Financial Crime World

Here is the article in Markdown format:

Coconut Islands Introduces Landmark Beneficial Ownership Transparency Legislation

In a significant move to combat financial misconduct and enhance transparency, Seychelles has introduced two landmark pieces of legislation: the Beneficial Ownership Act 2020 (BOA) and the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Act 2020. These reforms have substantial implications for International Business Companies (IBCs) in the region.

Key Provisions

Central Data Repository

The new legislation establishes a central data repository managed by the Financial Intelligence Unit (FIU), which will serve as the official custodian of beneficial ownership information, ensuring its security and accessibility.

Extensive Coverage

The BOA extends to a wide range of entities, including:

  • Legal persons
  • Partnerships
  • Foundations
  • And others

Responsibilities

IBCs

Seychelles IBCs are now responsible for:

  • Identifying and verifying information related to Beneficial Owners (BOs)
  • Reporting changes in BO details within 14 days
  • Maintaining a register of beneficial owners and providing this data to their registered agent within 14 days

BOs

Beneficial Owners (BOs) are mandated to:

  • Declare their status and any changes within the same timeframe (14 days)
  • Non-compliance will result in penalties and limitations

Data Retention

Entities governed by the BOA must retain information for at least seven years following the cessation of a person’s BO status.

Access and Confidentiality

The centralized beneficial ownership database will receive information submitted by legal entities through their registered agents, accessible only to authorized Seychellois authorities. The BOA strikes a balance between transparency and confidentiality, ensuring IBCs align with global standards while preserving their privacy.

Implementation and Timeline

Scheduled to take effect on January 31, 2021, the new legislation marks a significant turning point in Seychelles’ efforts to combat financial misconduct. As implementation approaches, expect further regulations and amendments to facilitate a seamless transition.

Expert Guidance

G.O.C, a leading offshore service provider, is committed to guiding IBC owners through these transformative changes and ensuring compliance with the BOA. Contact us at info@globaloffshorecompany.com for expert guidance on navigating Seychelles’ dynamic regulatory environment.