Seychelles’ improved OECD rating boosts reputation and investor confidence

Seychelles has secured a major endorsement of its financial and regulatory framework after being upgraded to “Largely Compliant” by the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes, a development that could strengthen the island nation’s international standing and enhance its appeal to investors.

The new rating marks a significant improvement from the “Partially Compliant” status Seychelles received in 2020, which ultimately led to its inclusion on the European Union’s list of non-cooperative jurisdictions for tax purposes. The latest assessment reflects years of legislative reforms and efforts to strengthen tax transparency and information exchange standards.

The Global Forum’s reassessment, published in January, recognized the progress made by Seychelles in enhancing beneficial ownership requirements, strengthening anti-money laundering legislation and improving the ability of authorities to obtain and exchange information with international partners. The reforms also included greater oversight and enforcement mechanisms designed to improve compliance across the international financial services sector.

For Seychelles, the upgraded rating represents a milestone in the country’s efforts to reinforce its reputation as a well-regulated international financial centre and to demonstrate its commitment to global standards at a time when transparency and governance are increasingly important considerations for investors.

Pierre Laporte, Minister of Finance, Economic Planning, Trade and Investment, welcomed the outcome, describing it as recognition of Seychelles’ commitment to maintaining high standards of financial integrity and international cooperation. “The Government remains committed to fostering a conducive environment for growth while ensuring it adheres to international best practices, and continuing to build the country’s reputation as a reputable financial jurisdiction,” he said.

The improved rating also raises expectations that Seychelles could be removed from Annex II of the EU’s list of non-cooperative jurisdictions for tax purposes, where it currently remains because of previous concerns relating to exchange of information standards. Such a move would further strengthen the country’s international reputation and remove a source of uncertainty for businesses and investors.

Beyond its offshore financial services sector, the development has broader implications for Seychelles’ investment climate. International investors are increasingly placing greater emphasis on governance, regulatory certainty and transparency when making location decisions. Strong ratings from multilateral organizations and international standard-setting bodies can therefore play an important role in supporting confidence and reducing perceptions of risk.

The Seychelles economy has traditionally relied on tourism and international financial services, but the government has also sought to attract investment into sectors including the blue economy, renewable energy, digital services and sustainable infrastructure. Strengthening the country’s regulatory credentials could support these ambitions by reinforcing Seychelles’ image as a stable and reputable jurisdiction.

According to the OECD, the majority of jurisdictions assessed under the current peer review framework have achieved either “Compliant” or “Largely Compliant” status, reflecting the growing importance of transparency standards in the global economy.

For Seychelles, achieving “Largely Compliant” status represents not only recognition of years of reform, but also an important signal to international investors that the country is committed to combining competitiveness with strong governance. In an increasingly scrutinised global investment environment, reputation has become an asset in its own right—and one that Seychelles has worked hard to strengthen.