A guide to questions and answers on financial and white-collar crime in Seychelles.
This Q&A provides a high-level overview of matters relating to corporate fraud, bribery and corruption, insider trading and market abuse, money laundering and terrorist financing, financial record keeping, due diligence, corporate liability, immunity and leniency, and whistleblowing.
FRAUD
REGULATORY PROVISIONS AND AUTHORITIES
1. what are the main regulatory provisions and laws relevant to corporate fraud?
In Seychelles, for example, the offences relating to corporate fraud are found in numerous laws:
OPENINGS
2. what are the specific offences relevant to corporate fraud?
The specific offences relevant to corporate fraud are found in the Financial Services Authority Act 2013 and are as follows:
IMPLEMENTATION
3. which authorities have the power to prosecute, investigate and enforce in cases of corporate or commercial fraud? What are these powers and what are the consequences of non-compliance? Please identify any differences between criminal and regulatory investigations.
AUTHORITIES
In Seychelles, the authorities having powers of prosecution, investigation and enforcement in cases of corporate or commercial fraud are as follows.
LAW ENFORCEMENT POWERS
Under the Anti-Corruption Act 2016, prosecutions in relation to corporate fraud cases must be brought by or with the consent of the Attorney General. However, the FSA still has the power to revoke approvals in the event of non-compliance.
POWERS OF INTERROGATION
The police and related authorities are entitled to questioning. After conducting an investigation, the CEO of the Anti-Corruption Commission may request (by written notice) that a person answer certain questions related to the alleged offence.
POWERS TO SEARCH/OBLIGATION TO DISCLOSE
Under the Criminal Code, a police officer is authorised to conduct a search with a warrant issued by the court. However, the FIU, together with the anti-money laundering authorities, can equally investigate through searches. This is because the anti-money laundering laws in Seychelles allow the FIU to investigate and freeze the funds of fraudsters. Under the Anti-Corruption Act, an officer of the Commission can search premises and seize and remove relevant evidence. This is provided that the officer does so in the presence of the owner of the premises (or a person in control of the premises).
POWERS TO OBTAIN EVIDENCE
The court has the power under the Criminal Procedure Code to obtain evidence. Thereafter, the CEO of the Commission may investigate further.
POWER OF ARREST
The police and their associated agencies have primarily the power of arrest.
Section 57(1) of the Anti-Corruption Act 2016 provides that the following persons may act if they have reasonable grounds to believe that a person has committed, is committing or is about to commit an offence relating to corruption:
You can request that the police arrest that person without a warrant and that person will be dealt with under Section 101 of the Criminal Procedure Code. The law provides that those detained must appear before a magistrate/judge within a period of 24 hours.
COURT ORDERS OR INTERIM MEASURES
Court orders and/or restraining orders are issued by the court.
4. which authority takes the decision to charge and on what basis is that decision taken? Are there alternative methods of disposal and under what conditions is disposal carried out?
In Seychelles, the court is charged under the Criminal Code. The court considers and determines whether the accused has acted with fraudulent intent before deciding whether or not to charge. The Anti-Corruption Commission, established by the Anti-Corruption Act 2016, has the power to investigate whenever a complaint is made within the Commission.
5. what are the penalties for engaging in corporate fraud?
CRIMINAL PROCEEDINGS
Right to Bail. The police have the right to post bail until the trial. The judge then decides whether or not to adjourn the trial. However, the police must bring the detainee to court within a period of 24 hours.
Penalties. Individuals accused of corporate fraud are sentenced under the Criminal Procedure (Civil Forfeiture) Act and the court may impose a fine of SCR500,000 or imprisonment for five years or both.
CIVIL PROCEEDINGS
An individual found guilty of corporate fraud may:
SAFETY GUARANTEES
6. are there measures to protect the conduct of investigations? Is there an appeals process? Is there a judicial review procedure?
LETTER
Under the Seychelles Human Rights Commission Act 2018, accused persons have the right to a fair trial and are presumed innocent until proven guilty, with the right to appeal. The Seychelles Court of Appeal is the final court of appeal. The President is the head of the Court of Appeal and normally sits with two appellate judges.
JUDICIAL REVIEW
Any party dissatisfied with a public agency's decision-making process may petition the Supreme Court for review of the decision.
7. what are the main regulations and laws relevant to bribery and corruption?
The main regulatory provisions and laws relevant to bribery and corruption in Seychelles are as follows:
8. what international anti-corruption conventions apply in your jurisdiction?
The UN Convention against Corruption 2003 (Corruption Convention) was signed by Seychelles in 2004 and ratified in 2006.
OPENINGS
9. what are the specific bribery and corruption offences in your jurisdiction?
FOREIGN OFFICIALS
A public official may be found guilty if he is guilty:
(Section 29, Anti-Corruption Act 2016).
DOMESTIC OFFICIALS
There are no specific bribery and corruption offences for domestic public officials in Seychelles.
PRIVATE COMMERCIAL BRIBERY
A public officer must not solicit, receive or agree to accept or attempt to receive or obtain a reward from any person as an inducement for any act or omission in relation to a matter or transaction with a private body (section 23(3), Anti-Corruption Act 2016).
DEFENSES
10. what defenses, safe harbors, or exemptions exist and who can qualify?
The main defense is the ability to convince the court that the alleged offender did not participate in the crime. The law has not specified a particular way to prove this. However, if a complaint is made, the Commission and the CEO will investigate further to determine whether the alleged corrupt practice is frivolous or malicious (Section 48(1), Anti-Corruption Act, 2016).
No other defenses are offered.
11. can close persons (e.g. spouses) and proxies be held liable for these offences and under what circumstances?
Seychelles law is silent in relation to associated persons such as spouses or agents. However, section 40 of the Anti-Corruption Act 2016 provides that any person who, as a third party, with any person, commits, aids, abets, counsels or conspires to commit an offence is also guilty of that offence and any penalty is imposed on the person committing the offence.
Under section 51 of the Act, every director and manager of a body corporate is liable as if he had committed the offence until he can satisfy the court that the act was committed without his knowledge, consent or participation. If the Commission considers (on reasonable grounds) that a person has been involved in an offence and/or has benefited from gratuities or advantages, it may institute civil proceedings against that person (section 77(1) of the Anti-Corruption Act).
IMPLEMENTATION
12. which authorities have the power to prosecute, investigate and enforce in cases of bribery and corruption? What are these powers and what are the consequences of non-compliance? Please list any differences between criminal and administrative investigations.
AUTHORITIES
In Seychelles, the following authorities have the power to prosecute, investigate and enforce in cases of bribery and corruption:
LAW ENFORCEMENT POWERS
Under the Anti-Corruption Act 2016, prosecutions in relation to cases of corporate fraud must be brought by or with the consent of the Attorney General, although the FSA can revoke licences for non-compliance.
POWERS OF INTERROGATION
The police and related authorities are entitled to questioning. After conducting an investigation, the CEO of the Anti-Corruption Commission may request (by written notice) that a person answer certain questions related to the alleged offence.
POWERS TO SEARCH/OBLIGATION TO DISCLOSE
Under the Criminal Code, a police officer is authorised to conduct a search with a warrant issued by the court. However, the FIU, together with the anti-money laundering authorities, can equally investigate through searches. This is because in Seychelles, anti-money laundering laws allow the FIU to investigate and freeze the funds of fraudsters. The Anti-Corruption Act provides that an officer of the Commission may consent to the entry, search, seizure and removal of evidence in the presence of the owner or person in control of the premises.
POWERS TO OBTAIN EVIDENCE
The court has the power to obtain evidence under the provisions of the Code of Criminal Procedure. Thereafter, the CEO of the Commission may investigate further.
POWER OF ARREST
The police and their associated agencies have primarily the power of arrest.
Section 57(1) of the Anti-Corruption Act 2016 provides that the following persons may act if they have reasonable grounds to believe that a person has committed, is committing or is about to commit an offence relating to corruption:
You can request that the police arrest that person without a warrant and that person will be dealt with under Section 101 of the Criminal Procedure Code. The law provides that those detained must appear before a magistrate/judge within a period of 24 hours.
COURT ORDERS OR INTERIM MEASURES
Court orders and/or restraining orders are issued by the court.
13. which authority takes the decision to charge and on what basis is that decision taken? Are there alternative methods of disposal and under what conditions is disposal carried out?
An officer of the Anti-Corruption Commission may seek the assistance of the police, the FIU or the Seychelles Revenue Commission in the investigation. A complaint must first be made within the Commission, which will then be investigated. The Commission will then investigate the following:
If the CEO determines that the allegation has merit, he must decide whether the Commission should conduct the investigation or whether the case should be referred to another authority. The Anti-Corruption Commission may seek the assistance of the police, the FIU or the Seychelles Revenue Commission in the investigation.
CONVICTIONS AND SANCTIONS
14. what are the sanctions for engaging in bribery and corruption?
CIVIL/ADMINISTRATIVE PROCEEDINGS OR PENALTIES
The FSA has specific guidelines that company bodies must comply with. Failure to comply with these guidelines may result in penalties such as fines and/or revocation of the license.
CRIMINAL PROCEEDINGS OR PENALTIES
Right to bail. See question 3 and question 5.
Penalties. The penalties for engaging in bribery and corruption include a fine not exceeding SCR 300,000 and/or imprisonment for a term not exceeding seven years.
The defendant's funds and assets may be frozen.
SAFETY GUARANTEES
15. are there measures to protect the conduct of investigations? Is there an appeals process? Is there a judicial review procedure?
See question 6.
TAX TREATMENT
16. are there circumstances in which payments such as bribes, ransoms, or other payments for extortion or racketeering are tax deductible as business expenses?
There are no circumstances in which payments such as bribes, ransoms, or other payments based on extortion or racketeering are tax deductible as business expenses.
17. what are the main regulatory provisions and laws relevant to insider dealing and market abuse?
The main statutory provision relating to insider dealing and market abuse is contained in Sections 92 to 103 of the Securities Act 2007.
OPENINGS
(18) What are the specific offences that can be used to prosecute insider trading and market abuse?
Under the Seychelles Securities Act 2007, a person is known to be an insider if he is aware that the information is considered to be inside information. Inside information is described as any detail relating to particular securities or the issue of securities that has not been made public.
A person is guilty of this offense when found:
DEFENSES
19. what defenses, safe harbors, or exemptions exist and who can qualify?
A person may have a defense if he or she can show that he or she had reasonable grounds to believe that the alleged inside information was known to the public.
IMPLEMENTATION
20. which authorities have the power to prosecute, investigate and enforce in cases of insider trading and market abuse? What are these powers and what are the consequences of non-compliance? Please identify any differences between criminal and regulatory investigations.
AUTHORITIES
The authorities governing the powers of prosecution, investigation and enforcement in cases of insider dealing and market abuse are as follows.
LAW ENFORCEMENT POWERS
Under the Anti-Corruption Act 2016, prosecutions in relation to corporate fraud cases must be brought by or with the consent of the Attorney General. However, the FSA may revoke licences in cases of non-compliance.
POWERS OF INTERROGATION
The FSA may entrust or appoint any expert or competent person to carry out the tasks entrusted to it.
The police and related authorities are entitled to questioning. After conducting an investigation, the CEO of the Anti-Corruption Commission may request (by written notice) that a person answer certain questions related to the alleged offence.
POWERS TO SEARCH/OBLIGATION TO DISCLOSE
Under the Criminal Code, a police officer is authorised to conduct a search with a warrant issued by the court. However, the FIU may also investigate together with the anti-money laundering authorities. In addition, under the Anti-Corruption Act, an officer of the Commission may search premises and seize and remove relevant evidence. This is provided that the official does so in the presence of the owner of the premises (or a person in control of the premises).
POWERS TO OBTAIN EVIDENCE
The court has the power under the Criminal Procedure Code to obtain evidence. Thereafter, the CEO of the Commission may investigate further.
POWER OF ARREST
The police and related agencies have the most important powers of arrest.
Section 57(1) of the Anti-Corruption Act 2016 provides that the following persons may act if they have reasonable grounds to believe that a person has committed, is committing or is about to commit an offence relating to corruption:
You can request that the police arrest that person without a warrant and that person will be dealt with under Section 101 of the Criminal Procedure Code. The law provides that those detained must appear before a magistrate/judge within a period of 24 hours.
COURT ORDERS OR INTERIM MEASURES
See question 3.
21. which authority takes the decision to charge and on what basis is that decision taken? Are there alternative methods of disposal and under what conditions is disposal carried out?
The FSA, together with the court, makes the decision to bring charges in cases of insider dealing or market abuse.
CONVICTIONS AND SANCTIONS
22. what are the penalties for engaging in insider trading and market abuse?
CIVIL/ADMINISTRATIVE PROCEEDINGS OR PENALTIES
The FSA can suspend and revoke licences if a firm:
The FSA may take action if this is found to be the case:
CRIMINAL PROCEEDINGS
Right to Bail. The FSA does not provide for the right to bail (see question 5).
Penalties. A person who commits a crime is, on summary conviction, either/both a:
CIVIL COMPANIES
A person convicted of insider trading is liable for any civil action brought by any person for economic loss suffered as a result of the sale or purchase of securities.
SAFETY GUARANTEES
23. are there measures to protect the conduct of investigations? Is there an appeals process? Is there a judicial review procedure?
See question 6.
24. what are the main laws and regulations relevant to money laundering, terrorist financing and/or financial/trade sanctions violations?
In order to curb and combat money laundering and the financing of terrorism, Seychelles has taken important steps. In 2012, amendments were made to the Money Laundering Act to enhance the independence of the FIU. As part of these amendments, a specific timeframe was established for the administrative freezing of assets and for the production of relevant documents and information by related parties. The FIU also worked to solidify its legal framework governing offshore activities.
Seychelles has been assessed by the Organisation for Economic Co-operation and Development (OECD) Global Forum as fully compliant with international exchange standards. In Seychelles, the FSA reports cases of suspicious transactions to the FIU, which then reports to the President.
MONEY WASHING
Seychelles has autonomous terrorist regimes under the Anti-Money Laundering Act 2006 and the Prevention of Terrorism Act 2004 and it is well known that breach of sanctions is a criminal offence in Seychelles.
TERRORIST FINANCING
The Prevention of Terrorism Act 2004 is the most important piece of legislation relating to terrorist financing.
FINANCIAL/TRADE SANCTIONS
Seychelles, which is a member of the UN, implements all UN Security Council resolutions relating to financial/trade sanctions.
OPENINGS
25. what are the specific offences that can be used to prosecute money laundering, terrorist financing and financial/trade sanctions violations?
MONEY WASHING
A person can be found guilty of money laundering if he/she:
If a person attempts, advises, conspires or contributes in any way to money laundering, they may be liable and can be tried and punished under the Money Laundering Act 2006.
Under the Money Laundering Act, a person found guilty of money laundering is liable to a fine not exceeding SCR5 million and/or to imprisonment for a term not exceeding 15 years. A person who is not a natural person and is found guilty is liable to a fine not exceeding SCR10 million. The person may also have their assets frozen and be subject to a travel ban.
TERRORIST FINANCING
Under the Money Laundering Act 2006, the financing of terrorism is described as criminal behaviour. The Prevention of Terrorism Act 2004 describes a terrorist act as any act or threat of act involving an act:
Any person who offers or collects funds (directly or indirectly) commits a criminal offence if he knows or has reasonable grounds to believe that the funds will be used, in whole or in part, to finance terrorist acts. Such an offence is punishable by imprisonment for between seven and 20 years.
FINANCIAL/TRADE SANCTIONS
Seychelles implements UN Security Council resolutions on financial/trade sanctions.
DEFENSES
26. what defenses, safe harbors, or exemptions exist and who can qualify?
MONEY WASHING
The primary defense is that the defendant can show that he or she took all reasonable steps and exercised due diligence in connection therewith.
TERRORIST FINANCING
The main defense is disclosure of the crime, which can prevent civil and criminal liability.
IMPLEMENTATION
27. which authorities have powers of prosecution, investigation and enforcement in money laundering cases? What are these powers and what are the consequences of non-compliance? Please list any differences between criminal and regulatory investigations.
AUTHORITIES
The authorities dealing with money laundering cases are the following
LAW ENFORCEMENT POWERS
See question 3.
POWERS OF INTERROGATION
The police and related authorities are entitled to questioning. After the investigation, the executive director of the Anti-Corruption Commission may request that a person answer questions related to the alleged complaint and provide information in person.
POWERS TO SEARCH/OBLIGATION TO DISCLOSE
Under section 22 of the Money Laundering Act 2006, a magistrate may issue a search warrant on the basis of an affidavit of evidence by a property agent who is a member of the police. This is where he/she is satisfied that there are reasonable grounds to suspect that useful evidence may be found.
POWERS TO OBTAIN EVIDENCE
The court has the power under the Criminal Procedure Code to obtain evidence. Thereafter, the CEO of the Commission may investigate further.
POWER OF ARREST
The law provides that the police and related agencies have primary authority to make arrests.
Section 24(1)(a) of the Money Laundering Act 2006 provides that an arresting officer may arrest without warrant a suspect who is committing or has committed criminal conduct. Section 21 of the Prevention of Terrorism Act 2004 also states that the police may arrest without warrant any person who has committed, is committing or is about to commit an offence under the Act. The suspect must be released within 24 hours unless there is a warrant:
COURT ORDERS OR INTERIM MEASURES
Court orders and/or restraining orders are to be issued by the court itself.
28. which authority takes the decision to charge and on what basis is that decision taken? Are there alternative methods of disposal and under what conditions is disposal carried out?
See question 4.
CONVICTIONS AND SANCTIONS
29. what are the sanctions for involvement in money laundering, terrorist financing offences and/or financial/trade sanctions violations?
MONEY WASHING
Right to Bail. In money laundering cases, the right to bail is the same as for other offences (see question 5).
Penalties. Under the Money Laundering Act, persons found guilty of money laundering are liable to a fine not exceeding SCR5 million and/or to imprisonment for a term not exceeding 15 years. A person other than an individual who is found guilty of money laundering is liable to a fine not exceeding SCR10 million. The person may also have their assets frozen and be banned from travelling.
TERRORIST FINANCING
Right to bail. See question 5.
Penalties. Under the Prevention of Terrorism Act 2004, persons found guilty of terrorist financing are liable to a custodial sentence of between seven and 20 years.
FINANCIAL/TRADE SANCTIONS
Right to bail. See question 5.
SAFETY GUARANTEES
30. are there measures to protect the conduct of investigations? Is there an appeals process? Is there a judicial review procedure?
See question 6.
31. what are the general requirements for keeping and disclosing financial records?
Section 174 of the International Business Companies Act 2016 provides that a company's financial records must be capable of:
The financial records must be true and fair and must be kept at the registered office or such other place as the director thinks fit. The accounting records must also be retained for at least seven years. In addition, the Bank must monitor all developments relating to the credit market and the foreign exchange market (Section 32 of the Central Bank of Seychelles Act). The Bank may at any time require financial institutions or other entities registered in Seychelles to provide statistical information when carrying out its monetary policy and supervisory functions.
32. what are the penalties for failure to maintain or disclose accurate financial records?
A company that contravenes the International Business Companies Act 2016 is liable to a penalty of $100 and an additional fee of $25 for each day or part of a day that the contravention continues to occur. The same penalty applies to the director for knowingly allowing a contravention to occur in relation to financial records.
The Central Bank of Seychelles Act 2004 provides that refusal, neglect or delay in providing requested information is punishable by a fine of SCR20,000 and imprisonment of up to six months.
33. are the rules on keeping financial records applied in the prosecution of economic crime?
Not applicable. A fine may be imposed upon conviction.
34. what are the general due diligence requirements and procedures in relation to corruption, fraud or money laundering in contracts with external parties?
The Anti-Money Laundering Act 2006 provides that all reporting entities must apply due diligence procedures in relation to customers, business relationships and transactions. Under the Anti-Money Laundering Act, due diligence procedure refers to the identification of the customer based on documents or data/information obtained from trusted and independent sources. The law requires a company to apply due diligence measures:
Investigate suspected money laundering, terrorist financing and related crimes.
35. under what circumstances can a legal person itself be held criminally liable?
The Act is silent in relation to whether a body corporate can itself be prosecuted. However, section 51 of the Anti-Corruption Act 2016 provides that whenever an offence is committed by a body corporate or an unincorporated body, any director or manager of that body corporate shall, on conviction, be liable as if he/she had personally committed the offence. Unless the director or manager can prove that the offence was committed without the knowledge, consent or participation of the director or manager.
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