Financial Crime World

Seychelles Tightens Anti-Money Laundering Laws

The Seychelles government has taken significant steps to strengthen its anti-money laundering (AML) laws, aimed at combating financial crimes and protecting the country’s economy.

Key Changes

  • A new threshold for reporting cash transactions and wire transfers has been introduced. Reporting entities will now be required to report any transaction exceeding SCR 50,000 (approximately USD 4,500) or equivalent in foreign currency.
  • A new Financial Intelligence Unit (FIU) has been established as the central agency responsible for collecting, analyzing, and disseminating financial intelligence related to money laundering activities.

New Responsibilities

  • Reporting entities will be required to report any suspicious transactions or activities to the FIU within a specified timeframe.
  • The FIU will analyze the information and provide feedback to the reporting entity on whether further action is required.

Stricter Penalties

  • The maximum fine for individuals found guilty of money laundering activities has been increased from SCR 500,000 (approximately USD 45,000) to SCR 1 million (approximately USD 90,000).
  • The maximum fine for companies found guilty of money laundering activities has been increased from SCR 2 million (approximately USD 180,000) to SCR 5 million (approximately USD 450,000).

International Cooperation

  • The government has committed to implementing the Financial Action Task Force (FATF) recommendations and working closely with regional and international partners to combat money laundering.

Capacity Building

  • Training programs will be provided to financial institutions, law enforcement agencies, and other stakeholders on AML/CFT procedures, risk assessment, and suspicious transaction reporting.
  • These training programs aim to enhance the capacity of these entities to detect and prevent money laundering activities.

Conclusion

The Seychelles government’s efforts to strengthen its anti-money laundering laws demonstrate a commitment to protecting the country’s economy and financial system from the threat of money laundering activities. The new laws will improve transparency, enhance international cooperation, and support law enforcement agencies in their investigations and prosecutions related to money laundering.