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Seychelles Regulators Emphasize Importance of Customer Due Diligence in Fight Against Money Laundering and Terrorist Financing
Reporting Entities Must Implement Enhanced Measures for High-Risk Customers, Transactions, and Delivery Channels to Comply with International Standards
Victoria, Seychelles - The Financial Action Task Force (FATF) has emphasized the importance of customer due diligence in the fight against money laundering and terrorist financing. In line with this, the Seychelles government has introduced regulations requiring reporting entities to apply enhanced customer due diligence measures for high-risk customers, transactions, and delivery channels.
What are the New Regulations?
According to the new regulations, reporting entities must conduct a risk assessment to identify situations that present a higher risk of money laundering, terrorist financing activities, or other criminal conduct. These situations may include:
- Business relationships with persons from countries that do not apply or fully apply FATF recommendations
- Transactions in cash-intensive businesses
Enhanced Customer Due Diligence Measures
The regulations also require reporting entities to:
- Verify the identity of customers and beneficial owners after establishing a business relationship
- Reduce the frequency of customer identification updates
- Carry out on-going monitoring of transactions
- Consider geographical risk factors, such as countries identified by credible sources as having ineffective systems to counter money laundering or terrorist financing activities
Factors to Consider
In determining the application of enhanced customer due diligence measures, reporting entities must take into account specific risk factors, including:
- Customer risk factors (e.g. whether a customer is a resident or transacting in a high-risk geographical area)
- Product and service risk factors (e.g. whether a customer has nominee shareholders or shares in bearer form)
- Geographical risk factors (e.g. whether a customer is engaged in cash-intensive businesses)
Simplified Due Diligence Measures for Low-Risk Customers
The regulations also emphasize the importance of transparency of ownership and management structures, and require reporting entities to apply simplified due diligence measures for low-risk customers and transactions.
Commitment to Implementing FATF Recommendations
“The implementation of these regulations is crucial in our efforts to combat money laundering and terrorist financing,” said [Name], Director-General of the Financial Intelligence Authority. “We urge all reporting entities to take their responsibilities seriously and ensure that they are fully compliant with these regulations.”
The Seychelles government has committed to implementing the FATF recommendations and ensuring that its financial system is not used for illegal activities.
“We will continue to work closely with our international partners to ensure that our financial system remains robust and effective in preventing money laundering and terrorist financing,” said [Name], Minister of Finance, Trade, and Investment.