FATF status

The Seychelles is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Seychelles was undertaken in 2023. According to that Evaluation, Seychelles was deemed Compliant for 12 and Largely Compliant for 22 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

The Seychelles government has prioritized transparency and accountability, establishing the Anti-Corruption Commission of Seychelles (ACCS) in 2016 to combat corruption. Despite legislative efforts, including amendments to enhance the ACCS's powers, the commission has faced criticism for its limited success, achieving only one conviction since its inception. Recent high-profile arrests related to the alleged theft of foreign aid highlight ongoing corruption issues, while new initiatives aim to improve governance and transparency.

Seychelles, an archipelagic nation with a GDP of $1.59 billion in 2022, boasts the highest GDP per capita in Africa at $13,250. The economy is heavily reliant on tourism and fishing, making it vulnerable to external shocks, as evidenced by a significant drop in tourism revenues during the COVID-19 pandemic. Despite being classified as a high-income country, wealth distribution is uneven, with the richest one percent controlling over 20 percent of the income share, highlighting urgent issues of inequality that need to be addressed.

Seychelles has a favorable investment climate, characterized by a commitment to attracting foreign direct investment (FDI) while maintaining certain restrictions to protect local businesses. The government encourages investment in sectors such as tourism, fishing, and renewable energy, and has established the Seychelles Investment Board to facilitate the investment process. However, regulations restrict foreign investment in specific areas, and the government emphasizes sustainable practices to preserve the country's unique ecosystems.