Seychelles Country Summary

FATF Status

The Seychelles is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Seychelles was undertaken in 2023. According to that Evaluation, Seychelles was deemed Compliant for 12 and Largely Compliant for 22 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Seychelles faces significant challenges related to crime and corruption, despite the government's stated commitment to transparency and accountability. While the establishment of the Anti-Corruption Commission and various legislative measures aim to combat corruption, public trust remains low due to limited convictions and ongoing issues with enforcement and political influence, particularly in law enforcement and judicial independence.

Criminal activities such as human trafficking, drug trade, and financial crimes are prevalent, exacerbated by the country's status as a tax haven and the involvement of both local and foreign actors. Although there are initiatives from civil society and NGOs to address these issues, the effectiveness of these efforts is hampered by entrenched corruption and resource limitations, leaving Seychelles vulnerable to various forms of crime.

Seychelles, an archipelagic nation in the Indian Ocean, has a high-income economy primarily driven by tourism and fishing, with a GDP of $1.59 billion and the highest GDP per capita in Africa at $13,250 as of 2022. Despite its economic growth, marked by a recovery from the COVID-19 pandemic and a projected GDP growth of 3.7% in 2024, the country faces significant income inequality, with the wealthiest 1% holding over 20% of total income, leading to a decline in human development. The government is actively seeking to diversify the economy, promote foreign investment, and enhance its financial sector while maintaining a commitment to environmental sustainability and social equity, as evidenced by its initiatives in renewable energy and the establishment of an investment map to attract private capital aligned with sustainable development goals.