Financial Crime World

Seychelles Eyes Tighter Compliance with International Financial Standards

Strengthening Financial Sector through Supervision and Regulation

Seychelles has taken significant steps to ensure compliance with international financial standards by mandating the Financial Services Authority (FSA) to supervise and regulate non-bank financial services businesses. This move aims to maintain the integrity, effectiveness, and development of the sector.

FSA Powers

The FSA’s powers include:

  • Conducting compliance inspections on licensed businesses
  • Appointing examiners to investigate suspected wrongdoing
  • Issuing directives and directions
  • Suspending fit and proper status of individuals
  • Issuing public statements
  • Revoking or suspending licenses
  • Applying for protection orders
  • Removing directors and key employees
  • Imposing administrative penalties
  • Requesting information from licensees

Compliance and Enforcement Tools

The FSA has been equipped with necessary compliance and enforcement tools under relevant financial services legislation to regulate various sectors, including:

  • Fiduciary Services
  • Capital Markets
  • Collective Investment Schemes
  • International Trade Zone
  • Insurance
  • Gambling
  • Hire Purchase and Credit Sale businesses

Unauthorized Financial Services Business

According to the Financial Services Authority Act 2013, any person carrying on unauthorized financial services business in Seychelles is committing a punishable offense. The FSA can take various actions against such individuals, including:

  • Requesting information
  • Appointing examiners
  • Issuing public statements
  • Applying for protection orders

Public Statements

The authority may issue public statements regarding enforcement actions taken against licensees or former licensees, as well as individuals carrying on unauthorized financial services business. These statements provide reasons for the enforcement action and serve to:

  • Protect the public
  • Enhance the reputation of Seychelles as a financial center
  • Reduce crime and other unlawful activities

License Revocation or Suspension

In cases where licenses are revoked or suspended, the FSA may do so if it appears that the licensee has:

  • Contravened relevant laws or regulations
  • Provided false information
  • Refused to cooperate with inspections

Licensees may also surrender their licenses by providing notice in writing to the Authority, accompanied by a true and full disclosure of reasons for surrendering the license.

Commitment to International Financial Standards

These measures demonstrate Seychelles’ commitment to maintaining high standards of compliance with international financial standards, ensuring the integrity of its financial sector, and protecting the public.