All provisions · AML/CFT Act (Cap. 251) · Part Vi: Preventive measures
37 Correspondent banking relationship
A licensed bank shall not enter into a correspondent banking relationship with a bank or other credit institution situated outside Seychelles unless the licensed bank—
(a) gathers sufficient information about the bank or credit institution so as to understand fully the nature of the business of that bank or credit institution;
(b) is satisfied on reasonable grounds, based on publicly available information, that the reputation of the bank or credit institution and the quality of supervision or monitoring of the operation of that bank or credit institution in the other country are sound, adequate and effective;
(c) is satisfied on reasonable grounds, having assessed the anti-money laundering and anti-terrorist financing controls applied by the bank or credit institution, that those controls are sound, adequate and effective including whether it has been subjected to any investigation regarding money laundering or terrorist financing activities or undergone any regulatory action;
(d) obtains the approval of the senior management; and
(e) documents the responsibilities of the bank or credit institution in applying anti-money laundering and anti-terrorist financing controls to customers in the conduct of the correspondent banking relationship; and
(f) in the case of customers of the bank or credit institution who have direct access to a payable-through account held with the licensed bank in the name of the bank or credit institution, is satisfied on reasonable grounds that the bank or credit institution—
(i) has identified and verified the identity of those customers, and is able to provide to the licensed bank, upon request, the documents, whether or not in electronic form, or information used by the credit institution to identify and verify the identity, of those customers;
(ii) has applied measures equivalent to the measures referred to in section 41 in relation to those customers; and
(iii) is applying measures equivalent to the measures referred to in section 49 in relation to those customers.
(a) gathers sufficient information about the bank or credit institution so as to understand fully the nature of the business of that bank or credit institution;
(b) is satisfied on reasonable grounds, based on publicly available information, that the reputation of the bank or credit institution and the quality of supervision or monitoring of the operation of that bank or credit institution in the other country are sound, adequate and effective;
(c) is satisfied on reasonable grounds, having assessed the anti-money laundering and anti-terrorist financing controls applied by the bank or credit institution, that those controls are sound, adequate and effective including whether it has been subjected to any investigation regarding money laundering or terrorist financing activities or undergone any regulatory action;
(d) obtains the approval of the senior management; and
(e) documents the responsibilities of the bank or credit institution in applying anti-money laundering and anti-terrorist financing controls to customers in the conduct of the correspondent banking relationship; and
(f) in the case of customers of the bank or credit institution who have direct access to a payable-through account held with the licensed bank in the name of the bank or credit institution, is satisfied on reasonable grounds that the bank or credit institution—
(i) has identified and verified the identity of those customers, and is able to provide to the licensed bank, upon request, the documents, whether or not in electronic form, or information used by the credit institution to identify and verify the identity, of those customers;
(ii) has applied measures equivalent to the measures referred to in section 41 in relation to those customers; and
(iii) is applying measures equivalent to the measures referred to in section 49 in relation to those customers.
Official source: Anti-Money Laundering and Countering the Financing of Terrorism Act (Cap. 251), Act 5 of 2020, Revised Edition as at 17 January 2025 (Acts 5 of 2020, 7 of 2021, 8 of 2021, 62 of 2021, 9 of 2022, 12 of 2024, S.I. 145 of 2020)
