Financial Crime World

Title: Seychelles’ Financial Crime Battle: Drugs, Corruption, and New Challenges

The Paradox of Seychelles: Financial Crimes in a Tourist Haven

Seychelles, known for its stunning beaches, clear waters, and world-class tourist attractions, faces an ongoing battle against financial crimes. The latest Financial Crime Assessment and Dashboard offer insights into this evolving threat and Seychelles’ response.

The Longstanding Challenges: Drugs and Corruption

  1. Heroin addiction crisis: Seychelles ranks among the world’s most affected nations due to its heroin addiction issue.
  2. Systemic corruption: Past governments riddled with cronyism and corruption fuel financial crimes.

Vulnerable Populations: Rich and Poor Alike

  1. The rich and affluent: Targeted by fraud and scams.
  2. Foreign migrant laborers: Susceptible to MS/HT (Money Service/Hawala Transactions) risks.

Renewed Hope: A New Government and International Priorities

  1. New government’s mission: Elected on a promise to fight drugs and corruption.
  2. Critical international priorities: Removal from EU Tax Haven listing and FATF blacklist.

Combating Financial Crime: Commitment and Action

  1. Database establishment: Plans to establish a central Bank of Mauritius database.
  2. Risk assessments: Taking steps to address open FATF NC ratings on R8 NPOs and R15 New Technologies (Virtual Currencies).

The Importance of Addressing Both Loopholes and Root Causes

The Seychelles continues its law enforcement approach while addressing the root causes of financial crimes:

  1. Tackling drug addiction: Providing treatment for drug addiction.
  2. Corruption investigation: Pursuing corruption charges against six high-profile individuals linked to the previous regime.

Changing Financial Crime Landscape: Virtual Currencies

Virtual currency wallet asset freezes indicate a shift in the financial crime landscape. This change is not unique to Seychelles but reflects global trends in financial and money laundering threats.

Vulnerable Sectors: From Banks to Virtual Currencies

The 2017 National Risk Assessment (NRA) identified several sectors exposed to various forms of financial crimes.

Vulnerable Sectors (2017)

  1. Banks and MSBs.
  2. DNFPBs, including Real Estate and Car Dealers.

New Vulnerabilities (Expected 2022)

The updated NRA, scheduled for release in 2022, will reportedly include Fraud, Cybercrime, MS/HT, and Environmental Crime as high vulnerabilities, while excluding the NPO sector.

For more insights on the Seychelles’ Financial Crime Dashboard, visit: Seychelles FC Dashboard