38 Shell Banks

(1) A licensed bank shall—
(a) not enter into, or continue a correspondent banking relationship with a shell bank; and
(b) take appropriate measures to ensure that it does not enter into, or continue, a banking relationship with a bank that is known to permit its accounts to be used by a shell bank.
(2) For the purposes of this section—
(a) a “shell bank” is a bank, or an institution engaged in equivalent activities that—
(i) is incorporated in a country in which it has no physical presence involving meaningful decision making and management; and
(ii) is not subject to supervision by the Central Bank of Seychelles or a foreign regulatory authority, by reason that it is not affiliated to any financial services group that is subject to effective consolidated supervision;
(b) “correspondent banking” means the provision of banking services by one bank to another bank; and
(c) “banking services” includes—
(i) cash management, including establishing interest-bearing accounts in different currencies;
(ii) international wire transfers of funds;

(iii) cheque clearing;
(iv) payable-through accounts; and
(v) foreign exchange services.