Global Real Estate Investment - Orbvest Specialized Investment

SEYCHELLES: A HIGHLY REGULATED JURISDICTION


Seychelles: A Highly Regulated Jurisdiction


Dear Valued Shareholder, Client & Investor

It has recently come to our attention that there have been some concerns around Seychelles as an offshore investment jurisdiction.

We at PKF would like to put any concerns to rest and present to you with the facts about Seychelles and MERJ Stock Exchange.

Seychelles is a Highly Regulated Market
  • The term Regulated Market by definition is a fully licensed stock exchange and is the highest category of regulated exchange globally.
  • MERJ Stock Exchange is a Regulated Market meeting the same criteria as the London Stock Exchange, New York Stock Exchange, Nasdaq, CBOE, and CME.
  • The Financial Services Authority of Seychelles (FSA) is an Associate Member of the International Organisation of Securities Commissions (IOSCO) which are the same international standards adhered to by the FCA in the UK, the CFTC and SEC in the USA and almost every other credible regulator of the global securities markets.
  • MERJ is also an affiliate member of the World Federation of Exchanges (WFE), This is an elite global industry group for exchanges and clearinghouses, creating and agreeing on the best practices and standards.
  • The WFE is exclusively for Regulated Markets and it is a prerequisite that the relevant regulator is a member of IOSCO. 
  • The rules and regulations of Seychelles, the FSA, and MERJ meet the highest standards globally.
  • Seychelles is also largely compliant with OECD (which is the same bracket as the UK).
  • MERJ Exchange is also a market leader in Exchange Technology.

The Financial Action Task Force (FATF)

 
Seychelles is in good standing with FATF.
 
FATF is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.  The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.  

The FATF is, therefore, a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

 
The FATF has developed a series of recommendations that are recognised as the international standard for combating money laundering and the financing of terrorism and proliferation of weapons of mass destruction.  They form the basis for a coordinated response to these threats to the integrity of the financial system and help ensure a level playing field.  First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.

The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally.  In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

Seychelles has a strong International reputation

  • Seychelles has not appeared on any blacklist globally. (i.e. money laundering, tax avoidance, base erosion, profit shifting), with the limited exception of Portugal.
  • EU Blacklist for Tax Avoidance includes: 
    • American Samoa, Aruba, Barbados, Belize, Bermuda, Dominica, Fiji, Guam, Marshall Islands, Oman, Samoa, The US Virgin Islands, Trinidad and Tobago, UAE, Vanuatu.
  • OXFAM Blacklist includes: 
    • Albania, Anguilla, Antigua, Bahamas, Bahrain, Bosnia, BVI, Cook Islands, Cayman, Curacao, Faroe Islands, Macedonia, Gibraltar, Greenland, Hong Kong, Jersey, Marshall Islands, Mauritius, Montenegro, Nauru, New Caledonia, Niue, Palau, Serbia, Singapore, Switzerland, Taiwan
  • More information on this can be found here.
PKF and Onboarding Agreements
  • As PKF, we have onboarding agreements with several international trading platforms that facilitate Equity trading, Derivatives trading, FX, etc.
  • PKF also banks and works closely with Barclays.
Bloomberg
  • There have been numerous articles published by Bloomberg on Seychelles and in particular around MERJ Stock Exchange (see here for one of the articles).
  • Edmond Tuohy, CEO of the Exchange was also recently invited to sit on a panel speaking at the Emerging & Frontier Forum at Bloomberg's London headquarters in June, you can see a small video on that here.

Conclusion
 

In conclusion, PKF Capital has never been more confident in Seychelles as being the “go-to” investment opportunity for international investors. 
 
We hope the above-mentioned facts will clear any concerns shareholders, clients and investors may have with Seychelles as a regulated Jurisdiction.

Should anyone have any further questions or concerns, please do not hesitate to contact us at support@pkf.sc, we will gladly clear any further concerns you may have.



 



 

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