Anti-Money Laundering and Countering the Financing of Terrorism |29 August 2020

Designated Minister Mondon accepts a copy of the strategy from SS Payet (Photo: Thomas Meriton)

Seychelles launches its national strategy 2020-2023

Seychelles has launched its National Anti-Money Laundering and Countering the Financing of Terrorism Strategy 2020-2023 (SNAML/CFT strategy).

It was officially launched by the Minister for Finance, Trade, Investment and Economic Planning, Ambassador Maurice Loustau-Lalanne, in a short ceremony held at the Seychelles Trading Company (STC) conference room, Latanier Road, yesterday morning.

The launch of the act follows its approval by the cabinet of ministers in July this year.

The strategy, aimed at combatting money laundering and terrorism financing, was formulated following our country’s risk assessment in 2016 further to a mutual evaluation conducted by the Eastern and Southern Africa’s Anti-Money Laundering Group (ESAAMLG) on our set standards.

Present at the launch ceremony were the Speaker of the National Assembly, Nicolas Prea, Designated Minister Macsuzy Mondon, secretaries of states, members of the diplomatic corps, National AML/CFT committee members and stakeholders in government and the private sector, among other guests.

The new AML/CFT Act makes provision for a sectoral supervisory approach to fight money laundering and the financing of terrorism, to be shared by the Central Bank of Seychelles (CBS), Financial Services Authority (FSA) and the Financial Intelligence Unit (FIU).

CBS and FSA are to supervise institutions under their regulatory purview, through a more risk-based method, while the FIU with the overall oversight, has the responsibility for designated non-financial businesses and professions and high-risk non-profit organisations.

The act also makes provision for more dissuasive and proportionate sanctions for non-compliance.

It has five key strategic objectives linked to combatting money laundering, financing of terrorism and proliferation financing, namely: enhancing Seychelles’ AML/CFT legal framework consistent with international standards; strengthening domestic and international cooperation; developing capacities of relevant public and private sector entities; implementing effective risk-based supervision and enforcement of measures; and strengthening intelligence, investigations, confiscation and prosecution of related offences.

In addressing all present, Minister Loustau-Lalanne said that Seychelles is showcasing its commitment to adhering to international standards and address deficiencies highlighted by international bodies and jurisdictions in recent times.

“In that regard, we have already submitted the first request for re-rating of the Financial Action Task Force Recommendations graded as partially compliant and non-compliant following ESAAMLG’s most recent Mutual Evaluation. The outcome is expected in the fourth quarter of 2020,” Minister Loustau-Lalanne said.

Minister Loustau-Lalanne added that Seychelles, although geographically isolated, is as vulnerable to these threats as any jurisdiction. The impact list is quite extensive, ranging from increased costs for businesses when dealing with international partners, correspondent banking challenges for banks, to the broader problem of reputational damage to the country.

Money laundering is related to 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, which threatens the integrity and stability of the financial sector of individual countries and the global financial system.

Minister Loustau-Lalanne noted that the formulation of the National AML/CFT Strategy adds to efforts already underway to address the identified deficiencies, particularly the enactment of more effective laws, which is crucial to having a strong AML/CFT regime.

Speaking on a new Beneficial Ownership Act (2020) coming into force in parallel with the new AML/CFT Act 2020, Minister Loustau-Lalanne said that it will ensure the identification and verification of beneficial ownership information and provides for the establishment of an up-to-date register of beneficial owners and a secured and centralised Beneficial Ownership database maintained by the FIU and in doing will deter and prevent the misuse of legal entities.

“The implementation of the two laws will further assist in promoting transparency, better align the country’s legal framework with international standards and help to mitigate threats to the integrity of the financial system, including corruption and tax crimes as well as reputational risks,” Minister Loustau-Lalanne added, noting the current Covid-19 pandemic which is unfolding into an economic crisis, for example, as one with the potential to increase anti-money laundering risks.

Minister Loustau-Lalanne said that enforcement of these laws and strong commitment and collaborative approach on the part of the relevant authorities, to implement the outlined actions is even more critical.

He stated that Seychelles wants to send a clear message that the country is resolute on protecting the integrity of its financial system, on which it is heavily reliant to remain connected to the global financial system. The full implementation of this Strategy is expected to be completed by 2023.

Following the presentation of a short video on the strategy, the chairman of the committee, secretary of state for Finance, Patrick Payet, and the vice-chair Caroline Abel, the Governor of the Central Bank of Seychelles, presented copies of the strategy to government and private sector stakeholders present, including copies to the diplomatic corps collected by general Dalbir Singh Suhag, Indian high commissioner to Seychelles.

It was Designated Minister Mondon who accepted the first copy from SS Payet on behalf of President Danny Faure.

Patrick Joubert