Seychelles

1. Does the Seychelles have legislation making it a criminal offence to engage in money laundering and/or terrorist financing?

The Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020 (AML/CFT Act); The Anti-Money Laundering and Countering the Financing of Terrorism Regulations, 2020 (AML/CFT Regulations); Prevention of Terrorism Act, 2004 (POTA); Prevention of Terrorism (Implementation of United Nations Security Council Resolutions on Suppression of Terrorism) Regulations, 2015; Anti-Corruption Act, 2016 and ancillary regulations and guidance notes together form a comprehensive and modern anti-money laundering, counter terrorist financing and sanctions regime.

2. To whom does the legislation apply?

This legislation applies to all persons. Regulatory Offences apply to businesses in the regulated sector (which are referred to as “Reporting Entities”) and, in the case of failing to disclose a suspicion of money laundering, to any person who forms that suspicion based on information that came to him or her in the course of employment, trade or business.

3. What does the legislation prohibit?

The AML Act prohibits acquiring, directly or indirectly property from the proceeds of criminal conduct; converting, transferring, handling, removing from Seychelles property which is known or believed to be or represent the benefit of criminal conduct or being reckless as to whether the property is or represents such benefit, the person, without lawful authority or excuse, concealing or disguising the true nature, source, location, disposition, movement or ownership of the property or any rights associated with the property; or acquiring, possessing or using the property. Reporting Persons have an obligation to disclose a suspicion arising in the course of business, and tipping off is an offence.

The POTA prohibits any terrorist act which includes an act or threat of action which involves a specified outcome. This act also criminalises the failure to freeze funds or economic resources found by the authority to be related to terrorism and imposes monitoring and reporting obligations.

The POCA prohibits any act which constitutes a corruption offence, which includes any act of gratification.

4. How is money laundering defined? Does underlying criminal activity have to be proven?

Any person who directly or indirectly acquires property from the proceeds of criminal conduct, knowing or believing that property is or represents the benefit of criminal conduct or being reckless as to whether the property is or represents such benefit, the person, without lawful authority or excuse converts, transfers or handles the property, or removes the property from Seychelles, conceals or disguises the true nature, source, location, disposition, movement or ownership of the property or any rights associated with the property, acquires, possesses or uses the property, or participates in such conduct in view to, aiding, abetting, assisting, attempting, counselling, conspiring, concealing or procuring the commission of such conduct is committing a money laundering offence.

It is not necessary to prove that the property in question is or represents the benefit of any particular criminal conduct or that any person was convicted of criminal conduct in relation to the property. The burden of proof shall rest upon the defendant to prove that the property was not derived from criminal conduct.

5. What level of intent or knowledge is required to establish a violation?

There should be reasonable ground to suspect or recklessness as to whether the property was or represented benefit from criminal conduct. A person is reckless if the person disregards a substantial risk that the property in question is or represents a benefit of criminal conduct, and for those purposes “substantial risk” means a risk of such a nature and degree that having regard to the circumstances in which the person became involved with the property and the extent of the information then available to the person, the disregard of that risk involves culpability of a high degree.

6. What are the potential penalties for infringing the legislation?

A person guilty of money laundering is liable on conviction to a fine not exceeding SCR 5,000,000 or to imprisonment for a term not exceeding 15 years or to both; a person other than a natural person guilty of money laundering is liable on conviction to a fine not exceeding SCR 10,000,000.

Offences under the POCA, upon conviction range from fines not exceeding SCR 10,000 to not exceeding SCR 500,000 or to imprisonment for a term not exceeding 2 years to not exceeding 10 years, and in certain cases to imprisonment for a term not less than 10 years.

Under the POTA, every person who commits a terrorist act that causes the death of a person commits an offence and shall on conviction be liable to imprisonment for life and any other terrorist act, shall on conviction be liable to imprisonment for a period not less than seven years and not more than 30 years. On conviction of other offences, a person is liable to imprisonment for a term not less than seven years and not more than 20 years.

7. Does the legislation have extra-territorial reach?

Yes, under the AML Act, an offence means the violation of any law in Seychelles, or the violation of any law in a foreign state, which, if it occurred in Seychelles, would constitute an offence.

8. Are there additional anti-money laundering or counter terrorist financing regulations or obligations, such as registration or reporting obligations, for businesses or individuals that operate in particular sectors or undertake particular activities?

Reporting Entities have the obligations to comply with guidelines and practice directions issued by their supervisory authorities. All Reporting Entities also have the obligation to register with the Financial Intelligence Unit to comply with their reporting obligations.

9. What are the potential penalties for failing to comply with these obligations?

All failures to comply with obligations under the guidelines are liable to penalties provided for in the AML/CFT Act.

10. Who are the relevant enforcement authorities in the Seychelles and what are their contact details?