Seychelles Law of Offshore

This is a non-exhaustive list of the main Seychellois statutes affecting offshore and non-resident business. The statutes are listed in alphabetical order - click on the statute for a fuller description of the statute or the legal regime it forms part of.

An amendment to the Foreign Earnings Act ensured that foreign exchange earners are obligated to use the country's banking system. A new definition of 'non-resident' enlarged on the term to include 'any person in or resident in Seychelles who engages in a trade, business or activity with another such person for or on behalf of or for the benefit or purpose of any person not resident in Seychelles.'

Amendments to the Trades Tax Act strengthened price controls and enable dthe authorities to put a 'true' value on imported goods. Changes to the Exchange Control Act required individuals who possess any foreign currency to show evidence that it was obtained from a registered dealer and prohibit the buying and selling foreign currency by authorised dealers at rates above the maximum rate or below the minimum rate determined by the Central Bank as well as prohibiting the export and import of Seychelles currency notes and coins in excess of R2,000. Amendments to the Central Bank Act led to the appointment of an Exchange Controller.

The Central Bank of Seychelles Act 2004 makes provision for the Central Bank to operate more as an independent institution.

In November, 2006, the government of the Seychelles has announced the establishment of the Non-Bank Financial Services Authority (NBFSA), an organisation intended to support the liberalisation of the Seychelles economy and increase transparency in financial transactions.

According to a statement by the Department of Public Administration in the Vice-President’s Office, the setting up of the NBFSA is to be overseen by Conrad Benoiton who is credited with steering through the creation of the Seychelles International Business Authority (SIBA), the government's inward investment promotion body.

Areas falling under the remit of the new body will include the insurance and mutual fund sectors, and the stock exchange.

The Central Bank will continue to concentrate on price stability, regulation of banks and other functions falling under the Financial Institutions Act.

“Government is divesting from parastatal activities and a process is being put in place for the sale of shares to individuals and companies," explained the statement.

"In the climate of greater transparency and liberalization, there is therefore an urgency to have a financial services body to be fully involved with the regulation of trading of shares,” it added.

Seychelles Banking Law

Banking in the Seychelles is governed by the Financial Institutions Act 1984 as amended in 1995. Licences are issued by the Offshore Banking Department of the Central Bank and are granted only to companies incorporated under the Companies Act 1942 or foreign companies which have registered under the Companies Act. Licenses are issued for domestic banking, offshore banking, or both. When both are conducted, it must be through separate offices. Offshore banks are permitted to operate numbered accounts for their clients.

Applicants must supply extensive information to the Central Bank, including at least the following:

The Central Bank has 90 days to respond to an application, and does not have to give a reason for refusal. The refused applicant may appeal to the Minister and to the Court.

The Bank requires monthly balance sheet submissions; accounts must be prepared and audited each year, and then published.

The Act contains extensive confidentiality provisions. For non-domestic banking business, disclosure is only permitted on order of the Court in response to an application by the Attorney-General.

The Bank has considerable powers of inspection and control over what it considers to be unsafe, unsound or unlawful practices.

The Anti-Money Laundering Act 2006 established a Financial Intelligence Unit (FIU) as a unit of the Central Bank, bringing the Seychelles' anti-money laundering regime more into line with international practices. The FIU has the authority to request information considered relevant to an offence under the Act, and from reporting entities, supervisory agencies and law enforcement agencies.

The FIU may enter into agreements with foreign states to facilitate the exchange of information to assist investigations into suspected cases of money laundering and terror financing.

The Anti-Money Laundering Act requires reporting entities to take "reasonable measures" to ascertain the purpose of any transaction in excess of SR100,000, or of SR50,000 in the case of cash transactions, and the origin and ultimate destination of the funds involved in the transactions.

Seychelles Trust Law

The International Trusts Act 1994 established, for the first time, a regime for international trusts in the Seychelles; it does not provide for domestic trusts. The Act was drafted after a thorough study of current practice in a number of leading offshore jurisdictions. Under the Act, the Seychelles International Business Authority (SIBA) is appointed as the regulatory body for trusts, alongside the Court.

The Seychelles is mostly a civil law jurisdiction to which the concept of the trust was unknown; thus the Trusts Act has to be sufficient unto itself, and indeed it contains some basic definitions which include the admittance of charitable, trust, purpose trusts, constructive trusts, and trusts resulting from action by the Court. The following are some of the key features of the Seychelles Trust regime:

The Act contains extensive wording dealing with all aspects of the setting-up of trusts, the rights and responsibilities of trustees, and the powers of the Court. The above brief details are given for purposes of general information, but reference should be made to the Act itself and to professional advisers before any action is taken.

Seychelles Electronic Gambling Law

The Interactive Gambling Act, 2003 provides for the licencing and regulation of any internet gambling business carried on in or from Seychelles. The Act conforms to strict international regulatory norms and draws heavily from solid Australian legislation.

The Act provides for the creation of special "players' accounts" whereby the operator can hold funds of a player on trust for them and with the operator having the right to debit the amount of a wager in an authorised game. Winnings may also be paid directly into these players' accounts. This option ensures that the player does not have to produce credit card and personal information for every wager, only when "recharging" his or her account. Player protection is afforded through these trust accounts, as well as operator and player security. An operator cannot provide credit to a player.

The regulatory authority will only grant licences to fit and proper persons and retains the right of approval of the gaming software and control system. The Act requires the annual auditing of an operator's accounts and financial statements; and submission of a copy of the audit report to the regulatory authority. The Act also provides for inspectors who will have powers of entry and search in the course of monitoring or enforcing compliance with the Act.

Seychelles International Trade Zone

The International Trade Zone Act 1995 and the International Trade Zone Regulations 1995 provide for the establishment of free trade zones, which are delimited by a declaration of the Finance and Communications Minister, and can be for one company or many. The existing International Trade Zone (SITZ) on Mahe is established under the Act. Activities within the Zone are governed by the Seychelles International Business Authority (SIBA), which issues licenses to incoming companies.

Licenses are available for manufacturing, assembling, redistribution or service activities; retailing is not normally permitted within the Zone or from it, but SIBA has authority to give consent for it. SIBA can request information at its discretion from an applicant for a license. See Offshore Legal and Tax Regimes for details of fees and taxes payable in the SITZ.

The Authority is responsible for the physical security of the Zone, and controls access to it. Officials of SIBA or of the Zone or police officers can search vehicles and shipments moving in and out of the Zone, and have power to seize goods they suspect are illegitimate. A license issued by SIBA can be revoked if the holder does not begin, or ceases the activity covered by the license. There is an appeal process, eventually to the Supreme Court. License holders must keep records of their activities, and these can be inspected by SITZ on demand, as can premises occupied by licence-holders. Information obtained by SITZ may not be divulged except on a Court order.

The concessions available to licence holders in SITZ include:

Exemption from customs duties on capital equipment to be used in SITZ;
Exemption from social security contributions;
Exemption from fees in respect of 'gainful occupation permits' (work permits);
Entitlement to employ 100% foreign labour;
Permission to acquire interests in immovable property or a company owning such an interest, for the purpose of carrying on activities in SITZ.

These concessions are given by way of disapplying the relevant other Acts or parts of them.

SEYCHELLES: LAW OF OFFSHORE

On this Page:

Seychelles Table of Statutes

Seychelles Banking Law

Seychelles Trust Law

Seychelles Electronic Gambling Law

Seychelles International Trade Zone