Financial Crime World

Seychelles Cracks Down on Corporate Fraud: A Look at Regulatory Provisions, Authorities, and Offenses

In the Indian Ocean paradise of Seychelles, financial crimes continue to pose a threat to the stability of the economy and the business community. In response, the government has strengthened its regulatory framework and law enforcement agencies to tackle corporate fraud and bribery. This article offers an overview of the main regulatory provisions, authorities, and offenses related to these financial crimes in Seychelles.

Regulatory Provisions and Legislation

  1. Corporate fraud offenses can be found in several key 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

Under the Financial Services Authority Act 2013, the following offenses are relevant to corporate fraud:

  • Money laundering
  • Financing of terrorism
  • Misuse of information
  • Offenses involving dishonesty
  • Defrauding creditors
  • Acting fraudulently or in bad faith
  • Breach of trust
  • Providing false statements
  • Conspiracy to defraud
  • Insider trading

Authorities and Their Powers

The main authorities responsible for investigating and enforcing cases of corporate fraud in Seychelles are:

  • Company Executive Office (CEO) or an officer of the Anti-Corruption Commission
  • Police
  • Financial Intelligence Unit (FIU)
  • Financial Services Authority (FSA)
  • Court of Seychelles

These authorities have the power to:

  • Investigate
  • Interview
  • Seize evidence
  • Institute proceedings

While the Attorney General must prosecute corporate fraud cases in the Courts, the FSA can revoke licenses in cases of non-compliance.

Bribery and Corruption

The main regulatory provisions and legislation relevant to bribery and corruption in Seychelles include:

  • Public Services Code of Ethics and Conduct 2008
  • Anti-Corruption Act 2016
  • Seychelles Transparency Initiative (established in 2017)

These provisions address:

  • Bribery of foreign and domestic public officials
  • Misuse of position, office, and authority
  • Private commercial bribery involving public officers

Under the Anti-Corruption Act 2016, any person who abets, counsels, or conspires to commit an offense is also guilty of committing that offense. The act also holds corporate bodies and their directors and managers liable for corruption offenses.

Investigative Process and Decision Making

An officer of the Anti-Corruption Commission may seek assistance from other agencies like the police, FIU, or Seychelles Revenue Commission to investigate a bribery or corruption complaint. When deciding whether to proceed with the investigation, the Commission considers the severity of the offense and whether the allegations involve breach of a specific provision of law. If the allegations are deemed frivolous or vexatious, no further action will be taken.

Sanctions for Participating in Corporate Fraud

Those found guilty of corporate fraud in Seychelles face criminal and civil penalties:

  • Criminal penalties include fines and imprisonment for individuals under the Proceeds of Crime (Civil Confiscation) Act
  • Companies can be subjected to fines and regulatory actions
  • Civil penalties include asset freezes, financial penalties, and potential restrictions on conducting business activities in the country

Conclusion

Seychelles has strengthened its efforts to combat corporate fraud and bribery through various regulatory provisions and authorities. Stakeholders and businesses can work together to minimize financial crimes and contribute to the economic growth of the nation by understanding these frameworks.

Please note: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for legal guidance.