Seychelles’ financial system aims to foster financial stability, encourage investment, and meet the financial needs of individuals, enterprises, and the government. It is controlled and overseen by several authorities to ensure the financial sector’s integrity, transparency, and soundness.
Seychelles is an archipelago in the Indian Ocean located between 480 and 1,600 km east of Africa. Despite its distance from the continent’s mainland, the country is politically part of Africa.
According to Worldometer’s analysis of the most recent United Nations data, the current population of Seychelles is 100,080 as of Thursday, May 11, 2023.
Seychellois Creole (Seselwa), derived from French, is spoken by 95% of the population. Both French and English are also spoken.
The legal system in Seychelles is one of mixed jurisdiction. A Civil Code drawn from the French Napoleonic Code governs civil law. The criminal law is mostly based on common law.
Seychelles is a well-known offshore financial centre, drawing international clientele looking for offshore banking services. This status can give clients with benefits such as tax planning, asset protection, and privacy.
Seychelles has put in place a regulatory framework that encourages a stable and secure banking system. The Financial Services Authority (FSA) monitors and supervises banks to guarantee that international standards, including as anti-money laundering (AML) and know-your-customer (KYC) rules, are met.
Seychelles has a stable government and a rising economy. This stability can instill trust in consumers and investors, as well as create a favourable atmosphere for banking operations.
Banks can benefit from a competitive tax environment in Seychelles. There are no capital gains taxes, dividend or interest withholding taxes, or exchange control laws. Banks can benefit from low taxes, allowing for increased profitability and more appealing financial services for customers.
Seychelles uses its own currency, the Seychellois Rupee (SCR), which allows clients and the bank to diversify their currency holdings.
Seychelles is advantageously placed in the Indian Ocean, close to expanding African and Asian markets. This can improve trade and investment opportunities for Seychelles-based banks.
Seychelles banks can establish correspondent banking links with other financial institutions throughout the world. This enables efficient cross-border transactions, access to international financial networks, and increased trust in the global banking community.
Seychelles has a strong legal framework in place to protect the privacy and confidentiality of banking and financial data. Clients looking for private and secure banking services may find this intriguing.
Seychelles permits the establishment of International Business Companies (IBCs), which can be used for a variety of purposes such as holding company structures, investment vehicles, and asset protection. Seychelles banks can provide financial services to these businesses, thereby expanding their client base.
Seychelles is a famous tourist destination noted for its beautiful natural surroundings and immaculate beaches. Seychelles banks can enter the tourism and hospitality industries by providing specialised banking services to hotels, resorts, and related enterprises.
|License:||International Bank License|
|Timeframe for Approval:||4–6 months|
|Regulator:||Seychelles Financial Services Authority (FSA)|
|Local Director:||Minimum of two directors|
|Local Shareholder:||Minimum of two shareholders|
|Local Registered Office:||Required|
|Corporate Tax Rate:||25%|
|Currency:||Seychelles Rupees (SCR)|
|Minimum Paid-up Capital:||US$2, 000, 000|
|Capital Requirement:||No minimum capital requiremmmmmm|
Conduct a preliminary assessment to see if your prospective bank fulfils the Seychelles Financial Services Authority’s (FSA) eligibility criteria. This includes determining the adequacy of capital, management experience, and regulatory compliance.
Engage legal, financial, and other professional consultants who are knowledgeable about banking and regulatory issues in Seychelles. They can help you navigate the application process, prepare the necessary papers, and ensure compliance with regulatory requirements.
Create a Seychelles business to act as the vehicle for your banking operations. This includes choosing an appropriate name, preparing the relevant incorporation documents, and paying the necessary costs.
Prepare a complete bank licence application in compliance with the FSA’s standards. Detailed information on the prospective bank’s ownership structure, directors and senior management, business plan, financial projections, compliance framework, risk management policies, and other pertinent information is often included in the application.
Submit the completed bank licence application to the FSA, along with the necessary supporting documentation. During the review process, the FSA will undertake a comprehensive evaluation of the application and may seek more information or clarification.
The FSA will conduct due diligence on the shareholders, directors, and senior management of the prospective bank. This involves determining their suitability and appropriateness for such roles in a regulated financial institution.
The FSA may undertake an onsite inspection of the proposed bank’s premises and operations to ensure regulatory compliance and to evaluate the adequacy of internal controls and systems.
If the FSA approves the application and all standards are met, the bank will be granted a licence. Once the licence is given, you can proceed with the bank’s establishment and activities.
(including but not limited to directors, shareholders and beneficial owners)