Title: Seychelles’ Financial Intelligence Unit Foils R5 Million Share Fraud Scam: A Significant Victory in the Fight Against Financial Crimes

Overview

The Financial Intelligence Unit (FIU) of Seychelles successfully prevented the illegal transfer of nearly R5 million following a complex share fraud scheme. The defrauded funds have been frozen by the Supreme Court, marking a significant victory in the Islands’ ongoing fight against financial crimes.

The ‘Boiler Room’ Scam

• Unsuspecting European investors were targeted
• Offshore investment brokers, not authorized to conduct such activities, used high-pressure sales techniques and misleading information
• Aimed to persuade investors into purchasing worthless shares

DCA Group Limited: The Facilitator

• A company registered in the Commonwealth of Dominica
• Opened a bank account in Seychelles
• Claims of providing architectural services to European clients
• Investigation revealed funds were ‘shares’ purchased by investors

Shady Sales Tactics

• Investors contacted by ‘investment brokers’ posing as sales personnel
• Once funds transferred into DCA account, all communication ceased

Tackling the Scam

• Approx. R4.6 million frozen by the Court
• FIU investigation initiated in 2011
• Highlighting Seychelles’ commitment to counteract misuse of offshore financial services
  • Compliance from banking sector
  • FIU investigations
  • Attorney General’s office prosecutions
  • Independent arbitration by courts

Conclusion

This multi-faceted approach to addressing financial crimes within the region is increasingly recognized by international organizations and commentators as effective. The DCA Group Limited case demonstrates the importance of a robust anti-money laundering framework in operation.