Seychelles Cracks Down on Money Laundering: New National Strategy 2020-2023 Unveiled

In a significant step to strengthen its fight against money laundering and terrorism financing, the Seychelles government officially launched its National Anti-Money Laundering and Countering the Financing of Terrorism Strategy (SNAML/CFT strategy) for the period 2020-2023. This strategy comes amidst increasing international scrutiny and was launched by Ambassador Maurice Loustau-Lalanne, the Minister for Finance, Trade, Investment and Economic Planning.

Strategy Approval and Launch Ceremony

The strategy’s approval by the cabinet of ministers in July culminated in the ceremony held at the Seychelles Trading Company (STC) conference room. Attendees included the Speaker of the National Assembly, Nicolas Prea, Designated Minister Macsuzy Mondon, secretaries of states, members of the diplomatic corps, National AML/CFT committee members, and stakeholders in government and the private sector.

Sectoral Supervisory Approach

The SNAML/CFT strategy focuses on a sectoral supervisory approach to tackle money laundering and terrorism financing, with the Central Bank of Seychelles (CBS), Financial Services Authority (FSA), and the Financial Intelligence Unit (FIU) sharing the responsibility. CBS and FSA will supervise institutions under their regulatory purview, while the FIU will oversee designated non-financial businesses, professions, and high-risk non-profit organizations.

Importance of the New Strategy

Minister Loustau-Lalanne emphasized the importance of the new strategy, stating that Seychelles “is just as vulnerable as any jurisdiction to these threats.” Consequences of not addressing these issues can include increased business costs, correspondent banking challenges, and reputational damage.

Adherence to International Standards and Addressing Deficiencies

International standard adherence and addressing deficiencies were central themes in the Minister’s speech. Seychelles has already requested a re-rating of the Financial Action Task Force (FATF) recommendations, with the anticipated outcome expected in the fourth quarter of 2020.

Money laundering and related crimes, such as corruption, tax evasion, theft, drug trafficking, and others, pose serious threats to individual country financial sectors and the global financial system. Terrorist financing and the financing of weapons of mass destruction further exacerbate these risks.

Five Key Objectives of the SNAML/CFT Strategy

The SNAML/CFT strategy’s five key objectives are:

Enhancing Seychelles’ AML/CFT legal framework
Strengthening domestic and international cooperation
Developing capacities of relevant public and private sector entities
Implementing effective risk-based supervision and enforcement measures
Strengthening intelligence, investigations, confiscation, and prosecution of related offenses

Implementation of the Beneficial Ownership Act (2020) and AML/CFT Act (2020)

Minister Loustau-Lalanne also highlighted the implementation of the Beneficial Ownership Act (2020) and the AML/CFT Act (2020), which will ensure the identification and verification of beneficial ownership information and establish a secure centralized Beneficial Ownership database maintained by the FIU.

Mitigating Risks During Economic Crisis

With the current Covid-19 pandemic unfolding into an economic crisis, strong enforcement of these laws and a collaborative approach from the relevant authorities are critical in mitigating risks to the integrity of the financial system and addressing deficiencies.

By 2023, Seychelles Aims to Have Fully Implemented the Strategy

By 2023, Seychelles aims to have fully implemented this strategy. Government and private sector stakeholders received copies of the strategy from secretary of state for Finance Patrick Payet and Governor of the Central Bank of Seychelles Caroline Abel, with Designated Minister Mondon accepting the first copy on behalf of President Danny Faure.

The video presentation of the strategy provided attendees with a more in-depth understanding of the strategy’s objectives and implementation plan.