Seychelles Financial Regulators Crack Down on Money Laundering
Strengthening Anti-Money Laundering and Combating Financing of Terrorism Compliance
The Seychelles financial regulatory authorities have issued new guidelines for all reporting entities to appoint a Chief Risk Officer (CRO) with overall responsibility for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) compliance. This move aims to strengthen the fight against money laundering and terrorist financing.
Responsibilities of the Chief Risk Officer
The CRO will be responsible for ensuring that the entity complies with all AML/CFT laws and regulations, including:
- Establishing a manual of compliance procedures
- Conducting audits to test AML/CFT systems
- Reporting suspicious transactions
The CRO must be a senior officer who is sufficiently qualified and experienced to comply with the detailed requirements in Section 15(1) of the AML Act. The CRO will also act as the liaison point with the Financial Intelligence Unit (FIU) and relevant supervisory authorities in Seychelles.
Customer Due Diligence
The guidelines emphasize the importance of customer due diligence, which has four key components:
- Identifying customers
- Verifying their identity
- Obtaining information about the nature of the business relationship
- Taking reasonable measures to ascertain the purpose of one-off transactions
Ongoing Monitoring and Training
The CRO will also be responsible for ensuring that all officers, employees, and agents within the organization are:
- Screened before recruitment
- Trained to recognize suspicious transactions and trends
- Compliant with all relevant obligations under AML/CFT laws and regulations
Consequences of Non-Compliance
Failure to comply with these guidelines may result in severe penalties, including fines and even criminal prosecution.
Increase in Suspicious Transactions Report
The FIU has reported a significant increase in suspicious transactions reported by reporting entities in recent months. The agency attributes this increase to heightened awareness of AML/CFT risks among financial institutions and other reporting entities.
Seychelles’ Commitment to Combating Money Laundering and Terrorist Financing
The Seychelles government has reiterated its commitment to combating money laundering and terrorist financing, and has pledged to continue working with the international community to disrupt the financing of terrorism and other criminal activities.