Seychelles continues work to be on par with FATF standards
December 15, 2021
The National Assembly has approved five bills, presented by Ministers Naadir Hassan, and Errol Fonseka, as well as Vice-President Ahmed Afif.
In its session of Tuesday 14th December, the Anti-Corruption (Amendment) (No3), Bill, 2021, Licenses (Amendment) Bill, 2021, and Custody, Management and Disposal of Seized, Forfeited or Confiscated Properties Bill, 2021, were approved.
During the session on Wednesday 15th December, the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Bill, 2021 and Prevention of Terrorism (Second Amendment) Bill, 2021 were approved.
The Anti-Corruption Act of 2016, created the Anti-Corruption Commission Seychelles (ACCS).
The law was amended in 2020 to allow ACCS to investigate cases of money laundering which are link to corruption practices.
The latest amendments will allow ACCS to investigate offences under the Penal Code in furtherance corruption practices. Section 64, has also been amended, empowering the authority to institute prosecution against accused in cases investigated by the ACCS. Another major amendment is to allow for better coordination between ACCS and other public entities, such as the Registrar General, when there’s an ongoing corruption investigation.
The amendments pertaining to the Licenses Act are aimed at being compliant to recommendation made by the ‘Financial Action Task Force’ (FATF), especially recommendation 28, where Seychelles is rated as ‘partially compliant.’
Under the new amendment, the Licensing Authority (SLA) will be given the powers, to work in collaboration with the Financial Intelligence Unit (FIU), to carry out what is termed as ‘fit and proper checks’ on applicants in the ‘Designated Non-Financial Businesses and Professions’ (DNFBPs), which include among others : Accountants, lawyers, notaries, and real estate agents .However it will exclude DNFBPs that fall under the regulatory ambit of any Ministry or Department or Agency or under any other law in force.
A new bill “Custody, Management and Disposal of Seized, Forfeited or Confiscated Properties ” 2021, is to enable conformity with requirements of the FATF.
Seychelles is rated as ‘partially compliant’ for recommendation 4, while it is rated as ‘partly met’ for recommendation 38. Both recommendations relate to ‘confiscation and provisional measures and mutual legal assistance in confiscation and freezing respectively’.
To ensure compliance with the new law, the Ministry of Finance, Economic Planning and Trade will set up an ‘Assets Management Unit.’
The Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (Act 5 of 2020) (hereinafter referred to as AMLCFT Act) was enacted for the prevention, detection and combating of money laundering and terrorist financing activities; for collection, analysis and managing information on suspicious financial transactions and activities; to create and empower institutions to suppress money laundering and the financing of terrorism and for matters connected therewith or incidental thereto. A review of the Act was conducted while implementing the provisions of the Act and certain shortcomings have been identified to meet with the recommendations of the FATF and the observations made in the Mutual Evaluation Report of the ESAAMLG. Thus the AML/CFT (Second Amendment) Bill, 2021 will be in line with the FATF standards.
The Prevention of Terrorism Act, 2004 (Cap 179) was enacted to provide for measures to prevent and suppress terrorism and for connected matters. FATF Recommendations Numbers 5, 6 and 7 relate to Terrorist Financing and Financing of Proliferation. The Prevention of Terrorism (Second Amendment) Bill, 2021 will ensure Seychelles meet the FATF recommendations.
Minister Hassan noted the bills are to ensure that Seychelles honours its commitments to be compliant as per the standards of the FATF.
The National Anti-Money Laundering and Countering the Financing of Terrorism Committee (NAC), chaired by SS Patrick Payet, welcomed the approval of the five legislations by the National Assembly. NAC will finalize the regulations that will accompany the act and will submit its re-rating report to ESAAMLG before end of January 2022 for discussion during the September 2022 ESAAMLG meeting.
NAC also expressed appreciation to the stakeholders including the private sector that have taken part and made valuable contributions during the consultation process, as well as the National Assembly for the time dedicated to debate on and approve the five laws.