Seychelles' Beneficial Ownership Act of 2020 (2023 Updated)

Introduction:

In a decisive move on 5th March 2020, Seychelles transformed its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework through the introduction of the Beneficial Ownership Act 2020 (BOA) and the AML/CFT Act 2020. These legislative changes, aimed at bolstering transparency and curbing financial misconduct, have far-reaching implications for owners of International Business Companies (IBCs) in Seychelles. In collaboration with G.O.C, a leading offshore service provider, we delve into the impact of the BOA and its significance for IBC owners.

Central Hub for Beneficial Ownership Information:

A pivotal change brought by the BOA is the establishment of a central data repository managed by the Financial Intelligence Unit (FIU). This repository serves as the official custodian of beneficial ownership information, ensuring its security and accessibility.

Scope of the Act:

The BOA extends its influence over a diverse range of entities, including legal persons, partnerships, foundations, and more. Seychelles IBC Companies, overseas companies, protected cell companies, special license companies, resident trustees of international trusts, and general partners of limited partnerships fall within its purview. It's worth noting that entities listed on specific securities exchanges are exempt from this Act.

Responsibilities of Seychelles IBCs:

Under the BOA, Seychelles IBCs bear significant responsibilities. They are tasked with identifying and verifying information related to Beneficial Owners (BOs). Additionally, IBCs must promptly report changes in BO details within 14 days.

Obligations of Beneficial Owners (BOs):

The Act defines BOs as individuals who exercise ultimate control over customers, transactions, or legal entities. These individuals are mandated to declare their BO status within 14 days of becoming one or experiencing any changes. Non-compliance or submission of false information may result in penalties and limitations imposed by the company.

Duties of Covered Entities:

Entities governed by the BOA are obligated to uphold a register of beneficial owners and promptly provide this data to their registered agent within a 14-day timeframe. Furthermore, this information must be retained for a minimum of 7 years following the cessation of a person's BO status.

Centralized Beneficial Ownership Database:

At the heart of the BOA lies the concept of a centralized beneficial ownership database. This repository, managed by the FIU, receives information submitted by legal entities via their registered agents. Access to this database is restricted to authorized Seychellois authorities and is not open for public scrutiny.

Authorized Database Access:

Key authorities, including the Anti Corruption Commission, Central Bank, Financial Intelligence Unit, and others, have sanctioned access to the database. This access empowers these entities to verify and scrutinize beneficial ownership information to counteract financial crimes effectively.

Balancing Transparency and Confidentiality:

The BOA strikes a balance between transparency and confidentiality. While beneficial ownership information finds a place in the centralized database, the Act mandates IBCs to diligently maintain their records. This ensures Seychelles' IBCs align with global standards while preserving their privacy.

Enforcement and Future Landscape:

Scheduled to take effect on 31 January 2021, the BOA marks a turning point in Seychelles' stance against financial misconduct. As implementation nears, anticipate further regulations and amendments to facilitate the seamless adoption of these changes.

Conclusion: Partnering for Compliance with G.O.C:

The Beneficial Ownership Act 2020 heralds Seychelles' proactive stance against financial misconduct and underscores its commitment to global standards. G.O.C, your offshore service ally, is primed to guide you through these transformative changes and ensure your IBC's compliance. Reach out to us to navigate the nuances of the BOA and fortify your IBC's standing in this evolving landscape.

Contact Us:

Have queries or need assistance? Connect with your dedicated relationship manager or email us at info@globaloffshorecompany.com. G.O.C stands by your side as a trusted partner, dedicated to your success in navigating Seychelles' dynamic regulatory environment.

*Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.*