Financial Crime World

Seychelles Financial Regulator Warns of Suspicious Transactions

Strengthening Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Measures

The Seychelles Financial Services Authority (FSA) has issued guidelines to strengthen anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. As part of these efforts, all reporting entities are required to appoint a Compliance Reporting Officer (CRO).

Responsibilities of the Compliance Reporting Officer (CRO)

The CRO must be a senior officer who is sufficiently qualified and experienced to ensure compliance with AML/CFT laws. The officer will serve as a liaison point with the Financial Intelligence Unit (FIU) and relevant supervisory authorities in Seychelles.

Key Responsibilities

  • Establishing and maintaining a manual of compliance procedures
  • Establishing an audit function to test AML/CFT procedures and systems
  • Taking overall responsibility for all Suspicious Transaction Reports (STRs)
  • Ensuring that all officers, employees, and agents are screened and trained to recognize suspicious transactions and trends

Customer Due Diligence (CDD) Guidelines

The FSA has also issued guidelines on customer due diligence (CDD), which includes four key components:

  • Identifying customers and verifying their identity
  • Identifying beneficial owners and taking reasonable measures to verify their identity
  • Obtaining information about the nature of the business relationship and the customer’s or beneficial owner’s business
  • Taking reasonable measures to ascertain the purpose of one-off transactions

Importance of Ongoing Monitoring and Updating

The FSA emphasizes the importance of ongoing monitoring and updating of internal procedures to ensure compliance with AML/CFT laws.

Enhanced AML/CFT Compliance in Seychelles

These guidelines are intended to enhance AML/CFT compliance in Seychelles and prevent suspicious transactions. Reporting entities are urged to review their arrangements regularly to ensure compliance with internal procedures and to update these procedures as necessary.

FSA’s Pledge to Ensure a Robust AML/CFT Regime

The FSA has pledged to work closely with reporting entities to ensure a robust and effective AML/CFT regime is in place. The authority calls on all stakeholders to remain vigilant against money laundering and terrorist financing.