Financial Crime World

Seychelles Introduces Tough New Rules to Combat Money Laundering and Terror Financing

The Seychelles government has introduced new regulations aimed at strengthening its efforts against money laundering and terrorist financing. One of the key requirements is for all reporting entities to appoint a Chief Risk Officer (CRO) with overall responsibility for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) compliance.

New Requirements for Reporting Entities

  • Appoint a CRO who is a senior officer with sufficient qualifications and experience to ensure AML/CFT compliance.
  • The CRO must be resident in Seychelles at all times, and it is highly recommended that an alternate CRO is appointed to assume responsibilities in their absence.
  • In cases where multiple entities operate under a group structure, a single CRO may be designated at the group level.

Responsibilities of the Chief Risk Officer

  • Establish and maintain a manual of compliance procedures.
  • Set up an audit function to test AML/CFT procedures and systems.
  • Take overall responsibility for all Suspicious Transaction Reports (STRs).
  • Ensure that all officers, employees, and agents are screened, trained, and comply with all relevant obligations under AML/CFT laws.

Additional Responsibilities

  • Review the organization’s arrangements on a regular basis to ensure compliance with internal procedures and update those procedures in light of any changes to AML/CFT legislation.

Customer Due Diligence Guidelines

The Seychelles Financial Services Authority (FSA) has also issued guidelines on customer due diligence, which require reporting entities to:

  • Identify customers, including beneficial owners.
  • Verify their identity.
  • Obtain information about the nature of the business relationship and the customer’s or beneficial owner’s business.
  • Ascertain the purpose of one-off transactions and the origin and ultimate destination of all funds transfers.

Strengthening Seychelles’ Reputation

The new regulations are aimed at enhancing Seychelles’ efforts to combat money laundering and terrorist financing, and will help to strengthen the country’s reputation as a financial hub in the region.