Financial Crime World

Seychelles Cracks Down on Corporate Fraud: A Look into Relevant Laws, Offenses, and Authorities

The Indian Ocean archipelago of Seychelles, renowned for its stunning natural beauty, hosts a robust legal framework designed to combat corporate fraud. In this article, we explore the main regulatory provisions and authorities that address financial misdeeds in this jurisdiction.

Regulatory Provisions and Laws

Seychelles’ efforts to combat corporate fraud are anchored in several key laws and acts, 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

Specific Offenses

Relevant offenses to corporate fraud are outlined in the Financial Services Authority Act 2013 and span various areas. Key offenses are:

  • Money laundering and financing of terrorism
  • Misuse of information
  • Crimes related to dishonesty
  • Defrauding creditors
  • Acting fraudulently or with malice aforethought
  • Breach of trust
  • Providing false statements
  • Conspiracy to defraud

Authorities and Powers

In cases of corporate fraud, the following bodies play crucial roles:

  • Company’s executive office (CEO)
  • Anti-Corruption Commission
  • Police
  • Financial Intelligence Unit (FIU)
  • Financial Supervisory Authority (FSA)
  • Court of Justice of the Seychelles

Under the Anti-Corruption Act 2016, the Attorney General prosecutes corporate fraud cases. However, the FSA can still revoke approvals if there’s non-compliance. The police and related authorities can:

  • Request questioning
  • Conduct searches with warrants or the owner’s consent
  • Obtain evidence

The powers of investigation and arrest primarily lie with the police and associated agencies.

Charging and Disposal

The court handles charging and decisions based on whether the accused has acted with fraudulent intent. Differences exist in actions against domestic and foreign public officials.

Penalties

Penalties for corporate fraud can include substantial fines or imprisonment. The accused may also face civil consequences such as asset freezing, fines, or the inability to conduct certain activities in the country.

Protection of Investigations

Seychelles law ensures fairness through the Seychelles Human Rights Commission Act 2018, which provides the right to a fair trial and the ability to appeal for all accused parties. Any party can petition the Supreme Court for review of public agency decisions.

Bribery and Corruption Regulations and Laws

Regulations against bribery and corruption stem from the Code of Ethics and Conduct for the Public Service 2008, Anti-Corruption Act 2016, and the Seychelles Transparency Initiative (established in 2017).

International Conventions

Seychelles has ratified the UN Convention against Corruption 2003, which governs international bribery and corruption.

Offenses and Defenses

The primary defense against the allegation of corporate fraud is proving that the alleged offender did not participate in the crime. The Anti-Corruption Act 2016 provides for an investigation of potentially frivolous or malicious complaints.

Liability of Close Persons and Proxies

Seychelles law does not explicitly address the liability of close persons or proxies but emphasizes that any person who aids, abets, counsels, or conspires to commit an offense is also guilty.

Prosecution, Investigation, and Enforcement

The CEO or an official of the Anti-Corruption Commission, police, FIU, FSA, and the Court of Justice of the Seychelles possess the power to prosecute, investigate, and enforce bribery and corruption cases. While the Attorney General is responsible for initiating prosecutions, the FSA can revoke licenses for non-compliance. The authorities have various investigation tools, including questioning, search warrants, evidence collection, and powers of arrest. Civil proceedings and interim measures can also be initiated to address bribery and corruption cases.