r.8 Appointment of compliance officer and alternative compliance officer

(1) Subject to section 100(4) of the Act, every reporting entity shall appoint a compliance officer under section 34(1) of the Act and an alternative compliance officer under section 34(3) of the Act, with the approval of the respective supervisory authority, subject to the following—
(a) reporting entities shall submit the completed applications along with all required documents for appointment of compliance officer and alternative compliance officer together, at the time of initial appointment, as may be specified by the respective supervisory authority for its consideration:
Provided that the reporting entity may submit applications separately for appointment of compliance officer or the alternative compliance officer after the initial appointment under paragraph (a);
(b) reporting entities shall ensure that the applicants for compliance officer and alternative compliance officer meets with all the requirements as provided in section 34(2) of the Act and the specific requirements of the respective supervisory authority as specified in Schedule 1 to these regulations;

(c) supervisory authority shall examine the applications submitted by the reporting entity for appointment of compliance officer and alternative compliance officer and advise the reporting entity, if any further information is required;
(d) supervisory authority shall inform the reporting entity upon approving or rejecting the applications for appointment of compliance officer and alternative compliance officer;
(e) supervisory authority shall provide, upon rejecting the application for appointment of compliance officer or alternative compliance officer—
(i) a written notice to the reporting entity about rejection of the application;
(ii) the grounds for rejecting the application for appointment of compliance officer or alternative compliance officer;
(f)

any reporting entity aggrieved by the decision of the supervisory authority may appeal to the Appeals Board in the manner specified in regulation 20 of these regulations; and

(g) alternative compliance officer shall be physically present in Seychelles, when acting in the absence of the compliance officer.
(2) Reporting entities, except virtual asset service providers, who have not more than five staff members may apply to their respective supervisory authority to have an individual appointed as the compliance officer and in the event of the absence of the appointed

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compliance officer, the reporting entity shall notify the same to the respective supervisory authority:
Provided that the reporting entity falling under this subregulation shall not be required to appoint an alternative compliance officer along with the compliance officer:
Provided further that a sole trader falling under this subregulation shall not be required to appoint an alternative compliance officer and he or she shall be the sole compliance officer:
(Amended by S.I 67 of 2024)
(3) Reporting entities, who have not more than five staff members are not permitted to conduct its business to a lower regulatory standard and the responsibility is always on the reporting entity to ensure adherence with the established compliance measures and is not in any way constitute an absolution for compliance with any other requirements that may be established under law or any directives, guidelines or policies issued thereunder.
(4) Reporting entities who have not more than five staff members are not required to develop a separate training programme or conduct training as required under subparagraph (ii) of paragraph (e) of subregulation (1), but shall ensure that all relevant staff members participate in anti-money laundering and countering the financing of terrorism trainings offered, or recommended by or on behalf of their respective supervisory authority at least once in every two years and the supervisory authorities may provide guidance to the reporting entities concerning the categories of relevant staff.