Financial Crime World

Seychelles Cracks Down on Corporate Fraud and Bribery: A Look at the Authorities, Offenses, and Sanctions

The Indian Ocean archipelago of Seychelles is renowned for its pristine beaches and crystal-clear waters, but behind the scenic facade, the country is taking a firm stand against corporate fraud and bribery. In this article, we delve into Seychelles’ regulatory provisions, key authorities, specific offenses, and sanctions.

Regulatory Provisions and Legislative Landscape

  • Corporate fraud offenses in Seychelles are regulated by several acts:
    • International Business Companies Act 2016
    • Financial Services Authority Act 2013
    • Companies Ordinance Act 1972
    • Securities Act 2007
    • Anti-Corruption Act 2016
    • Penal Code
    • Prevention of Terrorism Act 2004

Corporate Fraud Offenses

The Financial Services Authority Act 2013 outlines specific corporate fraud offenses, such as:

  • Money laundering and financing of terrorism
  • Misuse of information
  • Offenses involving dishonesty
  • Defrauding creditors
  • Acting fraudulently or in bad faith
  • Breach of trust
  • Providing false statements
  • Conspiracy to defraud

Authorities and Their Powers

  • Authorities with the power to investigate and prosecute corporate fraud cases in Seychelles:
    • Company Executive Office (CEO) or an officer of the Anti-Corruption Commission
    • Police
    • Financial Intelligence Unit (FIU)
    • Financial Services Authority (FSA)
    • Courts

Powers of interview: Police and related authorities can interview individuals in relation to alleged offenses. The CEO of the Anti-Corruption Commission may request that individuals answer questions regarding the alleged offense.

Powers of search and disclosure:

  • A police officer can search and seize evidence with a warrant granted by the court.
  • The FIU and anti-money laundering authorities can investigate and freeze funds through their respective powers.
  • An officer of the Commission may search premises, seize, and remove relevant evidence with the owner or person in control’s consent.
  • Courts can obtain evidence and issue orders or injunctions.

Power of arrest: The police and related authorities have the power to arrest individuals suspected of corporate fraud offenses.

Charging and Prosecution

  • The court is responsible for charging offenders under the Penal Code.
  • The Anti-Corruption Commission investigates complaints and determines whether the accused acted fraudulently.
  • Alternative methods of disposal, such as fines or restitutions, can be considered.

Sanctions for Corporate Fraud

  • Penalties for corporate fraud perpetrators include fines, imprisonment, account freezes, and barring approval for certain activities.

Bribery and Corruption Offenses and Authorities

  • Bribery and corruption offenses in Seychelles are covered by the Public Services Code of Ethics and Conduct 2008, Anti-Corruption Act 2016, and Seychelles Transparency Initiative.

Key International Conventions

  • Seychelles is a signatory to the UN Convention against Corruption 2003.

Please note that the information provided in this article is meant for general understanding purposes only, and it is always recommended to consult with legal and regulatory experts for specific cases or situations.