Seychelles will regulate VASP business activities on the islands to meet the FATF standards.
Lately, the jurisdiction has conducted a national risk assessment on virtual assets and their service providers. Mr. Denny Sanhye of BDS Forensics on the presentation to the local providers said: “there is a large number of VASPs operating in Seychelles, but the lack of structure and proper regulation in place, do not cater for their operations which means they cannot be properly monitored.”
It was mentioned that there are many VASP (Virtual Asset Service Provider) companies operating in Seychelles. However, lack of regulation doesn’t make it possible to supervise those companies properly.
It is to be noted that the VASP activities regulation is a demand of recommendation 15 of the FATF Standards. There are two ways to deal with this requirement, said Mr. Sanhye, either to forbit them or to regulate them. In Seychelles this type of activities will be regulated.
It was also mentioned that the industry overview showed that some of the VASP businesses are operating through the BCs incorporated in Seychelles. Such companies indicated that they are based in the Seychelles, but only having a registered address there. This matter would also be tackled according to the officials.
Following the National Risks Assessment Report, the draft legislation will be discussed internally and then presented to the cabinet of ministers, and the National Assembly for approval.