Seychelles moves to become a destination to bank on

The country has taken a series of fiscal and regulatory actions that aim to encourage inward investment while signalling that it has a financial services industry that meets global standards.

For decades, Seychelles has been best known as a luxury tourism destination. But behind the postcard-perfect beaches, the country has steadily developed into a credible and competitive international financial centre (IFC).

With more than 25 years of experience, a robust regulatory framework and ongoing reforms to meet global standards, Seychelles is making the case that small island states can play a responsible role in global finance while delivering diversification for their own economies.

Seychelles’ financial services industry has grown into a wide-ranging domain that now includes banking, insurance, company registration, trusts, foundations, investment funds, securities, and, more recently, fintech and virtual assets. International business companies (IBCs) remain a flagship product, with incorporation possible in as little as 24 hours.

Alongside this, the jurisdiction offers trusts, limited partnerships, international trusts, and collective investment schemes – structures designed to meet the needs of global investors.

Beyond product variety, the jurisdiction offers several structural advantages: modern telecoms infrastructure, no foreign exchange controls, efficient processing of residence and work permits, and a skilled bilingual workforce. Political stability and close collaboration between regulators and the private sector further strengthen the jurisdiction’s appeal.

The role of the Financial Services Authority

The Financial Services Authority (FSA), established under the Financial Services Authority Act of 2013, is the autonomous regulator for Seychelles’ non-bank financial services. It licenses, supervises, and enforces compliance requirements across fiduciary services, capital markets, collective investment schemes, insurance, gambling, and international trade zone companies. The FSA is also responsible for registering IBCs, foundations, limited partnerships and international trusts.

The FSA continues to prioritise investor confidence and jurisdictional integrity. Its mission is twofold: to ensure the soundness and resilience of the financial sector, while maintaining Seychelles’ reputation as a premier international business centre.

Strengthening compliance and transparency

Seychelles has undergone significant reforms to align with global tax and anti-money laundering standards. Key milestones include:

• AML/CFT Framework: With the enactment of the Anti-Money Laundering and Countering the Financing of Terrorism Act, 2020, the FSA became the AML/CFT supervisor for the fiduciary, insurance, capital markets and gambling sectors. It has adopted a risk-based approach in line with Financial Action Task Force recommendations.
• International cooperation: The FSA is a member of the International Association of Insurance Supervisors (IAIS) and an associate member of the International Organisation of Securities Commissions (IOSCO). It is currently in the process of signing IOSCO and IAIS multilateral memoranda of understanding for enhanced cross-border cooperation.
• OECD compliance: Seychelles participates in the OECD’s Global Forum on Transparency and Exchange of Information, including both Automatic Exchange of Information (AEOI) and Exchange of Information on Request (EOIR). It has also joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). In 2019, the OECD confirmed that Seychelles met the requirements of Action 5 of the BEPS standard on harmful tax practices.
• Regional commitments: The country is part of the Southern African Development Community’s Committee of Insurance, Securities and Non-Banking Financial Authorities and the Eastern and Southern Africa Anti-Money Laundering Group.

These reforms are more than box-ticking exercises. They demonstrate a strategic shift from quantity to quality, prioritising sustainable growth and transparency over sheer volume of incorporations.

Fintech and digital assets

Recent years have also seen Seychelles expand its regulatory frameworks to cover fintech and digital assets. By establishing clear licensing and compliance requirements for virtual asset service providers, Seychelles aims to attract legitimate players while reducing reputational risks. This positions Seychelles alongside forward-looking IFCs such as Singapore, Mauritius and Dubai, signalling that innovation and regulation can advance hand in hand.

“We have a strong reputation as a reliable, competitive financial services jurisdiction, but we must continuously adapt. The FSA is aligning regulations with international standards to improve compliance and transparency, while also expanding the range of services we offer,” says Anne Rosette, CEO of the Seychelles Investment Board.

Advantages in a competitive market

In an era of heightened scrutiny on offshore finance, Seychelles emphasises both its competitiveness and its credibility. Key advantages include:

•  Efficiency: Fast-track company incorporation and responsive regulatory engagement.
• Modern infrastructure: Reliable ICT networks supporting financial transactions and services.
• Skilled workforce: Professional, bilingual talent pool familiar with international business.
• Strategic location: At the crossroads of Africa, Asia and the Middle East, offering convenient time-zone coverage.
• Regulatory alignment: Adherence to international standards in AML/CFT, tax transparency and prudential regulation.
• Sustainability ethos: As one of the first countries to issue a sovereign blue bond, Seychelles brings its environmental priorities into its broader financial services strategy.

The road ahead

Seychelles’ small scale remains both a strength and a challenge. Its regulators can adapt quickly and maintain close links with industry, but capacity constraints persist, especially in highly specialised areas of finance. The global competition for talent and capital is intense, with larger IFCs able to draw on deeper ecosystems.

Yet, Seychelles has carved out a niche by positioning itself as nimble, responsive, and sustainability-minded. Continued reforms, capacity-building, and international cooperation will be essential to maintain momentum and ensure that the jurisdiction remains on the right side of global regulatory expectations.

Seychelles is proving that size need not be a barrier to credibility in financial services. By coupling a competitive offering with robust regulatory oversight and a commitment to global standards, it is building a platform that attracts responsible investors and fosters sustainable growth.

For global investors, Seychelles offers not only a versatile set of structures and services, but also the reassurance it is committed to aligning openness with integrity. For Seychelles itself, the financial sector provides diversification, resilience and a pathway to long-term prosperity alongside its world-famous tourism industry.