|
|
Sanctions:
None applicable
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
US State Department Money Laundering Report - 2011:
Seychelles is a not a major financial center. The Seychellois
authorities consider drug trafficking, parallel market operations,
theft and fraud as the major sources of illegal proceeds.
Seychelles has been negatively affected by piracy off the coast of
Somalia.
Seychelles is a consumer country for narcotics. To diversify its
economy beyond tourism and fisheries, the Government of
Seychelles (GOS) developed an offshore financial sector to
increase foreign exchange earnings, and actively markets itself as
an offshore financial and business center that allows the
registration of nonresident business companies. These activities
make the country vulnerable to money laundering. In its 2007-
2017 Strategic Plan, the GOS proposes to facilitate the further
development of the financial services sector through active
promotion of Seychelles as an offshore jurisdiction, with emphasis
on international business companies (IBCs), mutual funds, special
license companies, and insurance companies. The Foundations
Act, passed in December 2009, provides for the establishment
and operation of private foundations to add to Seychelles’
offshore product offerings. The Seychelles International Business
Authority, which regulates the offshore financial sector, provides
training in such areas as company and trust administration,
international tax planning, compliance and anti-money laundering.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks (both domestic and offshore), credit
unions, insurance companies, trust and company service
providers, casinos, real estate agents, money exchangers,
notaries, lawyers, accountants, and dealers in precious metals
and stones
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks (both domestic and offshore), credit
unions, insurance companies, trust and company service
providers, casinos, real estate agents, money exchangers,
notaries, lawyers, accountants, and dealers in precious metals
and precious stones
Number of STRs received and time frame: 29 from January 1 to
November 30, 2010
Number of CTRs received and time frame: 0
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: 0 civilly: Approximately $110,000 -
January 1 to November 30, 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
The Government of Seychelles is a member of the Eastern and
Southern Africa Anti-Money Laundering Group (ESAAMLG), a
Financial Action Task Force-style regional body. Its most recent
evaluation can be found here: http://www.esaamlg.
org/reports/view_me.php?id=189
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Seychelles (GOS) should work to improve the
implementation of its AML/CFT framework, including the analysis
of STRs and the pursuit of investigations and prosecutions for
money laundering and terrorist financing. Seychelles should
continue to work with its FIU to ensure it has the training and
resources needed for outreach, analysis and dissemination. The
GOS should expand its anti-money laundering efforts by
prohibiting bearer shares, anonymous accounts and accounts in
fictitious names, and clarifying its law regarding the complete
identification of beneficial owners. Additionally, it should mandate
enhanced due diligence procedures for politically exposed
persons. The GOS also should amend its AML laws to state
explicitly that all offshore activity is regulated in the same manner
and to the same degree as onshore. The GOS should also
consider codifying the ability to freeze assets rather than issuing
restraining orders, and develop a cross-border currency reporting
requirement.
____________________________________________________
US State Dept Narcotics Report 2012:
Production of narcotics in Seychelles is limited to the growing of
cannabis. Plants are grown outdoors and seizures are regularly
made at locations throughout the larger islands. Over the last
twelve months, significant progress has been made in
suppressing drug activity on the street level and the
importation/trafficking level. Between 15 to 20 persons are
arrested each week for minor drug offences such as possession,
obstruction, etc.
In 2011, more than 1,000 mature marijuana plants were seized.
This figure is substantially higher than the figure in 2009/2010
when some 191 plants were seized. All of the compressed
cannabis and herbal material is imported into the Seychelles.
Seychelles is not a major producer or exporter of illegal drugs, or
a transit route for drug trafficking. Other illicit drugs, primarily
heroin and to a lesser extent cannabis products, are brought into
Seychelles for consumption with some small share going for
transshipment to other markets.
Seychelles National Drug Enforcement Agency (NDEA) of the
Seychelles Police Force works closely with other law enforcement
and health agencies on drug control and education/treatment
programs throughout the country, and cooperates with U.S.
government agencies. The NDEA continues to look for ways to
improve its resources and to build its capacity. Seychelles is a
party to the 1988 UN Drug Convention. Seychelles is a party to
the UN Convention Against Corruption and the UN Convention
against Transnational Organized Crime.
The NDEA appears on track, based on data as of October 2011,
to record an increase in seizures and cases filed involving illegal
drugs. Seychelles customs has recorded record levels of seizures
over the last three years. The NDEA and Customs credit the
increase in illicit drug seizures and arrests in recent years to their
ongoing operations with other units of the police force and
cooperation with immigration and profiling. The Government of
Seychelles (GOS) collaborates with the Drug Enforcement
Administration, United Nations Office on Drugs and Crime, and
the International Narcotics Control Board.
Based on narcotic seizures, arrests, and rehabilitation program
participation, marijuana has become the most commonly
consumed drug in Seychelles closely followed by heroin. Non-
governmental organizations (NGOs) believe that there are
approximately 3000 abusers of which 1000 to 1500 are injecting.
The NDEA states that there are 5000 substance abusers
including alcohol abuse. The Ministry of Health provides treatment
for drug addicts at a number of outlets in Seychelles. A disturbing
increase in Hepatitis C cases has prompted the government to
consider the use of a methadone substitute to maintain addicts
during treatment and to introduce a needle exchange program.
NGOs provide counseling and prevention advice to supplement
government efforts.
Seychelles’ legislation controlling the illegal use of drugs dates
from 1991. The GOS has clearly indicated that it will deal harshly
with drug traffickers and has now adopted a ‘zero tolerance’
approach to any drug related activity. This has resulted in
significant reduction in the availability of drugs and in the ability of
the traffickers to conduct business. Retired Irish police officers,
contracted to advise the Seychelles Police, have made a positive
impact on the capacity of Seychelles Police to enforce the law.
The government of the Seychelles does not encourage or
facilitate drug trafficking as a matter of government policy, and
senior officials of the government are not believed to be involved
in such activity.
The U.S. government provides training assistance to Seychelles
law enforcement agencies, including the NDEA, through the
International Law Enforcement Academies in Gaborone, Botswana
and Roswell, New Mexico, and through Africa Command, the FBI,
and NCIS.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Seychelles is a source and possibly destination country for
Seychellois children and foreign women and girls subjected to sex
trafficking. In January 2011, a local NGO released a qualitative
report on the perception of prostitution in Seychelles. Though the
findings were anecdotal, respondents agreed that child
prostitution exists – particularly on Mahe, the main island – and
appears to be increasing. While the magnitude of the problem is
unknown, local observers indicate that girls and, to a lesser
extent, boys between 13 and 18 years of age are induced into
prostitution, including by peers, family members, or pimps. Young
drug addicts are at particular risk of being forced into prostitution.
Seychellois children are exploited in prostitution in nightclubs,
bars, guest houses, hotels, brothels, and on the street. Foreign
tourists reportedly contribute to the demand for commercial sex
acts in Seychelles. Foreign part-time residents in Seychelles
reportedly have created a demand for the import of young women
from Eastern Europe and Australia to serve as “party hostesses”
in resort hotels and provide sexual services; it is possible that
some of these women experience conditions indicative of forced
prostitution. In March 2010, a Seychellois man was arrested in
Madagascar for allegedly engaging in child sex tourism.
The Government of Seychelles does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government acknowledged that child prostitution was a
problem in the country and took initial steps to better understand
and raise awareness of the phenomenon. It also established
district task forces comprised of government and civil society
stakeholders to prevent and respond to, in part, child prostitution;
drafted amendments to strengthen existing penal code provisions
on child prostitution; and produced proposals for the creation of
organizations and processes to combat child prostitution. The
government, however, made no efforts during the year to take
legal action against the exploiters of children in prostitution or to
provide victims with protective services.
____________________________________________________
US State Dept Terrorism Report 2009
No report available
None applicable
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
US State Department Money Laundering Report - 2011:
Seychelles is a not a major financial center. The Seychellois
authorities consider drug trafficking, parallel market operations,
theft and fraud as the major sources of illegal proceeds.
Seychelles has been negatively affected by piracy off the coast of
Somalia.
Seychelles is a consumer country for narcotics. To diversify its
economy beyond tourism and fisheries, the Government of
Seychelles (GOS) developed an offshore financial sector to
increase foreign exchange earnings, and actively markets itself as
an offshore financial and business center that allows the
registration of nonresident business companies. These activities
make the country vulnerable to money laundering. In its 2007-
2017 Strategic Plan, the GOS proposes to facilitate the further
development of the financial services sector through active
promotion of Seychelles as an offshore jurisdiction, with emphasis
on international business companies (IBCs), mutual funds, special
license companies, and insurance companies. The Foundations
Act, passed in December 2009, provides for the establishment
and operation of private foundations to add to Seychelles’
offshore product offerings. The Seychelles International Business
Authority, which regulates the offshore financial sector, provides
training in such areas as company and trust administration,
international tax planning, compliance and anti-money laundering.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks (both domestic and offshore), credit
unions, insurance companies, trust and company service
providers, casinos, real estate agents, money exchangers,
notaries, lawyers, accountants, and dealers in precious metals
and stones
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks (both domestic and offshore), credit
unions, insurance companies, trust and company service
providers, casinos, real estate agents, money exchangers,
notaries, lawyers, accountants, and dealers in precious metals
and precious stones
Number of STRs received and time frame: 29 from January 1 to
November 30, 2010
Number of CTRs received and time frame: 0
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0
Convictions: 0
Assets forfeited: criminally: 0 civilly: Approximately $110,000 -
January 1 to November 30, 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
The Government of Seychelles is a member of the Eastern and
Southern Africa Anti-Money Laundering Group (ESAAMLG), a
Financial Action Task Force-style regional body. Its most recent
evaluation can be found here: http://www.esaamlg.
org/reports/view_me.php?id=189
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of Seychelles (GOS) should work to improve the
implementation of its AML/CFT framework, including the analysis
of STRs and the pursuit of investigations and prosecutions for
money laundering and terrorist financing. Seychelles should
continue to work with its FIU to ensure it has the training and
resources needed for outreach, analysis and dissemination. The
GOS should expand its anti-money laundering efforts by
prohibiting bearer shares, anonymous accounts and accounts in
fictitious names, and clarifying its law regarding the complete
identification of beneficial owners. Additionally, it should mandate
enhanced due diligence procedures for politically exposed
persons. The GOS also should amend its AML laws to state
explicitly that all offshore activity is regulated in the same manner
and to the same degree as onshore. The GOS should also
consider codifying the ability to freeze assets rather than issuing
restraining orders, and develop a cross-border currency reporting
requirement.
____________________________________________________
US State Dept Narcotics Report 2012:
Production of narcotics in Seychelles is limited to the growing of
cannabis. Plants are grown outdoors and seizures are regularly
made at locations throughout the larger islands. Over the last
twelve months, significant progress has been made in
suppressing drug activity on the street level and the
importation/trafficking level. Between 15 to 20 persons are
arrested each week for minor drug offences such as possession,
obstruction, etc.
In 2011, more than 1,000 mature marijuana plants were seized.
This figure is substantially higher than the figure in 2009/2010
when some 191 plants were seized. All of the compressed
cannabis and herbal material is imported into the Seychelles.
Seychelles is not a major producer or exporter of illegal drugs, or
a transit route for drug trafficking. Other illicit drugs, primarily
heroin and to a lesser extent cannabis products, are brought into
Seychelles for consumption with some small share going for
transshipment to other markets.
Seychelles National Drug Enforcement Agency (NDEA) of the
Seychelles Police Force works closely with other law enforcement
and health agencies on drug control and education/treatment
programs throughout the country, and cooperates with U.S.
government agencies. The NDEA continues to look for ways to
improve its resources and to build its capacity. Seychelles is a
party to the 1988 UN Drug Convention. Seychelles is a party to
the UN Convention Against Corruption and the UN Convention
against Transnational Organized Crime.
The NDEA appears on track, based on data as of October 2011,
to record an increase in seizures and cases filed involving illegal
drugs. Seychelles customs has recorded record levels of seizures
over the last three years. The NDEA and Customs credit the
increase in illicit drug seizures and arrests in recent years to their
ongoing operations with other units of the police force and
cooperation with immigration and profiling. The Government of
Seychelles (GOS) collaborates with the Drug Enforcement
Administration, United Nations Office on Drugs and Crime, and
the International Narcotics Control Board.
Based on narcotic seizures, arrests, and rehabilitation program
participation, marijuana has become the most commonly
consumed drug in Seychelles closely followed by heroin. Non-
governmental organizations (NGOs) believe that there are
approximately 3000 abusers of which 1000 to 1500 are injecting.
The NDEA states that there are 5000 substance abusers
including alcohol abuse. The Ministry of Health provides treatment
for drug addicts at a number of outlets in Seychelles. A disturbing
increase in Hepatitis C cases has prompted the government to
consider the use of a methadone substitute to maintain addicts
during treatment and to introduce a needle exchange program.
NGOs provide counseling and prevention advice to supplement
government efforts.
Seychelles’ legislation controlling the illegal use of drugs dates
from 1991. The GOS has clearly indicated that it will deal harshly
with drug traffickers and has now adopted a ‘zero tolerance’
approach to any drug related activity. This has resulted in
significant reduction in the availability of drugs and in the ability of
the traffickers to conduct business. Retired Irish police officers,
contracted to advise the Seychelles Police, have made a positive
impact on the capacity of Seychelles Police to enforce the law.
The government of the Seychelles does not encourage or
facilitate drug trafficking as a matter of government policy, and
senior officials of the government are not believed to be involved
in such activity.
The U.S. government provides training assistance to Seychelles
law enforcement agencies, including the NDEA, through the
International Law Enforcement Academies in Gaborone, Botswana
and Roswell, New Mexico, and through Africa Command, the FBI,
and NCIS.
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Seychelles is a source and possibly destination country for
Seychellois children and foreign women and girls subjected to sex
trafficking. In January 2011, a local NGO released a qualitative
report on the perception of prostitution in Seychelles. Though the
findings were anecdotal, respondents agreed that child
prostitution exists – particularly on Mahe, the main island – and
appears to be increasing. While the magnitude of the problem is
unknown, local observers indicate that girls and, to a lesser
extent, boys between 13 and 18 years of age are induced into
prostitution, including by peers, family members, or pimps. Young
drug addicts are at particular risk of being forced into prostitution.
Seychellois children are exploited in prostitution in nightclubs,
bars, guest houses, hotels, brothels, and on the street. Foreign
tourists reportedly contribute to the demand for commercial sex
acts in Seychelles. Foreign part-time residents in Seychelles
reportedly have created a demand for the import of young women
from Eastern Europe and Australia to serve as “party hostesses”
in resort hotels and provide sexual services; it is possible that
some of these women experience conditions indicative of forced
prostitution. In March 2010, a Seychellois man was arrested in
Madagascar for allegedly engaging in child sex tourism.
The Government of Seychelles does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. During the reporting period,
the government acknowledged that child prostitution was a
problem in the country and took initial steps to better understand
and raise awareness of the phenomenon. It also established
district task forces comprised of government and civil society
stakeholders to prevent and respond to, in part, child prostitution;
drafted amendments to strengthen existing penal code provisions
on child prostitution; and produced proposals for the creation of
organizations and processes to combat child prostitution. The
government, however, made no efforts during the year to take
legal action against the exploiters of children in prostitution or to
provide victims with protective services.
____________________________________________________
US State Dept Terrorism Report 2009
No report available
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| SEYCHELLES |
| KnowYourCountry |
|
________________________________________________________
AML News / Links
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1 peer
review for the Seychelles
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
AML News / Links
February 10, 2011 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a Phase 1 peer
review for the Seychelles
View Review....
Links:
Worldwide AML Legislation (International Bar Association)
|
| Last Updated: 16 April 2012 |