Financial Crime World

Seychelles Takes Steps to Combat Money Laundering and Terrorist Financing

The Seychelles government has introduced new measures to combat money laundering and terrorist financing activities in the country, aimed at strengthening its financial sector and preventing illegal transactions.

Strengthening Financial Sector Regulations

Under the new legislation, anyone who acquires, uses or possesses property that forms part of the proceeds of a crime committed by themselves or another person can be charged with an offence of money laundering. The law also makes it mandatory for financial institutions to report any suspicious transactions to the Financial Intelligence Unit (FIU).

Key Provisions

  • Establishment of the FIU as a body corporate under the law
  • Requirement for financial institutions to report any suspicious transactions to the FIU
  • Punishment for anyone who acquires, uses or possesses property that forms part of the proceeds of a crime committed by themselves or another person
  • Establishment of a Financial Action Task Force (FATF) to oversee the implementation of anti-money laundering measures in the country
  • Requirement for financial institutions to have effective anti-money laundering measures in place

Enhanced Monitoring and Reporting

The government has also set up a Financial Intelligence Unit Review Committee to review and analyze the FIU’s operations and provide recommendations for improvement. Additionally, financial institutions are required to have effective anti-money laundering measures in place, including:

  • Customer due diligence
  • Ongoing monitoring of transactions
  • Reporting suspicious transactions

Government’s Commitment

The government has emphasized that the new laws are designed to protect the country’s financial system from illegal activities and ensure that all transactions are carried out transparently and honestly. The government is committed to working closely with the FIU, FATF, and other stakeholders to ensure that the country’s financial sector remains strong and resilient.

Next Steps

The government plans to review the new laws after a period of one year to assess their effectiveness in combating money laundering and terrorist financing activities. The government also plans to work closely with international partners to share best practices and expertise in combating these illegal activities.

In conclusion, the Seychelles government has taken significant steps to combat money laundering and terrorist financing activities in the country. The new laws are designed to protect the country’s financial system from illegal activities and ensure that all transactions are carried out transparently and honestly.