CBS adopts SWIFT Sanctions Screening System |07 April 2018

The Central Bank of Seychelles (CBS) has adopted the use of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) Sanctions Screening System.

The System, which has become active since Monday March 5, 2018, will better assist in scrutinising incoming and outgoing financial transactions to ensure full compliance when conducting these daily activities. It automatically screens the payments and receipts against sanctions lists managed by SWIFT and alerts the Central Bank when a transaction is flagged as a potential threat or in violation of a sanctions list.

“As the regulator of the banking sector, the Central Bank strives for the highest level of compliance with international standards, so as to lead by example within an industry where the risks cannot be ignored,” notes the Governor of the Central Bank of Seychelles, Caroline Abel, on the practically of the System, adding that “the screening tool provides a quick and secure way to ensure that no illegal transactions are passed, thus avoiding severe consequences such as being sanctioned ourselves or potentially being blacklisted by other jurisdictions.”

It is to be noted that the System provides added assurance that the Central Bank maintains a proactive approach to guaranteeing continued trust within the global financial community. Subsequently, Seychelles will be able to maintain a positive relationship with its correspondent banks, in view of its reliance on these banking relationships for its regular foreign payments and receipts, as well as reserves management activities. Investment in this System, amounting to approximately R220,000 yearly, is seen as vital, given Seychelles’ position as a vulnerable tourism and fisheries economy.

Since being introduced by SWIFT in 2012, this system has been employed by over 700 banks and financial institutions, including over 30 Central Banks worldwide. As noted by Denis Kruger, Head of Sub-Sahara Africa, SWIFT: “Sanctions compliance is complex and expensive, and the penalties for non-compliance can be very severe. SWIFT is working closely with the financial community across Africa to develop cost-effective solutions that meet such industry challenges. SWIFT's Sanctions Screening Service will support the Central Bank of Seychelles in further strengthening its financial crime compliance programme and ensuring payments are secure and compliant.”

The Central Bank of Seychelles remains committed to ensuring that the mechanisms to maintain the financial security of the country is being kept up to date, as the challenges to compliance and cybersecurity become increasingly complex. It is therefore the Bank’s responsibility to ensure that its transactions are protected and remain compliant to internationally-approved standards.