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 the Anti-Corruption (Amendment) Bill and the Public Officers’ Ethics Act, the ACCS has faced criticism for its limited success in securing convictions. Recent high-profile arrests related to the alleged theft of foreign aid highlight ongoing corruption issues, while the government continues to seek improvements in governance through initiatives like the National Coalition of Integrity Committee.

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, which makes 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 holding over 20 percent of the income share in 2023.

Seychelles has a favorable investment climate, characterized by a commitment to attracting foreign direct investment (FDI) while maintaining certain restrictions in sectors reserved for local investors. The government promotes investment in tourism, fishing, and renewable energy, and has established the Seychelles Investment Board to facilitate investment processes. However, regulations limit foreign investment in specific areas, and the country emphasizes sustainable development to protect its unique ecosystems.