Seychelles
Seychelles is an Independent Indian Ocean island located between mainland Africa and Asia strategically located to service the European, Asian, Middle Eastern and African markets. The Seychelles offshore financial services industry has experienced a significant increase in know-how, business volumes and international profile based on its strategy of striking an effective balance between sound regulatory practice and the marketplace. Seychelles offers different products including IBCs, Trusts, Foundation, Company Special Licenses, and PCC amongst others.
REGULATOR
The Financial Services Authority, Seychelles (FSA) is the autonomous regulatory body responsible for the non-bank financial services in the Seychelles. Established under the Financial Services Authority Act, 2013, the Authority is responsible to license, regulate, enforce regulatory and compliance requirements, monitor and supervise the conduct of business in the non-bank financial services sector in Seychelles. These regulated activities are Fiduciary Services, Capital Market & Collective Investment Schemes and Insurance. The Authority is also responsible for the regulation of the International Trade Zone activities, gambling activities (casinos, slot machines and interactive gambling), hire purchase and credit sales activities and the registration of International Business Companies, Foundations, Limited Partnerships and Trusts in the Seychelles.
TRANSPARENCY
FSA is member of the International Association of Insurance Supervisors (IAIS) in respect of insurance business and is an associate member of the International Organisation of Securities Commission’s (IOSCO) Objectives and Principles of Securities Regulation. The Seychelles is also committed to the work of the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes (this includes Automatic Exchange of Information (AEOI) and Exchange of Information on Request (EOIR)) and the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). Seychelles is featured as having met the requirements of Action 5 of the BEPS standard. The Seychelles is also a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). ESAAMLG is a FATF-style regional body committed to combat money laundering by implementing the FATF Recommendations and assesses countries implementation of FATF’s 40 Recommendations. Following the second round of the Mutual Evaluation Assessment, Seychelles emerged largely compliant. Seychelles is taking more initiatives to bring in more transparency and has recently modernised its legislations with regards to combating money laundering and terrorist financing as well as proper record keeping and filing of beneficial ownership.
INDUSTRY STRENGTH
Seychelles’ location has proven to be a significant advantage in servicing the European, Asian and African markets. Since its commencement in 1994, the Seychelles offshore financial services industry has grown substantially and Seychelles is now well and truly on the offshore map. The tax-exempt Seychelles international business company (IBC) has enjoyed significant success. The success of the Seychelles IBC has led the jurisdiction into more value-added areas of offshore business, including CSLs, Protected Cell Companies, Limited Partnerships and Mutual Funds.
REGIONAL AND GLOBAL CONNECTIONS
Seychelles is a member of various global and regional organisations. It is a member of the Commonwealth, the Organisation of the African, Caribbean and Pacific Group of States (OACPS), African Union, Indian Ocean Rim Association and Common Market for Eastern and Southern Africa (COMESA).
REGULATORY ENVIRONMENT
The legal system in Seychelles is derived from English Common Law, the civil law and the 1993 Constitution. Civil law is based on the French Napoleonic code but adapted for the Seychelles and referred to as the Civil Code of Seychelles. Both criminal and procedural law is largely based on British systems of law.
The main regulatory instruments include Companies, Partnerships and Trusts legislation as well as specific business sectors such as Insurance, Banking and Investments. The FSA complements legislation with prudential regulation and guidance to all sectors of the economy.
Appleby Global Service is regulated by the FSA as an International Corporate Service Provider, Trust Services Provider and Foundation Service Provider for provision of Corporate, Trust and Foundation services.