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CBS clarifies statements made on Bonzour Sesel interview |27 March 2018

In light of growing public interest following the interview on Bonzour Sesel: Topik Konversayon on Monday March 19, 2018, the Central Bank of Seychelles (CBS) has clarified certain statements.

In particular, the three main statements to be addressed relate to: ‘on/offshore’ bank licensing, regulation and procedures; CBS ‘survey’ from which an incorrect conclusion was drawn; and the exclusion of the Seychelles International Financial Services Association (SIFSA) from CBS meetings.

Contrary to statements made during the interview in relation to the ‘on/offshore’ bank licensing, any delays to engage in “onshore” banking currently being faced by an institution are not the result of a lack of procedure on the part of CBS. Seychelles has, since 2011, a single licensing framework, which removes the need for two separate licenses for onshore and offshore banking. Consequently, it is at the discretion of the individual bank to conduct solely resident or non-resident banking, or a combination of both. Any banking institution that offers non-resident banking and intends to move to resident banking, needs to meet all the existing criteria, including integration with the rest of the domestic banking sector and payment systems.

The second issue that CBS wishes to address pertains to the research conducted by CBS into the economic contribution and future prospects of the international financial services sector given the changes in the international regulatory environment. In conducting the research, CBS liaised with key stakeholders, including the Ministry of Finance, Trade and Economic Planning; the Financial Services Authority; and the Seychelles International Financial Services Association (SIFSA). The main conclusion of this research indicated that the business model of the international financial services sector needs to be revised, given the regulatory changes.

Lastly, with regards to issues relating to anti-money laundering and the combatting of the financing of terrorism (AML/CFT), Seychelles undertook a National Risk Assessment (NRA) in 2017. The NRA included various stakeholders from both private and public sector. Following the NRA, a high level committee comprising relevant regulatory authorities was established to address the gaps that were identified. One of the key action points in the work plan of this committee is to have a comprehensive review of the AML/CFT legislative framework, a process which is currently underway. While the industry participants are not directly included in the initial phases of this review process, their respective regulatory bodies are actively involved. As per the norm with legislative amendments, a broader spectrum of stakeholders will be consulted in the white paper stage.

It is also worth noting that the Financial Services Committee tasked with formulating the national financial sector strategy includes members of SIFSA and the Seychelles Bankers Association. CBS ensures the involvement of relevant stakeholders at appropriate forums under its jurisdiction.

 

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