significant strides in ensuring compliance with international financial standards, according to recent assessments.

Implementing International Reporting Standards

The SRC has implemented measures to comply with the Common Reporting Standard (CRS), Country-by-Country Reporting (CbCr), and Foreign Account Tax Compliance Act (FATCA). These standards aim to promote transparency and combat tax evasion globally.

CRS: Reporting Financial Accounts Held by Customers

Under CRS, Seychelles Financial Institutions are required to report information on financial accounts held by their customers to the SRC. The deadline for submission is June 30th of every year, with an option for extensions on a case-by-case basis.

CbCr: Providing Detailed Information on Global Activities

CbCr, part of Action 13 of the OECD’s Base Erosion and Profit Shifting (BEPS) plan, requires financial institutions to provide detailed information on their global activities to tax authorities. Seychelles signed the Multilateral Competent Authority Agreement on CbC Reports in July 2019, with a submission deadline of June 30th.

FATCA: Reporting Information on Accounts Held by US Citizens

FATCA, introduced by the United States in 2010, requires foreign financial institutions to report information on accounts held by US citizens to the IRS. Seychelles signed an agreement with the US to implement FATCA and was expected to begin reporting in 2020. However, due to the COVID-19 pandemic, it requested a delay.

Facilitating Compliance

The SRC has also implemented measures to facilitate compliance, including:

  • Creation of an e-platform for financial institutions to register and submit their reports
  • Maintenance of an up-to-date register of participating financial institutions, available for public verification upon request

Benefits of Implementation

According to sources within the SRC, the implementation of these standards has been a significant undertaking, requiring significant resources and expertise. However, the benefits are expected to include:

  • Improved transparency
  • Reduced tax evasion
  • Increased international cooperation in tax matters

Commitment to Compliance

The Seychelles Revenue Commission is committed to continuing its efforts to ensure compliance with international financial standards, ensuring that the country remains a responsible and cooperative member of the global financial community.