Financial Crime World

Seychelles’ Finance Industry Scores High on Compliance, Regulator Says

The Financial Services Authority (FSA) has reiterated its commitment to ensuring compliance with financial services laws in Seychelles, a move aimed at protecting the integrity and reputation of the country’s financial sector.

Mandate and Objectives

According to the FSA, it is mandated under the Financial Services Authority Act 2013 to supervise, regulate, and monitor non-bank financial services businesses operating in or from within Seychelles. The regulator’s primary objectives include:

  • Protecting the public, investors, clients, and potential clients
  • Enhancing the reputation of Seychelles as a financial service center
  • Reducing crime and other unlawful activities related to financial services

Compliance and Enforcement Actions

To achieve these goals, the FSA has been empowered to take various compliance and enforcement actions against licensees. These measures include:

  • Conducting inspections on business premises
  • Appointing examiners to investigate suspected irregularities
  • Issuing directives and directions
  • Suspending or revoking licenses
  • Imposing administrative penalties

Licensing Requirements

The FSA emphasized that any person wishing to operate a financial services business in Seychelles must be properly licensed or registered under relevant financial services legislation. Unauthorized conduct of regulated businesses is considered a punishable offense, and the FSA has the power to take action against such entities.

Public Statements and License Revocation/Suspension

The regulator also has the authority to issue public statements regarding matters where it is entitled to take enforcement action against a licensee or former licensee, as well as any person who is carrying on or has carried on unauthorized financial services business. The FSA may revoke or suspend licenses if:

  • A licensee has contravened relevant laws or regulations
  • A licensee has refused or failed to cooperate with inspections

Licensees can also surrender their licenses by providing notice in writing to the FSA and making arrangements for the discharge of liabilities and transfer of client businesses.

Purpose of Measures

According to the FSA, these measures are designed to ensure the integrity, effectiveness, and development of Seychelles’ financial sector while preventing or detecting financial crime, including:

  • Money laundering
  • Financing of terrorism
  • Misconduct
  • Misuse of information
  • Fraud
  • Dishonesty