Money laundering, related predicate crimes such as corruption, tax evasion, theft, drug trafficking and others, as well as terrorist financing, and the financing of the proliferation of weapons of mass destruction, are of great concern to jurisdictions across the globe. They pose a serious threat to the integrity and stability of the financial sector of individual countries and the global financial system and expose countries to reputational and other risks.

Although small and geographically isolated, Seychelles is also vulnerable to these threats. The impact list includes increased costs for businesses when dealing with international partners, correspondent banking challenges for banks, loss of tax revenue, risk of international sanction, among others.

The Financial Action Task Force (FATF) sets global standards and promotes the effective implementation of legal, regulatory and operational measures to assist countries in combating money laundering, terrorism financing and other related threats to the integrity of the international financial system. The compliance of jurisdictions with the FATF Recommendations as well as the effectiveness of measures in place, are assessed by the FATF and other FATF-style regional bodies, e.g. the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

Seychelles conducted its first National Risk Assessment (NRA) followed by the second round of Mutual Evaluation led by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) in 2017. Both assessments highlighted deficiencies in the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.

Work is ongoing at an institutional, sectoral and national level to address the identified deficiencies, particularly the enactment of more effective laws, which is crucial to ensure that Seychelles has a more effective and robust AML/CFT regime.