Financial Crime World

Seychelles Tightens Up on Anti-Money Laundering Laws

In recent years, Seychelles has made significant amendments to its anti-money laundering (AML) laws to strengthen its fight against financial crimes.

AML Framework Overhaul

The first major overhaul came in 2020 with the introduction of the AML/CFT Act 2020. This law aimed to bring Seychelles’ regulatory framework in line with international standards set by the Financial Action Task Force (FATF).

Regulations Issued

To implement the new law, several regulations were issued:

  • SI 108 2020 Anti-Money Laundering Regulations: Introduced strict requirements for reporting suspicious transactions and maintaining customer due diligence records.
  • SI 139 2020 AML/CFT Regulations 2020 First Amendment and SI 156 2020 AML/CFT Regulations 2020 Second Amendment: Further refined the rules governing financial institutions’ AML compliance.

Enhanced Cooperation and Penalties

In 2021, Seychelles amended the AML/CFT Act once more with the AML CFT Act Amendment 2021. This aimed to enhance cooperation between law enforcement agencies and financial institutions in detecting and preventing money laundering. The Act 62 AML CFT (Second Amendment) Act 2021 also introduced new penalties for non-compliance.

Strengthening Framework

This year, Seychelles has continued to strengthen its anti-money laundering framework with the introduction of several regulations:

  • SI 6 2022 AML CFT (Amendment) Regulations 2022: Updated reporting requirements for financial institutions.
  • SI 7 2022 AML CFT (National Risk Assessment) Regulations, 2022: Mandated a national risk assessment to identify and mitigate potential money laundering risks.
  • SI 8 2022 AML CFT (Counter-measures) Regulations 2022: Introduced measures to counter the financing of terrorism.
  • SI 11 2022 AML CFT (Cross Border Declaration) Regulations 2022: Streamlined the process for cross-border declarations of cash transactions.

Consolidated Version

A consolidated version of the AML/CFT Act 2020 to May 19th, 2022 has also been published, providing a comprehensive overview of Seychelles’ anti-money laundering laws and regulations. These amendments are seen as a significant step forward in Seychelles’ efforts to combat financial crimes and maintain its reputation as a stable and secure financial hub.

Key Takeaways

  • Seychelles has made significant amendments to its AML laws over the past three years.
  • The country aims to strengthen its fight against financial crimes and maintain its reputation as a stable and secure financial hub.
  • The regulations introduced aim to enhance cooperation between law enforcement agencies and financial institutions, improve reporting requirements, and introduce new penalties for non-compliance.